COOPERATIVE CITRUS-FRUIT MARKETING AGENCIES. 9 
ever, have grades been so standardized that, for example, the choice 
grade of one association could be said to be approximately the same 
as the choice grade of another. It is not possible, even with the 
complete system of inspection maintained by the exchange, to secure 
absolute uniformity between the grades of all associations. Soil and 
climatic conditions affect the texture and general appearance of the 
fruit, and the human element necessarily gives rise to minor varia- 
*** tions. The grade standards of the exchange provide for a tolerance 
of 10 per cent in the higher grades and 5 per cent in the choice grade, 
so that within these limits practical uniformity is secured. 
The value of standardized grades from the point of view of buyer 
and seller is obvious. The salesman knows that fruit of a certain 
grade approximates at least a certain standard of appearance and 
quality, no matter who is the shipper. He can determine the value 
of the shipment with reference to market demands for fruit of a 
similar grade. The buyer, on the other hand, knows without the 
necessity of a detailed inspection that he is buying fruit of a particular 
grade, and is assured that the shipment will satisfy his customers' 
requirements. The result is that sale and distribution of the fruit 
are greatly facilitated, the confidence and good-will of the buyers are 
secured, and the speculative element in marketing is reduced to that 
extent. 
Pools and Payments to Growers. 
In all associations the fruit of the growers is either pooled over a 
certain period, sometimes covering the entire shipping season, or it is 
agreed that a certain percentage of each grower's fruit shall be picked 
and sold in a pool. All returns received for fruit of the same grade 
(in some cases size distinctions also are made) during the pooling 
period, after deductions for packing, marketing, and other expenses, 
are averaged and the grower is paid the average price per pound or 
per box received during that period for fruit of the grade or grades 
which he had delivered. All expenses connected with the handling 
and marketing of the fruit are pooled, with the general exception of 
picking and hauling charges. 
The system of pooling orange and lemon shipments arose from the 
inherent difficulties in handling and marketing a large number of 
small lots as separate units. Even if it were practicable to segregate 
the fruit of each grower, in all probability no one of them would have 
sufficient fruit to load a car. Each car would contain the fruit of a 
number of growers, which would be sold at a uniform price per box 
for each grade in most instances, and the returns to that extent 
would be pooled. However, it is manifest that packing-house opera- 
tion is facilitated and that accounts and returns are simplified, when 
all the fruit shipped during a particular period is handled as a unit. 
From the standpoint of the producer, the greatest value of pooling 
lies in the insurance against loss which it affords him. Under any sys- 
$ tern of handling and marketing a perishable product loss in certain 
shipments can not be avoided. A car may be delayed in transit, or 
some other condition may arise causing heavy deterioration in the 
shipment, which the grower or the packer could not prevent. Or the 
shipment, although in sound condition, may experience unfavorable 
market conditions. If such a car contained the fruit of a single 
grower, his entire receipts for the season might be wiped out. When 
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