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O This is my 26th and last annual report
for the Florida Citrus Exchange. The
organization faces the future in excel-
lent condition and with good manage-
ment. I want to take this opportunity
to thank the growers and all others asso-
ciated with the Exchange for their fine
cooperation during my years as general
manager. I strongly urge growers and
packing house managers to give this
same excellent support to the new man-
agement. Thank you.
A. R. Updike
I. J. Pemberton
Tom B. Swann
W. M. Moseley
Jack N. Strong
Charles G. Metcalfe
J. B. Prevatt
John L. Olson
NORTH INDIAN RIVER
H. C. Allan
0. J. Harvey
P. C. Peters
F. W. Moody
Armer C. Johnson
D. A. Hunt
E. G. Todd
George B. Aycrigg
J. B. PREVATT
PRESIDENT AND CHAIRMAN OF BOARD
J. B. Prevatt
P. C. Peters
H. C. Allan
John L. Olson
F. W. Moody
JOHN T. LESLEY
John T. Lesley
Fred S. Johnston
E. D. Dow
C. C. COMMANDER R I M
C. C. Commander Retires
as General Manager
THE Board of Directors of the Florida Citrus Exchange has
realized for the last two years that Mr. C. C. Commander was
reaching the retirement age and had been looking for his successor
as General Manager. Consequently, the board appointed a com-
mittee several months ago with instructions to bring back a definite
Members of the committee included Mr. Commander, Mr. I. J.
Pemberton of Jacksonville, Mr. Phil C. Peters of Winter Garden,
Mr. W. M. Moseley of Fort Pierce, and Mr. Tom B. Swann of
This committee, after a very careful analysis and study, unani-
mously recommended Mr. John T. Lesley. The Board of Directors
unanimously accepted the recommendation.
Mr. Lesley accepted the appointment and assumed the duties
of General Manager on April 1. At the request of the Board of
Directors, Mr. Commander agreed to continue his services to the
Exchange in an advisory capacity.
1 9 5 0 1 9 5 1
THE FLORIDA CITRUS EXCHANGE
IN a year of war jitters and big newspaper headlines, the Florida
citrus industry enjoyed a moderately profitable 1950-51 season
during which a record-breaking crop of 96,000,000 boxes was
marketed in an orderly fashion.
Most of the peaks and valleys in the price structure of previous
seasons were replaced by a stable market that neither dipped into
red ink nor soared to impractical heights.
Considerable credit for this stability goes to Florida Citrus
Mutual, which continued to grow this season not only in member-
ship, but especially in its influence on all factors associated with
the marketing of citrus. On several occasions Mutual took appro-
priate action to halt a declining market. Its extensive information
services enabled the industry to ship fruit in a practical relation of
supply and demand.
Other outstanding features of the season just closing, in addition
to the steady price structure and the influence of Mutual, were the
outbreak of the Korean war and its effect on the national economy,
the Texas freeze, the high purchasing power of the nation, the
unexpectedly big pack of single strength juice and its increased
movement at higher prices, the rapid recovery of California in
production, quality and more desirable sizes; the increased ship-
ments of fresh Florida citrus at good prices, and the unusually late
maturing of Valencias. Because of the multiple bloom, the quality
of both oranges and grapefruit varied during the season.
Frozen concentrate continued to grow in consumer acceptance
and a substantial portion of the Florida crop was marketed at good
prices through this outlet.
The Florida Citrus Commission with an enlarged advertising
fund, due to a bigger crop, bought more advertising space in news-
papers to tell consumers of the health value of citrus. The con-
sumption of citrus has increased at a phenomenal rate compared
to apples, peaches, bananas, tomatoes and other competitive prod-
ucts, some of which actually have lost ground.
The Florida citrus maturity code was less of a hardship on
growers than some of them expected, although it was generally
recognized that the code in its original form wasn't perfect. Ef-
forts were made by the legislature recently to improve the code.
Transportation problems bobbed up repeatedly during the
season and on several occasions both the citrus and vegetable indus-
tries were threatened with severe shortages of refrigerator cars.
