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Annual report of the Florida Citrus Exchange
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Permanent Link: http://ufdc.ufl.edu/UF00075941/00004
 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: 1930
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: UF00075941:00004
 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
1930-1931


.. .* .* .

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*.
*. *
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S31, 1/
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CONTENTS
Page
SEASON 1930-31 .......................... 3
Organization Improvements Made .............. 3
Exchange Resigns from Clearing House. ......... 4
Exchange Retains Reduced .................. 5
FLORIDA CITRUS EXCHANGE SALES...... 5
Export Volume Trebled .. ................. 6
Bulk Sales .............................. 7
Bag Shipments ............................. 7 8
Cylindrical Container Tested ................. 9
Deciduous Contract Renewed ................ 9
Data on Volume Movement .................. I 1
Data on Distribution .......... ............. 12
Eastern Division .......................... 12-13-14
M id-W western Division ..................... 14-15
Cincinnati Division ....................... 15-16
Southern M markets ......................... 16
O their D divisions ........................... 17
Distribution Summarized .................... 17-18
Prices ........................... ...... .1 -19
SEALD-SWEET AND MOR-JUCE
ADVERTISING ..................... 20
Publication Advertising .................... .20-21-22-23
Dealer Service ........................... 23-25
Premiums ............................... 25-26
Organization Publicity ..................... 27
DEVELOPMENT OF BY-PRODUCTS ....... 27
Exchange Juice Company ................... 28
Canning Division ......................... 29
TRAFFIC DEPARTMENT .................. 30
ORGANIZATION DEPARTMENT .......... 32
Cooperative Control Increased ................ 32
Grower Contact ... : ...................... 33
Business Contact .......................... 34
EXPENSE OF OPERATIQtN ............... 34
APPENDICES: :"'. *:. ." I :'.;...
A. Report. 'of gaiization Commitfee '..'.'.*.... 35
B. CGrQwes"oan & Guaranty Company .':*'. ,... 44
C. E'xc'nge Supply ,Com an .. .. *',.'...- 46
D. '-.A nual Values:'of' top ..1. ..;........ *' 46
E. Shipments by Sub-Exchanges .......... .. 47


I












ANNUAL REPORT

SEASON 1930-31

American citrus producing sections raised bumper crops during the
season 1930-31. Their combined volumes were the greatest produced
in the history of the industry.
F The major producing areas increased their volumes heavily over the
preceding season. The table below cites the detail of these increases,
.which range up to 88% for Florida.
Producing Volume Volume Increase % Decrease %
Area 1929-30 1930-31
Cal. & Ariz. 59,656 *91,000 31,344 52%
Florida 39,564 *74,500 34,936 88%
Texas 4,620 2,636 1,984 43%
Ala., La., Miss. 793 307 486 61%
Porto Rico 2,800 *1,844 956 34%
Cuba 465 670 205 44%
107,898 170,957 66,485' 3,426
Percentage Increase 58.4%
*Estimated totals for season
The merchandising of this tremendous crop was complicated by the
economic depression which existed throughout the country. The pur-
chasing power of all markets, but most particularly those primarily
dependent upon the payrolls of manufacturing industries, was sharply
reduced.
On the other hand, the Florida citrus crop was of unusually good
quality throughout all varieties. 40.1 % of Exchange fruit graded
Seald-Sweet, or Government No. 1; 39.0% Mor-juce, or Govern-
ment No. 2; and 20.9% was shipped to juice factories, canneries or
in un-graded bulk. Sizes, too, were better than average. The average
number of oranges per box for the season to May 9th was 204.7; of
grapefruit, 65.8 fruit per average box. Nor was its movement handi-
capped by Med-fly eradication limitations. The entire crop was moved
without a recurrence of infestation.
This season's crop has been moved with minimum decay. The
decay record, .33%, is one of the finest obtained on any crop in
recent years. This low decay percentage made possible the merchan-
dising of fruit in various methods to the advantage of the growers, such
as in bulk and in consumer bag packages.
Organization Improvements Made
Much of the comparative success in the handling of this season's
crop may be traced to a strengthened and enlarged organization. All
3
110 87 2









Exchange activities focus on the successful merchandising of the crop.
Handling methods have been improved. By-products have been de-
veloped and exploited. New merchandising methods have been em-
ployed with success. All work to the advantage of Exchange growers
and the industry.
These changes and improvements are discussed in detail in the
sections of this report covering the departments which they affected.
They serve, however, to exemplify the possibility of accomplish-
ment in a cooperative organization such as the Florida Citrus Exchange
and are indicative of the marked success which could be accomplished
with adequate control of the citrus crop placed in the organization.
A detailed study of the conditions existing in the industry, their
causes and means of correction, was made by the Organization Com-
mittee of the Board of Directors during the latter part of this season.
Briefly, their findings indicate that the basic cause is lack of organization
-lack of centralized sales control of the product. Their fair analysis
of the situation* leaves no room for reasonable doubt that the only
solution of the marketing problems facing the industry is the concentra-
tion of volume in the Florida Citrus Exchange until a minimum of
75% control is reached.
Exchange Resigns from Clearing House
A realization of the fact that no compromise or half-way measures
could produce results, that fully supported cooperative marketing of-
fered the only possibility of permanent stabilization of the industry,
plus a growing realization that the Florida Citrus Growers Clearing
House Association was failing to justify its expense culminated in the
resignation of the Florida Citrus Exchange from membership in that
body.
This decision was reached by the Board of Directors May 15th
only after a very thorough investigation of the entire situation had
been made by a committee of the Board.
Complete withdrawal from the Clearing House was decided upon
only after that body had rejected the Exchange plans for continuance
of Exchange participation. The Exchange requested a reduction in
the assessment of the Clearing House to a point adequate to cover the
cost of all functions except those pertaining to marketing. This retain
need not have exceeded one-half cent per box. The Exchange desired
that marketing activities of the Clearing House be considered individual-
ly, each problem to be handled on its merits, and after an agreement
on plans for action had been reached, then additional funds provided
for the carrying out of such plans.
The action taken by the Board in withdrawing from the Clearing
House is representative of the wishes of nearly all of Exchange asso-
ciations and growers.
*Report of this committee is reproduced in full in Appendix "A."
It deserves observation in that it is comprehensive and complete in its
discussion.









Exchange Retains Reduced
The Tampa office retains on fruit have been reduced steadily dur-
ing the past six years. The growth of Exchange tonnage, brought about
by its increasing control of the crop, plus efficiency and economy in
the operation of the organization, are primarily responsible for these
retain reductions.
In considering the efficiency of Florida Citrus Exchange operations,
the following comparison is pertinent. The California Fruit Growers
Exchange during the past fiscal year employed 481 persons, paid them
$1,085,000.00 and moved 46,377 cars of fruit. In other words, it
paid each employee an average of $2,255.00 and moved 96.5 cars of
fruit per employee. The Florida Citrus Exchange, during the present
and comparable season, employed 175 persons. It will pay them for
the season approximately $391,314.00 and will ship a total estimated
volume for the season of 32,197 cars. This is an average payment
per employee of $2,236.00, or $19.00 less than the California organ-
ization and a movement per employee of 184 cars-87.5 cars per
employee more than the California organization.*
Thus, a comparison of the efficiency and economies of operation
of the Florida Citrus Exchange with that of the nearest comparable
cooperative, shows that Exchange operations are handled on a most
satisfactory basis from the standpoint of the grower.

FLORIDA CITRUS EXCHANGE SALES

The progress made by the Florida Citrus Exchange in the per-
fection of its sales policies, methods, plans and organization has been
of primary importance. The personnel of the Sales Department has
been subjected to radical change. The departmental efforts have been
sub-divided by commodities, making possible a much closer supervision
and concentration of sales on oranges and grapefruit. The country,
divided into sales divisions and districts, permitted an absolute localiza-
tion of responsibility in the development of all possible markets for
Exchange fruit.
A desk in the sales department has been detailed for the exclusive
handling of mixed car and special orders. Eighty to ninety percent of
these unusual orders which require time in getting associations' confirma-
tions were filled this season.
A closer coordination of sales and advertising efforts than ever
before was maintained throughout the season. Dealer service and spe-
cialty crews worked in all important markets under the supervision of
the two departments on advertising, dealer sales and actual car lot
sales.

"These comparative figures differ slightly from those made in the letter
addressed to Presidents of Associations dated April 25 as they are
based on the volume and estimate of May 22nd.


I









Weekly market forecast bulletins, in addition to the daily wire
service, were released by the Sales Department to association and sub-
exchange members. These bulletins kept these men fully informed at
all times as to the condition of the markets and the prospective tenden-
cies from time to time during the season. They helped make the asso-
ciation managers the best informed fruit men in the state and enabled
them to handle their growers' crops to best advantage.
Similar weekly bulletins were released to division and district man-
agers, keeping them advised as to the situation in Florida. These latter
bulletins had a tendency to reduce the wire expense and to concentrate
the sales and merchandising efforts of the men in the North on certain
grades and sizes of fruit on which Exchange offerings were long and,
because of this, made possible a more satisfactory movement of the
type of fruit the Exchange had to offer.
All of these developments in sales produced highly satisfactory re-
sults. Each division and district saw an increase in business as the
result of closer concentration in the development of new car lot mar-
kets and customers. The f.o.b. business of the Exchange has been
increased to the highest point during the past five years. This type of
business was especially important this season as it permitted a wide
distribution of Exchange fruit and relieved the concentrated industrial
centers of population where unemployment and hard times were most
prevalent. The Exchange private sales as of April 20th have been
58.3% of the total, as opposed to the auction volume of 41.7%.

Export Volume Trebled

Florida Citrus Exchange export sales are three times as great as
they have ever been.
These shipments were made almost wholly to London and Liver-
pool. From these points the fruit was distributed to Birmingham, New
Castle, Manchester in England; Glasgow in Scotland; Paris, Ham-
burg, Bremen, Antwerp, Copenhagen, Rotterdam, Oslo and Zurich
on the Continent.
These shipments in almost all cases brought as much as the price
prevailing in domestic markets at the time of shipment. In some instances
they returned more.
Two developments of a very promising nature were featured in
this season's export experience. For the first time in the history of the
organization's export business, Mor-juce fruit was shipped. One-third
of this season's export was of second grade quality. Further, 64s and
larger were moved in heavier proportion than ever before to Continental
markets. Both of these developments worked to the advantage of
Exchange growers.
With the increasing production of grapefruit in the United States,
it will be necessary to look more and more to markets in the United
Kingdom and Continental Europe. To this"end, considerable develop-
ment work has been done. Exports have increased materially. In 1923-









