The Wenatchee daily world. [volume] (Wenatchee, Wash.) 1905-1971, 1910-10-01


sumner is much less than 1t used to
be, while the grower gets more net
money for his fruit. For this result,
naturally, the exchange claims its
full share of credit. This big mar
| ket wouldn't have been possible
without systematic pushing and ad-
vertising." says Manager Woodford.
Controls so Per Cent of Crop.
! In its first year-1S95-the ex-
change marketed eighteen hundred
cars of fruit. Last year it marketed
twenty-three thousand cars, which
was practically 60 per cent of the
states output. That the exchange
: is growing both positively and rela-
tively-that is, handling a gradually
increasing proportion of the total
crop-everybody admits.
I'VE are closing down here on cit
rus fruit said the local manamer
at an important shipping point of
buying concern. The simple fact is
that the exchange handles oranges
and lemons at cost; while if we can't
get profit on them there's no use
in our doing business"
Competition Beneficial.
AS to how much of the remaining
40 per cent of the citrus crop the
exchange may finally absorb, no one
could venture prophecy. Il think
some competition is a pretty good
thing in this business" said Mr.
Woodford, the exchange manager.
While the exchange dates from
1895 there were seventeen months,
from April, 1908, to September,
1904, during which the marketing
of its members fruit was not in its
hands. The management of that
time-different from the present one
thought competition was not so
good thing in the citrus industry
1t made a combination with the i'm
portant buying and forwarding
houses. The agency-the California
Fruit Agency-tt'i TIL" r.a,kcting
both for the exchange and for the
buyers Or commission houses. and
thus controlled 73 per cen: of the
crop-the exchange supplying about
40 per cent and the buying houses
about 33. To the unbelie,crs in
competition this might seem almost
ideal The results, however, we're
anything but ideal.
Why the Agency Was a Failure.
There is still some dispute as TO
why the agency failed SO completely.
For one thing there was a rather UNI
favorable season; the fruit generally
came to market in inferior condition.
Under any marketing arrangement,
it is claimed, results to the growers
would have been unsatisfactory. In
deed, in 1904 the average price, |
freight deducted, fell to 81 90 a box, |
and there was an average net loss
of SIS an acre to the growers. But
a deeper trouble was that the agency
was composed of homogeneous ele- /!
ments. 1t was partly made up of |
cooperating growers. who wished
fruit marketed at cost, and partly of
private concerns that were in the
marketing business for profit. The
agency was abandoned after II
months trial, and the exchange re-
sumed its own marketing under a
new management. Since then it has
stuck to cooperation and has grown.
Other Organizations.
While the big exchange handles
only 60 per cent of the crop, 20 to
.25 per cent more is marketed in a
cooperative way by the growers
themselves. At Redlands is the Mu
tual Orange Distributors. composed
of half dozen local associations of
growers. Though it is quite indie
pendent of the big exchange it does
business in substantially the same
way. At Riverside the National Or
ange company is a marketing agency
Of the Chase family. who are very
large growers. There are number
of these marketing concerns.
Upon the disruption of the agency
several of the largest buying houses
formed the California Citrus union,
which now consists of three of the
biggest homeopathic buyers. The
Citrus union and other independent.
homeopathic buyers now handle
from ) to 20 per cent of the crop.
Reduced Freight Rates.
There is another organization, the
Citrus Protective league, which is
independent of the exchange, yet
warmly supported by it. The league
represents so per cent of the citrus
Industry, concerning itself largely
with freight rates, the tariff and like
measures. The league has in the
past obtained some reductions in
freight rates, both on oranges and
lemons. Going before the railroads
as the representative of 80 per cent
of an industry that ships 10000
cars year, it receives respectful at
tention. 1t is pointed out that Mr..
Hartman personally received the
| leagues delegates and listened at
! tentively to what they had to say,
|