COOPEKATIVK CITRUS-FRUIT MARKETING AGENCY. 11 
A still further reason for the loss in membership may bo found in 
a very natural reaction from the enthusiasm with which the organi- 
zation was started. The exchange system did not immediately revo- 
lutionize the marketing of citrus fruit. Furthermore, the growers 
were inexperienced in handling their own business, inexperienced lo- 
cal managers were employed in some instances, and many mistakes 
were made, some of them resulting in serious losses to the associa- 
tions and their members. There was considerable decay in transit 
and many rejections by buyers during the first seasons. Many east- 
ern dealers were accused of unfair practices by the exchanges and a 
number were placed on a blacklist. Considerable complaint was 
made that certain exchanges continued to deal with jobbers who had 
been blacklisted for unfair practices by other exchanges. Entire 
harmony among the exchanges was lacking, and there was not com- 
plete confidence in the executive board. 
A number of resolutions of a condemnatory nature were addressed 
to the executive board at this time. In October, 1894, the Semi 
Tropic Exchange withdrew from the system because it disapproved, 
among other things, of the marketing plan proposed. The Orange 
County Exchange threatened to withdraw at this time. These ex- 
changes were later pacified, and the Semi Tropic Exchange returned 
to the organization in December of that year. The Semi Tropic 
Exchange objected to the employment of a salaried eastern agent, 
but its chief objection was to a proposal to make the voting power 
of the exchanges proportional to the fruit shipped by each. 9 
Considerable conflict and confusion resulted from the fact that each 
exchange made its own sales. Although the executive board was 
supposed to act as a clearing house for market information, appar- 
ently it was not always fully advised by the exchanges as to their 
shipments and sales. As a result, no exchange had full information 
regarding the operations of the others and all of the exchanges were 
competing in the eastern markets. It became manifest that the 
fruit could not be scientifically distributed and marketed in that 
manner, and it also became apparent that the executive board must 
have more authority with regard to sales. The general plan of sell- 
ing through brokers and direct to dealers was also found to be 
unsatisfactory. 
THE SOUTHERN CALIFORNIA FRUIT EXCHANGE. 
A proposal was made in the summer of 1895, therefore, that the 
portion of the original plan (see Appendix, p. 49) relating to the estab- 
lishment of branch houses in the important markets be put into 
operation. This plan was approved by all exchanges. As a part of 
this plan the Southern California Fruit Exchange was organized and 
incorporated. The first directors' meeting of this organization was 
held on November 1, 1895, and the functions of the executive board 
were assumed by the exchange. 10 A number of agents were appointed 
to represent the exchange in the eastern markets. 
With the incorporation of the Southern California Fruit Exchange, 
the cooperative marketing of citrus fruit became established on a 
reasonably secure basis. The history of the system has been one of 
steady growth since that time, bothin quantity of shipments and in 
9 Minutes of the executive board of the Southern California Fruit Exchanges. 
10 Minutesof the Southern California Fruit Exchange, 1895, 
