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Annual report of the Florida Citrus Exchange
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Permanent Link: http://ufdc.ufl.edu/UF00075941/00017
 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: 1944
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: UF00075941:00017
 Related Items
Preceded by: Annual report of the business manager of the Florida Citrus Exchange

Full Text






Annual Repof
Of the
FLORIDA CfMU
EXCH-ANG
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Annual Report
1944-45


EXECUTIVE OFFICERS
C. H. Walker, President


C. C. Commander, General Mgr.


S. L. Looney, Treasurer-Comptroller


0


FLORIDA CITRUS EXCHANGE












OFFICERS, DIRECTORS AND DEPARTMENT HEADS
FLORIDA CITRUS EXCHANGE

SEASON 1944-45

C. H. Walker, President and Chairman of the Board_ ._- Bartow
W. C. Van Clief, First Vice-President ---___.. Winter Haven
P. C. Peters, Second Vice-President Winter Garden
W. O. Kirkhuff, Third Vice-President Bradenton
W. C. Graves, Jr., Fourth Vice-President ---- ---_Vero Beach
C. C. Commander, General Manager Tampa
Fred S. Johnston, Sales Manager Tampa
E. E. Gaughan, Traffic Manager Tampa
S. L. Looney, Treasurer-Comptroller Tampa
Counts Johnson, Secretary and General Counsel .--_- _Tampa
J. Samson, Assistant Secretary Tampa


SUB-EXCHANGE
Avon Park --.-
Clark
Dundee
Florence
Fort Pierce ----
Indian River --
Lake County .
Lake Region--.
North Pinellas_
Orange County-
Pinellas
Plymouth
Polk County --
Scenic
Winter Haven_


DIRECTOR ADDRESS
.-E. G. Todd Avon Park
I. J. Pemberton Jacksonville
John L. Olson Dundee
W. C. Van Clief Winter Haven
___W. M. Moseley Fort Pierce
W. C. Graves, Jr. Vero Beach
___J. B. Prevatt Tavares
--.A. R. Updike Lake Wales
.--A. V. Saurman Clearwater
-P. C. Peters Winter Garden
W. O. Kirkhuff Bradenton
Armer C. Johnson Mt. Dora
___D. A. Hunt Lake Wales
C. H. Walker Avon Park


--------George B. Aycrigg ---


---_Winter Haven










ANNUAL REPORT
1944-45

THE hurricane which swept up the State on October 19, 1944,
hitting hardest the heaviest citrus producing districts, destroyed
25,000,000 boxes of fruit, uprooted thousands of trees and se-
riously damaged many groves. Most of the remaining 68,-
000,000 boxes of fruit sold at higher prices because of the
smaller supply. While many growers suffered heavy loss, the
revenue to Florida from the sale of this season's crop was as
large, if not larger, than would have been the revenue of the
pre-storm crop.
As a result of the hurricane and the record drought which
followed, it has been necessary to harvest the crop much faster
than usual, shortening the marketing season a full six weeks.
Shipments of fresh oranges and grapefruit were less than the
year before. The canning of grapefruit also was down, but the
canning of oranges increased a third, partly because of bigger
government orders but mostly because of bigger civilian sales.
The hurricane relieved the shortages of labor and shipping
boxes. But transportation conditions made it extremely diffi-
cult to deliver fruit to market in satisfactory condition. Ship-
ments to some of the largest cities were prohibited for long
periods when heavy snows blocked railroad yards; in other weeks
the refrigeration of much Florida fruit was prohibited because
of ice shortages, resulting in heavy decay losses.
The unprecedented consumer demand for citrus fruit con-
tinued throughout the season, with most competing fruits in
short supply. The government continued to buy large quan-
tities of canned citrus products and increased its purchases of
fresh Florida fruit. If it had not been for this, and the smaller
crop resulting from the hurricane, Florida growers would not
have fared as well as they did.
Adjustments in Citrus Ceiling
The higher prices realized by Florida growers this season for
grapefruit, early and midseason oranges and tangerines were at-
tainable only because of the adjustment in maximum prices
under the "disaster clause" of the Price Control Act, which
applied only to Florida fruit. There was no increase in the
maximum price of Valencia oranges because the Office of Price
3

182881










Administration found that there was left more than a "normal
production" of this variety after the storm.
Maximum "on tree" prices of processed Florida fruit were
adjusted with those of fresh Florida fruit, but announcement
by the government of revised ceilings on canned citrus products
and of the subsidy on processed grapefruit was delayed until
the end of the season causing much uncertainty. Yet, de-
spite this, Florida canners paid more than their "on tree" ceilings
for fruit during most of the season and, in the case of oranges,
paid even more at times than could be returned under fresh
fruit ceilings.
Texas and California supplied United States consumers with
more of the fresh grapefruit and oranges this season, because
of the reduced Florida crop. The supply situation enabled
Texas to extend further its distribution of fresh grapefruit into
Florida marketing territory and it tended to restrict more of
the distribution of fresh Florida fruit to the East. The percent-
ages of fresh fruit shipments originating in each of the three
citrus producing areas this season to May 12, compared with
1943-44, are as follows:
STATE PERCENTAGES OF FRESH FRUIT SHIPMENTS
Oranges Grapefruit
1944-45 1943-44 1944-45 1943-44
Florida ..----... --.......... 51.0% 57.5% 35.1% 47.6%
Texas 8.2 4.9 64.9 52.4
California* ...---......... 40.8 37.6 -
*For Florida season only.
Most significant of the trends this season was the rapid in-
crease in the canning of Florida oranges. Processors utilized
14,000,000 boxes, or 33 percent, of the oranges harvested this
season to May 19, compared with only 8,700,000 boxes, or 21
percent, to the same date in 1943-44. Canning activities nor-
mally increase in years when production increases, but this year
there were more oranges processed despite the reduced crop.
The comparatively greater shortage of grapefruit contributed
to this situation, of course. But it is evident that there is an
increasing civilian demand for canned orange juice and blended
juice and that, with improvements in these products after the
war, more and more of the Florida orange crop will be utilized
by processing plants.
Florida has continued to supply the government with large
quantities of oranges and grapefruit for our armed forces and
allies. Approximately 18.5 percent of the Florida orange crop


