24 there were approximately 15,000 boxes shipped to Europe from
Florida. This season the total will approximate 600,000 boxes.
Bulk Sales Assist Distribution
The bulk deal, usually a menace to good merchandising, was
handled by the Florida Citrus Exchange to good advantage. Certain
of the specialty and dealer service men were placed in strategic posi-
tions in the country, particularly in the Middle West. They were made
responsible for the development of a definite volume of bulk business.
This movement was confined almost entirely to small towns and
to markets where that type of fruit shipment made possible completely
successful competition of Florida fruit with that of California and
Texas.
Because of the methods used by the Exchange in handling bulk
fruit, it may be said that practically none of the Exchange volume
moved in that manner was a factor in the demoralization of fresh fruit
markets because of bulk competition. As handled, the bulk deal was
a vital factor in widening the distribution of Exchange fruit and re-
lieving the box lot markets of a considerable volume.
Approximately 1200 cars of grapefruit and 1500 cars of oranges
were sold by the Exchange in the Middle West and South in bulk.
Exchange Develops Bag Package
Another important development for which the Exchange is en-
tirely responsible is the movement of fruit in ten-pound bags. Here is
a merchandising factor which has been given considerable thought and
effort during the past three years.
This season proved the advantages originally seen in shipments of
this kind. Upwards of 700 cars of fruit have been sold, principally to
chain stores, on an f.o.b. price acceptance basis.
While all sizes can be successfully marketed in this manner, it was
found that the most advantageous sizes from the standpoint of net re-
turns were large fruit-1 26s to 21 6s inclusive. Of the total bag move-
ment, approximately 55% were 126s and 150s, yet the price realized
was in practically all cases in line with base prices on the smaller sizes.
In other words, not only was the base price for premium fruit in
boxes obtained on these discount sizes, but much of the fruit was moved
at a time when there was no home at practically any price for boxed
fruit in the weekly volume placed in bags. The grower obtained the
best price for his discount sizes. In addition, the association manager
was enabled to remove these sizes from his box loads, permitting the
rolling of premium cars in boxes. This, in turn, of course had its
distinct advantages.
The fruit shipped in bags by the Exchange this season was pri-
marily oranges. There were, however, several cars of grapefruit packed'
in the same manner which obtained fair trade and consumer reaction.




















































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and kudir- he irri-Poord
big pikjii. re here iI-

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Other shipments of both grapefruit and oranges were made in full box
size bags and were shipped direct to the customer on an f.o.b. sales
basis.
The bag operations were handled in such a manner as to eliminate
all possible risk of associations involving themselves in a heavy invest-
ment in experimental material which might or might not be used. In
addition, the deal was so handled that this desirable piece of business
was available this season only to Exchange packing houses.
The photographs on the opposite page clearly illustrate the type
of package above described, together with the methods of handling,
packing and loading that package.
New Container Tested
In line with its policy of economy, the Florida Citrus Exchange
has been alert for new developments in fruit packing and handling
methods which would make possible a reduction of these costs. The
mechanics and materials used in packing which do not serve to facilitate
the sale of fruit to the consumer or to carry the fruit more economically
or in a more sound condition are undesirable. The converse of this
statement is also true.
For this reason, the Florida Citrus Exchange became interested in
the experimental work connected with the development of the new Steel-
bound cylindrical container for citrus fruit. It holds very considerable
possibilities for a reduction of material costs below those necessitated
by the present standard box. Fruit can be packed in this container at
a saving of the volume required to bulge the pack. It can be packed
without wraps. It offers better ventilation. The container itself is much
lighter, permitting this differential in container weight to be taken up
in fruit, with a consequent saving of freight. None of these economies
handicap the carrying of the fruit or its ultimate sale to the consumer.
Several experimental cars have been shipped in this container.
Packing and loading methods are rapidly being devised. Trade re-
actions on these experimental cars have been favorable. Sold on an
f.o.b. price basis, the returns per package have been at the market.
If subsequent experimental work justifies the findings obtained to
date, it is probable that this package will be an important factor in
future crop movements.
The type of container and the manner of loading are pictured in
the photographs on the following page.
Thus, in the perfection of general sales methods, in the plan used
on bulk fruit distribution and in the development of the bag package,
the Florida Citrus Exchange has demonstrated its flexibility as an or-
ganization. It has met emergencies. It was not hide-bound to any
definite policy of sales, but adopted the means best suited to the situa-
tion as that situation arose.
Deciduous Contract Renewed
Final and adequate evidence of the general rounding out and
strengthening of the Exchange as a sales organization is found in the





~-lt*

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I








renewal of the Pacific Fruit Exchange contract with the Exchange
Sales Company. The Pacific Fruit Exchange is by all odds the most
desirable deciduous contract available in the country.
That an organization of the standing and importance of the Pacific
Fruit Exchange should repeatedly renew its sales contract for its in-
creasing volume is a tribute to the efficiency and ability of the sales
organization owned and controlled by Exchange members.
Data on Volume Movement
Total shipments of citrus fruits for the season 1930-31 to May
,22nd increased 79.9% over the same period in the preceding season.
The detail is as follows:
1930-31 1929-30 Increase
Oranges .36,333 Cars 20,445 Cars 15,888 Cars
Grapefruit .30,414 Cars 17,112 Cars 13,302 Cars
Tangerines 4,440 Cars 2,007 Cars 2,433 Cars

Totals .71,187 Cars 39,564 Cars 31,623 Cars 79.9%
During this period, shipments made by the Florida Citrus Ex-
change as compared with the comparable period of the preceding sea-
son show a volume increase of 16,031 cars, or 108.6%. The detail
by varieties contained in the table below will show a comparison with
the above table of state's shipments.
1930-31 1929-30 Increase
Oranges 15,701 Cars 7,686 Cars 8,015 Cars
Grapefruit 13,280 Cars 6,300 Cars 6,980 Cars
Tangerines 1,816 Cars 780 Cars 1,036 Cars

Totals .. .30,797Cars 14,766 Cars 16,031 Cars 108.6%
An analysis of the data shows that the Florida Citrus Exchange
shipped 30,797 cars to May 22nd out of 71,187 total of the state
movement, or 43.3%. This percentage will increase to above 45%
at the close of the shipping season in June, since about 70% of the
fruit remaining in the state is controlled by the Exchange.
This represents a considerable increase in the control of the citrus
crop accomplished by the Florida Citrus Exchange during the past
season. It is an increase which compares favorably with the record
made last season, when the Exchange shipped 39.5% of the state's
total as compared with 30.8% during the 1928-29 season.
Satisfactory Distribution Maintained
The distribution maintained on the volume of Exchange fruit during
the past season has been gratifying. As cited previously in this report,
the f.o.b. business of the Exchange was held at the highest point in
five years. The detail of general distribution maintained to May 22nd
of this year and for the same period of last year are contained in the
following tables:









Season 1930-31
As of May 22nd, 1931
Oranges Grapefruit Tangerines Totals
Auction Sales ..5623 3320 1208 10151
46.1% 35.3% 66.5% 43.4%
Outside Sales ....6559 6069 598 13226
53.9% 64.7% 33.5% 56.6%
Total ..........12182 9389 1816 23377
Cannery, Juice and truck sales........................... 6441
Exports .............................. ............... 170
Rolling Unsold:
Auctions ............... 184
Diversions .............. 141
Sold not delivered ........209 534
In Storage ......................................... 275
Grand Total ........................................ 30797
Season 1929-30
Oranges Grapefruit Tangerines Totals
Auction Sales ....3218 2283 637 6138
S42.3% 42.2% 81.7% 44.5%
Private Sales .... 4383 3129 143 7655
57.7% 57.8% 19.3% 55.5%
Total ........... 7601 5412 780 13793
Cannery ....................... .................... 480
Exports .......................... .......... 41
Rolling Unsold ............................ ......... 75
In Storage ................. ......................... 377
Grand Total ................. .. ..... ........... 4766

Eastern Division
The Eastern Division comprises that territory approximately cov-
ered by the states of New York, Pennsylvania, New Jersey, Maryland,
down to and including Washington, D. C. It represents a high con-
centration of population and normally is a large, easily accessible buy-
ing power. The Eastern Division is the logical market for about 40%
of the Exchange tonnage each year.
With the large crop in both Florida and California, all of the evils
attendant upon such a situation were intensified in the Eastern Division.
Smaller competitors, not having a regular sales organization and con-
sequently unable to properly distribute fruit, constantly under-quoted
Exchange prices in an endeavor to get rid of the tonnage which they
had. In addition to this, the consignment problem was perhaps more
pronounced than ever before. Practically every market in the Eastern
Division had 'dealers who offered fruit consigned by Florida shippers
and the steady flow of this fruit throughout the season had a depress-
ing effect upon all markets and made it exceptionally difficult to
maintain firm f.o.b. prices.
In spite of this, however, the various district managers functioned
well. Sales showed a healthy increase over those of a year ago, not-
withstanding the fact that during the entire shipping period of last









season the Eastern Division offered practically the only markets freely
open to the shipment of Florida fruit under the quarantine regulations.
One new office was opened in the Eastern Division this season. A
salaried representative was placed in Rochester. The wisdom of this
move is shown by the fact that up to April 1st sales in the Rochester
district have just about doubled those of a year ago for the same period.
Advertising and dealer service work was carried on somewhat more
extensively in the Canadian territory of the Eastern Division this year
and the results were gratifying. The tonnage sold in Toronto was more
than doubled; that sold in Montreal exceeded that of last year despite
consignments to that market. In Ottawa the Exchange sold five times
as much fruit as a year ago. The merchandising service placed behind
Exchange fruit in these markets pleased both the wholesale and the
retail trade. Requests have already been made for more of this work
next season.
In Washington and Buffalo difficult situations were confronted by
Exchange representatives. In both places the trade was divided into two
factions, each establishing markets in different parts of the city located
several miles from each other. Split markets of this nature naturally
developed a feeling of enmity. Good judgment and diplomacy in hand-
ling the situation engendered by such conditions were necessary in order
to keep on friendly terms with both factions.
In Baltimore a similar situation developed this year. Although there
have always been two produce terminals in this market, one of them
this year was moved to a new location which was much further from
the produce center than the old one was. This move created a situa-
tion which called for similar careful handling.
In the central part of Pennsylvania-the coal mining districts-
economic conditions were acutely depressed. Railroad car repair shops
were also closed down. Silk and textile mills have operated at less than
fifty percent capacity. This condition made possible only a minimum
demand for fruit. In order to meet the situation, the trade handled a
much larger percentage of the lower grades. Third grade and cull
fruit was brought into the Scranton district, for instance, in bulk and
sold out of the car doorways. This practically demoralized standard
methods of distribution in these areas. Regardless of this condition,
however, Exchange sales in the Scranton district have been held to
normal.
Exchange sales in the Harrisburg district were particularly gratify-
ing. The volume was about equal to that of last year. The wholesale
trade continued in their demand for Exchange brands in spite of the
attractive offers made by competitors, either on consigned fruit or at
quotations cut under those made by the Exchange.
Upper New York State held its own under similar adverse cir-
cumstances.
In the larger centers comparable results have been obtained and
distribution to the larger cities has been orderly. Although the Ex-