The use of trucks alleviated the situation to some extent. Boat
shipments were discontinued after the outbreak of the Korean war.
GROWERS, shippers and processors should realize that this sea-
son's high prices may not continue indefinitely and it will be neces-
sary to hold production costs down to the absolute minimum.
We face the certainty of bigger crops, but the purchasing pow-
er of the nation may not remain on the present high level. Increased
taxes can be expected, due to increased cost of government and the
inefficient use of tax money.
Growers will find that even with efficiency on their part, the
cost of producing citrus will edge upward. It will be necessary to
emphasize better quality, not only for the fresh fruit market but
also for frozen concentrate, if growers expect higher returns to
offset rising costs.
The amount of cooperation within the industry will be the
keynote to future prices. The bigger crops of the future can be
marketed in a profitable manner to all concerned, but shipments
must be orderly and the trade must have confidence in the price
All three outlets for citrus-fresh fruit, frozen concentrate,
and single strength canning-must be kept open. In this manner
the marketing season can be extended throughout the year and
thereby keep the supply in proper relation to the demand.
Additional outlets must be created, through diligent research.
Only through research will the citrus industry break into the vast
beverage field. We haven't even scratched the surface of this
tremendous potential market. If citrus juices or a product using
mostly citrus juice were accepted in the fashion that cola drinks
are accepted, the implications to the grower could be staggering.
In short, growers should expect only moderate profits in the
future and to attain these profits it will be absolutely necessary to
cooperate fully, intensify research and advertising, grow the best
quality fruit possible, and hold production costs to the minimum.
Detailed Review of 1950-51 Season
A RECORD-BREAKING Florida citrus crop was forecast at the
beginning of the season by the U. S. Department of Agriculture.
These figures were later revised downward slightly to include
61,000,000 boxes of oranges, 31,000,000 boxes of grapefruit and
4,800,000 boxes of tangerines.
Shipments began in volume the week of October 24 when 432
cars of oranges and 537 cars of grapefruit rolled to the markets
from Florida. As usual, the auction price opened at a high figure;
in this case the average was $5.23 per box for that week. The fob
price was comparably high, $3.50. Early grapefruit prices were
almost as high as oranges.
As the big crop matured, shipments became heavier and heavier.
Canning plants also opened the doors wide. With virtually no
carry-over from the previous season, with the exception of tan-
gerine juice, canners kept their plants running full blast and event-
ually exceeded the previous season's pack.
Under the impact of the heavy early harvesting, prices skidded
steadily-fob prices, auction prices and cannery prices. The bot-
tom was hit the week ending Nov. 4 when the lowest weekly auc-
tion average of the season, $3.41, was paid for oranges. Grapefruit
at that time was in better shape with a weekly average of $4.15.
Canners were paying as low as 40 cents per box for grapefruit
and $1.27% to $1.32 for oranges; delivered at the cannery. These
figures reflect a return to the grower below the cost of production.
Florida Citrus Mutual stepped into the picture on October 4
and established a floor price on grapefruit at 83 / cents delivered
at the cannery and $2.00 fob. On Oct. 27 a floor price on oranges
was set at $1.42 delivered at the cannery and $2.50 to $2.75 fob,
depending on sizes.
These minimum prices were maintained, despite the fact that
shipments continued to be heavy. In fact, orange shipments be-
came so heavy that Mutual established a weekly orange prorate of
1,000 cars, effective the week ending November 25. Although
this prorate was overshipped by 192 cars, fob prices for oranges
actually climbed above Mutual's floor price during December, and
Mutual relaxed its prorate to 1,200 cars.
After a brief Christmas holiday (December 24-January 2)
when shipments were temporarily stopped by the Federal Marketing
Control Committees, the fruit began to roll to the markets in in-
creasing quantity. Grapefruit shipments, especially, became dan-
gerously heavy, and Mutual stepped into the picture again with a
prorate of 700 cars for grapefruit and 1,100 cars for oranges, effec-
tive March 10. This and two subsequent prorates (March 17 and
24) were overshipped, but not enough to wreck the market.
