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Annual report of the Florida Citrus Exchange
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Permanent Link: http://ufdc.ufl.edu/UF00075941/00003
 Material Information
Title: Annual report of the Florida Citrus Exchange
Alternate title: Seald-Sweet story
Seald-Sweet annual report
Physical Description: v. : ill. ; 24 cm.
Language: English
Creator: Florida Citrus Exchange
Publisher: The Exchange
Place of Publication: <Tampa Fla.>
Creation Date: 1929
Frequency: annual
regular
 Subjects
Subjects / Keywords: Citrus fruit industry -- Statistics -- Periodicals -- Florida   ( lcsh )
Citrus fruits -- Statistics -- Periodicals -- Florida   ( lcsh )
Citrus fruits -- Marketing -- Statistics -- Periodicals -- Florida   ( lcsh )
Genre: government publication (state, provincial, terriorial, dependent)   ( marcgt )
statistics   ( marcgt )
serial   ( sobekcm )
 Notes
General Note: Mimeographed, 1933/34-1934/35.
General Note: Description based on: Season 1926/27; title from cover.
 Record Information
Source Institution: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: aleph - 001753794
oclc - 46798761
notis - AJG6778
lccn - 2001229399
System ID: UF00075941:00003
 Related Items
Preceded by: Annual report of the business manager of the Florida Citrus Exchange

Full Text














Annual Report
of the

FLORIDA CITRUS


EXCHANGE











SEASON
1929-1930


.r- C ~

*'. 6 6
.6.....






^ 34L



CONTENTS
SEASON 1929-30 .............................. 3
Conditions Affecting Shipments .................... 3
Progress Made by Exchange ................... .. 3-4
Difficult Merchandising Situation Handled .......... 4- 5
M editerranean Fly Situation ..................... 5- 6
Grapefruit Canning Deal ........................ 7
FLORIDA CITRUS EXCHANGE SALES ......... 7
Comparative Shipments for Season ................ 7-8-10
Southern M markets ............................. 11
M id-W western Division .......................... 12
Cincinnati D division ............................ 13
Eastern D division .............................. 14
Auction Premiums Realized ..................... 15
Cold Storage Fruit ............................ 17
Export Shipments ............................. 17- 18
FIELD DEPARTMENT ........................ 18
Difficult Grading Situation ...................... 19
Grower Financing Necessary ................... 20
SEALD-SWEET AND MOR-JUCE ADVERTISING. 20
Newspaper Advertising ....................... :. 20- 21
D ealer Service ............................... 31
Display M material ............................. 23
Premiums ................................... 23
Organization Publicity ......................... 24
TRAFFIC DEPARTMENT ...................... 25
EXPENSE OF OPERATION .................... 28
APPENDICES:
A. Growers Loan and Guaranty Company ......... 28
B. Exchange Supply -Co pay'.;:.,*... ... ........ 29
C. Citrus Acreae' : .. 30
D. Annial. V fues of Crop ......... ; ,* ... 31
E. Ctp .'-Movement. ,*i. .,. .*; .. ......*, '. 32
F. %Shipments and Distrilution :.'.. .. .... ., .' 33












ANNUAL REPORT

SEASON 1929-30

Three major factors affected the movement of the 1929-30 Florida
citrus crop. The quarantine regulations placed on the shipment of Flor-
ida citrus fruit because of the Mediterranean Fly infestations probably
were the most serious difficulty which has ever confronted the move-
ment of a season's crop. Added to this, the fruit was generally below
standard with respect to appearance and eating quality.
The third factor, however, was one which tended very materially
to off-set the first two disadvantages. The crop volume for the season
was one of the lightest in recent years of the industry. Without this
saving feature it would have been next to impossible to have moved
the entire crop at a profit to growers.
Not only was Florida's crop short, but the total volume of citrus
produced and shipped to American markets also was materially reduced
over the preceding season. The detail is presented in the following
table:
1928-29 1929-30 Increase Decrease
California 73,361 60,000* 13,361-18.2%
Florida 55,875 37,417 18,458-33.0%
Rio Grande 2,106 4,620** 2,514-119.3.%
Ala.-La.-Miss. 355 793 438-123.3%
Porto Rico 480 2,778 2,298-478.7%
Total 132,177 105,608 5,250 31,819
Net decrease for total area-26,569 cars, or 20.1%.
Such, generalized, are the conditions under which the citrus crop of
Florida was shipped during the past season.
Exchange Makes Progress
The usual history of cooperative marketing organizations has been
that the cooperative increases its percentage of control during heavy
crop years when returns are low and the speculative buying element of
fruit on the tree is inactive and, conversely, loses in percentage of con-
trol during years when the crop is light and high prices make profitable
speculation possible.
The Florida Citrus Exchange this season, however, reversed this
situation. .The organization during 1928-29, the heaviest crop year
of the state's history, marketed 31.5 percent of the total. This season,
a light crop year, the organization increased its control to 39.5 percent,
an increase of 8.0 percent of the state's total.
Estimated to end of season (October 3 1) by California Fruit exchange.
** This volume would have been possibly 1,000 cars higher except for a disastrous freeze in Jan-
uary which destroyed the balance of the crop in the Rio Grande area.









This increase in tonnage was due to a large extent to the assistance
of the Federal Farm Board, acting under authorization of the Agri-
cultural Marketing Act. The Federal Farm Board recognized the
application of the Florida Citrus Exchange for finances and has ap-
proved loans totaling $3,300,000.
This money, available at a low rate over a long period, made pos-
sible the financing of mergers of large independent grower-shipper in-
terests with the Florida Citrus Exchange. Of these pending mergers,
three-International Fruit Corporation, Chase and Company and the
DeLand Packing Company-have been completed.
These mergers, however, do not account for the full gain in con-
trol of the Exchange. The volume thus represented amounts to 4.5
per cent of the 8.0 per cent. Thus 3.5 per cent has been in general,
small grower-contract gain, which speaks well for the general recog-
nition of the Florida Citrus Exchange with the growers throughout the
state.

Approved by Independent Audit
The Federal Farm Board, in considering the application of the
Florida Citrus Exchange, recognized this organization as being the logi-
cal nucleus around which to center its efforts toward the unification
of the industry in the interests of the growers. In the usual course of
its procedure in examining any organization to which it makes loans,
it required an independent and competent audit of the methods, poli-
cies, financial affairs and conduct of the business done by the organ-
ization.
This audit was conducted by the Price, Waterhouse & Company,
a nationally recognized firm of certified public accountants. Copies of
this audit have been sent to every Sub-Exchange and Association, as
well as all Directors.
It is of interest in considering the progress made by the Exchange
that this audit approved the handling methods and operations of the
Florida Citrus Exchange and found them to be in line with all that
the Federal Farm Board could ask of an organization to which it was
considering lending its moral and financial support.

Exchange Meets Merchandising Problem
The difficulties presented in the marketing of this season's crop
provided a test of the merchandising ability of the Florida Citrus Ex-
change organization. The Exchange has met and handled those mer-
chandising problems in a manner which proves its ability to get results
for its growers.
In spite of the fact that the South and West were closed to all but
sterilized fruit, the Exchange was able to place approximately the same
percentage of this season's crop in this territory as delivered there the
preceding season. This move was imperative to save the open Eastern
markets from being over-burdened with excess supplies with a conse-
quent loss to the industry.









This even distribution required intensive and thoroughly co-ordinated
effort on the part of all factors of the organization. Those Associa-
tions which were able to process fruit had to handle such orders in
volume and in accordance with trade demand. While processing was
for a time a considerable handicap, the merchandising facilities of the
Exchange were able to overcome this prejudice against Exchange pro-
cessed fruit to a marked degree.
The widespread acceptance of the Mor-juce brand was of im-
measurable value in moving the great percentage of second grade fruit
which the Exchange had. This trade-mark, developed the preceding
season, has proved popular and has gained and held trade acceptance,
first, because of the strict grading standards to which fruit is packed
under this brand, and second, because of the advertising and merchan-
dising service work done on this brand.
This trade acceptance of the Mor-juce brand has been particularly
valuable during the past two seasons when the percentage of second
grade fruit far exceeded that of the first, or Seald-Sweet, grade, which
normally runs between 65 and 70 per cent of the total.

Exchange Growers Profit
This merchandising effort, discussed in further detail under de-
partmental reports, has proved profitable to growers shipping through
the Florida Citrus Exchange. This season's averages based on all
sales from the beginning of the season to May 10th and including all
grades and varieties were:
Oranges ............ $3.24
Grapefruit ........... 3.00
Tangerines ........... 3.38
Cannery grapefruit ..... .85
These figures are net to Sub-Exchanges after freight and general
sales and advertising retains, including the Clearing House costs, have
been deducted.