change shipped 34.1 % of the Florida fruit moved by rail up to the
end of March, its percentage of New York auction sales amounted to
only 30.1 % of the total. Competitors, who shipped only 65.9% of the
state's movement up to that date, had sold 69.9% of the fruit dis-
tributed at auction.
In Pittsburgh the Exchange showing was equally as good. Florida
competitors loaded up the Pittsburgh market unnecessarily and up to
the first of April had sold approximately 400,000 boxes of fruit against
100,000 sold by the Exchange. In other words, although the Ex-
change shipped 34.1 % of the Florida rail movement to that date, it
had only 18.1% of the fruit sold in the Pittsburgh market.
Advertising and dealer service work was more intensive and in
greater volume than that ever placed behind Exchange brands in this
division. The campaign has produced satisfactorily, as is evidenced by
premiums paid for Exchange fruit in auction markets and by the fact
that jobbers and chain stores in private sales markets are tying up
definitely to Exchange brands.
In Washington and Buffalo chain store organizations ran special
sales on Exchange fruit, advertising Seald-Sweet and Mor-juce brands
in their own newspaper copy. The Exchange cooperated with these
sales through its dealer service crews, who handled window displays
and poster advertising during the sales periods. Several such trade
tie-ups were made with very beneficial results. As an instance, one
large chain has used Seald-Sweet and Mor-juce brands exclusive of
all others. It asked that the Exchange work closely with them in every
respect and that dealer service men be placed at their disposal from
time to time through the season to assist them. In return, they-not only
handled Seald-Sweet and Mor-juce brands, but advertised them in
their stores and in their newspaper copy.
The dealer service crew in the Eastern Division called on a total
of 9,150 retail grocers up to the first of April. Of these retailers, 8,582
were handling Exchange fruit. The crews placed a total of 54,950
pieces of advertising display material and mailed to the trade in the
division at the request of retailers 1 1,300 additional pieces of material.
At wholesalers' requests 18,000 display pieces were sent to whole-
salers' customers; 3,400 pieces were mailed to chain stores on request.
The sales and advertising activities during the past season have
made the Seald-Sweet and Mor-juce brands better known in this di-
vision than ever before. They are so well known, in fact, that dealers
are now consistently demanding fruit stamped with these trade marks.
Mid-Western Division
The Mid-Western Division, with Chicago as headquarters, shows
progress in all of its districts during the past season. The trade, par-
ticularly in Chicago, has shown a preference for Exchange brands at
a higher price than fruit offered by Florida competition. Up to April
1st, Exchange fruit brought 20c per box more than competitive brands.
This division was one which received a considerable volume of
processed fruit last year. The bad impression that this fruit left, plus








the haphazardous way Texas marketed her crop this season, presented
difficulties unique to this territory. Advertising was used in consider-
able volume to meet these difficulties and was in a large measure re-
sponsible for overcoming them.
The situation is aptly described by the Mid-Western Division Man-
ager of the Exchange:
"If only fruit that the growers would eat themselves is shipped
next Fall, backed by an adequate advertising appropriation, we
can get a premium over California all year. But we want a six
months' and not a two or three months' advertising campaign. It
will take 50 dealer service men in place of the 1 1 we had in the
Western Division this year.
"California has made every possible effort to wipe out the
differential which exists in our favor, but without success. Yet it
is only natural that a certain percentage of the trade has turned
back to California because of the price differential. California
spends almost as much for one illuminated Neon sign on Michigan
Avenue per month as we spend on our whole 24-sheet poster
campaign per month. If the figures were available, they would
probably show that California spends almost as much in the Chi-
cago market as our total advertising appropriation."
Texas grapefruit presents a problem in this division which is not
to be taken lightly. The Exchange met this competition this season
in these markets with intensified advertising, special sales work and
properly handled bulk fruit shipments. Yet a situation has been created
which will make necessary close and thorough work to successfully
hold the markets of this division for Exchange fruit against the Texas
competition.
Early in the season Indian River competition was selling practically
as much fruit from that section as the Exchange. The support of
Exchange brands on the part of the trade was so much better, how-
ever, that for the past two months they have offered only occasional
cars of Indian River fruit. Exchange second grade brands from this
district were selling on a par or above competitors' first grades. The
consistent and regular supply of Exchange brands has been largely re-
sponsible for this situation.
Retail and wholesale trade contact was maintained throughout the
division by dealer service men. A total of 7,966 retailers were called
on, 5,253 of whom handled Exchange brands. 297 complete windows
were decorated and a total of 71,014 pieces of display material were
installed.
Cincinnati Division
Sales in this division show a general healthy increase over last
season. Private or f.o.b. sales particularly have responded to intensified
sales and advertising efforts made in the division. The latter show an
increase for the division of over 75o%.
This situation reflects a decided preference for Seald-Sweet and
Mor-juce brands in the various markets of the division. Take, for








instance, the Columbus market, where the Exchange sold 177 cars last
season but increased its sales in the same district to 275 cars for the
same period this season. Youngstown offers another example of the
total sales last season with 24 cars as against 86 cars this season, or
an increase of 250%.
An analysis of the dealer service work in this division indicates
that 89% of the retailers called on were handling Seald-Sweet or
Mor-juce fruit. This is especially significant in view of the low prices
quoted by competitors and the large volume of consignments which
were made by competition to wholesale dealers. It is a showing which
is indicative of the results on the advertising which was released gen-
erally throughout the division, both national and local in character.
Special radio programs in the smaller towns over local stations,
followed up by dealer service contact with the retailers, produced very
satisfactory results as a tie-in to the national advertising program of
the Exchange.
As a concrete example of the results obtained by this special radio-
dealer service contact work, consider Ft. Wayne, Ind. Last season the
Exchange volume sold in this market during January, February and
the first 15 days of March was only 11 cars. This season for the
same period 29 cars were sold, an increase of 180%.
Louisville, Ky., "and Charleston, W. Va., exploited in the same
manner, showed a comparable increase during the same period. The
results in Columbus were somewhat less marked, yet Exchange sales
in this district show an increase of 60% over the same period a year
ago.
With the growing competition from Texas in this division, it is
vital that this advertising effort be expanded.

Southern Markets
The economic situation in this territory this season was severely
depressed. The principal staple, cotton, was selling at the lowest price
in years. Mills in all parts of the South were either closed or on part
time operations. The buying power of the population was consequently
sharply reduced.
As a result, a distinct sales resistance on all citrus was encountered
except at prices in line with what purchasers could pay.
About the middle of October Southern markets were opened to
the shipment of Florida fruit and a short time later the ban was re-
moved from bulk shipments. Large quantities of bulk priced in line
with the buying capacity of the districts were sold. In addition to
the rail movements of bulk fruit into this territory, there was a very
large volume of fruit trucked from the state to practically all markets.
No dependable statistics on this truck movement are available at this
time. Nevertheless, the Exchange practically doubled its volume in
this territory over a year ago.
Southern markets are of distinct importance in the sale of the
Florida citrus crop in that they buy heavily of second and third grade









fruit-grades which are sharply discounted in Northern markets. It
is an outlet for these grades which is of vital importance in the general
merchandising picture.
Expert specialty and dealer service men were employed by the Ex-
change to work all markets in the Southern Divisions during the season.
The broker representatives of the Exchange appreciated the situation
and cooperated fully with these men. The combined effort was a
material assistance in producing the results above described.

Other Divisions
Conditions in the other sales divisions of the Florida Citrus Ex-
change show sales progress comparable to that above described in the
three major divisions. Price was of paramount importance in the move-
ment of fruit. The same difficulties faced Exchange sales work in
these territories as elsewhere. Price cutting and consignments had their
disastrous effects.
In the New England Division the dealer service men contacted
1,834 retailers, of whom 1,396 were handling Exchange brands. As
this work was spread over the key retailers in 98 different markets,
it is a representative cross section of the retail distribution maintained
on Exchange fruit in the division. A total of 5,758 pieces of dis-
play material were used. In addition to this advertising work the di-
vision received its quota of the magazine, newspaper and poster adver-
tising released by the Exchange.
The Southwestern Division, into which no movement of Florida
citrus was permitted last season because of Med-fly restrictions, was
opened during the latter part of this season. The Exchange contacted
the proper authorities in charge of the state regulations and obtained
the lifting of all bans on Florida citrus shipments except for the actual
citrus belt along the Rio Grande. Although these markets have been
dominated by Texas fruit to the exclusion of Florida citrus, a satisfac-
tory volume was initiated during the close of the shipping period.
Sales in the Northwestern Division were nearly three times as great
as they were last season. This far western territory was developed as
fully as possible by the Exchange to relieve the depressed eastern and
southern markets.
Distribution Summarized
The comparative distribution by divisions for the present and past
seasons, with percentages by varieties, are indicated in the table below:

DISTRIBUTION BY DIVISIONS

Total Sales* as of May 2nd
Seasons 1930-31 and 1929-30










Season 1930-31
Division Oranges Grapefruit Tangerines Total


New England 1067
9.56
Eastern 4880
43.69
Southeastern 738
6.60
Southern 923
8.26
Cincinnati 1021
9.14
Mid-Western 1959
17.55
Northwestern 4
0.04
Southwestern 10
0.09
Miscellaneous 566
5.07

TOTALS* 11168


703 154 1924
7.43 7.88 8.52
2433 1085 8398
25.72 55.56 37.19
291 70 1099
3.08 3.60 4.87
392 45 1360
4.14 2.32 6.02
894 166 2081
9.45 8.50 9.22
3041 427 5427
32.14 21.84 24.03
300 1 305
3.17 0.03 1.35
31 0 41
0.32 0.00 0.18
1375 5 1946
14.55 0.27 8.62

9560 1953 22581


Season 1929-30
Oranges Grapefruit Tangerines


1044
13.61
3881
50.62
470
6.12
475
6.19
659
8.60
1093
14.25
1
0.02
0
0.00
45
0.59

7668


716
11.48
2510
40.17
174
2.78
134
2.15
502
8.03
1232
19.72
117
1.87
0
0.00
862
13.80

6247


This distribution has been made to customers, towns and states as
follows:
Customers sold ............ 794
New customers sold ......... 350
Towns sold .............. 384
New towns sold ........... 107
States sold ............... 44
Canadian provinces ......... 7

*This total does not include truck sales, cannery and juice shipments,
which amount to approximately 5,000 carloads for the season
1930-31.

Prices

An analysis of the accounts of sales up to and including May 1 0th
obtained on all grades and varieties of Exchange fruit are shown in
the table below. In considering these prices it must be remembered
that they are f.o.b. Tampa, with sales and packing retains yet to be
deducted:


AUCTIONS
Oranges .. .................$ 2.25
Grapefruit .................. 1.60
Tangerines ................. 2.01

PRIVATE SALES
Oranges .. ................. 2.20

18


105 1865
13.39 12.69
553 6944
70.88 47.25
10 654
1.36 4.45
0 609
0.00 4.14
47 1208
6.03 8.22
64 2389
8.22 16.26
0 118
0.00 0.81
0 0
0.00 0.00
1 908
0.12 6.18

780 14695










G rapefruit ..................
T angerines ..................

EXPORT
G rapefruit ..................

BULK
O ranges ....................
G rapefruit ..................
T angerines .. ...............

CANNERY
O ranges ...................
G rapefruit ..................

JUICE
O ranges ....................


1.69
2.04


1.68


1.21
.69
1.06


.58
.53


1.01


CAPITOL FRUIT COMPANY (Packed)


O ranges .................
G rapefruit ...............
Tangerines bu. ............