Texas suffered a severe freeze in January, comparable in de-
struction to Florida's Big Freeze of 1894-95. Prior to the freeze
that state had been shipping more than 400 cars per week. For
example, the week of January 27 Texas shipped 432 cars of grape-
fruit, but the following week shipments nosedived to 163 cars
and dropped to only 74 cars the week of February 10, after which
there were virtually no more shipments.
The Texas Citrus Commission reported that despite the two
damaging freezes, the Rio Grande Valley produced nearly
2,000,000 more boxes of fruit than it did all last season. About
85 percent of the crop had been harvested before the freezes hit
on December 7 and January 30.
Florida shippers took quick advantage of the opportunity to
invade the gap left in the market by Texas' withdrawal. Ship-
ments jumped from 637 cars the week of January 27 up to 1064
cars the week of February 17, and the average auction price in-
creased from $3.91 to $4.79.
The citrus groves in Texas were inspected several months after
the freeze by a director of the Florida Citrus Exchange, Ford W.
Moody, manager of the Palm Harbor Citrus Growers Association,
who wired the following summary of the damage:
"Freeze damage terrible-entire valley. Every grove damaged,
many killed outright. Ninety-five percent bearing trees killed to
banks. Approximately twenty percent were not banked-these
all dead. Authorities here estimate total loss four million trees all
ages. Practical fruitmen say it will be a miracle if production is a
million boxes next season. With normal temperatures it will be
three years before some commercial production-five to seven
years before normal commercial production."
While competition was reduced from Texas, there was more
competition this season from California, where production snapped
back rapidly after freezes the previous two years. Not only was
the production bigger, but there was also an improvement in the
quality and sizes. California gave some attention this season to
the production of frozen orange concentrate, but the great bulk
of the crop was marketed in fresh form.
The lemon crop of that state, which has always been marketed
in an orderly and profitable fashion despite the over-production,
was given a big boost by the unusually favorable consumer accept-
ance of frozen lemonade concentrate. This relatively new product
will be strongly competitive to frozen orange concentrate, espe-
cially during the summer months. The lemonade mix was second
in sales to orange concentrate last summer.
The Florida Valencia crop matured a month later than usual.
When the market weakened somewhat due to a general lull in all
produce buying and a lack of confidence on the part of growers,
shippers and the trade, a new floor price was established by Mutual.
This action established minimum FOB prices effective April
30, on the lowest grade of oranges leaving Florida of $3.15 net
for 126's and 150's, $3.35 for 176's and $3.50 for 200's and smaller.
The customary differentials were included where bags or standard
nailed boxes are used. Mutual established a minimum gross price
of $2.38Y8 per box delivered for oranges for frozen concentrate
and permitted a discount of 35c per box on oranges for juice or
other processing purposes.
Fresh apples in storage this Spring reached an all-time peak of
39 million bushels. Apples in cold storage at the first of April
were down to 13 million bushels, but that's still nearly double the
average holdings for that time of the year.
At the beginning of the first World War the consumption of
apples was 67 pounds per person annually, compared to only 19
pounds for citrus. Now, however, apple consumption is only 25
pounds per person, compared to 54 pounds per capital for citrus,
according to a survey by the Washington State College.
Oranges take more than a quarter of every dollar the housewife
spends with her fruit retailer, and leads all other fruits in this
respect by a comfortable margin. Bananas are second, apples third,
and grapefruit a poor fourth. This conclusion is the result of a
survey made by the New York State College of Agriculture, Cor-
The tomato pack was reduced in most producing centers either
by unfavorable weather, labor troubles or other adverse conditions.
The armed forces got first claim on the 1951 pack of canned vege-
tables under an order issued by the U. S. Department of Agricul-
ture, which included 20 percent of the tomato pack.
Imports of bananas have steadily fallen off during each of the
last four years, but prices have remained about the same.
Ten southern states will harvest a peach crop this year of about
17,699,000 bushels, according to May 1 estimates of the U. S.
Department of Agriculture. This will be almost three times as
large as last season's short crop of 6,103,000 bushels, but slightly
smaller than average.