Med-Fly Situation
The situation with respect to the Mediterranean Fly quarantine is
more encouraging at this writing than at any time during the season. It
is common knowledge that there has been no new infestation found since
January 31st. Funds for inspection and guard work through the Sum-
mer have been made available by Congress. In addition to this immed-
iately available fund of $1,740,000, Congress placed an additional
fund of $1,500,000 to be used at the discretion of President Hoover
for any emergency which may arise between now and the time Congress
next convenes.
The situation with respect to the quarantine zones in the state is in-
dicated on the map on the following page. Comparison of this map
with the similar map discussed in the 1928-29 report readily illustrates
the remarkable progress which has been made in this battle against the
fly.










Contact with the authorities in charge of the fruit fly control meas-
ures as they affect the industry permits the belief that important modi-
fication regulations may be obtained. Such changes, however, are de-
pendent upon two factors. First, they would be made only after a
continued abatement without new or serious infestations being discovered
during the Summer. Second, grower assistance in a complete clean-up
of all host fruits and vegetables during the host free period will prevent
recurrence of any infestations and will make possible modifications of
the rulings.


* Infested Area W"
MErsdicati. Area










VIArHIRDEF





Let
C-0





'FESTBD PROPERTY ESTABLISHDJG I5?ESTED AREA RETAI]FD
As of Janary' 31.1930.
Date Found Legal Description Owner
T -~-~i~J S 28, T 22, R 28 John Lontg
(A.R.Jones,Agent)









The Clearing House
The Exchange will continue its membership in the Clearing House
during the coming season, believing that the trade matters affecting
the industry as a whole properly are, and should be, conducted
through that organization. First among these are the support of the
Growers and Shippers League, inspection work, regulation of terminal
distribution and other general matters affecting the industry.
The retain of the Clearing House has been reduced by their direc-
tors to 2c per box for the coming season. From the funds thus made
available, it is understood that a small amount will be spent in commo-
dity advertising.

Exchange Closes Canning Deal
Probably one of the most important factors of improvement in the
industry during the past season has been the completion of a grapefruit
cannery contract which stabilizes the sales price of cannery fruit and,
in turn, provides for advertising of the product over the brand names of
the participating canners.
The essential details of this situation were described to the growers
of the state in an advertisement, which is reproduced on the following
page. The advertising of the canned product undertaken by the Ex-
change is exemplified in the advertisement, which is also reproduced
on page 9. This style of copy permits the continual advertising of
the brand names of the Florida Citrus Exchange throughout the Sum-
mer season and makes possible valuable year 'round advertising.
Most important, however, is the fact that Exchange grapefruit
growers are assured of a profitable margin on their cannery grade fruit,
regardless of the fluctuation of prices from season to season on the fresh
fruit.
FLORIDA CITRUS EXCHANGE SALES
Total shipments of citrus fruits for the season 1929-30 to May 10th
decreased 33 per cent as compared with shipments for the same period
of the preceding season. The detail is as follows:
1928-29 1929-30
Cars Oranges ............... 29,788 19,380
Cars Grapefruit ............. 23,629 16,813
Cars Tangerines ............. 2,458 1,224

Total .................... 55,875 37,417'
Decrease ................. 18,458 or 33%
Oranges and tangerines account for the greater proportion of this
shortage as is indicated below:
Oranges ............ 10,408 Cars-35.0%
Grapefruit ......... 6,816 Cars-28.9%
Tangerines ......... 1,234 Cars-50.0%

Total ............. 18,458 Cars-33.0%













5 -$o0 o .46



Florida Citrus Exchange


to Receive 90c Per Box For


Cannery Grapefruit Next Season


The Situation
in a Nut-shell
The participating 0nneo m atree
to:
1. purchase their reoqurements
eclultel from t rxehane Ae -
..Itlatiln
2. Pay, fo.b. Exchange pseking
houes.
t .90 per box during 1b0O-1
.96 per box during 1031-2
1.00 per bo. during 1B2-BS
1.00 Per boz du"ri'ng 1I3
1.00 per box during 1934-3s
The FloridM Citrus Exchange
agrees to:
1. rurnllh frui to these cannere
up to the capacity of I"t As-
-etatIonb to prolde, ucb
fruit.
t. prend loc per be on a t fruit
o purchased In 1dvertling
the brands of thee canerB n1
h manner eatlItactory to them.
This contract has already been
Bigned by one of the largest can-
ners In the eatee, the Florldagold
Citru- Corporatlon ot Eagle Lae
and Lake Alfred. This company Is
already arranging to TraCtlelily
double its capacity to ecae for next
sesons bust. ess. N teegititons
with others in the atate gre under
way and nearlin completion.


The Florida Citrus Exchange has completed arrange.
ments providing for the sale of its grower' cannery
grade grapefruit at a decided advantage to its growers.
A five-year contract has been developed in conference
with canners providing for prices beginning at 90c and
increasing to $1.00 per box to be paid for this grade of
fruit All prices are f.o.b. Exchange packing plants.
Speedy development of market demand and volume
for the product of participating cnners is assured. A
phase of the contract provides that the Exchange shall
advertise the brands of these canners nationally, spend-
ing 10l per box on all fruit sold on this basis for this
purpose.
The volume going to these participating canneries will
increase in direct ratio to this development of markets
and demand for their brands. It i believed that it will
absorb at a profit to the grower all of this grade of grape.
fruit handled by Exchange houses.
The relief to the box-lot fresh fruit market, by the
elimination of this fruit from car loads, will result in
an increased return for fresh fruit sold under Exchange
brands.


This development has been accomplished for you as a citrus
grower. n view of the large volume expected next season, it
is significant of the active interest and ability of the Exchange
to perform for its members.
Join the Florida Citrus Exchange and get full benefit of the
returns available under the plan. See our local representative
today.



Florida Citrus Exchange

Tampa, Florida


i44~ ten> tI*et .5** .55e:$ -*$' O* 5 'e5 .4'e*e etM

Reproduced above is the Exchange adver-
tisement announcing the closing of can-
nery fruit sales contract. The general
details of the reciprocal nature of the
contract are fully described.




While shipments of the Florida Citrus Exchange were decreased in

volume over the preceding season by 2,476 cars, the percentage of de-

crease was only 14.4 per cent as against the state average decrease of

33 per cent. The table below presents in detail the Exchange shipments

and explains the fact that the increased control of the total crop made

by the Exchange was very evenly distributed over all varieties.













/^


"" 4. 4 Co teak,
' ,' ,




: : "


Reproduced here are two
typical advertisements of
the cannery advertising
sponsored by the Ex-
change. These will ap-
pear in July and August
women's publications.


"That makes me feel great!"

THIS FAMOUS WINTER FRUIT NOW
BRINGS WINTER VIM TO YOUR SUMMER BREAKFAST TABLE


i;,.'



a-~~1
1.0

~1 .


H ERE'S all the tempung tang-the brisk
and bracing ael of grapefruilt-o liven
you up th sulty days.
GCpfruit is n w "m a n"' a11 a e yar,
Grapetmit from the famou SealdSweet and
Mor Juce grovs-piked at the height of the
eaon-and skdfully kept for you to enjoy
at diner this evening and breakfast to-
morow morning.
Fresh? Its as fre itn ivor as if you'd pre-
pard it wih your on hands from plump rape

No ddference itn health-giving benefit It
brings you Ihe vitamO n B aOd C whch make
rayofl auth an impotann pr of your diel.


Ther are the plump, irm segment for salad,
desstas and appetizing breakfast or dinner
dihes- And Ihe art, lear jme for drinking
e it oma from te can or to m1 in a wi.e
variety ofoling and bracing hbeerage. Take
your those you can buy them Wpa.rtl,.
Jusl ask for aaRIcDCOL al your grer's.
FonRoaIooO Grapefruit segmentt-orr oatr.,
cOLr Gapefrui Juice, You an' believe how
delicious they are untd you use them.
Try them now! Order several car and keep
ahem handy in your rfrigerator. Jua open
and~ e --in an i sano --onderfully tco
not time you oder.


FLORIOIDAt CT]Ut Co RORATION. pE)NOSCoT BUILDIoG, DETROIT. tICt.

9









Florida Citrus Exchange Shipments
1928-29 1929-30
Cars Oranges ................ 9,373 8,650
Cars Grapefruit .............. 6,988 5,591
Cars Tangerines .............. 873 517

Total .................... 17,234 14,758
Decrease ................................ 2,476 or 14.4%
The Exchange loss by varieties this season is detailed in the table
below for comparison with the similar preceding table on state's ship-
ments:
Oranges ............ 723 Cars- 7.8%
Grapefruit .......... 1,397 Cars-20.0%
Tangerines .......... 356 Cars-40.8%

Total .............. 2,476 Cars-14.4%
From these tables it is evident that, while the Exchange shipped
30.8 per cent of the 1928-29 crop as of May 10th, it increased its
control to 39.5 percent of the state's total during the past season.