'-. T '



OCTOBER STORM DESTROYED 25,000,000 BOXES OF FRUIT

and 29 percent of the Florida grapefruit crop was bought by
government agencies this season, in fresh or processed form.
These government purchases exceeded those of any other year.
(See table, page 7.) The government took a little less Florida
grapefruit this season, but more oranges.

Other Significant Trends
Pink grapefruit The demand for pink grapefruit is con-
tinuing to increase in many markets and has reached the point
where fresh white grapefruit will no longer be accepted by the
trade in some cities. Since Texas is producing the largest volume
of pink grapefruit, the growing market preference for this va-
riety is seriously handicapping the distribution of fresh Florida
grapefruit. If it is to hold its remaining fresh grapefruit mar-
kets against this competition, Florida either must supply the
markets with more pink grapefruit or find some way to con-
vince the consuming public that its white grapefruit is better.
Florida must also prepare to meet the competition of more
Texas oranges, which are being produced in larger quantity
every year.
Consumer Packages There was a substantial increase this
season in the packing of Florida oranges in 8-pound bags and
there is every indication that such consumer packages will be


I










used in the future by most of the large retail chains and many
of the smaller ones. Retailers have found that it increases their
sales and reduces their labor costs to have fruit packed in con-
sumer-size bags. These bags have solved some of their size and
pricing problems, too, and have been partly responsible for the
more extensive retail selling of fruit by the pound. The trend
toward consumer packages will be an important factor in citrus
marketing after the war.

Promising New Products
Frozen orange juice concentrate received its first extensive
commercial test late this season when Peoples Drug Company
used it for preparing orange drinks in its Washington, D. C.
stores. This product came from the laboratory of Dr. A. L.
Stahl, of the University of Florida, several years ago, and was
produced in limited quantity for the first time in 1944. Frozen
concentrate for the Washington test is being made by Citrus
Concentrates, Inc., for Knight & Middleton, Inc., of Dunedin.
Preliminary reports indicate that fountain customers like or-
ange juice made from concentrate about as well as that made
from fresh fruit; also, because it is easier for them to handle, the
drug stores can sell more orange juice when they make it from
concentrate. This test shows that thus far the Washington drug
firm is selling more boxes of fruit for Florida growers than
when it used fresh oranges.
A series of tests with citrus juice crystals or powders and
frozen concentrates was conducted by National Research Cor-
poration in a pilot plant at Plymouth, Florida, this season, in
cooperation with the Plymouth Citrus Growers Association.
These experiments were so successful that plans are being made
for the construction of a $1,000,000 plant at Plymouth to pro-
duce these products commercially. Sponsors of- the project,
who include eminent scientists, see great possibilities for orange
crystals, in both domestic and foreign markets. The crystals
are fruit juice from which the water has been removed; the ad-
dition of water reconstitutes the juice.
The Seald-Sweet vending machine, designed by Maj. Tracy
Acosta, of Cocoa, which cuts and extracts the juice from an
orange, has been dormant during the war because of material
shortages, but important improvements have been made in it
and it is planned to put some of these machines into use next
season. Specialists in vending machines believe that when per-
fected it will sell a lot of fruit.














New State Citrus Laws

The 1945 Florida Legislature enacted 20 laws which had been
sponsored by citrus industry groups. No citrus legislative pro-
gram was ever handled more harmoniously. The unanimity of
the industry was reflected in the almost unanimous approval of
the program by the State's law-makers. While many legislators
helped in this, special credit is due Rep. Lisle W. Smith, Chair-
man of the House Citrus Committee; Sen. Harry P. Johnson,




Civilian and Government Sales

(In boxes of fruit)

FLORIDA ORANGES


FRESH
Civilian Government /1 Civilian
Thousand Boxes


14,085
16,722
19,920
26,599
19,158
23,145
21,303
28,488
32,625
26,250


0
0
825
209
859
0
100
500
850
1,200


21.
62:
1,25:
1,18;
4,200
3,83;
3,38'
70:
6,02;
7,95(


PROCESSED
Government /1


3 0
2 0
3 0
7 0
3 0
7 112
4 638
S5,582
74,885
S6,550


FLORIDA GRAPEFRUIT

FRESH PROCESSED
Civilian Government /1 Civilian Government
Thousand Boxes


7,762
9,654
7,750
10,661
6,416
8,902
7,477
8,579
9,249
6,200


3,646
6,687
6,052
8,493
8,804
13,274
8,116
11,567
12,929
9,635


0
36
105
740
0
602
2,031
6,000
7,500
5,865


/I Government purchases include: FSCC or SMA programs, Lend-lease, Army and
Navy.