Large peach crops are expected in Georgia and the Carolinas;
fair crops in Texas and Oklahoma; and short crops in Alabama,
Mississippi, Arkansas, and Louisiana, USDA reports.
South Carolina's crop is estimated at a record of 6,708,000
bushels, compared with only 468,000 bushels last season. North
Carolina's crop is estimated at 2,772,000 bushels-5 times the
1950 harvest. Georgia's peach crop is forecast at 4,410,000 bushels
-4/2 times last year's crop, but smaller than average. Alabama
and Mississippi crops will be about the same size as last season, and
the Virginia crop will be about average size.
Plums and Pears
The 1951 crops of pears, plums, prunes, sweet cherries and
grapes are expected to be larger than in 1950, but crops of sour
cherries and cranberries are likely to be smaller, according to the
U. S. Department of Agriculture.
The development of frozen concentrate has raised the possibility
of expansion of citrus in Latin America. Such a compact product
as concentrate would be ideal for air freight, and is already being
investigated by aviation companies. The matter of tariff on im-
ported concentrate isn't clear at present, but it is possible that it
could be offset by lower production costs, particularly labor. Most
frequently mentioned countries for possible foreign competition
are Cuba, Jamaica, Mexico, Haiti, Dominican Republic, Puerto
Rico, Argentina and Brazil. Puerto Rico has organized a huge
industrial development program under which it will build plants
for the use of native products-including citrus-and provide
operators with large tax exemptions to operate them.
Mexico has expanded its citrus production in recent years and
has been competitive in certain markets, especially Canadian mar-
Israel is going to buy $1,200,000 worth of machinery in the
United States to aid in the expansion and modernization of its
citrus industry. Purchases are to include irrigation pipes, tractors,
spraying machinery and other equipment. The government allo-
cated funds for these purchases out of the $100,000,000 Export-
Import Bank loan to that country.
J. Henry Burke, marketing specialist of the United States De-
partment of Agriculture, has recently completed several booklets
on his observations of the citrus market in foreign countries, in-
cluding the United Kingdom, Belgium, Denmark, Sweden and
Operating costs per acre increased one and one-half times be-
tween the two 5-year periods of 1935-40 and 1945-50 on the
group of groves on which the Florida Agricultural Extension Serv-
ice obtained records. On a per-box basis the increase was only one-
third due to an increase in the number of boxes of fruit harvested.
Some of the reasons for the increase in boxes harvested were better
fertilization practices, larger proportion of fruit harvested, better
management and care of groves generally, and increased proportion
of groves irrigated. Higher fruit prices and the development of
fruit processing contributed toward larger proportions of the fruit
Costs for labor, power, and equipment constituted 40 percent
of the operating costs per acre during the first period. This item
of cost for the second period was three times that of the first. One
cause for this increase was due to the increase in farm labor rates of
77 percent between the two periods. Equipment costs increased
also during the two periods. Money spent for fertilizer materials
per acre more than doubled between these periods. Expenditures
for spray and dust materials increased 143 percent on a per acre
basis. State and county taxes per acre increased 41 percent.
Production of citrus fruits by states this season and last, re-
Oranges-California 40,400,000 this season and 41,930,000
last season; Florida 61,000,000 and 58,500,000; Texas 3,500,000
and 1,760,000; Arizona 1,250,000 and 985,000; and Louisiana
340,000 and 360,000.
Grapefruit-Florida 31,000,000 boxes this season and 24,-
200,000 last season; Texas 12,000,000 and 6,400,000; Arizona
3,000,000 and 3,400,000; California 2,520,000 and 2,500,000.
The Florida tangerine crop was forecast at 4,800,000 compared
with 5,000,000 last season.
The California lemon crop was indicated at 12,500,000 com-
pared with 11,630,000 last season, while the Florida lime crop was
put at 280,000 boxes compared with 260,000.