Satisfactory Distribution Maintained
Notwithstanding the fact that the crop was light and that the Ex-
change has increased its percentage of control, the percentage of fruit
distributed in private sales markets was slightly greater than that for the
previous season. The detail of the general distribution of the fruit com-
pared to the same period the preceding season is listed below:
1928-29 1929-30
To May 15, 1929 To May 10, 1930
Auction Sales 8,578 Cars, 48.0% 6,200 Cars, 42.0%
Private Sales 8,864 Cars, 49.6% 7,765 Cars, 52.6%
Canneries Included in Private Sales 482 Cars, 3.3%
Cars in Cold Storage 152 Cars, .9% 261 Cars, 1.8%
Cars on Track 273 Cars, 1.5% 50 Cars, .,3%

Total .17,867 Cars, 100% 14,758 Cars, 100%
In examining the above table it is well to bear in mind some of the
difficulties under which fruit was distributed which were referred to in
the opening of this report.
However, the loss of the 18 embargoed states (see pages 12 and 13
in the 1928-29 Annual Report) for the greater part of this season ser-
iously curtailed the distribution of Florida citrus. The closing of Texas
markets to Florida citrus during the entire season was especially felt
during the movement of early grapefruit and late oranges. Heavy ship-
ments of Texas grapefruit up to the time of the Texas freeze in January
made the sale of the Florida product west of the Mississippi exceedingly
difficult.









The regulations of the Department of Agriculture prohibited the
shipment of Zone 2 fruit into the middle Western states unless steriliz-
ed, either by cold or heat. This was another serious handicap to the
proper distribution of Florida citrus.
Sterilizing by cold for shipment to the middle West was tried dur-
ing the early part of the season. The use of this method early demon-
strated its failure. Much of the fruit was badly damaged and its keep-
ing quality was seriously impaired. Dealers found that the processed
fruit did not stand up in the hands of the retailers after having been
taken from ice. The inevitable result was a large volume of returns to
the wholesalers and the consequent heavy loss on their part, which killed
confidence in the Florida product.
The volume of Zone 3 fruit was not equal to the natural demand
of the Western markets and, to fill the shortage, the Department finally
permitted Zone 2 fruit sterilized by heat to enter these markets. This
was an entirely new venture. There was not a house in Florida equip-
ped to perform this service and hardly a contractor who had any ex-
perience in building or equipping rooms for this purpose. Realizing,
however, the 'absolute necessity of immediate action, without which large
quantities of riuit would undoubtedly have gone to waste, the Exchange
rapidly completed heat sterilizing facilities. The equipment and hand-
ling methods with heat sterilization were improved to such an extent
that the Exchange before the end of the season was able to meet the
demand for Florida fruit in embargoed markets.

Southern Markets
The entire South, being part of the 18 embargoed states, received
no fruit until about November 19th, when the Department of Agricul-
ture permitted shipments of fruit sterilized by heat. This privilege, how-
ever, was withdrawn March I st, closing this territory again to all ship-
ments of Florida citrus. This seriously cut the shipping period in the
South. In addition to this handicap, during the first month of heat
sterilization the results were far from satisfactory. This, combined with
the inferior eating quality of the fruit, produced a very strong sales re-
sistance in this territory which was not overcome to any appreciable ex-
tent until shipments of Valencias commenced to go forward.
Competition with other producing sections added to the sales resist-
ance in this territory. Unusually good quality oranges from Louis-
iana and Porto Rico were available. Porto Rican oranges were sold
in the Atlanta market for $3.00 f.o.b. New York, as compared with
Exchange quotations of $3.50 f.o.b. Florida. A fine quality of small
sized grapefruit from Texas also was available at a comparably attrac-
tive figure. California also worked the South intensively, increasing the
competitive situation.
To meet this condition, expert specialty men were sent into the South
and covered every market in the entire territory. These men were able
to overcome the resistance of the Southern dealers to a remarkable extent.
Large quantities of fruit were sold in this territory after the beginning
of the Valencia period because of this intensified sales effort.









Mid-Western Division
Markets in this division were forced to absorb processed fruit from
restricted zones. As a result, nearly every district in this division shows
a net loss of volume, ranging from 65.5 per cent in the Springfield, Mo.
district to 8.2 per cent in the Minneapolis district. However, when it is
considered that the total volume handled by the Exchange was 33 per
cent less due to the lightness of the crop, the commitments and distribu-
tion in these markets are recognized as making satisfactory progress
on Exchange fruit in the division.
Here, as well as in the South, the prejudice on the part of the trade,
both wholesale and retail, in private sale and in auction markets, against
processed fruit had to be overcome. This was difficult, especially in
the early days of processing when the results were not quite as satisfac-
tory as later in the season when experience produced more expert hand-
ling.
The natural tendency on the part of Association and Sub-Exchanges
to seek Eastern distribution, where processing was not necessary, forced
Mid-Western markets to use cars available from free zones as well as
those which had been processed. In many cases these a'#4able cars did
not fill the requirements of trade demand in the division.
In spite of this condition, both auction and private sale markets
have held up exceptionally well and prices realized have been better on
the whole than those secured in territories where even a larger quantity
of unprocessed fruit has been available for sale. The Exchange, with
its larger percentage of the crop in Florida, has been able to maintain
its hold on the Chicago and adjacent markets. This fact, in view of the
peculiarities of the situation, plus Texas competition, indicates a strong
point in favor of the dependability of Exchange grade and pack and
the reputation it has established on its brands throughout the territory.
Texas grapefruit up to the time of the freeze, however, made serious
inroads in several of the districts in this division. The advantages of the
Texas fruit, when considered as an alternative to the Florida situation,
were obvious. Florida fruit for the most part ran heavily to medium
and large sizes, while Texas fruit was seedless and ran heavily to small
sizes.
Another feature to be recognized in considering the sales in the Mid-
Western Division is the fact that this region experienced one of the
coldest winters in its recent history. Sub-zero temperatures prevailed
for long periods of time, making transportation exceedingly difficult.
Moderate weather conditions would have minimized greatly the distri-
bution problems in the division.
The Exchange lead over competitors on Indian River fruit in the
Chicago market has been maintained both in the matter of volume and
price. It is believed that an increasing volume of Indian River fruit can
be placed in this market each season with comparable results. The fruit
from the Indian River district placed in Chicago has been almost en-
tirely of choice grade. In comparison with prices realized elsewhere
on this grade, it has made an excellent showing.
12









The auction situation in the Chicago market has been greatly im-
proved during the past year. The full buying support of the market
is now made available to Florida shippers. This is made possible by
the fact that just one auction is in operation and sales in this auction
have been arranged by commodities. This has eliminated to a large
extent the confusion in the buyer's mind caused by switching from one
commodity to another during the sale, and has enabled buyers to pur-
chase their supplies with much more regularity than has formerly been
the case.
In the second auction market of the division, St. Louis, the Exchange
commitments were only 56 per cent of the volume sold in this district
the previous season. Most of this volume was placed at auction with
sales producing satisfactory margins over competitive fruit, as is indicated
in the table on page 15.

Cincinnati Division
The markets of this division also were forced to take processed
fruit. As a result, volume throughout the division for individual mar-
kets was reduced.
In the two auctions in the division, the Exchange lead over compe-
tition was maintained on every line of fruit (see table on page 15).
In Cincinnati these figures range from 2c per box lead on plains to
$1.67 average lead on Seald-Sweet Russets. In Cleveland the margin
in favor of Exchange fruit ranges from. 8c on Seald-Sweet Russets to
$1.02 on plains.
Quantifies of Choice Indian River fruit were sold at auction by the
Exchange in Cincinnati and Cleveland for the first time. Fairly steady
supply of this fruit was maintained. Both auctions absorbed the quan-
tities offered at prices in line with the larger markets. There is no
question but what these markets will continue to handle a limited quan-
tity of this fruit at comparatively high prices.

Eastern Division
This territory included practically the only markets freely open to
shipment of Florida fruit under the quarantine regulations. Zone 2
fruit could go to the markets of this division without being processed.
It was necessary, therefore, for this division to absorb a larger per-
centage of Exchange shipments than it had ever handled before. This
necessitated intensive sales work to keep distribution even throughout
the territory. Every district manager fully realized at the beginning of
the season that he had a task to perform which required supreme sales
effort and close attention.
As a result, a greater volume of private sale distribution in the East-
ern Division, which includes three auction markets-New York, Phil-
adelphia and Pittsburgh-was maintained than during the season 1928-
29. It is well to emphasize this point, as one of the claims of our
-competitors is that the Exchange ships too large a percentage of its
fruit to auction.








During the past season, in spite of the fact that the Exchange in-
creased its proportion of the state's tonnage by approximately 10 per
cent, the quantity of the New York market was smaller by 272,000
boxes than during the 1928-29 season, a' reduction of approximately
28 per cent in Exchange auction offerings in New York, whereas com-
petitors reduced their offerings during this period only 1 7 per cent.
Other auction markets show substantially the same comparative ratios.
Conversely, private sale markets in the Eastern Division have shown
a very substantial increase in sales as compared with a year ago. This
is in spite of the lighter crop. Baltimore, for instance, showed an in-
crease of 42 per cent in sales this season as compared with last season;
Buffalo showed an increase of 70 per cent; Albany, 20 per cent, Scran-
ton, 8 per cent; Washington, 33 per cent and Syracuse, 16 per cent.
Private sales in the Pittsburgh district increased 46 per cent, and in the
Harrisburg district the Exchange sold 9 per cent more fruit than it did
a year ago. Private sales made by the New York district office during
the season showed an increase over the previous year of 71 per cent.
One of the outstanding features of the year's operations in the
Eastern Division was the preference shown for Mor-juce brands in many
of the secondary markets. The Buffalo and Syracuse districts, for in-
stance, which formerly handled fully 75 per cent Seald-Sweet grades,
this year handled more than 75 per cent Mor-juce grades. In the
Scranton district, which has always been a market for second grade
fruit, the demand for this grade was increased.