... 1.74
... 1.34
... 95


An analysis of the average prices received in eight auctions fur-
nishes a basis of comparison between prices realized on Exchange
brands as compared to competitive Florida shipments. It is a com-
parison which directly reflects the confidence in Exchange brands and
the value of Exchange advertising and merchandising. Of the 56
different averages furnishing points of comparison, the Exchange ex-
ceeds its competitors in 41, equals their averages in one, and has no
comparison on six grades. The details are cited in the table below:


CHICAGO
Exchange Average
Competitors Avg.
Exchange Ahead
NEW YORK
Exchange Average
Competitors Avg.
Exchange Ahead
Competitors Ahead
PITTSBURGH
Exchange Average
Competitors Avg.
Exchange Ahead
CLEVELAND
Exchange Average
Competitors Avg.
Exchange Ahead


U.S.No.l
Brights Goldens Russets U.S.No.1 Russets U.S.No.2 Plains

3.53 4.15 3.21 3.22 2.94 2.79 2.69
3.11 2.75 2.56 2.99 2.76 2.61 2.30
.42 1.40 .65 .23 .18 .18 .39


3.37
3.55
.18


3.35 2.73
3.33 3.04
.02
.31


3.47 3.42 2.96 2.59
3.30 3.17 2.73 2.03
.17 .25 .23 .56


3.13 2.82 2.61
2.96 2.74 2.38
.17 .08 .23


4.04 3.04 3.49 3.11 3.17
2.98 2.77 2.51 3.03 2.54
1.06 .27 .98 .08 .63


2.67 2.27
2.45 1.79
.22 .48

2.66 2,50
2.63 2.49
.03 .01









BOSTON
Exchange Average 2.91 2.93 2.49 3.11 3.25 2.68 2.58
Competitors Avg. 3.41 3.08 2.90 3.10 2.99 2.65 2.80
Exchange Ahead .01 .26 .03
Competitors Ahead .50 .15 .41 .22
CINCINNATI
Exchange Average 4.87 3.15 2.92 2.61 2.07
Competitors Avg. 3.16 2.77 2.52 3.01 2.63 2.61 2.44
Exchange Ahead 1.71 .14 .29
Competitors Ahead .37
ST. LOUIS
Exchange Average 3.25 2.77 3.00 2.53 2.43
Competitors Avg. 3.18 2.60 2.89 2.49 2.18
Exchange Ahead .07 .17 .11 .04 .25
PHILADELPHIA
Exchange Averages 3.88 3.64 4.86 3.10 3.00 2.89 2.51
Competitors Avg. 3.12 2.87 2.60 3.18 2.97 2.72 2.39
Exchange Ahead .76 .77 2.26 .03 .17 .12
Competitors Ahead .08
SEALD-SWEET AND MOR-JUCE ADVERTISING
The Florida Citrus Exchange advertising program on the Seald-
Sweet and Mor-juce brands during the season of 1930-31 was the
largest in the history of the organization. Originally planned on a
budget based on 4c per box, these funds were increased by an addi-
tional retain of 3c authorized on January 19th by the Board of
Directors.
Publication Advertising
These funds permitted the application of a tremendous force of
publicity in magazines and in newspapers, in posters and subway
signs.
Publication circulation alone in the American Weekly, Liberty,
Colliers' and Physical Culture totalled nearly 10,000,000. Forty-
four newspapers in 33 markets, having a combined circulation of
9,158,270, added to this huge total.
For the first time, a large 24-sheet poster advertising campaign was
employed on Exchange schedules. These posters appeared on a half
showing basis in 25 cities of the East and Middle West. They were
seen and read by many more millions.
Two-sheet posters in the New York subway and Chicago ele-
vated platforms added an additional 5,000,000 circulation.
Radio programs were released over local stations in approximately
25 markets. These radio broadcasts were tied in closely to the trade.
Wide-spread Coverage Maintained
The aggregate effect gained in the repeated use of these many
media procured for Florida citrus growers an effective sales contact
with over half of the consuming families in the United States.
In addition to the wide-spread coverage indicated by the circula-



























COLDS?
ioas GRAPBEUFIT


SPECIMEN NEWSPAPER COPY
The E~chinge Neupaper cimpaign freaured the uie ,f
itrrut in the pro'enuIon and cure oi ioldi and indluenz


Mor-juee
0Muftg
...... .......












LySTFFUOUS
.FORMC FO1


*Ipl. Dre; ""n~.,.


Millions glad to learn

RANGE JUICE

alts Pyorrhea!
IAffl4/a ne.. im*f.m /wa e.WV. "
I~'"... /o llnar/medri /
U'^ V/rr 't.U.


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Ii diii.,I 1I ir il fre'iii 11i1 fl f1en f
Irir 111 111111' lilll I' L(I( 'IJ lhl* cow.I


NIAGAAZINE AD\VERTISINGF
I,. clr idCr[,MenrI SIbJC ;., ir~pro.j .ed
ch, pCi c -er utJd in C,HI,,r Am~rrcan C'&,kI
L~brr jsnd urlher magarni d~rinc rin.gth n e -iso









tion totals of this campaign, it had an added trade merchandising
value. An analysis of the break-down of these national circulations to
show the coverage in all individual markets of the Florida Citrus Ex-
change indicated satisfactory individual market coverage. This was
important in order that the dealer service men might be equipped to
show the value of this national advertising as it is localized in effect
for the trade in any market.
This information indicated an average percentage of coverage in
Northern markets to be above 60% of the population. In the South,
even including Negro population, average coverages approached 50%.

For example, in Springfield, Mass., there are 33,038 families.
The circulations in Springfield of the individual publications used were
Colliers, 7,835; Liberty, 8,221 ; American Weekly, 12,590; Physical
Culture, 544-a total of 29,190, or 88.4% coverage. While there
naturally is some duplication of readers in the circulation figures cited,
it is negligible between the media used and would not materially af-
fect the final statement of coverage.
Analyzed on the same basis, other markets showed corresponding
percentages of coverage obtained by Exchange copy. For instance,
Gloversville, N. Y., 104.8%; Baltimore, Md., 89.5% (exclusive
of poster advertising) ; Rochester, N. Y., 85.2%; Cambridge, Ohio,
60.4%; Lexington, Ky., 45.4%; Burlington, Iowa, 79.3%; and so
on through the entire list.
This information placed in the hands of all division and district
managers, as well as dealer service men, made possible full merchan-
dising of this publication campaign to the trade throughout the country.
It is this trade merchandising which clinches the demand stimulated
by the advertising into concrete orders for Exchange brands.

Dealer Service

This huge advertising campaign was tied in as an integral part
of the sales work of the organization. It was supplemented by an
extensive coverage of dealer service crews working on the trade through-
out all divisions. The details concerning the work of these crews have
already been discussed in the divisional reports on preceding pages.
The organization of these crews was maintained much as in
previous seasons. They operated under the immediate supervision of
division and district managers. Emergency work was concentrated on
markets in which critical conditions as to sales or trade contacts were
found to exist.
All crews were equipped with adequate stocks of display material.
In addition to inventories carried over from the preceding season, new


1

























,'


. I


~-A~


TYPICAL EXCHANGE POSTERS
Reproduced above are several of the posters used in this season's
advertising campaign Size 12 ft. by 25 ft., and printed in color,
the\s c.rmmnded ihe attenron of millions in the 25 markets in which
tk, were used


I L...









items were created. These included several counter cards and wall
posters. A typical example of the window displays placed by these
crews is illustrated in the picture below.






















The above display is typical of the hundreds installed in various markets
throughout the country. This window, placed in Southworth's, Cleveland,
increased sales of Exchange brands from twelve boxes weekly to over one
hundred boxes average.

Premiums
The Exchange during the past five years has developed and sold
various tools with which to prepare citrus fruits for consumption. Chief
among these has been the hand operated juice extractor sold under the
Seald-Sweet trade mark.
The Seald-Sweet Juice Extractor as originally designed was the
first of its kind on the market. The success met in the sale of this
item attracted other manufacturers to the business, with the result that
there are over 100 different kinds of machines priced below $5.00
available to the American housewife.
While the Exchange sold during these five years about 75,000
of the original model of the Seald-Sweet Juice Extractor, this com-
petition developed so keenly that it became necessary to meet the im-
proved designs originated by competitive manufacturers.
After considerable investigation of the market and production
costs, a new model wps. dsignRd 1d .produced to sell at $1.00 de-
livered. The mj .r m'ppvemqht b.vetthe.old machine was the intro-

.-' 25 "*...
'. .
: :**. : ** .': :', : .."
: : .: -. -
,z :.=: :.









duction of a rotary, centrifugal strainer which was non-clogging in
operation, yet was built in as an integral part of the machine. Initial
deliveries on the machine were obtained in March, 1931. Since that
time about 7,000 machines have been sold.
While this Seald-Sweet hand extractor has served its purpose in
facilitating the use of oranges and grapefruit in the home, Florida
fruit, particularly grapefruit, has been handicapped in soda fountain
and restaurant sales because of the lack of a power extractor suitable
for the extraction of the juice from that fruit. This field has been
dominated for years by the California organization and the Sunkist
juice extractor.
The Sunkist extractor is naturally designed primarily for oranges
and lemons. It is found on all soda fountains and in practically all
hotels throughout the country. It is a machine built without a strainer
automatically to take the seeds from Florida oranges and does not
handle grapefruit at all. Obviously, grapefruit thus was denied the
tremendous American soda fountain market.
Recognizing this market limitation for Florida grapefruit, the Ex-
change has been searching for a power extractor which offers a ma-
terial improvement over the present Sunkist machine which could be
sold at a price far below that maintained on Sunkist, and yet which
would automatically strain the juice and operate with equal effect on
oranges, grapefruit and lemons.
This machine has been found. It is a re-designed model of the
machine demonstrated before the Board of Directors on March 20.
Powered as fully as the Sunkist Senior
model with a one-sixth horse power motor,
having a centrifugal strainer built in as an
integral part of the cone, designed to ex-
tract the juice from even 36 size grape-
fruit, the Seald-Sweet Juice Extractor
Power Model will retail for $17.95.
Arrangements have been made for the
production and sale of this machine.
Through it, the market for Florida oranges,
and more particularly for Florida grape-
Ifruit, will be expanded to a marked degree.
The inventory of the Seald-Sweet Re-
Scipe Books was exhausted during the early
part of the present season. In reprinting
T h e Scald-Sweet Po w r this book it was re-designed to include a
Model Extractor will be semi-technical discussion of the reasons why
fully enclosed. Its cone- orange and grapefruit juice are helpful for
strainer will work equally use in building up and maintaining the
well on oranges, grapefruit general health of the individual. Details
or lemons.
of the use of cit;-rs for colds, reducing,
baby feeding, oral health,.etc: were discu'ssed'....
Reprinted in Janqary. t'er'~0O0(C of tfi 'bo,'lets have already
26
*.f .. ft.-. .: .* a.
.. ... : .-" 2 6: .:.'. : ..
ft ft ft f









been distributed on direct requests of consumers through the adver-
tisement on the fruit wrappers and in publication advertising.
Organization Publicity
Publication of the Seald-Sweet Chronicle as a house organ of
the Florida Citrus Exchange was continued through the year. A total
of 24 issues were published during the period from May 10, 1930 to
May 10, 1931. Of these, 13 were 12-page issues, 10 were 8-page
issues and one a 16-page issue.
A total of 7,062 inches of news matter was published. This vol-
ume of space comprised 928 items and features, representing an average
per issue of 38.
Total gross inches published in the Chronicle during the above
period were 10,990, of which 65% was news and 35% advertising.
A considerably greater number of illustrations were used throughout
the season to add to the attractiveness and ease of reading of each
issue. The circulation of the publication was maintained. Deceased
and removed growers were taken from the list, with the assistance of
postmasters throughout the state, and additions of new growers have
been made from time to time. The average circulation for the total
period above cited was 12,890 per issue.
Realizing the tremendous importance of the state press as a factor
in the favorable recognition and development of cooperative marketing
in the state, this department has personally contacted every editor in
the citrus belt. The functions and aims of the organization were ex-
plained in detail and the help of the press solicited. A close check of
the attitude of each paper toward the Exchange and cooperative mar-
keting as expressed in its news and editorial columns was maintained
by readers in the department. Every issue of these papers is being read
and definite records kept of news and editorial releases mailed to the
papers by the department.
Since January 1 st, 16 news stories were released to papers in the
citrus belt, an average of 1.6 per week. A total of 2299 inches were
obtained on these stories, with an average circulation per story of 83,-
000. To this total must be added that publicity given to the Exchange
by newspapers reprinting stories carried in the Seald-Sweet Chronicle-
a total of 2383 inches, an average of over 100 inches of newspaper
reprints being obtained for each issue.
Throughout the season the cooperation of the newspapers has been
maintained by a policy adopted in the preparation of citrus news.
Stories which were essentially propaganda and had no fundamental
basis for news value were invariably released as paid advertising. Be-
cause of this policy, newspapers were free in their acceptance of the
matter released as news.
DEVELOPMENT OF BY-PRODUCTS
The Exchange participation in the development of by-products
industries has been of marked advantage to its growers. Benefit de-









