, 1935-03-10
OF TEXAS
CITRUS FRUIT

This is the first Of q series Of
articles written by c. o. Miles,
former Secretary Of the Rio
Grande Valley Citrus Exchange,
and Control Committee member,
in which he states frankly the
troubles Of the industry ard sug-
gests remedies which In his opin-
ION should be applied. Opin-
ions expressed are Mr.. Miles.
Having rendered my resignation
as Secretary OF the Exchange and
as a Director, and also as one oil
the representatives on the Texas
Control Committee I feel free to
tell the story Of the citrus situation
as I see 1t. and to express the views
of one who has been active In the
cooperative movement for three
years, coping with local issues OF
the Exchange and the Valley, as
well as legislative and national
problems which involve the Valley
with other citrus producing states,
IN the hope that by passing on TO
the growers Of the Valley what little
I have learned, they may be bene-
fitted thereby.
In the spring Of 1882. 1t was uni
versally recognized that a large cit
rus "grower-owned and controlled"
cooperative was necessary TO the
success Of the Valley citrus indus
try. After much hard unselfiSh
work by committees. from one end
Of the Valley TO the other. the mem
bership OF the Rio Grande Valley
Citrus Exchange was obtained. The
Exchange was organized under the
cooperative Marketing Act" Of the
State Of Texas; the Associations
were likewise chartered and con-
tracted with the Exchange.
Marketing Methods
Notwithstanding erroneous opin-
ion to the contrary, the Associations
operate their own plants. The Elk
change is the other organization,
and its directors. consisting Of one
director elected by the directors OF
the different Associations which sell
their fruit through the Exchange
and the National Fruit and Vege-
table Exchange. a national coopera-
tive. the membership Of which con-
sists Of some 40 cooperatives, pro-
ducing perishable commodities from
California to Maine. The Nation
al" Ike the Exchange and its AS
sociations. Is a non-profit organi-
cation, working only for the benefit
Of the producer.
1t Is my Intention in this first ar
ticle to deal only with the facts
which are least understood in re-
gard to the operation Of the Ex-
change and its Associations and the
National" which have been SUBJ
ject TO controversy. misunderstood
ing and at times OF malicious mis-
representation. II Is obvious that
unless this story Is told frankly, its
benefit will be lost, and in a SUBJ
sequent article we will deal With
the Marketing Agreement with the
Secretary and the Texas Citrus Con-
troll Committee. and suggested i'm
provements in the present marketing
set-up. If we step on someone,
toes. It will be because the toes are
in the way and not from any desire
to offend the person to whom they
belong.
For the first two years, particular.
ly. the directors of all Association,
and for the Exchange itself werl
without experience in the operation
Of a cooperative. and naturally mis-.
takes were made. In spite OF thi
handicap and that Of mostly mex.
perienced employees Except In tn
Sales Department of the Exchange)
these Associations carried through
the first season with an averae,
packing cost Of only SIC per box
which set a record for the Valley
especially when II Is considered tina
the year before independent ship
pers were charging the growers from
90c to Sl.00 for the same purpose
That saving alone was worth al
the effort put forth in the organi
cation Of the Exchange.