Distribution Summarized
Thus, considering the handicaps, it is believed that the Exchange
has shown a creditable performance in the maintenance of distribution.
Detailed comparison may be made from the following table which lists
the distribution of acceptance for the seasons 1928-29 and 1929-30:
DIVISION 1928-29 1929-30
Boxes Percent Boxes Percent
New England 630,437 8.7 674,547 12.8
Eastern 3,162,155 43.4 2,532,120 48.0
Southeastern 512,739 7.0 287,180 5.4
Mid Southern 380,817 5.2 175,703 3.3
Cincinnati 712,371 9.8 469,294 8.9
Mid-Western 1,295,083 17.8 813,175 15.4
Southwestern 65,038 .9 1,464 .0
Northwestern 151,506 2.1 46,029 .9
Canadian 99,871 1.4 56,857 1.1
Florida Sales 194,910 2.6 176,662 3.3
Export & Misc. 75,229 1.1 46,632 .9

7,280,156 5,279,663
Summarizing this distribution into a consideration of the net loss of-
customers and markets, the detail in the following table is of interest.
14










1929-30
Towns ............... 393
New Towns .......... 75
Customers ............. 919
New Customers ........ 267
States Entered .......... 44
Canadian Provinces ....... 6


1928-29
433
78
976
281


Gain Loss
40
3
57
14
2


Premium for Exchange Fruit
A study of the auction records on a grade for grade and size for
size basis indicates that the Exchange again has obtained a higher
average throughout the season on the various lines of fruit in all auction
markets than have competitors. This comparison reflects directly the
confidence of the trade and buying public in the Exchange standards
of grade and pack as represented by the brand names.
In the following table these averages have been drawn for sales
made in all auctions from the beginning of the season to May 1st.

AUCTION PRICES REALIZED
Of the 50 different averages furnishing points of comparison the
Exchange has exceeded its competitors in 39.


PITTSBURGH
Exchange Average
Competitors Avg.
Exchange Ahead
NEW YORK
Exchange Average
Competitors Avg.
Exchange Ahead
Competitors Ahead
PHILADELPHIA
Exchange Average
Competitors Avg.
Exchange Ahead
Competitiors Ahead
BOSTON
Exchange Average
Competitors Avg.
Exchange Ahead
Competitors Ahead
CLEVELAND
Exchange Average
Competitors Avg.
Exchange Ahead
CINCINNATI


Exchange Average
Competitors Avg.
Exchange Ahead
(Table


S.S. S.S. S.S. U. S. U.S. No. 1
Brights Goldens Russets No. 1 Russets Choice


4.50 4.01 3.77
4.39 3.91 3.70
.11 .10 .07

5.65 5.55 4.71
5.55 5.29 5.09
.10 .26
.38

5.22 4.41 4.09
4.70 4.49 4.33
.52
.08 .24


Plains


3.49 3.09
3.38 2.92
.11 .17


4.91 5.15 4.20
4.84 5.02 4.08
.07 .13 .12


3.83 3.56
3.78 3.37
.05 .19


5.77 4.30 3.39 4.17 3.83 3.55 3.18
4.85 4.58 4.40 4.65 4.34 4.00 3.65
.92
.28 .01 .48 .51 .45 .47

5.09 4.72 4.63 5.33 5.07 4.38 3.96
4.66 4.47 4.55 4.44 4.63 3.94 2.94
.43 .25 .08 .89 .44 .44 1.02


5.18 5.43 6.15 4.98 5.02
4.57 4.37 4.48 4.50 4.50
.61 1.06 1.'67 .48 .52
Continued on next page.)


4.28 3.51
4.07 3.49
.21 .02









CHICAGO
Exchange Average 5.81 5.23 5.56 5.33 5.15 3.54 3.54
Competitors Avg. 5.21 4.63 4.28 4.61 4.46 3.91 3.43
Exchange Ahead .60 .60 1.28 .72 .69 .11
Competitors Ahead .37
ST. LOUIS
Exchange Average 4.42 4.22 4.65 4.31 3.33
Competitors Avg. 4.12 4.03 4.22 3.89 3.63
Exchange Ahead .30 .19 .43 .42
Competitors Ahead .30
The poorest showing in the foregoing list is made in the Boston
auction. Regular competitive shipments of better fruit from one or more
of the better points in the state account for this fact. As compared with
such competition, the bulk of the Exchange volume in Boston was di-
verted from Potomac Yards after every effort had been made to sell
the cars en route to that point at private sale. Naturally, cars finally
diverted to Boston were inferior to the general Exchange standard.
In Philadelphia, 78 per cent of the Exchange tonnage sold at auc-
tion consisted of Choice and third grade fruit, yet the Exchange outsold
competition by 5c per box on Choice and 19c a box on third
grade. The comparatively small volume of Brights sold in Philadel-
phia averaged 52c per box more than the Brights sold by competitors.
In the Pittsburgh district approximately the same condition existed
throughout the season. The bulk of the Exchange tonnage in that
auction consisted of Choice and third grade fruit. The differential on
these two grades in favor of the Exchange was 1 c and 15c per box
respectively.
Average prices for Exchange sales on all fruit from the beginning
of the season to May 1 Oth-prices being f.o.b. Tampa-are as fol-
lows:
ORANGES
Auction ...................... $3.49
Private Sale ................. 3.05
General Average ............. 3.24
GRAPEFRUIT
A auction .................... 2.95
Private Sale ................. 3.04
General Average .............. 3.00
TANGERINES
A auction .................... 3.35
Private Sale ................. 3.52
General Average ............. 3.38
Cannery Grapefruit, average..... .85
From the above table, it is apparent that private sale average
price is less than that obtained in auctions. It must be borne in mind
that 75 per cent of our Choice Valencias this season ran heavily to
100s, 126s and 150s. During the earlier Valencia period these large
sizes naturally were shipped first. If sent forward to be sold at auc-
tion such sizes would have netted very little to the grower and in many
instances would have brought red ink.









Recognizing this condition, special effort was made by the organ-
ization to create through chain stores a consumer demand on these sizes.
This effort met with appreciable success. Two buyers alone purchased
221 cars of these large size Choice Valencias. The aggregate of
straight cars of these sizes to all purchasers was considerably more
than this.
While special prices had to be quoted on such cars loaded solidly
with these large sizes, nevertheless the result was the sale of this fruit
at a profit to the grower and, just as important, a relief to the auction
markets by the elimination of a considerable volume of these discount
sizes.
It is apparent, then, that such straight car sales of discount fruit
permitted the maintenance at a higher level of the auction averages and
reduced private sale averages.

Cold Storage Fruit
By order of the Department of Agriculture, shipments of citrus
fruit out of Florida ceased at midnight April 14, 1930. This na-
turally meant that during the last month heavier shipments than usual
were made in order to clean up available supplies. Any effort to sell
all of these shipments when and as made would have resulted in a
severe congestion of markets and demoralization of prices. The Ex-
change adopted the policy of placing in cold storage the surplus in
order to prolong the marketing period and prevent unnecessary glutting
of markets. Over 700 cars were thus put in storage at strategic points
in the East and middle West. Care was taken to place this fruit
partly in auction centers and partly in points from which shipments
could be made to other private sale or auction points to fill later de-
mand.
An efficient system was developed whereby cars in storage were
inspected regularly and the period of inspection was made so that no
heavy decay could develop. Most of the fruit so stored realized hand-
some prices to the growers. In many cases the gain in price amounted
to $3.00 per box between the time the fruit was stored and the time
it was withdrawn and sold.
There is no doubt but what this storage policy was responsible in
a large degree for the maintenance of average prices during the later
part of the season and for the general success which is characteristic of
the total movement.

