COOPERATIVE CITRUS-FRUIT MARKETING AGENCIES. 
31 
DISTRICT EXCHANGE EXPENSE. 
Since the district exchanges employ the facilities of -the central ex- 
change, their operating expense is not great. A small amount of 
office equipment and $1,000 to $2,000 to meet current needs are all 
the capital they require. Salaries make up nearly three-fourths of 
the total expense, and the other items are such as would be incurred 
in the operation of most offices. Telephone expense is more im- 
portant, oecause it is necessary to keep in communication with the 
associations and the central exchange. 
The total expense of the district exchanges averaged slightly over 
1 cent per box for the past few years, although a few districts operate 
for as little as one-half cent per box, and the expense of a few is over 2 
cents per box. 
EXPENSE OF THE CENTRAL EXCHANGE. 
The cost of niaintaining the facilities of the central exchange is 
necessarily considerably greater than the district exchange expense. 
The selling expense of the exchange includes the maintenance of two 
sales departments in Los Angeles and approximately 60 salaried offices 
located in various markets. In the aggregate, salaries and other ex- 
pense connected with the maintenance of these offices is a large sum, 
ranging during the last 10 years from more than $300,000 to over 
$700,000 for a 12 months' period. Included in this total is the item 
of telegraph and telephone expense, which totals approximately 
$100,000 for each 12 months. Computed on a per-box basis, however, 
the selling expense of the exchange has been maintained at a remark- 
ably low figure, as will be seen by reference to Table 10. The cost 
of the central exchange sales service has varied from a little over 
3 cents per box to slightly over 5 cents per box during the last 10 
years. 
In addition to its sales force, the exchange maintains a general and 
administrative office, a service and regulatory section, largely under 
the field department, and spends considerable sums in advertising. 
Advertising expense has increased from $45,625 in 1913 to $855,798 in 
1921 and a little over $530,000 for the short-crop year of 1922. The 
total expense of the central exchange, including advertising, has 
therefore varied during the past 10 years from 5.7 cents per box 
in 1914 to 10.8 cents per box for the 1922 season. 
Table 10. 
-Net expense of the California Fruit Growers Exchange, in cents per 
box, all shipments. 
Season ending — 
General 
and ad- 
ministra- 
tive. 
Service 
and regu- 
latory. 
Selling. 
Advertis- 
ing. 
Total. 
1913 
1.4 
'.9 
1.02 
.9 
1.0 
.8 
1.0 
1.3 
1.2 
5.3 
3.5 
3.5 
3.72 
3.1 
4.4 
3.4 
4.2 
4. 1 
5.1 
0.7 
1.5 
1.8 
2.51 
2.5 
2.2 
2.7 
3.3 
3.7 
3.8 
7.4 
1914... 
5.7 
) 1915 - 
6.2 
1916 
0.01 
.1 
.1 
.2 
.3 
.5 
.7 
7.3 
1917 
6.6 
1918 
7.7 
1919 
7.1 
1920 
8.8 
1921 
9.6 
1922 
10.8 