rived from these industries will increase as the details attendant upon
the production and sale of their products are worked out and volume
in their movement is obtained.
Exchange Juice Company
The Florida Citrus Exchange undoubtedly is responsible for the
development of the frozen orange juice deal in interesting responsible,
well-capitalized distributing units in its manufacture and sale. Frozen
orange juice would not be a commercial reality today had it not been
for the investigational and research work put on this product by the
Exchange over the past two years. To handle the growing volume of
work attendant upon the development of this by-product, the Exchange
Juice Company was organized as a subsidiary of the Florida Citrus
Exchange in October of 1930.
The primary object of the organization of the company is to de-
velop the juice end of the industry, especially frozen orange juice. Its
major operations to date have been limited to research work. Investi-
gation of the market for frozen juice indicated that a large investment
in plants, advertising, etc., would be required for the preparation and
sale of the product. It did not seem advisable to spend these funds
if information and experience in the handling of the product could be
obtained elsewhere.
The National Juice Company, a subsidiary of the National Dairy
Products Corporation, had already been formed and the Florida Citrus
Exchange was under contract to supply this company 250,000 boxes
of juice grade fruit for its freezing operations on orange juice. The
Borden Farm Products Company entered the field shortly after the
National Juice Company started operations. With these well organ-
ized and financed organizations in the field on frozen juice, it seemed
advisable that the Exchange Juice Company confine its operations for
the first season to research work, gaining whatever information and
knowledge possible from the operations of these companies.
Considerable information has been obtained to date, but a much
more complete analysis of the sales value of the product will be ob-
tained during the Summer months, when there should be the greatest
demand for it. Generally speaking, frozen orange juice is being favor-
ably received in most markets, principally because of the convenience
in handling. Due to economic conditions, the demand probably has
not been as great as it would be were conditions normal. The low
retail price of fruit this season in practically all markets has caused
many prospective users of frozen juice to consider it too expensive when
compared with the fresh fruit. When the Florida shipping season is
over, there will undoubtedly be an advance of the retail price of fresh
fruit with a consequent rise in sale of the frozen product.
Research work in this branch of the industry as conducted by the
Exchange Juice Company has embraced the assembling and storing
of samples from the different companies in the field to permit a com-
parative study of the products over a period of time. The most accept-
able size and kind of container for the product has been considered.
28









The best and most economical method of extracting the juice is an-
other point on which investigation has been made. In addition, efforts
were made to ascertain the most feasible system of freezing, storing and
shipping the frozen juice. In considering work on this product
it should be noted that in addition to the firms above named,
several Exchange houses formed at Winter Haven the Florida Orange
Juice Corporation. This plant was equipped under the direction of
the Exchange engineer and froze approximately 5,000 gallons of juice
before the end of the season. The quality of the product turned out
at this plant was exceptionally good. At the end of the season their
management had reduced the cost of production to a point lower than
that maintained in either of the operations conducted by the above
mentioned firms. This plant will be ready to start operations as early
as needed during the season of 1931-32.
Research work has also been conducted on canned and bottled
juices. Numerous samples of all known brands on the market were
stored and are being used for comparative tests over definite periods
of time.
Similar work is being conducted on by-products in the form of
orange and grapefruit juice concentrates. Experiments in this line are
being made at the plant of Bruce's Products, Inc., in Tampa, involv-
ing several thousand boxes of fruit. It is hoped that the Exchange
Juice Company may develop something in this line whereby a con-
siderable volume of lower grades of fruit may be utilized.
Canning Division
The canned grapefruit contracts negotiated by the Florida Citrus
Exchange at the beginning of this season for the sale of cannery grade
fruit at 90c undoubtedly were a primary factor in holding the price
on that grade of fruit as high as was maintained on the average through-
out the season. This is an accomplishment made possible only by the
strength of position in the industry given to the Florida Citrus Ex-
change by cooperative control. Following the demoralization of the
canning industry during the season, the Florida Citrus Exchange saw
the advantage of getting into the canned grapefruit deal. It saw a
possibility of making use of its cooperative control of the raw product
to force a stabilization of the canned grapefruit industry in the inter-
ests of the producers.
Cooperative activity in the canning industry has progressed rapidly.
It is safe to assume that, because of the development of this producer
control of the canning industry, it may be made a highly profitable
one for Exchange growers.
To handle the organization of cooperative canning plants and to
supervise a standardized production of the product, as well as its sale,
the Canning Division of the Florida Citrus Exchange was created as
a separate department functioning under the supervision of the General
Manager. This action was taken in March of this year.
Since that time three factories have been canning grapefruit and
grapefruit juice for Exchange sale:









Golden Triangle Canning Corporation, Eustis.
Indian River Exchange Canners, Ft. Pierce.
DeSoto Canners Association, Arcadia.
Constant inspection of the quality and standard of pack put up
in these four plants has been maintained. They have closed for the
season with a total pack of 145,000 cases of grapefruit hearts and
27,128 cases of grapefruit juice.
The total pack of canned grapefruit produced in the state of Flor-
ida for the season 1930-31 is 2,775,077 cases of hearts and 404,993
cases of juice. Approximately three million standard field boxes of
grapefruit were used to produce the above amount of canned fruit and
juice.
An analysis of the quantities of canning fruit available in each
sub-exchange is being made to determine the most practical location
for cooperative canneries throughout the citrus belt. Various meetings
have been held in Lake, Orange, Polk, Manatee and Pinellas Counties
which will culminate in decisions with reference to the expansion of
the Exchange canning activities for the next season.
The development of sales pertaining to the canned product has
kept pace with the rapid acquirement of producing facilities. Sales
contacts have been made with the most efficient brokers in all import-
ant markets throughout the country. The trade has been found to wel-
come the Exchange sale of canned grapefruit and, because of the
potential volume in the organization, it has been possible to obtain
the best brokers in each market. Thirty-three brokers in the United
States and Canada have already been appointed and are working on
the sale of the Exchange product under the Seald-Sweet label.
The Exchange grapefruit canning activities afford distinct advan-
tages which will accrue to the benefit of Exchange growers in their
fresh fruit marketing problems. The lower grades and off sizes of
fruit are removed from the box lot market. Further than this, how-
ever, the Seald-Sweet label on the can permits a year round representa-
tion of the brand in all markets. It makes possible development of a
12 month's advertising program on the brand name. Thus, a complete
tie-up in the merchandising programs of the fresh and canned fruit will
be maintained with the two supporting each other to the benefit of the
entire movement.

TRAFFIC DEPARTMENT
From a transportation and traffic standpoint the past season has
been one of the most satisfactory experienced since the organization of
the Exchange.
Prior to the World War, the carriers maintained fourth morning
delivery on Florida products to New York, and during the latter part
of 1929 requests were made for the re-establishment of that service.
Several conferences were held with the carriers, at which representatives
of the Interstate Commerce Commission were present. The carriers of-









fered very little encouragement in the beginning, but it is the under-
standing that they quietly made some tests to determine whether fourth
morning was practical, and found that by eliminating delays at ter-
minals, and with somewhat faster running time, fourth morning was
actually possible.
Consequently, prior to the opening of the past season, fourth morn-
ing arrival was announced at New York, and immediately thereafter,
the lines to Chicago tightened up their schedules and gave the Florida
shippers fourth morning delivery into Chicago and other western
destinations. Generally speaking the improved schedules have been
maintained.
Car Supply
Throughout the season the supply of refrigerator cars has been
adequate. Not only has there been an ample supply of refrigerators,
but they seem to be of better construction and in better condition to
protect the shipments against extremely low temperatures. There have
been very few instances of fruit freezing in transit this season, and
when so, it was usually traceable to improper manipulation of vents
and plugs.
Claims
With better cars, better schedules and better handling of fruit from
the tree to the car, claims have been materially reduced. Up to May
1st, 1931, the Traffic Department had filed on this season's business
665 claims amounting to $30,013.97, and collected 495 claims
amounting to $16,402.36. Some of the claims paid, however, were
filed during previous seasons. Outstanding on May Ist there were
263 claims amounting to $26,300.42.
Since the organization of the Florida Citrus Exchange, the Traffic
Department has filed 61934 claims amounting to $1,555,223.13.
Rates
The Exchange Traffic Manager is Chairman of the Traffic Com-
mittee, member of the Board of Directors and the Executive Committee
of the Growers and Shippers League of Florida, and is in close touch
with League activities.
Several important decisions were rendered by the Interstate Com-
merce Commission during the past year affecting both fruits and veg-
etables from Florida. The Refrigeration case was decided in favor
of Florida shippers, which meant an annual saving on refrigeration
charges of approximately $500,000.00.
Decision was also rendered in I. & S. Docket No. 3315 wherein
it was proposed to assess certain assessorial charges against Florida
perishables. While all the progress hoped for was not made in this
case, nevertheless a big saving was effected.
The carriers also proposed to assess a reconsigning charge in the
Southeast ranging as follows: $2.70 for the first diversion, $6.30 for









the second to fifth, and $9.00 for each subsequent diversion. Diversions
in the Southeast are now made without charge, and Exchange hand-
ling with the Southern carriers, in cooperation with the League, resulted
in the indefinite postponement of this proposition.
Activities
The Traffic Manager has attended each quarterly meeting of the
Southeast Shippers Advisory Board, and also attended the regular
business meeting of the American Fruit & Vegetable Shippers Asso-
ciation, held in Chicago during the month of January, 1931.
He served last year as general chairman of the Transportation and
Traffic Committees, and has been re-elected for the ensuing year.
He has also attended all meetings of the Traffic Committee, as
well as the Executive and Board meetings of the Growers and Shippers
League.
ORGANIZATION ACTIVITIES
The Organization Department of the Florida Citrus Exchange was
created at the beginning of the season to take over organization work
formerly handled by the Production Department and to permit a greater
concentration of effort looking to an increased grower membership and
greater percentage of Exchange control of the total crop. The other
duties of the Production Department have been assigned to various
other departments and to sub-exchanges.
The Organization Department has functioned satisfactorily through-
out the season. The Exchange has made marked progress in its de-
velopment within the state. It is a far larger, stronger and more closely
knit organization than ever before.
Cooperative Control Increased
The percentage of control of the total crop under cooperation has
been increased from 30 to approximately 45 percent* during the past
two or three seasons. This increase has not been obtained entirely
through mergers of independent grower-shipper organizations, but has
been gained largely through successful organization contact with in-
dividual growers.
Consider the records for the past season to March 1st. The or-
ganization added 1123 new member-growers (not including grower-
shippers) owning 23,357 acres of grove properties. During the same
period only 267 growers, owning 5643 acres, left the organization for
one reason or another. This leaves a net increase during the period of
856 growers, owning 17,714 acres.
It is also important to look at the distribution of volume per asso-
ciation. It has long been a policy of the Florida Citrus Exchange to
eliminate weak associations or associations which had practically no
chance of obtaining adequate volume for economical operations, or to
*See page 11.









build such associations through strong management into units which
could operate satisfactorily in the interests of their grower-members.
In 1924-25 the organization operated 110 packing houses and
packed 6,374,820 boxes of fruit. The average per house in this large
crop yearwas 57,953 boxes. Pursuing this policy steadfastly through
the intervening seasons to date, the Exchange came to the present sea-
son with 100 houses, which will pack an estimated total of 10,382,090
boxes, or an average of 103,821 per house. In other words, the aver-
age per house has been nearly doubled since the 1924-25 season. This
volume increase per house is highly desirable in that it has brought
about much more economical operations and permits a far more satis-
factory handling of the fruit in the house.
Much of this development within the associations may be traced
to a perfection of personnel in the associations and sub-exchanges. The
detail of the changes which have been made from time to time during
the past few seasons is too great to cite here, but it readily is recognized
that no association is stronger than its manager. Weak managers in
practically all instances have been replaced. The same is true of sub-
exchanges. The Exchange has a field group at present which is effi-
cient, thoroughly acquainted with the problems and work for which
they are employed and competent to carry through, as is evidenced by
the progress which has been made.
New Exchange packing units were organized and have operated
this season at Lake Placid, Wauchula and Okahumpka. Plans at the
present time are being developed for several additional new Exchange
associations.
This growth of Exchange volume will be considerably augmented
during the coming Summer and Fall by a continuation of action on
the merger program already adopted by the Florida Citrus Exchange.