Export Shipments
The export shipments of the Exchange were reduced this season.
Plans had been made to ship a considerable volume. It was early real-
ized, however, that there were several conditions which would affect
the advisability of quantity shipments to Europe. In the first place,
Florida grapefruit ran heavily to large sizes and European require-
ments call for heavy commitments of small sized number one fruit.
Second, it became apparent early in the season that indiscriminate ship-
17


1








ment of Florida grapefruit to Europe on the part of other operators in
the state, without being backed up with any market development work,
would soon cause an excess of supply over demand. This condition
resulted in an appreciably lowered market in Europe which stood out
in marked contrast to the prices available in American markets.
It seemed advisable, therefore, to reduce Exchange shipments to
Europe to the minimum necessary to maintain acceptance and recogni-
tion of its brands.
In addition to direct shipments, smaller lots of Exchange fruit were
withdrawn from the New York auction and exported as less than car
load lots.
Exchange European shipments were made almost wholly to Liver-
pool and London, from which points distribution was made into Birm-
ingham, New Castle, Manchester and Hull in England; Glasgow in
Scotland; Paris, Hamburg, Bremen, Antwerp, Copenhagen, Rotter-
dam, Oslo and Zurich on the Continent.
In addition to these European shipments, an experiment was tried
which is an innovation. Small shipments of Exchange fruit were made
from New York to Buenos Aires, in the Argentine Republic, in an
attempt to introduce Florida grapefruit in that country. The experi-
ment was a success. Buenos Aires took kindly to Florida grapefruit
and the season's operations showed a profit to Exchange growers of
nearly $1.00 per box. It is evident that this business can be increased
and be made a valuable part of the export market.

FIELD DEPARTMENT
The Florida Citrus Exchange at the close of the season of 1929-
30 was composed of 13 Sub-Exchanges and 106 Associations and Spe-
cial Shippers, as against 1 1 Sub-Exchanges and 88 Associations and
Special Shippers the year previous. This represents a gain of two Sub-
Exchanges and 18 Associations and Special Shippers.
In these organizations were 5,964 grower members. This accurate
figure has been determined by actual check made by Exchange audi-
tors. It is believed that this is the first time this information has ever
been compiled accurately by the Exchange.
-The situation confronted at the beginning of the season in the hand-
ling of the fruit by Associations and Sub-Exchanges was exceedingly
difficult and uncertain. Discouragement for the handling of the crop
was general among both growers and shippers. Fortunately, however,
conditions changed steadily for the better and the season was finally
finished with generally satisfactory results. This, of course, was ma-
terially aided by the small crop, both here and in California.
The Field Department maintained continuous activities throughout
the season in endeavoring to secure every possible modification of quar-
antine regulations. While by no means all of the desired modifications
were secured, many of material benefit were put through in time to
affect the season's shipments.


L








The total boxes handled this season by the Exchange were 5,438,-
034, as against 7,280,1 56 last year.

Grading Difficult
From the standpoint of grade, the 1929-30 crop has been prob-
ably the most difficult the Exchange has ever had to handle. Only
34% of it graded out under Seald-Sweet, the Exchange first grade
brand, as against 40.6% last season. In addition to this, it was neces-
sary to color a large percentage of fruit during the entire season.
In spite of this necessity for coloring and the sterilization of a large
percentage of the shipments, decay has been remarkably low-only
.33% in comparison with .80% last year. In considering this reduction
of decay, it is not yet possible to compare figures for decay between
the various Associations so as to determine whether the use of pre-
ventatives by some houses has materially affected the results. These
figures will be available as soon as a sufficient quantity of shipments
have been made to provide substantially indicative averages.

Necessity for Stamping Realized
Due to the poor quality of a considerable amount of fruit this sea-
son, a number of houses that had marking machines have not stamped
their output. Many houses are now expecting to install additional
marking machines with the expectancy of a much better crop for next
season. Both Seald-Sweet and Mor-juce grades will be stamped.
The necessity for this is more fully realized than ever before and
very few houses will be without marking machines next season.

Clearing House Contact
The Field Department has handled most of the contacts with the
Clearing House. The Department Manager attended the weekly
meetings of Clearing House Operating Committee, the chief business
of which was the pro-rating of shipments. The allotments during the
past season have not affected the Exchange rate of shipment, as, from
our own knowledge of market conditions, we have in almost every in-
stance kept our shipments below the Clearing House allotment and in
no weekly period has it been necessary for us to allot to our various
Sub-Exchanges.
The inspection service of the Clearing House has been very satis-
factory. In general, our houses have shown better inspection reports
than usual, despite the large amount of poor quality fruit handled.

Higher Packing Costs
The short crop and handling difficulties under which Association
Managers labored during the past season have of necessity made for
higher packing costs than the previous season. The majority of our
managers have, however, by hard work and close attention, kept their
costs within reasonable bounds. Many of them have been able to make
substantial refunds to their growers.









Exchange Increases Acreage
Since the approval of the Florida Citrus Exchange by the Farm
Board, it has increased its acreage control by 12,930 acres, exclusive
of the Chase and Company and Internation Fruit Corporation. This
increase has been obtained chiefly through the regular efforts of the
Associations, Sub-Exchanges and Field Department.
In February, the Federal Farm Board loaned the services of Dr.
Theodore Macklin to the Exchange. Dr. Macklin made a number
of excellent addresses in various parts of the state and developed a great
deal of valuable organization data from the Exchange records.
An active publicity campaign was started coincident with Dr. Mack-
lin's work, both in the state press and by addresses before various civic
organizations by Exchange speakers. This work accounts for con-
siderable of the acreage increase.
The speaking campaign, however, has been continued chiefly by
Mr. Curry of this department. Exchange Associations have been urged
to form committees of their members to assist the manager in signing up
additional tonnage and to take full advantage of the present oppor-
tunity for organization.
Grower Financing Vital
Probably more than ever before the question of financing affects
the decision of the individual grower in considering membership in the
Florida Citrus Exchange. Conditions in the state have been abnormal
for several seasons. As a result, many growers must have immediate
financial help.
It is vital to the Exchange that its efforts along this line be ex-
pedited and, by so doing and presenting a united organization front,
full advantage of the present opportunity can be taken and the gains
made can be increased during the Summer.
This grower financing problem is being met with considerable suc-
cess by the growth and development of the Growers Loan and Guaranty
Company, the Exchange financial subsidiary, which is discussed in
Appendix A.

SEALD-SWEET AND MOR-JUCE ADVERTISING
The general advertising efforts of the Florida Citrus Exchange
were reduced this season for several reasons. First, the retain for brand
advertising was reduced in view of the expected continuance of the
commodity advertising campaign of the Clearing House. Second, fruit,
generally considered, was inferior in appearance and eating quality.
The campaign, as usual, was handled by the Exchange Advertising
Department and Erwin, Wasey and Company.
Newspaper Advertising
Schedules of newspaper advertising were released in the metropoli-
tan centers through the North during the period when the crop move-
ment was at its peak.









The copy and layout of the newspaper advertising continued the
emphasis on brand names. In view of the short funds available for
space advertising, the copy was written to include both oranges and
grapefruit with a special emphasis on the sale of grapefruit, as this
fruit offered a more serious sales problem than oranges. Typical pieces
of this copy are reproduced on the following page.
Radio advertising was used to some extent in certain local markets
where announcement broadcasts could be made coincident with the
arrival of a volume of Exchange fruit in the individual market. This
method of advertising proved to be very satisfactory.
For instance, in Akron the deal was worked out with the Albrecht
Grocery Company, chain stores who drew their requirements almost
entirely from Exchange offerings. In return for these exclusive pur-
chases, radio broadcasts over the local station announced the arrival of
the fruit and discussed the superior quality of the offerings through
these stores and then continued with a full discussion of the superiority
of Florida fruit and the general healthfulness of citrus fruit.
Such localized campaigns are desirable where the local conditions
can be worked out satisfactorily.

Dealer Service
While dealer service activities were materially reduced, neverthe-
less the value of this type of advertising and merchandising effort was
even more clearly demonstrated than ever before.
The dealer service work was handled in the field almost entirely
by the regular, or key, men whose services were augmented by the em-
ployment of several expert fruit salesmen. These men were completely
mobile and their efforts could be used when and where difficulties arose
in various markets through the season. Their work in general this sea.
son might be termed as that of "trouble shooting."
Dealer service men were travelled from Chicago, Detroit, Cleve-
land, Cincinnati, Pittsburgh, Philadelphia, New York and Tampa.
Work of the dealer service crews in general was confined to jobbers and
selected retailers whose locations offered possibilities for desirable "spot"
displays.
The dealer service campaign was particularly intensive in the East-
ern Division, where the free movement of fruit because of quarantine
regulations indicated that this division would be called upon to absorb
more than its percentage of the state's volume. In this division dealer
service men called upon 11,697 retailers, decorated 10,295 windows
and installed 38,831 pieces of Seald-Sweet or Mor-juce display ma-
terial. The work of the crews in the Mid-West and Cincinnati Di-
visions increased these figures by about 50%.
In the South dealer service men were employed in work of a more
special nature. Here they concentrated their efforts on jobbers, mak-
ing every effort to hold distribution for Exchange fruit throughout this
territory. Such specialized work was imperative to hold good will and
friendship on Exchange brands against the resistance to processed













You must TASTE
Seald-Sweets to really know
the difference in Grapefruit!









-Sead-Sweet

Seald-Sweet
OIt.GCIS Nn EnlrOIT
A ----L--


SYES INDEED,
there's a difference in Grapefruit!


will tell you there's a bu
diFfrec 1. GrapefrIt
,t Iut .....


e il w Seald-Sweet "
ORbANBS & GRAPEFRUIT


SealdA.SWEW,uteet


You must TASTE
Seald-Sweets to rely know
the difference in Grapefruit!



will tell you there's a big
differene in Grapetruit! ~



Seald.Sweet
.."".,.* .plm"s""' Seald-Sweet
,,, ... ..... ....









fruit. As had been previously cited, this work produced generally satis-
factory results.

