The herald., 1897-06-27


ket their own fruit through co-opera-
tive organization. This led to the forma'
tion of a fruit exchange. Among those
who took an active part in the organiza.
tion of the exchange were many ex'
perienced business men who had beer
successful in commercial and financial
lines. From among this class of men
officers were selected to take charge
of the work, and for four years the ex.
change has been conducted by them.
Fourth-There seemed to be but one
essential point in this business, and that
was to distribute the fruit through the
Eastern markets so that no market
should be over-stocked. There seemed
to be only one way to accomplish this
and that was for some central power to
keep track of every car of fruit that left
California, ascertain the capacity OF
each market to take the fruit and then
warn shippers where not to send their
fruit. This was an essential point. AL
other points were secondary.
Fifth-It was necessary that in thi:
cooperative movement each man should
get as nearly as possible the value Of his
fruit. Some men raised fruit better thar
others, because they took better care oi
their orchards, and some raised better
fruit because their orchards were better
located as regards soil, climate, water
and other requisites. Therefore, the
system must be so elastic that each man
would get returns according to these
conditions-according to the actual
value Of his fruit as nearly as possible.
The associations were formed for this
purpose, so that growers similarly situ-
ated could cooperate with each other.
Each association can provide for pooling
the receipts of the members with each
other, but the members of one asocia-
tion do not pool with the members of
another association. Here comes in the
elasticity of the system.
Sixth-It was as desirable to pro-rate
the expense of preparing the fruit for
shipment as it was to pool the receipts.
This was also provided for by the asso-
citation system. This pro-rating of ex-
pense is confined to each association,
and the result has been very satisfactory
as the associations have saved their
members fully twenty cents per box
over the price paid for the same work
prior to the formation of the exchange
organization. This saving on an output
of 100000 boxes amounts to the sum of
s420, 900.
Seventh-There is another saving in
the cost of selling the fruit. Heretofore
the commissions charged on sales have
ranged from to 10 per cent. This would
amount to about 25 cents a box on
navels and II cents on seedlings. The
cost by the exchange has been only ~
cents box. Here is saving of 171a
cents a box on navels and 9k cents on
seedlings-an average of IA cents box
or a total of $294yOOO on the output of
2, 100000 boxes. The saving on these two
items therefore foots up total of $71O,-
900, an item that should not be forgotten
in footing up the benefits of the system.
Eighth-This pooling of receipts acts
in the way of an insurance. If there
were loss of car from accident or bad
luck of any kind, or from running it into
an unfortunate market, that loss does
not fall upon the one or two unfortunate
owners, but on the association. 1t might
almost ruin one man, but it does not
affect the ombination-the
membership as whole.
Ninth-The result of the exchange
system has been to restore the selling of
the fruit for cash at a good margin of
profit. This benefit is reaped not only
by the members of the exchange, but it
is enjoyed by others who stay outside of
the exchange and reap where they have
not sown and gather where they have
not strewn.''
Tenth-The benefits of the co-opera-
tive system of marketing fruits is not
confined to the growers. The buyers in
the east are as much pleased with the
change here in California. They know
that if the exchange could control all
the fruit they would be absolutely pro-
tected from an over-stock of fruit being
thrown on the market at any given
point, thus breaking down the prices
and causing heavy losses to those who
had purchased heavily at fair prices in
good faith.
Eleventh-This system also has good
effect on the retail dealers and consum-
ers who are guaranteed a steady mar
ket and they therefore buy without
hesitation and do not wait day after day
to see what the market is going to be.
These are some of the benefits of the
system that have been fully demonstra-
ted. The system is not perfect, but it is
the perfect standard as
rapidly and as nearly as most human
com binations are apt to get.
There seems to be no difference of
opinion among growers as to the value
of the system. Practically all admit
that it has done a great work for the
fruit growers of Southern California, but
some of them, from selfish or other mo-
tives, stand out and claim that they can
do as well outside of the exchange as
they could do within; but they urge
others to keep up the work, knowing