/2 Preliminary.
Note: Government purchases are estimates developed from best available in-
formation.


Season


1935-36
1936-37
1937-38
1938-39
1939-40
1940-41
1941-42
1942-43
1943-44
1944-45 /2


Season


1935-36
1936-37
1937-38
1938-39
1939-40
1940-41
1941-42
1942-43
1943-44
1944-45 /2










Chairman, and Sen. Harry E. King, Vice-Chairman of the Sen-
ate Citrus Committee.
The principal effect of the new laws will be to strengthen
the Florida Citrus Commission so this agency will be better able
to serve the industry in the post-war period. Some of the new
laws merely extend legislative acts about to expire and amend
others in minor detail. The most important of the new laws
change the qualifications of Commission members, increase the
orange advertising tax and reduce citrus inspection taxes.
Florida Citrus Commission Qualifications of Commission
members were changed so that 5 of the 11 members must be
owners or paid employees of citrus packing, processing or mar-
keting organizations. All 11 must still be growers who received
the major portion of their income from citrus in the five pre-
ceding years. The new law permits representation of proces-
sors, for the first time, and increases by one the number of Com-
mission members who may be actively engaged in packing, proc-
essing or marketing. At the same time it keeps growers in the
majority.
Orange Advertising Tax The State advertising tax on or-
anges was increased from Ic to 2c per box, which will increase
the fund available to the Commission for promoting this fruit
from about $500,000 to about $1,000,000 a year. There was
some opposition to this increase from Indian River growers who,
in addition to the State tax, are financing their own district
brand advertising, but an understanding was reached and the
higher tax enacted.without controversy at Tallahassee.
Citrus Inspection Taxes State citrus inspection taxes,
which had been increased two years ago in anticipation of a loss
in other inspection revenues, were substantially reduced. The
grade inspection tax was cut from Ic to /4c per box and the
cannery inspection tax from 1/5c to 1/10c per box. In addi-
tion, the early maturity inspection period was shortened 15
days to December 15 and the maturity inspection period for
late oranges was shortened 30 days to March 1 to save growers
the expense of maturity inspection when it is not needed.
The Legislature more than doubled the State's citrus research
program, appropriating an additional $93,200 a year for produc-
tion and processing studies at the Lake Alfred Experiment Sta-
tion and $60,000 for a pilot plant to develop new and improved
processing methods. It also protected the industry's interest
in surplus citrus inspection funds by reserving them for citrus










inspection purposes, and it authorized payment of the 5-year-old
bill of Arthur Kudner, Inc., for printing a booklet for the Com-
mission outside the State.

Record Florida Drought
The drought which followed the October hurricane this
season was the worst Florida has had in many years. It shortened
the 1944-45 harvesting season and it has greatly reduced the
volume of fruit in prospect for 1945-46, even though there is
extensive late bloom. Groves have been irrigated for months,
where facilities for watering were available, greatly increasing
the production cost of next season's crops.
Indicative of the drought's severity are official Weather
Bureau figures compiled by the Florida Citrus Commission show-
ing that 23 stations in citrus districts had an average of but 6.19
inches of rain from November through April, compared with
a preceding 7-year average of 14.13 inches for these 6 months.
In February, March and April 1944, Winter Haven had but
1.96 inches of its normal rainfall of 9.16 inches for these three
months, while Orlando had but 2.12 inches of its normal rain-
fall of 8.49 inches in this period. Some citrus stations reported
less than an inch of rain in these three months.


FLORIDA'S RECORD DROUGHT HAS INCREASED GROVE COSTS


I










In its effect on Florida fruit production next season this
drought may be as disastrous as the October 1944 hurricane.
Accurate estimates of 1945-46 production cannot be made for
several months, but if later forecasts show that next season's
crops are below "normal" in volume, then Florida growers will
be entitled to upward adjustments in their citrus ceilings, like
those granted this season because of the hurricane loss assum-
ing, of course, that price controls are continued. If higher ceil-
ings are not allowed because of the drought, then Florida grow-
ers would get less money next season for fruit which it is costing
them more to produce. This question of 1945-46 ceilings is
vital to all Florida growers and should be decided before the
next harvest begins.

Fight on Cooperatives
Cooperative associations of Florida citrus growers are threat-
ened by the fight against the cooperative movement by certain
interests who call themselves the National Tax Equality Asso-
ciation. The NTEA tried to get the Florida State Chamber of
Commerce to support its effort to repeal the tax-exemption of
cooperatives, and it is spreading false, malicious propaganda to
the effect that cooperatives have unfair advantages and do not
pay their part of government taxes.
Cooperatives pay taxes like other businesses, but not on prof-
its because they have none, returning their savings to their mem-
bers who pay the taxes on these profits of their cooperation. Any
corporate business which served its customers at cost wouldn't
have profits on which to pay taxes, either. Yet the enemies of
cooperatives are trying to deny them the right to return their
savings to their members.
The Florida Council of Farmer Cooperatives has appointed
L. G. Foster, Paul Dickman and John T. Lesley as a committee
to acquaint Florida people with the issues in this fight. The
Florida citrus industry was built mostly by cooperatives. Its
future depends upon the cooperative movement. Every citrus
grower, whether or not he is a cooperative member, should help
to defend the movement which has meant so much to all Flor-
ida growers and which will mean so much to all growers in
the years to come.