Display Material
New units of display material were completed by the Advertising
Department for use in dealer sales work. Several new poster designs
for window and wall displays and new easel-supported counter cards
were designed. This material, plus that which remained in the inven-
tory carried over from the previous season, sufficed to fill the require-
ments of the normal demand for this type of advertising.
It is interesting to notice in this respect that the voluntary demand
on the part of the retail trade is increasing for Exchange display units.
This is indicative of the increasing demand for Exchange brands.
Isolated evidence of the general productiveness of this type of ad-
vertising effort is available. For instance, a complete Mor-juce win-
dow installed in a retail store on the West Side of Chicago by actual
check trebled the volume of Exchange fruit sold at retail through the
store. Another, a Seald-Sweet window display installed in the uptown
district in Chicago, doubled the Exchange fruit sales through the out-
let. In Nashville the windows of the 104 stores of the H. G. Hill
Company were decorated during the week before Christmas, resulting
in the sale of approximately 20 cars of Exchange fruit to this organ-
ization for the holiday trade.

Premiums
The development and sale of the Seald-Sweet hand juice extractor
during the past four years has been of exceptional value to the Florida
Citrus Exchange in particular and the industry as a whole.
When this item was developed, it was the only mechanical juice
extractor on the market for home use on oranges and grapefruit. Since
that time the sale of nearly 70,000 of these extractors has provided a
market and demand for an efficient extractor at a low price for home
use. This demand was recognized by many manufacturers of such
equipment throughout the country, with the result that today there are
approximately 50 different types of hand operated mechanical extrac-
tors available for home use.
All of these are, of course, advertised and sold by their manufac-
turers. The logical result is that more homes are being equipped with
juice extractors without further effort on the part of the Exchange.
And as these machines are distributed, the consumption and demand
for Florida citrus increases.
In view of this situation, the Exchange inventory on the Seald-Sweet
Extractor has been reduced to a minimum. Sales, because of the lack
of continued advertising and this outside competition, have fallen off.
It is believed, however, that the extractor has served its purpose in
stimulating household equipment manufacturers in going after and de-
veloping this business.
Seald-Sweet Cook Books distributed on direct requests of con-









sumers throughout the country were mailed to about 10,000 individuals.
In addition to this, 15,000 additional were used by dealer salesmen
who placed them with the better type of retailers for distribution to
their customers.

Organization Publicity
The Seald-Sweet Chronicle, house organ of the Florida Citrus Ex-
change, was published regularly through the year, as formerly. In the
24 issues from May 15th, 1929, to and including May 1st, 1930, a
total of 6,038 inches of news matter was published. This volume of
space comprised 667 individual stories or news items and represents an
average of 28-9V2 inch stories per issue.
Of these issues, four 12-page issues were published, nineteen 8-
page issues and one 6-page issue. Total gross inches published were
9,270, of which 65 per cent was news and 35 per cent advertising. The
circulation of the Seald-Sweet Chronicle has been maintained and in-
creased. The average circulation for the total period above cited was
1 1,500 growers per issue.
Since February 13, 1930, an accurate record of the publicity re-
leases to the state press have been maintained. From this date to May
1 a total of 41 special stories on the Florida Citrus Exchange were
prepared and released to the entire state press, or to certain newspapers
whose circulation covered the territory which the news item concerned.
A check on the publication of this publicity by the newspapers to which
it was released has been maintained by the employment of a clipping
service. Based on the clippings returned by this service, which is be-
tween 60 to 75 per cent effective, 6331 inches were printed by 88
papers.

Miscellaneous Promotion
The Advertising Department has handled the development and ex-
perimental work connected with the shipment of citrus fruit in woven,
waterproof paper mesh bags. There are certain advantages possible in
the development of this class of package which require more complete
experimental work to prove before it can be adopted for general use.
It is safe to say, however, that results of this work would indicate that
this type of container may be used satisfactorily in the development of
consumer packages for chain store business, particularly on discount
sized oranges.
This department also designed and executed an organization port-
folio which crystallized into readily understandable sequence the organ-
ization arguments in favor of the Florida Citrus Exchange and the
necessity for unification of the industry. Much of the data developed
by Dr. Macklin, representative of the Federal Farm Board was used
in addition to illustrated statistical matter which has been developed
during the past few seasons.
These portfolios have been completed and sent to Exchange di-
rectors, Sub-Exchange managers and Associations. They will also be
24









sent to the editors of the state press, large growers, bankers and other
interested influential persons in the state.
It is expected that this information will form the basis of a com-
prehensive organization campaign to be carried on by the Exchange
during the Summer period.

TRAFFIC DEPARTMENT
From October, 1929, to May 1, 1930, the Traffic Department
of the Florida Citrus Exchange has filed claims in the amount of
$26,528.56. The amount collected on these claims during the above
period is $8,130.41. Since the carriers require considerable time
in investigating claims, and since most of these claims are of recent
date, sufficient time has not yet elapsed to dispose of the majority of
them.
The Department has collected on all outstanding claims from
June 1st, 1929, to May Ist, 1930, the amount of $30,030.64. These
funds were returned to the Association and growers who owned the
cars affected by these claims. It is one of the important services the
Florida Citrus Exchange offers without additional charge to its growers.
The past season has been very similar to the preceding one in
the matter of claims and losses due to decay and freezing in transit.
Because of the improved methods in preparation, such as precooling
and the treatment of the fruit with decay preventatives, Exchange
fruit has gone to market in practically sound condition. (Percentage
of decay .3%. See page 19). The fact that Exchange Associations
are being supplied almost wholly with a very good type of refrigerat-
ed car has tended to eliminate the heavy losses heretofore experienced
due to freezing in transit.

Rates
Demand developed during the season for fruit packed in Jumbo
boxes. Rates on this package were established five or six years ago
but its use was discontinued. When the present tariff was reissued
in November, 1928, no provision was made for shipping in Jumbo
boxes. The Traffic Department handled this matter vigorously with
the interested carriers and obtained the rates on this package promptly.
There has never been a tariff on woven waterproof paper mesh
bags loaded loose in cars. The use of this type of container during
the early part of the season was prevented for two reasons. First,
quarantine regulations prevented its use because it had not heretofore
been recognized by the Container Bureau as a standard container.
Second, there were no rates published applicable to that type of
package. The matter was handled by the combined efforts of the
Traffic Department, together with those of the Chase and Bemis Bag
Companies and, in a conference in Chicago in January, the Chief of
the Bureau of Containers agreed to approve the package for shipment
of citrus fruit and to incorporate it as a standard container in the
Container Tariff. In :dsing.sod thbk.uatantine restrictions were auto-
S-'. :..'.... 25 .-. ......

o. :* ', .. .*. ...... .
"." : '!: / :'.: "." ""
*/ **:.: .':* ;** '









matically removed. The matter was then handled with the rate com-
mittees for authority to publish rates, which was finally done effective
in March, 1930.
Refrigeration Investigation Case
The reduction in refrigeration rates ordered by the Interstate Com-
merce Commission, effective May 15th, 1929, was objected to by
the carriers on the grounds that the Commission had not made suffi-
cient allowance for haulage of the excess in the bunkers for their profit.
The Commission granted a rehearing which occurred in Washington
on January 6th to 9th, and again on March 12th in Jacksonville.
The case has now been closed and is before the Commission for
final decision.
Charges For Precooled Shipments
The carriers published in Supplement 6 to Dearborn's Perisha-
ble Protective Tariff No. 4, charges under Rules 240, 243 and 250
service on fruits and vegetables, based on 20% of the full tank refrig-
eration rates in effect prior to the reduction ordered by the Commis-
sion in the general Refrigeration Investigation Case. The Exchange
through the Growers and Shippers League, asked for a suspension of
the tariff. The case was heard in Jacksonville on April 13th to 15th.
The decision of the Commission on that point is now pending.

Line Haul Rates
A complaint was filed by the Southern Fruit Distributors attack-
ing the present rates on citrus fruit from all Florida shipping points
to all destinations North of the Ohio and Potomac Rivers and East
of the Mississippi River. The Exchange Traffic Manager attended
the hearing held in Orlando March 31st to April 2nd, 1930. The
Florida Citrus Exchange and the Growers and Shippers League of
Florida filed petitions of intervention in order to protect their interests
if it became necessary. As the case progressed, it was decided that
Florida interests should submit no testimony. The carriers submitted
very little testimony and no effort was made to secure an increase in
the present line haul rates.