New Citrus Plantings
A total of 1,614,168 citrus trees were moved from nurseries
to Florida groves last season (1949-50). This was the largest num-
ber of trees planted during any of the last 22 seasons, according to
reports from the Florida State Plant Board. The second largest
number was in the 1928-29 season and third largest was in 1946-47.
The lowest movement was in 1934-35. Two-thirds of this season's
plantings were orange trees, including Temples. New plantings
of orange trees have shifted from early to late varieties in recent
seasons. Temple trees have increased materially since 1940-41.
Also, more tangerine trees were planted last season than in any
other since 1929-30.
It is estimated that as of June, 1950, there were 54,000 acres
of non-bearing citrus trees planted in Florida. This means that
for the next four years, if there is no major disaster, there will be
added to the bearing acreage of Florida citrus an average of 13,000
acres per year, and by 1954 Florida bearing total citrus acreage will
be 490,000 acres.
Today there are more than 27/2 million producing citrus trees
in commercial groves of Florida.
Insect and Disease Control
Work in progress at the Tristeza Laboratory in Argentina in-
cludes a study of what can be done to delay spread of tristeza if
and when it should ever come to Florida. Answers are being
sought to such questions as: What are the insects that disseminate
tristeza? Are those commonly found in Florida groves also capa-
ble of doing this? What sprays will give adequate kill? Will such
sprays prove practical under field conditions?
Dr. A. F. Camp, vice-director in charge of the Citrus Experi-
ment Station at Lake Alfred, is well informed on the subject of
Citrus Black Fly
The Texas Citrus Commission passed a resolution commending
Mexican authorities on the way they have handled measures for
the control of the citrus black fly.
Oriental Fruit Fly
A considerable improvement in the Oriental fruit fly situation
in the Hawaiian Islands is reported by Professor Harry S. Smith,
chairman of the Division of Biological Control of the University of
Research is being conducted by the Florida Citrus Commission
on the problem of getting rid of the waste products from citrus
Plastics from Citrus
Dr. Kenneth A. Kobe, director of the Texas Bureau of Indus-
trial Chemistry, said research has shown citrus molasses can be
converted into lactic acid, essential in the manufacture of plastics.
The mold which produces vitamin B-12, recently found to be
a cure for pernicious anemia, can be grown on Florida citrus mo-
lasses, according to Dr. James B. Redd, director of the Florida
Southern College citrus department.
An investigation of vitamin P content of milk from Florida
cows fed on citrus pulp and molasses will be made at Florida South-
ern College, it was announced by Dr. Boris Sokoloff, director of
research. A grant for that purpose was made by Foremost Dairies,
Inc., to determine whether milk from Florida cows is more health-
ful than that produced by other states. Preliminary tests on vita-
min P, essential for proper functioning of small blood vessels, have
been conducted by Dr. Sokoloff and Dr. Walter H. Eddy.
According to the National Research Council, a moderately ac-
tive man needs 75 milligrams of Vitamin C a day. He can get it
by eating one medium size orange, or one-half of a medium size
FRED S. JOHNSTON
General Sales Manager
THROUGH an aggressive selling effort, the sales department has
opened 75 new markets during the season and has sold fruit to 199
new customers. With the excellent cooperation of our dozens of
packinghouse managers, we have been able to meet exacting speci-
fications as to size and grade and have filled these orders with
promptness and efficiency.
Because of the Exchange's large volume, we have been in close
contact with 384 markets in 42 states and Canada and have been
in a position to judge more accurately than other shippers the rela-
tive supply and demand in one market compared to the others.
As a result, we send the growers' fruit to the markets that offer
the best opportunity each day.
The Exchange has established during its long history of con-
tinuous operation an enviable reputation for honesty and integrity
in the auction markets. Our experienced, capable division man-
agers and their sales staffs in the terminal markets have always
represented the Exchange fruit exactly as it is. In fact, some
buyers often purchase Exchange fruit without a prior inspection
on the buyer's part. This confidence of the buyer often enables
the Exchange to obtain a preference or a premium for our fruit.