Grower Contact
Contact with growers in and out of the organization is maintained
primarily through the field force, composed of sub-exchange and asso-
ciation managers. The work of these men, however, is augmented dur-
ing the Summer by the use of several key dealer service men who are
transferred from the Advertising Department for this purpose. These
men work under the direction of the department and solicit the fruit
in territories which are weak or where the association or sub-exchange
manager has asked for assistance.
Literature designed to explain the operations and methods of co-
operative marketing as exemplified in the organization will be used
in the work of the department during the coming Summer. Contact
will be made with all non-member growers. Special efforts will be
made to retain and enlarge the support of all present members, many
of whom are being disturbed by the customary propaganda spread
through the state at this time of the year.
Business Contact
Favorable public opinion is an essential factor to the development









of cooperative marketing. Recognizing this fact, a special effort has
been made to acquaint business organizations throughout the state with
the true facts of the citrus situation and of the necessity for full co-
operative control of the citrus crop. This contact work has been
accomplished primarily through luncheon clubs throughout the citrus
belt. Practically all of these organizations have been covered during
the season.
The publicity essential to the work of this department has already
been discussed in the report of the Advertising Department (See page
27.
That all of these factors of organization development mark the
Exchange as a stronger and more efficient unit is clearly evidenced
by the fact that the Federal Farm Board has given the organization
unqualified moral and financial support. This support of the Federal
Farm Board in turn is helping to build the strength of the organization.
Further, two months ago saw the first time in the existence of the
Exchange where the organization itself, because of its evident advan-
tages to growers, attracted a man of international importance to offer
his services gratis in the further development of that organization. Col.
Raymond Robins was neither asked nor paid to give his time for
organization meetings, yet the progress made in the organization and
the possibilities in the development of the Florida Citrus Exchange at-
tracted this effort on his part. He addressed a series of eight public
meetings during the first half of April on behalf of cooperative mar-
keting. His work made a very favorable impression upon growers
and business interests alike.

EXPENSE OF OPERATION
The operating expense of the Florida Citrus Exchange to date
shows a decrease of one cent per box over last season. Two factors
are responsible for this decrease. The increased volume handled by
the Exchange because of its greater percentage of control and natural
increase of the crop, plus a strictly maintained efficiency of operations
in all departments, combined to reduce these general operating expenses.
The detail of comparative per box operating costs, this season and
last, are shown in the table below:

COMPARATIVE PER BOX OPERATING COSTS
Seasons 1929-30 and 1930-31 to May 10
1929-30 1930-31
EXPENSE ITEMS Per Box Per Box
Agents' Expense ............. .006 .004
Agents' Salaries Less
Brokerage Received ........ .007 .004
General Expense, Postage, Rent
and Telephone Expense...... .008 .006
Office Supplies .............. .002 .002









Florida Salaries, Traveling
Expense, Etc. ............ .028 .028
Telegraph Expense ........... .015 .016
Interest Paid Less Interest
Received ................ .001 .001
Growers Loan & Guaranty i
Company Expense .... ... ..004

Totals .. .................. .071 .061

APPENDIX "A"
REPORT OF ORGANIZATION COMMITTEE
December 19, 1930
The purpose of this report to the Board of Directors of the Florida
Citrus Exchange is to place before that body (1) an outline of present
conditions in the Florida citrus industry, (2) an analysis of the reasons
or causes of those conditions, (3) the determination of the position of
the Florida Citrus Exchange in this situation and the determination of
the extent of responsibility which the controlling board of the Exchange
has in the correction of such conditions, (4) recommendations to the
Board for action to be taken by it in the correction of this situation.
An attempt has been made in this report to avoid length, but suf-
ficient detail is cited to clearly emphasize every attributive factor to
the above mentioned objectives which, in the opinion of this committee,
deserves consideration by the Board.
Existing Conditions
The Florida citrus industry is, and for some time has been, in an
exceedingly dangerous position.
Three successive large crop years-23-24, 28-29 and 30-31-
each in turn have found the industry so poorly organized that it was
unable to pack and sell the crop at a profit to its producers. The mere
fact that the intervening years produced a profit does not modify or
change in any way the critical situation in the industry. No industry
as large or as important as this can survive unless its basic handling
methods are sound and are able to withstand the stress of adverse or
difficult marketing situations. This is particularly true of the Florida
citrus industry, as these large crop years are becoming more frequent
and the crop is constantly increasing in average because of new plant-
ings coming into bearing each successive season.
For the last six years, according to reports of the State Marketing
Bureau, the value of the whole citrus crop at the state line has re-
mained practically stationary, regardless of the size of the crop. In
fact, more actual money has come into the state from several small
crops during this period than from some larger ones.
Taking an average of the past ten years, the state values-includ-
ing cost of picking, hauling, packing, selling and freight to the state









line-average about $4 per box on a 10 to 12 million box crop, $3
per box on an 18 million box crop, and $2 per box on a 22 to Z2
million box crop.
In other words, the producer of fruit does not in any measure re-
ceive added revenue from added volume. Instead, since picking, pack-
ing and sales costs increase proportionately with that volume and the
sales prices decrease, net grower returns are practically in inverse ratio
to the size of the crop. This is in spite of the fact that per box
packing and sales costs are decreased by the larger volume handled.
This condition is intolerable.
The over-used argument that the law of supply and demand is
directly responsible for this situation is a subterfuge advanced to cloud
the issue. True, an increased crop has a definite bearing on grower
returns, but with sufficient facilities to increase that demand in some
semblance of proportion to the increased crop, backed up by merchan-
dising facilities which can control the supply of that increased demand,
would make possible grower participation in the true value of the in-
creased tonnage.
Such trite references to the law of supply and demand infer over-
production and are inexcusable. This committee believes that there is
no immediate possibility of over-production in Florida citrus, given
satisfactory control within the industry so that the merchandising of
the crop can be intelligently consummated.
Talk of over-production is ridiculous. The largest crop of citrus
fruit ever produced in the United States was during the season of 1928-
29. California and Florida together produced 62,351,065 boxes,
or about one-half of a box per person per year, if all of this fruit had
been consumed in the United States. Considering the variety of uses
for oranges, grapefruit and lemons, and translating this volume into
terms of juice, the actual per capital consumption of this, our largest
crop, was a small percentage of what health authorities agree should
and can be consumed.
Nor is the common cry that the 1930 economic depression is re-
sponsible for the low prices of this particular season justifiable. True,
the depression in some measure is affecting sales prices. Nevertheless,
California in spite of these conditions, has maintained a sales level
throughout the season which returns a profit to its growers, even after
those growers pay a much higher production cost than maintains in
Florida.
Another reason advanced to this committee during its investigation
in an attempt to account for the present depressed sales prices was the
fact that too much green or immature fruit had been shipped early in
the season. Grant the fact that this is an attributing cause, nevertheless
with the same regulations the preceding season, price levels were un-
touched and the trade and consumers alike bought and paid good
prices for the Florida citrus offered to them after maturity. The green
fruit shipments were a contributing factor to the present difficulties of









merchandising Florida citrus, but they must never be considered as a
basic cause contributing to the critical situation of the industry as de-
scribed at the opening of this report.
Basic Cause Is Lack of Centralized Control
The underlying cause for the lack of stability and the constantly
recurring profitless years may be summed up by the one statement: lack
of control. All other reasons are attributive or are out-growths of this
one basic fundamental cause of the situation described.
The concentration of crop control in one marketing agency would
make possible the operation of basic merchandising fundamentals in
the packing and sale of every crop at a profit to the producer. Experi-
ence indicates that the minimum percentage of concentration by which
such control can be exercised is 75 percent of the crop, regardless of
its size.
Such a situation of control has never existed even for one season
in the Florida citrus industry. It has existed over a period of years in
the industry nearest comparable with our own-the California citrus
industry. The value of that control is readily demonstrated by a con-
sideration and comparison of the degree of interest manifested and
support maintained for the individual grower and his property by
banking interests in California and Florida. In Florida even large,
well-financed 'organizations such as our own Growers Loan and Guar-
anty Company, have difficulty securing ready credit with which to
finance the individual grower. Contrast this situation with Mr. Teague's
statement that the California Fruit Growers Exchange operates no
financial company, that the individual grower has no trouble making
adequate financial arrangements to care for the seasonal operation of
his properties from his local banks.
With rare exceptions, there is no bank in the state of Florida which
makes a general policy of grower crop loans. And, considering the
constant instability and shaky condition in the industry, as has been
evidenced during the past ten years, this committee can find no reason
for censure of that banking policy.
The Florida grower is and always has been furnishing his own
competition-and it is destructive, cut throat competition. It is the
Florida grower who permits with his fruit the existence and operation
of numerous private operators, who in most instances are too small
to have any cognizance of market conditions or who in no way can
contribute to the organized distribution, sale and advertising of Florida's
citrus crop. Quite on the contrary, 'most of these operators live on
the profit derived by them by the packing and so-called selling of. the
fruit of which they have obtained control, with little or no regard for
the grower's equity in the fruit. Their profit is usually the same
whether the sale price is high or low. During a season such as the
present, it is customary to base it on the flat packing and selling charge.
During other seasons, when fruit can profitably be purchased and is
for the smart and well-financed operator a good speculation, such an









operator makes in addition a considerable proportion of the high
fruit return, which normally should go to the grower.
During any season the desire of this type of distributer is to insure
his profit, make his turn-over and get his capital returned by accomplish-
ing a sale at a fair price if possible, but at any price regardless of
conditions. This practice invariably results in indiscriminate price-
cutting, as is evidenced by numerous reports of our sales representatives
season after season.
The failure of the Exchange to control or maintain prices has been
mentioned as a criticism by many. The uninformed or superficially
thinking person might this season think that he, had just cause for this
criticism.
However, this fact cannot be disregarded. The Florida Citrus Ex-
change has never claimed to be able to substantially influence the mar-
ket with only 50 percent of the fruit in the Exchange. The men on
the outside with a substantial volume to offer can very nearly set the
price in a buyer's market, such as this season has been, if he starts
price cutting. One car under-quoted in a dozen markets--often with-
out a buyer in any-can affect adversely the sale of many cars in
those same markets.
This distributive and sales condition will maintain as long as Flor-
ida growers continue to make it possible for shippers who are at all
times interested primarily in their own packing, selling or speculative
profit to cut prices under those maintained by the growers' cooperative,
whose purpose is to maintain prices commensurate with the full value
of the fruit and to return to growers a fair margin of profit.
Mr. Teague, in his informal discussion of the situation before this
Board of Directors on November 18th, aptly summarized this situa-
tion, "You gentlemen have a good organization. It is soundly organ-
ized. It has advantages over our own organization in California, after
which yours was patterned. Yet, without control, you are merely an-
other merchandising or sales organization in the state. It is control
which you lack and which we on the Farm Board hoped to help you'
obtain, that is essential to the future stabilization of your industry and
the consistent sharing of profits in that industry by its producers."