Proposed Reconsigning and Diversion Rules and Charges
The National Reconsigning and Diversion Committee has pro-
posed a national uniform reconsigning and diversion charge. This
provides for the first diversion free in the event diversion orders are
filed prior to or within 24 hours after arrival of the car at the first
billing destination. The second diversion shall be made at a charge of
$2.70 per car;. the third, fourth and fifth diversions at a charge
of $6.30 per car, and subsequent diversions at a charge of $9.00 per
car.
Similar charges were proposed ,vearal.,years ago and, at a con-
ference between the ExecutiNe offices ef the.'Sautheastern lines and
.. *: .- 26 *. ::.
.... 26 "'..
.'... ..... .









citrus shippers in Florida, it was decided not to assess the charges
proposed against Florida shipments of citrus fruits and vegetables.
With that in mind, the Exchange Traffic Manager immediately handled
the question with the Executives of the Southeastern lines to determine
their present attitude. Advice was received that the matter had not
been decided. The same peculiar conditions surround the movement
of Florida perishables as prevailed when charges were formerly pro-
posed, and it is hoped that the Southeastern lines will adhere to their
policy to not adopt rules, regulations and charges for diversion and
reconsigning that will in any way interfere with the free distribution of
Florida perishables.

Railroad Service
Generally speaking, the railroad service during the past season
has been exceptionally good. Fast schedules have been maintained
to all markets and the carriers should be commended for the excel-
lent brand of service rendered in the handling of the Florida traffic.
The schedule covering shipments of citrus from Florida to Eastern
markets recently has been shortened by carriers 24 hours. The At-
lantic Coast Line has already advised that it has made this schedule
effective. While the Seaboard Air Line has not yet taken definite
action, it is expected that a comparable schedule on that road will be
available at the opening of the coming season.
Under this schedule shipments will reach New York for delivery
the fourth morning after shipment, as opposed to fifth morning de-
livery.

Growers and Shippers League
The Exchange Traffic Manager is chairman of the Traffic Com-
mittee of the Growers and Shippers League and is also a member
of its Executive Committee and Board of Directors. As such, he
has cooperated with its Executive Vice President in all matters af-
fecting the fruit and vegetable industry in Florida. The Traffic Man-
ager has taken a very active part in the work of the national organi-
zation, the American Fruit and Vegetable Shippers Association, with
headquarters in Chicago. The Manager has served as chairman of
its various committees and this year has been honored with the general
chairmanship of the Transportation Committee, the second most im-
portant committee in the organization. The chairmanship carries with
it ex-officio membership of the committees on traffic, claims, recon-
signment and diversion, express, telephone and telegraph, demurrage
and terminal and docks and general supervision of the work and re-
ports of those other committees.
The American Fruit and Vegetable Shippers Association long
since has been recognized by the carriers as representing the bulk of
the perishable tonnage handled throughout the country. It is in a
position to render an inestimable service to the perishable shippers
through the operation of its various committees on traffic and trans-
portation matters.









EXPENSE OF OPERATION
The operating expense of the organization to date shows an increase
over last season, principally because of the fact that while the Ex-
change increased its percentage of control, the actual tonnage shipped
was still less than during the 1928-29 season of heavy volume.
A second factor which operated to increase the expense was that the
operating expenses of the Growers Loan and Guaranty Company
were absorbed by the Florida Citrus Exchange during part of the
season. This was deemed advisable to assist this subsidiary in strength-
ening its operating statement. The multiplicity of arrangements re-
quiring almost constant contact at Washington with the Federal Farm
Board also caused an appreciable increase in expense.
The detail of comparative costs of operation this season and last
are shown in the table below:
Comparative Operating Statement, Season
1928-29 and 1929-30 to May 10th
1928-29 1929-30
Amount Per Bx Amount Per Bx
Agents Expense $ 32,403.82 .005 $ 34,330.66 .006
Agts. Salaries less
Brokerage Received 54,023.66 .008 35,538.31 .007
General Expense,
Postage and Phone 31,112.05 .005 37,004.71 .007
Office Supplies 9,636.84 .002 9,211.00 .002
Rent Paid 4,095.00 .001 5,090.45 .001
Florida Salaries &
Traveling Expense 141,598.07 .022 156,894.15 .028
Telegraph Expense 86,681.16 .013 84,913.62 .015
Int. Paid less
Int. Received 4,478.16 .001
G. L. & G. Co.
Operating Expense 20,751.77 .004
Totals $359,550.60 .056 $388,262.83 .071
APPENDIX "A"
GROWERS LOAN AND GUARANTY COMPANY
The Growers Loan and Guaranty Company is operated as a
subsidiary of the Florida Citrus Exchange to make possible produc-
duction loans to individual grower members and equipment and operat-
ing loans to member associations.
Statistics for the business done during the fiscal year ending April
30, 1930 are not available at the time this report goes to press. On
the whole, however, this company had a very satisfactory year, from
the standpoint of liquidations and the financial service it has been
able to give to members of the Florida Citrus Exchange.
Due to the discovery of the Mediterranean Fly last April and the
uncertainty which existed during the major part of the past season as
to how much effect discovery of the fly and the subsequent quarantine
regulations would have upon the successful marketing of the fruit, the
management of this company was compelled to adopt a more cau-
tious and conservative plan of operations than in past years.
While the Growers Loan and Guaranty Company was unable to









renew its lines of credit with a few of the Northern banks with which
it had done business, it retained the majority of its Northern con-
nections, which extended it quite considerable lines of credit. This
attitude was maintained even though these banks were somewhat con-
cerned over the unfavorable conditions that existed in Florida during
most of the past season.
With the assistance of these banks and the Federal Intermediate
Credit Bank, which also gave the company a large line of credit, and
with the assistance received from the Federal Farm Board, this com-
pany was amply able to meet the demand made upon it for short term
production loans to growers and for loans to associations to assist them
in the construction and equipment of processing plants, as well as fur-
nishing the latter operating capital at the commencement of the season.
The Growers Loan and Guaranty Company is now planning to
increase its capitalization at the next annual meeting of the stockholders
through an issue of 5% cumulative preferred stock. The Federal
Farm Board is assisting the Exchange in the purchase of this stock
through a $500,000 loan to be paid over a period of years. With
this increased capitalization, the company has already arranged a very
satisfactory line of credit with the Federal Intermediate Credit Bank
of Columbia, S. C., for the ensuing year. While it has not yet
attempted to renew its lines of credit with Northern banks, they are
showing a favorable attitude. There is no doubt but what it will
be successful in selling an appreciable amount of collateral trust
notes to those banks during the coming year.
There is no question but what this subsidiary is one of the most
important factors in the development of cooperative marketing
in the Florida citrus industry. Its growth is directly reflected in the
percentage of the crop under cooperative control. The progress made
by this company during the past year may be regarded as highly sat-
isfactory.
APPENDIX "B"
EXCHANGE SUPPLY COMPANY
The Exchange Supply Company, the stock of which is owned by
the members and associations affiliated with the Florida Citrus Ex-
change, has had a very satisfactory season. Though having a decrease
in volume under last season due to decrease in crop, business done
was greater in proportion to the crop.
The Exchange Supply Company handled practically everything
connected with the operation of a packing house and, while it is
operated on a close margin of profit, giving to the association liberal
discounts, it has by purchasing in large quantities made a small net
profit.
The Exchange Supply Company is continuing to liquidate its fixed
holdings that were acquired in connection with its manufacturing de-
partments that were discontinued several years ago, and has retired
nearly all of the bonds that were outstanding and will probably retire
the remaining bonds at maturity March 1st, 1931.










APPENDIX "C"
CITRUS ACREAGE
Citrus Plantings in Flbrida Reported by State Plant Board,
August, 1928
(Based on 70 Trees per Acre)


Bearing
Acres Trees
Oranges ...154,957 10,846,932
Grapefruit. 74,138 5,189,679
Tangerines 16,421 1,149,490
Satsumas 3,364 235,503
Limes ..... 2,726 190,849
Lemons .... 757 52,992
Kumquats 279 19,555
Totals ....252,642 17,685,000


Non-Bearing
Acres Trees
40,193 2,813,529
5,750 402,508
7,537 527,552
4,191 293,320
34 2,299
4,283 299,868
38 2,638
62,026 4,341,714


Total
Acres Trees
195,150 13,660,461
79,888 5,592,187
23,958 1,677,042
7,555 528,823
2,760 193,148
5,040 352,860
317 22,193
314,668 22,026,714


California Citrus Acreage
Reported by California Crop Reporting Service
May 8, 1930


L Variety Bearing
Oranges ............. 191,327
Lemons .............. 43,345
Grapefruit ............ 8,993

Totals ...............243,665


Non-bearing
24,490
2,954
5,183

32,627


Total
215,817
46,299
14,176

276,292


Texas Citrus Acreage
Reported by J. M. Delcurto, Chief Entomological Division,
Austin, Texas, May 9, 1930


Variety Bearing
Oranges ............. 5,576
Grapefruit .......... 12,200

Totals ............... 17,776


Non-bearing
16,434
49,845

66,279


Total
22,010
62,045

84,055


Arizona Citrus Acreage
Reported by T. S. Bishop, Chairman, Arizona Commission
Agriculture, Phoenix, Ariz.
May 10, 1930