Because of its volume, the Exchange has found it desirable to
(Continued on Page 16)
FLORIDA AUCTION AVERAGES
As of May 1, 1951
Interior Oranges $4.12 $4.50
Indian River Oranges 4.62 5.30
Interior Seeded Grapefruit 3.29 3.98
Indian River Seeded Grapefruit 4.02 4.52
Interior Seedless Grapefruit 3.72 4.79
Indian River Seedless Grapefruit 4.97 6.16
Temples, Std. Box 5.40 6.26
Tangerines, Std. Box 5.14 5.26
ESTIMATED FLORIDA "ON TREE" PRICES
Fresh and Processed
Thru April 15, 1951 and 1950
$2.06 $ .70
$2.20 $ .42
$3.09 $ .55
B.A.E., Orlando, Fla.
Production this season
(May 1 estimate)
Sold fresh to May 5
Per Cent Sold Fresh
Canners used to May 5
Per Cent Processed
Production last season
Sold fresh to May 6
Per Cent Sold Fresh
Canners used to May 6
Per Cent Processed
ORANGES GRAPEFRUIT TANGERINES TOTAL
ESTIMATED STATE F.O.B. WEIGHTED
Interior Fruit Only
All Grades and Sizes Combined
-50 1950-51 1949-50
0 2.75 $4.05
0 2.60 3.55
5 2.60 3.30
5 2.60 3.30
0 2.85 3.55
5 2.70 3.65
0 2.85 3.50
maintain district managers in some of the principal private markets.
The best brokers in the private markets, where we do not have
salaried representatives, are attracted to the Exchange because of
the advantages of volume, years of advertising and promotion, and
the general reputation of the Exchange with the trade.
Members of the sales department make trips to the various
markets in that member's territory during the year to renew per-
sonal contacts that sometimes affect a sale when all other factors
are equal. Exchange representatives in the home office, division
offices, and district offices are in constant telephone contact with
buyers. We also have five teletype machines in the home office
with outlets in the terminal markets and in the offices of many of
Because the Exchange has the biggest source of fresh fruit
within the state, and because we keep in closest touch with the
largest number of possible outlets, we are able to pass along to the
individual grower the advantages of efficient operation typical of
AMOUNT OF FRUIT SHIPPED THRU SALES DEPT. THIS
YEAR AS AGAINST LAST YEAR TO MAY 1
Season Season Percent
1950-11 1949-50 Increase
Oranges 6,654 6,105 9.0
Grapefruit 4,526 3,324 36.2
Tangerines 989 1,063 7.0
Total 12,169 10,492 16.0
FRANK J. POITRAS
Sales Manager, Canning L
THIS season Florida's pack of single strength citrus juices will
exceed the pack of last year or the season of 1948-49; however,
the attractive prices at which this pack is being sold guarantees
an excellent movement and a very small carry-over.
At this time, May 1st, over 90 percent of Florida's cannery
oranges are being used by the frozen concentrate plants.
This season the Florida Citrus Exchange will pack twice as
much single strength juice as it packed last year. To date our sales
are one-third greater than last year with a much greater percent
of the pack under our Seald-Sweet brand.
Our plant at Lucerne Park, which started late October, has had
a steady and economical operation, and the quality of the pack is
excellent. Contemplated changes and additions to the plant this
summer will add greatly to the capacity.
Ten Exchange houses are furnishing fruit and participating in
the Exchange pool of single strength juices.
This office handled the details of a satisfactory agreement be-
tween the Florida Citrus Exchange and Treesweet Products Com-
pany. Under this agreement the Treesweet Products Company
purchased and processed cannery grade oranges and grapefruit of
our Indian River affiliates. The Treesweet canning plant is at
., U Advertising Manager
THE well-known brands of the Florida Citrus Exchange were
advertised throughout the season on the radio, in newspapers and
by dealer service promotions in the principal markets.
Much of our advertising was more competitive than in previous
seasons as the Exchange pointed out the advantages of buying fresh
citrus. The health angle, in addition to the better taste, was empha-
sized in all forms of advertising.
Newspaper advertisements in some markets featured pictures
of local mothers who testified that there's nothing like freshly
squeezed oranges for health, economy and taste. The vitamin C
content was given especial attention.