CITRUS OUTLOOK

FLORIDA had a heavy, early bloom this spring but the
drought has destroyed all prospect of a heavy crop next sea-
son. The loss of bloom and new fruit has been so great, par-
ticularly in unirrigated groves, that it now appears Florida will
have less fruit in 1945-46 than was marketed this season. .A late
bloom may improve crop prospects but the records show that
heavy crops usually do not follow hurricanes.
There will be fewer apples but more bananas and other fruits
to compete with citrus next season. There will be unemploy-
ment in some sections but, on the whole, consumer buying power
is expected to continue at a high level. Government purchases
of citrus fruits will continue too, but may be smaller than this
season. The sudden end of the war with Japan would seriously
affect the nation's economy and could change the entire outlook.
The greatest problem in the distribution of Florida citrus
crops next season may be transportation. The transfer of armed
forces from Europe to the Pacific will place an additional heavy
load on the overburdened railroads. If the railroads do not get
more motive power and cars there will be longer delays in the
delivery of fruit and greater congestion in terminal markets.
There is little prospect that boats for coastwise service, or more
motor trucks, will be available for at least another year.
Period of Readjustment
Florida growers should be able to market their fruit at sat-
isfactory prices next season. The outlook for later years is more
uncertain. The citrus industry, like most other farming activ-
ities, faces a period of readjustment. When the Pacific fighting
ends we must find markets for the increase in our production
during the war years which government agencies have taken.
This problem is greater in Florida than in either Texas or Cali-
fornia because our production has increased more.
In 1940-41, before our entry into the war, Florida produced
56,000,000 boxes of fruit. It had a crop of 92,000,000 boxes
on the trees before the October hurricane. Much of this in-
crease has been taken by the government, and it is for that part
of our production that we must develop new markets after the
war. Production of winter oranges in California has increased
none at all during the war years, and grapefruit production in
Texas has increased less than in Florida. It will be up to Florida,
therefore, to develop a greater post-war civilian demand.










In recent years there has been little increase in the sale of
fresh oranges or grapefruit. It now appears that canned citrus
juices are approaching the peak of present demand. Florida can-
ning plants could pack 60,000,000 cases of canned citrus juices
a year, but they have never sold more than 20,000,000 cases to
the civilian trade in any year. Building more canning plants
will not solve future production problems unless sales of canned
products can be increased. There is urgent need for market re-
search to develop ways to sell more canned products, as well as
the newer processed products like concentrates and crystals.
New Citrus Plantings
The production of Florida fruit will probably increase in the
next five years or more at a rate of about 10,000,000 boxes a
year, or at about the same rate as in the last five years. Plant-
ings of new groves continue as fast as nurseries can supply the
trees. Many of the additional 50,000 acres of groves set out in
the last few years were planted by growers taking advantage of
Treasury Department regulations which permit them to charge
most of the cost of such plantings to the expense of established
groves. If these heavy plantings continue, the effect will be to
greatly depreciate the value of all citrus properties and reduce
the taxes which the government gets from citrus growers.
The marketing of future citrus crops will be affected by the
competition of cheap foods. Agricultural economists say that
the present United States production of farm crops must be re-
duced about 35 percent after the war that there can be sup-
ported on the farms of the country after the war only about
15 percent of the population, compared with the 21.6 percent
now living on farms. Even if prices of a long list of farm crops
(not including citrus) are supported by the government at 90
percent of parity for two years after the war, as promised by
Congress, that 90 percent level represents a reduction of- about
30 percent from present prices. It looks as if the post-war re-
adjustment of American agriculture will be severe; it may, for
a while at least, seriously affect the marketing of citrus fruits.
Florida citrus growers may never again realize the prices
they have enjoyed for fruit the last few years. With the many
uncertainties facing the industry, every cost of production,
handling and distribution should be kept at a minimum. And
more attention should be given to new citrus products, new dis-
tribution methods to all ways to increase fruit sales. The
industry's problems in the years ahead will be of a magnitude
that cannot be solved easily.













lH]kA I'Do IrauS ExC P
J^ 'XD! noaiDM PA


EXCHANGE SEASON

THE 1944-45 season was one of the most successful in the
history of the Florida Citrus Exchange, bringing to its af-
filiates and grower-members the full benefits of their cooper-
ative effort.
Despite higher costs and taxes, there was no increase in the
sales retain of the Exchange; in fact, the Exchange is one of the
few marketing organizations in the country which has not in-
creased its selling charges during the war.
All of the associations affiliated with the Florida Citrus
Exchange will end the 1944-45 season in strong financial con-
dition; most of them, like the Exchange, are entirely out of debt
and have accumulated reserves to finance future operations.
New tonnage has been acquired during the season by a num-
ber of Exchange affiliates, though most of them have all the
fruit which they can handle with present equipment and the
labor available to them. The percentage of fruit handled in-
creased substantially during the season.
From an operating point of view it was an extremely diffi-
cult season. Exchange packing houses, like others, had the
maximum of trouble in obtaining supplies and efficient labor,
and restrictions on refrigeration and transportation services at


I










times made it very difficult to deliver fruit to markets in satis-
factory condition.
The Exchange joined with other cooperatives and grower-
shippers during the season in the reorganization of the Florida
Citrus Producers Trade Association, which represents its mem-
bers in general industry problems. Its bulletins are sent to Ex-
change affiliates, to keep them advised of general developments
in the industry.
Through the Florida Citrus Producers Trade Association the
Exchange is also participating in the formation of the United
States Horticultural Council, which is being organized at the
suggestion of United States Department of Agriculture to rep-
resent major horticultural industries in post-war foreign trade
problems.
The Exchange has continued to aggressively promote the
interests of its growers and the industry as a whole. It supported
the Florida Citrus Commission in its successful efforts to get
higher price ceilings this season, to compensate Florida growers
for their hurricane losses, and it has initiated steps to get bet-
ter transportation and refrigeration service for Florida growers.