Variety Bearing
Oranges .............. 2,592
Grapefruit ............. 2,723

Totals .............. 5,315


Non-bearing
5,838
9,395

15,233


Total
8,430
12,118

20,548









Alabama Citrus Acreage
Reported by J. W. Pace, Chief Citrus Inspector
Mobile, Alabama, April 10, 1928
(Report of May 10, 1930, states acreage greatly reduced account cold
damage but no accurate information available).
Variety Bearing Non-bearing Total
Satsuma Oranges ....... 4,030 7,120 11,150
Isle of Pines Citrus Acreage
Variety Bearing Non-bearing Total
Grapefruit ............ 1,000 200 1,200
Porto Rico Citrus Acreage


Reported January,
Bearing
Grapefruit ............ 5,000
Oranges .............. 1,300

Totals ............... 6,300
Summary Grapefruit
State Bearing
Florida .............. 74,138
Texas ............... 12,200
California ............ 8,993
Isle of Pines .......... 1,000
Porto Rico ........... 5,000
Arizona .............. 2,723

Totals ............... 104,054


1930
Non-bearing
750
200

950
Acreage
Non-bearing
5,750
49,845
5,183
200
750
9,395

71,123


Total
5,750
1,500

7,250


Total
79,888
62,045
14,176
1,200
5.750
12,118

175,177


APPENDIX "D"
Value of Florida's Citrus Crop to the State
Boxes Amount
.............. 6,100,000 $ 9,699,000.00
.............. 4,600,000 8,740,000.00
.............. 4,750,000 11,685,000.00
.............. 8,125,000 17,958,000.00
.............. 7,956,000 16,550,406.00
.............. 9,700,000 16,199,000.00
.............. 8,370,000 18,497,700.00
.............. 7,649,000 17,286,000.00
.............. 5,581,000 20,706,656.39
.............. 8,407,680 31,696,953.60
..............12,495,925 45,235,248.50
..............12,109,320 35,117,028.00
..............11,888,280 40,657,917.60
..............16,886,701 48,464,831.87
(Continued on next page.)


Seasons
1909-10
1910-11
1911-12
1912-13
1913-14
1914-15
1915-16
1916-17
1917-18
1918-19
1919-20
1920-21
1921-22
1922-23









............ 20,399,614
.............. 17,781,120
.............. 14,692,320
. ......... .. .16,588,800
......... .... 13,635,360
......... .... 26,266,965
.............. 13,850,290


APPENDIX "E"
Total Citrus Crop Movement
As Reported by Railroads In Boxes
Florida
.............. 1,260,000
.............. 1,450,000
.............. 1,950,000
.............. 2,150,000
.............. 2,450,000
.............. 2,713,180
.............. 3,450,000
.............. 5,055,367
.............. 2,808,187
. ............. 147,000
.............. 218,379
.............. 358,966
. ............. 252,000
. ............. 274,000
. ............ 352,600
. ............. 974,033
.............. 1,147,49 1
.............. 1,954,954
.............. 2,961,192
.............. 3,794,133
.............. 3,801,101
.............. 3,250,000
.............. 4,634,000
.............. 6,100,000
.............. 4,600,000
.............. 4,750,000
.............. 8,125,000
.............. 7,946,926
.............. 9,700,000
.............. 8,370,000
.............. 7,649,049
.............. 5,581,309
.............. 8,407,680
............. .12,495,925
......... .... 12,109,320
............. .11,888,280
(Continued on next page.)
32


42,337,200.98
53,165,548.40
52,822,352.00
46,945,704.00
51,424,100.00
56,131,267.75


Season
1886-87
1887-88
1888-89
1889-90
1890-91
1891-92
1892-93
1893-94
1894-95
1895-96
1896-97
1897-98
1898-99
1899-00
1900-01
1901-02
1902-03
1903-04
1904-05
1905-06
1906-07
1907-08
1908-09
1909-10
1910-11
1911-12
1912-13
1913-14
1914-15
1915-16
1916-17
1917-18
1918-19
1919-20
1920-21
1921-22


1923-24
1924-25
1925-26
1926-27
1927-28
1928-29
1929-30


California
840,560
957,600
1,067,040
1,333,800
1,541,280
1,691,760
2,255,680
2,230,980
1,908,360
2,878,500
2,793,000
5,758,140
3,933,380
6,767,420
9,156,860
7,747,060
8,921,220
11,114,656
11,559,542
10,155,542
11,388,029
12,327,944
15,460,912
12,815,272
17,960,544
15,827,162
7,212,996
19,160,724
18,458,880
18,203,114
23,192,722
10,355,733
22,092,184
20,408,582
26,838,776
16,981,129









............... 16,886,701
......... .... .20,399,614
.............. 17,781,120
......... .... .14,692,320
.............. 16,588,800
............ ..13,635,360
......... .... .26,266,965
.............. 13,860,290
APPENDIX "F"


23,409,887
24,292,800
21,411,660
29,401,680
31,350,000
27,014,448
36,964,200


SHIPMENTS AND DISTRIBUTION
Shipments By Sub-Exchanges as Compared with Last Season


1929-30
Sub-Exchange May 9th
Chase .......... 300,929
Dade .......... 13,025
DeSoto ......... 190,395
Hillsborough ..... 85,762
Indian River ..... 278,456
International ..... 309,994
Lake ........... 335,954
Lee ............ 101,232
Manatee ........ 169,779
M arion ......... 17,514
Orange ......... 736,232
Pinellas ........ 363,727
Polk .......... .2,366,580
St. Johns ........ 168,464

Totals ......... .5,438,043


Net loss ........


Distribution of A
Division Oranges
New England .... 380,487
Eastern ......... 1,416,428
Southeastern ..... 207,515
Mid-Southern .... 137,444
Cincinnati ....... 255,601
Mid-Western ..... 351,128
Southwestern .....
Northwestern ..... 5,514
Canadian ....... 13,767
Florida Sales ..... 294
Export and
Misc. Sales ..... 15,169


Totals ......... .2,783,347


1928-29
May 1 Oth
Non-member
30,695
227,975
173,005
250,598
Non-member
527,568
105,960
265,563
53,214
1,306,740
463,261
2,762,808
238,276

6,405,663
5,438,043


967,620


cceptances by
Grapefruit
255,640
913,714
75,585
38,253
196,410
438,896
1,464
40,515
43,057
176,368


Gain
300,929



27,858
309,994


Loss

17,670
37,580
87,243


191,614
4,728
95,784
35,700
570,508
99,534
396,228
69,812

638,781 1,606,401
638,781

967,620
Divisions


Tang
38
201,
4,

17,
23,


31,247

2,211,149 285
33


erines Totals
,420 674,547
,978 2,532,120
,080 287,180
6 175,703
,283 469,294
,151 813,175
1,464
46,029
33 56,857
176,662

216 46,632

,167 5,279,663


1922-23
1923-24
1924-25
1925-26
1926-27
1927-28
S1928-29
1929-30









OFFICERS, DIRECTORS AND HEADS
OF DEPARTMENTS, FLORIDA CITRUS EXCHANGE,
SEASON 1929-30


J. C. Chase, President Orlando
*E. L. Wirt, Chairman of the Board Bartow
Jno. A. Snively, First Vice-President Winter Haven
Jno. S. Taylor, Second Vice-President I -argo
C. H. Walker, Fourth Vice-President Bartow
C. C. Commander, General Manager Tampa
Geo. A. Scott, Sales Manager Tampa
A. H. Blanding, Production Manager Tampa
John Moscrip, Advertising Manager Tampa
E. D. Dow, Traffic Manager Tampa
O. M. Felix, Secretary Tampa
W. T. Covode, Cashier Tampa
Wm. Hunter, Attorney Tampa
Sub-Exchange Director Address
Chase J. C. Chase Box 451, Orlando
Charlotte J. 0. Carr Ft. Ogden
Dade W. 0. Talbott Goulds
DeSoto A. J. Dozier Arcadia
Florence *Jno. A. Snively Winter Haven
Lake *F. C. W. Kramer, Jr. I eesburg
Hillsboro W. J. Ellsworth Blanton
Indian River.......-.....-..Homer Needles Ft. Pierce
International --...--........ D. C. Gillett Tampa
Lake Apopka............... J. G. Grossenbacher Apopka
Lake Region ............... F. P. Goodman I ake Alfred
Manatee R. K. Thompson Sarasota
Marion Walter R. Lee.........-......- Box 836, Ocala
Orange *F. A. Rundle I.ockhart
Polk "Jno. S. Taylor I argo
Pinellas Vet L. Brown Bartow
Ridge J. D. Clark Waverly
Scenic C. H. Walker Bartow
Seminole A. W. Hurley ..Winter Garden
St. Johns River-...-..... R. J. Kepler, Jr. DeLand
Winter Haven............. H. E. Cornell Winter Haven
Special F. S. Ruth I ake Wales
Special W. E. Lee Tampa
Special D. A. Hunt I ake Wales
Special W. J. Howey Howey
Associate *Clinton Bolick Ft. Myers
*Executive Committee.
34