12 BULLETIN 1237, U. S. DEPARTMENT OF AGRICULTURE. 
the percentage of the total crop handled through the organization. 
The stability of the exchange was threatened, but not overturned by 
the failure of the California Fruit Agency in 1904. 
THE CALIFORNIA FRUIT AGENCY. 
The Southern California Fruit Exchange gradually became stronger 
until, in 1903, it controlled approximately 43 per cent of the citrus 
shipments from California. Shipments were large during the 1902-3 
season, the fruit ran to large sizes, and there was considerable decay 
in transit. As a result, markets were demoralized and the outlook 
appeared very unfavorable. The proposal was made to combine the 
exchange and the principal commercial shippers into a single selling 
agency which would control practically 90 per cent of the crop, ''and 
thus eliminate 'cut throat' methods, the playing of one firm against 
another by brokers to force down prices, and the excessive marketing 
expense due to useless wiring and the duplicating of agents." The 
agency (5) which began operation April 1, 1903, comprised the South- 
ern California Fruit Exchange and the California Citrus Union which 
had been organized by the commercial shippers. 
Although this agency met with some success in relieving the 
immediate situation, it soon became apparent that the two groups 
could not work together harmoniously. Conditions the following 
year were very bad, and for a time the exchange was threatened with 
disruption. The agency agreement was dissolved September 1 , 1904. 
This attempt to combine growers and dealers in a single organiza- 
tion illustrates strikingly the dangers inherent in such a union. The 
formation of the agency has been described as a a sincere yet unsuc- 
cessful attempt to combine the growers and shippers into one organ- 
ization for the benefit of the entire citrus industry." (5) Inretrospoct 
it appears a direct denial of the principles upon which the exchange 
was established, and the movement never had the united support of 
the rank and file of the exchange. Although the agency began 
business on April 1, 1903, copies of the agreement between the Cal- 
ifornia Citrus Union and the Southern California Fruit Exchange 
were not sent to the district exchanges for ratification until May 15. 
Not all district exchanges had ratified the agreement the following 
September. It was never ratified by the San Bernardino County 
Fruit Exchange, which filed notice of withdrawal from the exchange 
on this account on September 1, 1903. n The previous July this 
exchange had addressed a resolution to the Southern California Fruit 
Exchange which read in part as follows: 
Beit resolved that we hereby respectfully request that the Southern California 
Fruit Exchange quickly rot urn to those sure principles upon which the organization 
that has done so much for the citrus industry of ( 'alifornia was based; that no alliance 
be made or recognized which involves repudiation of contracts, or discrimination 
against loyal members of the Exchange or the adoption of methods proven to be 
false. 
That only such alliance be made as the management and rank and file of the 
Exchange shall judge to be for the best interests of the industry and just to all. 
All this to the end that the integrity and harmony of the Exchange may be 
maintained and their beneficent influence bo perpetuated. 
Three principal reasons for the failure of the scheme have been 
given by Mr. Woodford, who became general manager of the exchange 
11 Minutr of i lie board of directors, Southern California Fruit Exchange. 