Pension Plan for Exchange Employees
In February 1941 there was put into effect a temporary
pension plan for employees of the Florida Citrus Exchange. At
the time there was not available sufficient information to enable
the Board of Directors to adopt a permanent and guaranteed
pension program. Few pension plans were then in existence and
most of them favored higher-salaried executives. The Board
of Directors was primarily interested in employees receiving
average salaries rather than those receiving higher salaries. The
greatest weakness of the temporary plan was that no fund had
been set aside in a separate trust for the exclusive purpose of
guaranteeing the payment of pensions. Under the temporary
plan the payment of a pension to a retired employee depended
entirely upon its payment by the Exchange, inasmuch as em-
ployees made no contributions and there was no trust fund to
guarantee payment. The Exchange could reduce or stop pen-
sions at any time, under this plan, if conditions in the citrus
industry made the burden too heavy.
During the period between February 1941 and March 1945
a committee of the Board of Directors, working with the exec-
utive officers, carefully studied and analyzed numerous existing










and proposed pension plans. Out of these studies came the final
form of a permanent pension plan for Exchange employees,
including an irrevocable trust to support and protect the plan,
which was recommended for adoption by the Board of Directors
subject to approval of the members of the Exchange. The
Board, recognizing the value of the long and faithful service
of Exchange employees and their need for an assured and ade-
quate income upon retirement, unanimously approved the rec-
ommended permanent plan and supporting trust and, following
unanimous approval by members of the Exchange, the plan
became effective on March 16, 1945.


GERMAN WAR PRISONERS PICKING FRUIT IN LAKE COUNTY










Under the permanent pension plan there is created an ir-
revocable trust fund which can be used only for the purpose of
paying pensions to participating employees. The Exchange
contributed an initial sum to the trust fund and the fund will
be augmented annually by contributions from the Exchange
and participating employees. Participation in the pension pro-
gram is optional with eligible employees and, as of May 15,
1945, more than 90 percent of the eligible employees signified
their desire to be covered by the'plan.
Sales Department
The Sales Department has marketed fruit of affiliates of the
Florida Citrus Exchange this season in 42 states and 12 Can-
adian provinces, adding new customers and developing import-
ant new markets. During much of the season, however, when
demand exceeded supply, it was necessary to limit sales to regu-
lar customers of Exchange brands.
Prices, on the whole, have been satisfactory throughout the
season. From the beginning of the season through the Christ-
mas holiday period most fruit sold at or near the ceiling. There
was some recession in prices in January and February but the
market strengthened in March and the demand for oranges and
grapefruit from then on exceeded the supply, at maximum
prices.
The tangerine market was strong, most of the time at ceiling
prices, from the beginning of the tangerine season in November
through January and in to February. Prior to January 1 tan-
gerines were widely distributed, which greatly helped to main-
tain the market for them. It was not until late in the season,
when quality deteriorated, that prices receded, and by then most
tangerines had been shipped.
The 1944-45 season is ending approximately six weeks earlier
than usual, due to the loss of fruit in the October hurricane and
the large volume of remaining crops taken by processing plants.
The prolonged dry weather during the first months of 1945
also affected the marketing of crops.
Of its sales during the 1944-45 season, to May 13, the Ex-
change sold 62.2 percent at private sale and 37.8 percent at
auction; in the 1943-44 season it sold 60 percent at private sale
and 40 percent at auction. Carloadings have continued heavy,
averaging 512.8 boxes for oranges and 509.4 boxes for grape-
fruit this season, compared with 510.5 and 507.6, respectively,
last season.











STATE AND EXCHANGE CARLOT SHIPMENTS
(Through May 12)
STATE TOTALS:
1944-45 1943-44 Increase Percent
Oranges 51,904 56,990 (5,086) (8.9)
Grapefruit 12,530 16,284 (3,754) (23.1)
Tangerines 7,544 7,058 486 6.4
Total 71,978 80,332 (8,354) (10.4)
EXCHANGE TOTALS:
Oranges 9,618 9,836 (218) (2.2)
Grapefruit 3,633 3,887 (254) (6.5)
Tangerines 1,682 1,288 394 23.4
Total 14,933 15,011 (78) (0.5)
Parenthesis indicate decrease; shipments do not include cannery fruit.

Advertising
Indian River members of the Florida Citrus Exchange con-
tinued the advertising of their Florigold brand in metropolitan
Eastern markets this season, to maintain and further develop
the preferences which they enjoy with both the trade and the
consuming public in these markets. Other affiliates of the
Exchange have also continued their advertising in selected
markets.
The general advertising of its Seald-Sweet and Mor-juce
brands by the Exchange has been limited this season, due to
crop supply and marketing conditions, but preparations have
been made for more extensive advertising of Exchange brands
when conditions warrant. It was not deemed wise to spend
more for brand advertising this season.
In its promotion of all Florida fruit, the Florida Citrus Com-
mission spent about $1,066,500 in advertising fresh fruit and
canned citrus products this season. Exchange members, like
other growers, paid their proportionate part of this advertising.
Traffic Department
The handling of transportation matters during the 1944-45
season has been extremely difficult due to transit delays caused
by heavy snows and to traffic congestion at New York, Boston
and other Eastern metropolitan markets. There has been no
time when shipments of Florida fruit were regulated to the ex-
tent that they were this season; nor has there been a time when
more trouble was experienced in transporting fruit to terminal
markets in satisfactory condition.