Florida Citrus Exchange Organization Capable of Expansion
to Handle Control
There can be no question as to the soundness of the cooperative
operating plan, which is the Florida Citrus Exchange. It is modeled
after the most successful cooperative organizations in the world. It goes
further than these, however, in that it has improved in several instances
upon certain factors of organization which experience in their operation
has indicated as being weak.
An analysis of the packing facilities affiliated with the Exchange
indicates that we have under cooperative control adequate service in
all strategic points throughout the state's citrus belt. In such few in-









stances in the lesser important sections where no Exchange association
is operating, our organization department has contacts which would
permit the immediate installation and operation of a cooperative asso-
ciation in a packing house already in existence which could be acquired
for cooperative use.
The sales organization of the Florida Citrus Exchange has been
the subject of a considerable analysis on the part of our general man-
ager. Various changes and additions have been made in the Florida
end of the organization. The personnel is ample, experienced and
capable. With the possible addition of clerical help, it is prepared to
handle the volume necessary for control.
Our sales organization in the North is just as well organized and
capable of expansion. The Florida Citrus Exchange has competent
salaried representatives in all important car lot markets. Several of
these men-whose bread and butter depend upor. the satisfactory per-
formance of their duties-are responsible, not for one market or one
individual territory, but as division managers for many districts of car
lot markets. It is also important in this connection to observe that the
Florida Citrus Exchange, because of its present comparatively large
individual volume, has the choice of the most desirable brokers through-
out the country, as every broker logically desires the account with
greatest volume.
An appreciation of the scope and value of our sales organization
may readily be realized by the fact that it is sought by large deciduous
accounts during the Florida off season for the sale and distribution of
their product. This is not only commendation of our sales organization,
but is in itself an added asset in that it keeps our men busy and in
contact with the trade 12 months of the year.
The Florida Citrus Exchange has built up and maintained facilities
for advertising which are adequate, with the addition of subordinate
and clerical help, to handle many times the volume of funds now ap-
propriated for the exploitation of its brands. The dealer contact or
service organization operated by this department is already subject
to seasonal expansion and could readily be developed to accomplish
satisfactorily its designated task in the general merchandising plan of
a controlling volume.
Nor does the committee overlook in this connection the fact that
the present careful maintenance of grading standards, fair sales contacts
and brand advertising have obtained for Florida Citrus Exchange
brands a considerable and enviable good will among the trade and
consumers throughout the country. This good will factor is an added
value in making practical the handling of a control-volume by the
Florida Citrus Exchange.
In addition to these well organized facilities, the Florida Citrus
Exchange has a financial subsidiary which is among the leaders of its
type of organization in the country. It commands the good will and
respect of credit contacts everywhere. Its operation since its organiza-









tion has been conducted in a consistent, safe manner for the benefit of
Exchange grower members.
We find throughout the organization a steady growth and im-
provement. Changes have been made during the past five years which
have put the organization in a position where it has shown results in
comparison with competing organizations. We find that constant plan-
ning for continued improvement is being made also.
Finally, this committee wishes to emphasize the fact that the Florida
Citrus Exchange as an organization and in its relation to the industry,
has been investigated by competent authorities at the instigation of the
Federal Farm Board. Such detailed, critical examination resulted in
the definite recognition of the Florida Citrus Exchange by the Federal
Government, through its agents the Federal Farm Board, which ap-
proved large loans to the Florida Citrus Exchange. These loans were
made with the statement that the Florida Citrus Exchange is the only
logical and existing medium into which the necessary control of the
industry could be built, with due regard for the interests of the producers.
Control Centralized in the Florida Citrus Exchange Would
Accomplish Desired Ends
To summarize, this committee has yet to find one factor advanced
as a cause of the conditions existing in the industry which could not be
corrected by the vestment of a minimum of 75 percent control in the
Florida Citrus Exchange. Given that control, the Florida Citrus Ex-
change could operate satisfactorily the basic merchandising funda-
mentals necessary for the sale of each succeeding crop at a profit to
the producer.
It could regulate shipments, both geographically and periodically,
in accordarice with definitely recognizable demand. It could standard-
ize grades and packs. It could put into operation and maintain proper
methods of price quotations. It could control prices and maintain them
at a level consistent with the market value of the fruit. With its
solidified grower support, it could obtain enactment and enforcement
of proper green fruit legislation.
All of these factors, however, obviously depend upon the concen-
tration of a minimum of 75 percent control of the fruit volume year
after year in the organization. The accomplishments attributed by this
committee to control are not fantastical theory. The efficacy of that
control is adequately illustrated in the California lemon situation de-
scribed by Mr. Teague, which is common knowledge since his visit.
Further evidence of the practical nature of this emphasis on control is
available from an analysis of the returns made by the California Citrus
Growers Exchange to its growers.
California admits that it costs them more to produce citrus than
it does Florida. Yet, by adequate control, their growers are paid a
price consistently which nets a profit to the grower over cost of pro-
duction. Florida uses the same methods of merchandising, but without









the same percentage of control. It repeatedly pays the penalty. The
California Fruit Growers Exchange paid its members $105,000,000
last season. It gives the credit to cooperative control.
Recommendations to the Board
Since 75 percent cooperative control is the underlying factor nec-
essary to create a stabilized and consistently profitable industry, this
committee feels that it is the responsibility of this Board to develop
and operate plans and methods which will make possible that control.
This is a growers' organization. The responsibility for the successful
operation of it is vested in this Board of Directors-representatives of
the growers. The responsibility for securing adequate control is a
grower responsibility, as, without that control, the personnel employed
by this Board in the sale of your and your growers' fruit cannot suc-
cessfully carry out their plans for organization improvements.
Recognizing that responsibility, this committee wishes to recom-
mend to the Board for definite action the following plan:
1. An intensive organization campaign to be initiated early this
coming spring. The objective of this campaign would be to
obtain increased individual grower membership and to prevent,
as far as possible, withdrawals during the period when such
are permitted.
This committee realizes that many growers can not be reached
by a campaign of this kind because of financial obligations
made in various ways on their properties or on their crops,
binding them to independent operators. We believe, however,
that every grower insofar as is possible should be reached
personally and, wherever arrangements can be made, should
be influenced to transfer those obligations to the Florida Citrus
Exchange.
The physical accomplishment of such a task is not easy. It
is a matter primarily for grower work. We recommend that
committees-committees which will function-be formed in
each association to perform the actual personal sales contact
necessary with each individual grower. The work of these
committees should be coordinated and directed by a committee
from the Board of Directors.
Supplementing the work of these committees, we believe that
sufficient men from the dealer service organization and from
the Tampa office can be placed in the field to coordinate the
efforts of the Individual growers serving on these committees.
2. Any campaign involving the action of thousands of individual
growers necessitates the moulding of the mass opinion of that
group of growers. Three agencies are necessary to mould fav-
orably that opinion: the press, the bankers and the business
men.
It was these factors of public influence which were vital in the
41









final construction of control in the California industry. They
can and should be made just as important in our own problem.
This committee recommends, therefore, that the Board of Di-
rectors take steps to formulate a plan which will obtain the
active cooperation and endorsement of the state press, the State
Bankers Association and business in the state as represented
by the State Chamber of Commerce, the stronger luncheon
clubs and individual business leaders. Such a plan, in our
opinion, should go beyond a mere series of addresses made by
employees of this organization to the various groups soliciting
their support. This continues to be a growers' problem and it
is growers themselves who should carry the message to these
people sufficiently strong to stimulate them into action.
3. No plan of grower solicitation alone can be successful in gain-
ing the necessary control for the Florida Citrus Exchange.
Recognizing this fact, this committee further recommends that
the Board take definite and immediate steps to bring inde-
pendent operators into the Florida Citrus Exchange.
We recognize in making this recommendation that these men
are in an honest, legitimate business, but that their continued
operations, while profitable to themselves, deprive the pro-
ducers of stability in their citrus investments and consistent
profits.
Any merger plan contemplating the affiliation of these outside
shippers with the Florida Citrus Exchange must, therefore, be
accomplished in a manner which will protect their investments
in packing house facilities. It is the committee's thought in this
respect to provide for their continued operation as special ship-
pers, if satisfactory contracts extending over a period of years
compelling their cooperation could be obtained. In this man-
ner, the Exchange would be obligated little or none financially
in securing their tonnage.
Should these shippers not desire to continue their business as
shippers, subordinating themselves and their marketing to the
Exchange sales and distribution requirements, then his assets
should be taken over by the Exchange on a plan which would
fully protect both parties. In any consideration of such action
by the Exchange, there should be included in the contractural
relation a very definite assurance that the shipper thus bought
out would not immediately set up or cause to be set up another
operating agency with the funds derived from the sale to the
Exchange of his present more or less obsolete equipment and
buildings. This committee recommends in these cases that a
marketing contract be signed at least for five years that would
tie in actual groves controlled or operated by these shippers,
even though the ownership of these groves might change.
It is impossible in this report to cover, or even consider, the
variety of detail which this recommendation with respect to
42









the merger of individual operators with the Exchange involves.
There are no details, however, in this connection which can-
not and should not be worked out by this Board.
Undoubtedly it would be necessary to arrange satisfactory
terms of settlement and issue bonds or debentures against such
properties, either in payment of them or for public sale, the
proceeds of which to be used in the settlement of that pur-
chase. This committee believes that such a plan worked out
in complete detail would meet the approval of business inter-
ests and growers alike, and that this definite plan would be
a large factor in securing the approval and cooperation of the
state press, the bankers and business interests. We are also
assured of the cooperation of the Federal Government through
the Department of Agriculture and the Federal Farm Board.
Such definite plans should obtain for the Exchange the active
help and cooperation of all state officials. There is every
reason why we might expect cooperation from prominent bank-
ing leaders throughout the state. The sound economics of such
a plan should appeal to all Florida business leaders.
In our opinion, such a plan should be carefully worked out
and completed in detail by this Board and adopted for im-
mediate action.
4. We recommend further that the committee on cooperative
canning continue and intensify its consideration to the canning
and by-products industry as a whole. Marketing experts agree
that the canning or freezing of citrus fruits and juices will
become as important a factor in our industry as the same oper-
ation has already become in the pineapple industry, where well
over 60 percent of the total crop is canned and sold in a
stable market as a staple commodity.
This committee believes that definite action should be taken
by this Board, possibly through the above mentioned com-
mittee, to obtain definitely some control of the preserving oper-
ations so that the producers of the raw product can be guar-
anteed consistent, year after year profits. It is important that
these developments, which are bound to come and which will
unavoidably be a tremendous factor in the financial welfare
of the producers, be held under control which will assure their
operation in a satisfactory manner to the producers.
In concluding this report and in making these recommendations,
this committee respectfully submits that now is the time for sane think-
ing and for sound action. Naturally, many growers are dissatisfied.
Many, uninformed, under the press of circumstances will too quickly
jump to conclusions.
The unrest on the part of a few under existing conditions in the
industry may quickly spread to the many and create a situation which
can be met only by definite, purposeful accomplishment on the part of
this Board. Such action is definitely the responsibility of the controlling