Despite our protests the Interstate Commerce Commission
and the Office of Defense Transportation imposed severe re-
strictions on the refrigeration of Florida citrus shipments. From
December 24, 1944 through April 15, 1945, refrigeration serv-
ice on oranges and grapefruit was restricted to "initially iced
do not reice rule 240" to all Southeastern points and to
"initially iced reice once in transit rule 251" to all points
North of the Ohio and Potomac rivers and West of the Mis-
sissippi river. Beginning April 16 the restrictions were changed
to permit a modified form of standard refrigeration to all points
North of the Ohio and Potomac rivers and West of the Missis-
sippi river, under which cars were initially iced in Florida and
reiced the first time to capacity at either Birmingham, Ala.,
Atlanta, Ga., Florence, S. C., or Hamlet, N. C., and then reiced
to capacity at all regular icing stations from these points to final
destination. The restrictions were not removed until May 9.
On January 21, 1945, Mr. C. W. Taylor, ICC agent in
charge of refrigerator car distribution, issued Order No. 270
which prohibited the use of refrigerator cars for shipping citrus
fruit from Florida to all points South of the Ohio and Potomac
rivers and East of the Mississippi river. This order remained in
effect until April 4; however, from March 6 to March 19 it
was extended to cover all points on or South of a line from New
York City to Philadelphia, Pittsburgh, Columbus, Indianapolis
and St. Louis, thereby compelling all Florida shippers to ship
fruit in ventilated box cars to most terminal markets, notwith-
standing the fact that other citrus producing areas could ship
fruit to these markets in refrigerator cars. An embargo against
all freight to destinations East of Chicago and St. Louis and
North of the Ohio and Potomac rivers was placed in effect by
the Office of Defense Transportation on January 23, 1945 and
continued until January 30.
The claim situation has shown no improvement during the
past two years and the railroads still refuse payment of all claims
for losses due to market decline, decay, etc., based on transpor-
tation delay. For the seasons 1942-43 and 1943-44, affiliates
of the'Florida Citrus Exchange have a total of 703 of these
delay claims on which payment has been refused, amounting
to $130,324.89. The first suits for the collection of these claims
have been filed against the railroads.










Law Department
There was no lessening during the 1944-45 season of the
number of regulations of Federal government agencies which
directly or indirectly affect the operations of the Florida Citrus
Exchange and its affiliates. The Law Department devoted much
of its time and effort to the handling of price and service charge
matters with the Office of Price Administration, to the hand-
ling of wage and salary adjustments with the War Labor Board
and the Treasury Department, and to problems affecting coop-
erative associations under the new law requiring them to file an-
nual information returns with the Bureau of Internal Revenue.

During the season there was finally and completely settled
the so-called "cartage indictment" brought in New York City
under the Sherman anti-trust act against many of the truckers
and their trucking associations, the two auction companies and
some of the larger receivers, including the Florida Citrus Ex-
change. Under the terms of the settlement the Florida Citrus
Exchange and a number of other defendants, including all re-
ceivers, were completely absolved and dismissed from the indict-
ment. Other defendants paid fines and entered into a consent
decree with the government. While such consent decree can
under its terms hardly be expected to bring about such a satis-
factory system or plan of handling and trucking citrus fruit
in the New York City metropolitan area as the Florida Citrus
Exchange has for many years advocated solely in the interest
of producers and consumers, it may prove to be at least a step
in the right direction. Only time and the attitude of the De-
partment of Justice toward producer-consumer interests will
determine that.

The litigation conducted by the Law Department for the
past several years over social security taxes paid by affiliates of
the Florida Citrus Exchange prior to 1940 was finally deter-
mined when, on appeal, the United States Circuit Court of
Appeals for the Fifth Circuit, in its decision of December 8,
1944, held in effect that employees engaged in grove work, as
well as in picking and hauling fruit to packing houses, were
engaged in agricultural labor, the definition of that term by the
United States Treasury Department to the contrary notwith-
standing, and therefore were exempt prior to 1940 from the
taxing provisions of the Social Security Act. Under that hold-
ing by the court, Exchange affiliates filing claims for refund
within the time permitted by law are entitled to recover all










taxes paid with respect to services performed in connection with
grove caretaking work and in picking and hauling citrus fruit.
The Law Department has worked closely with others in the
industry in the preparation for submission to the 1945 Florida
Legislature of the citrus industry legislative program, consisting
of approximately 20 measures, which had the endorsement of all
industry groups. It has also prepared and filed suits against
Florida railroads for damages incurred by affiliates of the Flor-
ida Citrus Exchange as the result of unreasonably delayed
shipments.
Growers Loan and Guaranty Company
The year ending April 30, 1945 was the twenty-eighth in the
financing service of the Growers Loan and Guaranty Company
to the members of the Florida Citrus Exchange. During this
period its loans have approximated $44,400,000.00 with a loss
ratio comparing favorably with any bank or similar financing
institution. The volume of loans in the 1944-45 fiscal year,
including credits extended to the Exchange Supply Company,
an Exchange affiliate, amounted to $1,951,532.03, an increase
of $234,763.82 compared with loans made in the previous year.
Loans outstanding on April 30, 1945 totalled $681,543.88 as
compared with loans outstanding of $713,763.10 on the same
date the year before.
On April 30, 1945, cash in banks amounted to $763,616.83
and liabilities, representing social security and withholding
taxes, amounted to only $279.16. On April 30 last year, cash
in banks amounted to $522,248.91 and liabilities, consisting
entirely of an escrow agreement fund and a fund left on deposit
by a borrower, amounted to $77,156.66. The company has had
no contingent liability since the payment in July 1943 of the
balance then owing on the Federal Farm Board mortgages on
packing plants.
Some time ago the company reduced to 5 percent its interest
rate on short-term production loans to grower-members of the
Florida Citrus Exchange, and it also reduced to 3 percent its
interest on short-term operating loans to associations affiliated
with the Exchange. This reduction makes it possible for the
affiliates of the Florida Citrus Exchange to borrow from this
company at a total cost equal to and in some instances less than
the cost of similar loans available through the production credit
associations and Bank for Cooperatives, which institutions are
partially capitalized by and are under the supervision of the














Farm Credit Administration. Most Exchange members are now
using the financing facilities of this Company.

The importance and value of the services of the Growers
Loan and Guaranty Company in financing sound packing and
grove operations of Florida Citrus Exchange members are shown
by its record of 1944-45 business.


Exchange Supply Company

The Exchange Supply Company effected substantial savings
for members of the Florida Citrus Exchange this season in the
cost of various grove and packing house supplies, despite the
unusual conditions caused by the war. This is the 29th year
in which the purchasing affiliate has served the interests of its
members in obtaining supplies at the lowest cost.








UNITED STATES CITRUS PRODUCTION


Florida Calif.-Ariz.
Orgs. 1/ Gfrt. Orgs. Gfrt.
Thousand Boxes
8,000 3,900 16,712 392
9,400 5,800 13,831 429
8,400 6,700 14,101 395
10,900 7,800 21,364 454
13,700 8,500 24,239 458
11,300 8,900 18,566 492
10,200 7,600 24,286 750
11,000 8,600 28,327 792
9,500 7,500 22,791 896
16,500 11,300 39,258 1,183
9,800 8,300 21,332 1,365
19,200 15,800 35,318 1,690
14,200 10,700 34,803 1,881
16,400 11,600 34,412 1,964
17,900 10,900 28,594 2,572
17,600 15,200 45,217 3,407
18,000 11,500 33,049 4,067
22,100 18,100 30,047 2,940
26,200 14,600 46,264 4,693
33,300 23,300 41,850 4,624
28,000 15,900 44,924 4,875
31,300 24,600 51,223 4,633
29,300 19,200 52,192 6,594
41,400 27,300 45,026 5,671
49,600 31,000 53,666 7,269
47,400 23,100 58,918 7,091


Texas
Orgs. Gfrt.

9 3
5 5
5 8
10 35
6 65
17 301
12 200
41 361
85 524
125 753
261 1,550
250 1,200
520 2,600
325 1,440
430 1,200
650 2,740
777 2,780
2,000 9,630
1,440 11,840
2,815 15,670
2,360 14,400
2,650 13,650
2,850 14,500
2,550 17,510
3,550 17,710
3,850 21,000


1/ Includes Florida tangerines.


Season

1919-20
1920-21
1921-22
1922-23
1923-24
1924-25
1925-26
1926-27
1927-28
1928-29
1929-30
1930-31
1931-32
1932-33
1933-34
1934-35
1935-36
1936-37
1937-38
1938-39
1939-40
1940-41
1941-42
1942-43
1943-44
1944-45


2/ Estimated.















COMPARISON OF FLORIDA AND TEXAS GRAPEFRUIT

SHIPMENTS AND AUCTION AVERAGES, BY

WEEKS 1943-44 AND 1944-45


--.----- -. 1944-45 ...-..-------
Florida Texas
Cars Auction Cars Auction
Week Shipped Average Shipped Average


Sept. 16
23
30
Oct. 7
14
21
28
Nov. 4
11
18
25
Dec. 2
9
16
23
30
Jan. 6
13
20
27
Feb. 3
10
17
24
Mar. 3
10
17
24
31
Apr. 7
14
21
28
May 5
12


3 $
54
324
715
724 3.65
387 3.45
326 3.35
201 3.12
264 4.26
370 4.19
366 4.33
331 4.06
287 3.90
355 4.59
282 4.58
240 4.46
344 4.04
330 3.81
402 3.93
281 4.24
434 4.56
461 4.45
588 4.36
499 4.23
514 4.11
395 4.03
319 3.86
384 4.24
400 4.58
383 4.71
422 4.64
361, 4.75
338 4.80
250 4.76
196 4.78


320
1037 3.31
813 2.92
654 2.76
634 3.16
696 3.47
738 3.46
799 3.04
948 2.76
851 2.98
623 3.08
392 3.16
751 3.09
585 3.19
904 3.25
961 3.21
774 3.18
924 3.53
807 3.42
953 3.28
1216 3.47
1215 3.09
766 2.61
769 2.68
790 2.95
823 3.25
833 3.60
689 3.82
497 3.98
573 3.86
459 4.11


...------- --- 1943-44 .-- ...
Florida Texas
Cars Auction Cars Auction
Shipped Average Shipped Average
2 $ $