body of this growers' cooperative. It is a responsibility which should
be met fully and immediately.
The completion and operation of the organization plan recom-
mended by this committee undoubtedly will require considerable money.
In considering this cost, however, it is well to remember that the Florida
grower today is being penalized at least one dollar per box because of
his failure to organize. This means an annual cost of disorganization
to the industry averaging $18,000,000. Florida is paying that tre-
mendous sum annually because her growers fail to do what California's
growers have shown us can be done. They are showing that much
difference in sales regularly.
This bill for disorganization is many times the total amount which
would be required at the outside to put this industry together. The
growers are paying the bill now disorganized. They can much better
afford to pay a small fraction of the bill and obtain the benefits of
adequate, centralized control.
APPENDIX "B"
Growers Loan and Guaranty Company
During the past season the Growers Loan & Guaranty Company
has loaned more extensively to growers than ever before. This is shown
by the following statement setting forth the approximate total loans
to growers during the past 7 seasons:
Season 1924-25 ....... $ 700,000.00
Season 1925-26 ....... 700,000.00
Season 1926-27 ....... 1,100,000.00
Season 1927-28 ....... 1,000,000.00
Season 1928-29 ....... 1,800,000.00
Season 1929-30 ....... 1,600,000.00
Season 1930-31 ....... 3,000,000.00
It is, of course, difficult to estimate what proportion of the Ex-
change tonnage is due to financing by Growers Loan & Guaranty Com-
pany but, unquestionably, the ability of this organization to finance
individual growers of the Florida Citrus Exchange plays a very im-
portant part in holding the present tonnage and securing new tonnage
for the Florida Citrus Exchange.
The following is a statement of the approximate amounts loaned
to Associations during the past 7 years:
Season 1924-25 ....... $ 735,000.00
Season 1925-26 ....... 565,000.00
Season 1926-27 ....... 585,000.00
Season 1927-28 ....... 535,000.00
Season 1928-29 ....... 800,000.00
Season 1929-30 ....... 930,000.00
Season 1930-31 ....... 900,000.00
Without the help of the Federal Farm Board it would have been
exceedingly difficult for the Growers Loan & Guaranty Company to









take care of the requirements of associations during the past year and
a half, these requirements being unusually heavy, due to the necessity
for extensive improvements in many houses and in some cases, for com-
plete new plants. During October, 1929, the Florida Citrus Exchange
secured commitments from the Federal Farm Board covering two loans,
the first in the amount of $500,000.00 secured by collateral in the
form of growers' notes of the Growers Loan & Guaranty Company
and an agreement of the Florida Citrus Exchange to repay the loan by
an assessment of 2c per box; the other commitment for the amount of
$2,800,000.00, to be secured by first mortgages on packing houses
affiliated with the Florida Citrus Exchange, the mortgage notes ma-
turing semi-annually from December 31, 1931, to December 31, 1945.
The $500,000.00 loan was made during October, 1929, and was
repaid gradually. by the retain of 2c per box and collections on the
collateral placed by the Growers Loan & Guaranty Company, until
the loan was finally paid in full during April, 1931. The proceeds
of this loan, when received from the Federal Farm Board, was used
as follows: First, $100,000.00 to Chase & Company in part payment
for properties acquired in its merger with the Florida Citrus Exchange;
Second, the remaining $400,000.00 to the Growers Loan & Guaranty
Company for loans to its growers.
The first loan under the $2,800,000.00 commitment was made
during December, 1929. At the present time loans with the Farm
Board have been consummated on 75 packing houses for a total of
$2,520,882.00. The contract executed by each borrower at the time
of securing the loan provides that it be repaid at the rate of 5c per
box on all fruit packed through the house. However, the Executive
Committee of the Growers Loan & Guaranty Company, which acts
as the Special Loan Committee of the Florida Citrus Exchange in the
handling of the Federal Farm Board loans, saw that in many cases
this would result in the complete. repayment of an association's mort-
gage within 2 or 3 years. The Committee, therefore, agreed that in
any individual case where the 5c retain was sufficient to pay the first
5 notes the retain would then cease and would not be resumed again
as long as the association maintained its position of having its notes paid
up 5 notes ahead of schedule.
By this method, any association reaching this point will have
provided itself with a reserve of 2/2 years during which no mortgage
notes would become due and payments would, therefore, not be neces-
sary in case of a crop calamity or other disaster. During the present
season there has been collected from the associations on this basis, the
amount of $177,885.25, which has been delivered to the Federal Farm
Board and applied on the notes of the associations.
The following associations have paid the first 5 notes in their en-
tirety and no retain is being deducted at this time:
Cocoa-Merritt Island Citrus Growers Association.
Fort Pierce Growers Association.
Geneva Citrus Growers Association.
45









Haines City Citrus Growers Association.
Kissimmee Citrus Growers Association.
Pierson Citrus Growers Association.
Lakeland-Highlands Citrus Growers Association.
Plymouth Citrus Growers Association.
Vero Indian River Producers Association.
Winter Haven Citrus Growers Association.
During the middle of the present season the Growers Loan & Guar-
anty Company was called upon to make a new type of financing which
had not been contemplated at the beginning of the season, to-wit: loans
to cooperative canning companies for the purpose of producing canned
grapefruit and grapefruit juice. Somewhat over $200,000.00 was
loaned for this purpose." The Growers Loan & Guaranty Company
has received security in the form of notes of the various associations
comprising the stockholders of each cooperative canning company and
a lien on the company's manufactured product, it being the intention
that the Growers Loan & Guaranty Company shall be paid in full
from the proceeds of the sale of the product during the coming summer.

APPENDIX "C"
Exchange Supply Company
The Exchange Supply Company, the stock of which is owned by
sub-exchanges and associations affiliated with the Florida Citrus Ex-
change, has had a satisfactory season. The volume of business handled
shows an increase of 45% over the previous year, due partly to an
increase in the crop and partly to greater support of the company by
the associations.
The procedure established in 1928 of naming a committee of asso-
ciation managers to work with the management of the Supply Company
in making contracts for supplies has proved very valuable and will be
continued. This method enables the company to secure first hand in-
formation as to what goods are most satisfactory and economical.
The Exchange Supply Company purchases supplies in large quan-
tities and has established a line of credit and method of doing business
with the concerns manufacturing supplies needed in packing fruit, which
makes it possible for them to deliver supplies to the packing houses at
the very lowest prices.
APPENDIX "D"
Value of Florida's Citrus Crop to the State
Seasons Boxes Amount
1909-10 .............. 6,100,000 $ 9,699,000.00
1910-11 .............. 4,600,000 8,740,000.00
1911-12 .............. 4,750,000 11,685,000.00
1912-13 .............. 8,125,000 17,958,000.00
1913-14 .............. 7,956,000 16,550,406.00
1914-15 .............. 9,700,000 16,199,000.00









1915-16
1916-17
1917-18
1918-19
1919-20
1920-21
1921-22
1922-23
1923-24
1924-25
1925-26
1926-27
1927-28
1928-29
1929-30


.............. 8,370,000
.............. 7,649,000
.............. 5,581,000
.............. 8,407,680
............ 12,495,925
.............. 12,109,320
. ............ 1,888,280
.............. 16,886,701
............ 20,399,614
........... 17,781,120
............ 14,692,320
............ 16,588,800
.. ...... ... 13,635,360
.............. 26,266,965
............ 15,884,600


APPENDIX "E"


Shipments by Sub-Exchanges
1930-31
Sub-Exchange May 8th
Charlotte ....... 161,311
Chase ........... 575,577
Dade ........... 12,224
DeSoto ......... 67,689
Hillsboro ........ 187,201
Indian River .. 586,549
International ...... 490,531
Lake ........... 467,481
Lee ............ 117,997
Manatee ......... 225,515
Marion .......... 46,630
Orange .......... 1,404,371
Pinellas ....... 699,788
Polk ......... .. 3,671,61 1
St. Johns ........ 249,565

Totals .......... 9,064,040
Loss ............


As Compared
1929-30
May 9th
80,034
300,929
13,025
110,361
85,762
278,456
309,994
335,954
101,232
169,779
17,514
736,232
363,727
2,366,580
168,464

5,438,043


Net Gain ........


with Last Season


Gain
81,277'
274,648

57,328
101,439
308,093
180,537
131,527
16,765
55,736
29,116
668,139
336,061
1,305,031
81,101

3,626,798
801

3,625,997


Loss


801












801


18,497,700.00
17,286,000.00
20,706,656.39
31,696,953.60
45,235,248.50
35,117,028.00
40,657,917.60
48,464,831.87
42,337,200.98
53,165,548.40
52,822,352.00
46,945,704.00
51,424,100.0@
56,131,267.75
52,757,313.00









OFFICERS, DIRECTORS AND HEADS
OF DEPARTMENTS, FLORIDA CITRUS EXCHANGE,
SEASON 1930-31



J. C. Chase, President --....-.....---.......-----------Sanford
E. L. Wirt, Chairman of the Board............ -- ........--....-.. Babson Park
Jno. A. Snively, First Vice-President....--...--..-...--....Winter Haven
Jno. S. Taylor, Second Vice-President.......... I argo
Rupert Smith, Third Vice-President............... ..Arcadia
Homer Needles, Fourth Vice-President........ -..................Ft. Pierce
C. C. Commander, General Manager-.....-------.....------......-.. Tampa
F. W. Davis, General Sales Manager---...........-.......-.......Tampa
J. Reed Curry, Mgr., Organization Dept ..........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 Directors Address
Chase ............. ........J. C. Chase Sanford
Charlotte J. 0. Carr................ Ft. Ogden
Dade W. 0. Talbott.......... Goulds
DeSoto Rupert Smith Arcadia
Florence-----.............--....ohn A. Snively............-....-......Winter Haven
Lake -....-~.......--.......-- R. P. Burton.....-.............-.......- .....Leesburg
Hillsboro.........-...........M arvin H. W alker--..................-......... Tampa
Indian River..............- Homer Needles...--.......-- .........-..---..Ft. Pierce
International --.....---...D. C. Gillett...-...........-........-- -- ........Tampa
Lake Apopka --.....--..- J. G. Grossenbacher. Plymouth
Lake Region.....-------..R. O. Philpot ............................Haines City
M anatee.....................- R. K. Thompson---............................ Sarasota
Marion...... Walter R. Lee-........-..-........Box 836, Ocala
Orange...... C. A. Garrett ......Kissimmee
Pinellas..-....................Jno. S. Taylor.. .............. ......... ....... Largo
Polk 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...................--.....-....... Lake W ales
Special.......--............-- D. A. Hunt L ake Wales
Special.... E. L. Wirt..............-.....--...... Babson Park
Special I B. Skinner.......... Tampa
Associate.........--....... ...Clinton Bolick......... Ft. Myers