3 -
148 65
329 3.67 509
367 3.54 679
429 3.52 811 3.48
598 3.91 1017 3.54
527 3.58 958 3.46
473 3.56 760 3.02
382 3.22 545 2.70
352 3.23 838 2.98
356 3.60 582 3.04
193 3.94 369 3.07
373 3.95 476 3.00
547 3.63 801 3.01
624 3.14 800 3.11
432 2.92 802 2.92
413 3.08 750 2.84
438 3.41 733 2.83
531 3.23 697 2.89
538 3.22 826 3.03
579 3.21 811 2.93
573 3.32 703 2.82
568 3.30 497 2.80
646 3.61 619 3.22
688 3.83 598 3.43
751 3.93 542 3.14
653 3.70 344 3.03
672 3.69 337 3.24
717 3.70 297 3.59
762 3.91 258 3.20
870 4.05 216 3.27
761 3.91 139 2.99


Florida 1944-45 average carloadings 509.4 boxes.
Florida 1943-44 average carloadings 507.6 boxes.













COMPARISON OF FLORIDA AND CALIFORNIA
ORANGE SHIPMENTS AND AUCTION AVERAGES,
BY WEEKS 1943-44 AND 1944-45

--- 1944-45 _------ --- 1943-44 ---------... ---.
Florida California Florida California
Cars Auction Cars Auction Cars Auction Cars Auction
Week Shipped Average Shipped Average Shipped Average Shipped Average

Sept. 30 46 $ 1896 $5.83 1 $ 1625 $
Oct. 7 371 1843 5.85 2 1480
14 1028 4.45 1590 5.85 48 1264 5.42
21 972 4.31 1300 5.86 327 4.20 842 5.42
28 827 4.54 926 5.85 839 4.37 840 5.42
Nov. 4 1150 4.55 549 5.85 1456 4.36 590 5.42
11 2230 4.65 207 5,85 1923 4.30 295 5.42
18 1854 3.58 70 5.82 2546 4.26 508 5.41
25 1135 3.31 133 2361 4.16 1251 -
Dec. 2 1873 4.19 990 1981 3.53 1904 5.36
9 2766 4.54 1679 5.28 2569 3.52 2231 5.36
16 3095 4.74 1701 5.30 2754 3.67 1647 5.37
23 2039 4.72 1670 5.32 1310 4.00 1832 5.37
30 492 4.76 1683 5.30 1199 3.84 1561 5.10
Jan. 6 1415 4.66 1613 4.99 1591 3.41 1566 4.32
13 1709 4.61 1666 4.53 1722 3.38 2006 3.73
20 1866 4.25 1307 4.03 1768 3.29 1275 3.69
27 1120 4.22 1453 4.13 1975 3.20 1524 3.74
Feb. 3 1961 4.65 1751 4.70 1893 2.97 1547 3.70
10 2039 4.85 1604 5.15 1888 2.98 1739 4.22
17 2158 4.59 1765 5.27 1817 3.30 1653 5.12
24 1844 4.17 1855 5.02 2109 3.81 1078 5.37
Mar. 3 1933 4.30 1571 4.92 2052 3.62 1074 5.36
10 1836 4.51 1789 4.89 1895 3.47 1801 5.35
17 1870 4.49 1691 4.91 2136 3.96 1718 5.27
24 2073 4.77 1370 5.10 1943 4.44 1945 5.29
31 1951 4.69 2110 5.15 2354 4.73 1914 5.29
Apr. 7 1665 4.70 2138 5.25 2414 4.69 1780 5.28
14 1633 4.74 1821 5.28 2304 4.07 1423 5.29
21 1496 4.85 2146 5.25 1983 3.79 1862 5.20
28 1369 4.98 2299 5.27 1719 3.89 1925 5.17
May 5 1224 4.98 2282 5.78 2022 4.31 1712 5.78
12 884 5.00 2198 5.59 2086 4.55 2032 5.58

Florida 1944-45 average carloadings 512.8 boxes.
Florida 1943-44 average carloadings 510.5 boxes.














DISPOSITION OF FLORIDA CITRUS CROPS

GRAPEFRUIT


Season


1936-37
1937-38
1938-39
1939-40
1940-41
1941-42
1942-43
1943-44
1944-45 2/


Fresh Shipments
Boxes Percent


11,233 62.1
8,349 57.2
12,226 91.9
6,998 44.0
10,624 43.2
8,956 46.6
9,603 35.2
10,436 33.7
6,200 26.8


Fruit Processed Total
Boxes Percent Production 1/
Thousand Boxes

6,759 37.3 18,100
6,157 42.2 14,600
9,233 39.6 23,300
8,804 55.4 15,900
13,876 56.4 24,600
10,147 52.8 19,200
17,567 64.3 27,300
20,400 65.8 31,000
16,000 69.3 23,100


ORANGES


1936-37 18,322 95.9
1937-38 22,531 94.3
1938-39 28,399 95.0
1939-40 21,080 82.3
1940-41 24,372 85.2
1941-42 22,753 83.7
1942-43 30,552 82.1
1943-44 34,889 75.5
1944-45 2/ 27,500 63.2

1/ Includes farm and household use.


550 2.9
1,109 4.6
1,184 4.0
4,270 16.7
4,008 14.0
4,271 15.7
6,439 17.3
11,011 23.8
14,500 33.3

2/ Estimated.


19,100
23,900
29,900
25,600
28,600
27,200
37,200
46,200
43,500


.f;i,,:,9;..,.I s