As in previous years, the Exchange mailed numerous recipe
booklets containing suggestions for unusual ways to serve fresh
Display material of various types, including price cards, ban-
ners, posters and three-dimensional plastoramas, were distributed
by our dealer service representatives. Additional advertising mate-
rial was furnished to Exchange brokers who distributed these to
Seald-Sweet, both fresh and processed, has been advertised con-
sistently many years longer than most other Florida brands. This
advertising, which has always stressed health and quality, has had
an accumulative effect.
Other Exchange brands, however, have become widely known
in certain markets. For example, the Indian River Sub-Exchange
has developed Florigold and Flo in New York, Boston and Phila-
delphia to the extent that these two brands are now household
words in those three markets.
This season's advertising by the Indian River Sub-Exchange
was perhaps more effective-and certainly more competitive-
than any other season's. It also was the biggest campaign in re-
spect to the amount of newspaper lineage and radio time purchased.
Florigold and Flo were advertised consistently in such big daily
papers as the World Telegram and Sun, the Journal & American,
the New York Post, and the Newark News. In addition to these
big circulation papers, space was used again in the Jewish Journal,
Jewish Day, Jewish Forward, the big Italian paper, II Progresso,
the Westchester Group, which includes nine publications, and in
some smaller publications.
Florigold's Song Weaver, a popular 15-minute musical radio
program, was again on the air in New York throughout most of
the season over station WEVD. In Boston, the Indian River brands
were advertised again on the Caroline Cabot Shopping Service in
the mornings over station WEEI.
Some Exchange affiliates, such as the Lake Region Packing
Association and the Mount Dora Growers Cooperative, conducted
advertising campaigns on their brands in selected markets.
The Exchange advertising department works with these affili-
ates in preparing their individual advertising programs.
The Exchange took part in the annual Florida Citrus Exposi-
tion at Winter Haven with an extensive exhibit that included fresh
and processed citrus displays, lighted and animated dioramas in
three dimensions, and a display of the fresh and canned labels of
T E. D. DOW
a Traffic Manager
TO meet truck competition the railroads reduced citrus rates on
Nov. 1, 1950, to points in the states of Illinois, Indiana, Iowa,
Maryland, Michigan, Missouri, New York, Ohio, Pennsylvania,
Virginia, and West Virginia. This reduction proved advantageous
to the carriers because up to that time the railroad had handled
38.4 percent and the trucks 61.6 percent, whereas on April 30,
1951, the railroads had handled 59 percent and the trucks 41 per-
cent of the state citrus movement, or practically the reverse of the
situation existing when the rates were reduced. As to the Ex-
change's movement, on Nov. 1, 1950, we had shipped 48.5 percent
by truck and 51.5 percent by rail. On April 30, 1951, we had
shipped approximately 23 percent by truck and 77 percent by
rail, of our total movement. Prior to Nov. 1, 1950, the rates to
Baltimore, Philadelphia and New York were on the same basis, but
on that date the rate to Baltimore was made approximately 17c per
100 lbs. lower than the rates to Philadelphia and New York, but
"Free Ice" was discontinued to Baltimore. This brought about a
complaint by the Philadelphia Auction Company and the trade at
Philadelphia and as a consequence, on Jan. 10 a readjustment was
made, making the rate to Baltimore approximately 4c per 100 lbs.
lower than Philadelphia and the Philadelphia rate 8c per 100 lbs.
lower than New York, but with no "Free Ice."
We might mention here that "Free Ice" is provided now only
to the New York City area, Albany, N. Y., and to points in New
England. On Jan. 19, 1951, the railroads petitioned the Inter-
state Commerce Commission for an immediate interim freight rate
increase of 6 percent. Hearings were held by the I.C.C. and on
March 12, 1951, authority was granted for an increase of 4 percent
within Eastern territory, 2 percent within Southern territory, 2
percent within Western territory, and 2 percent interterritorially
among the three territories. In the case of citrus fruits from Flor-
ida, permission was granted to increase rates 2 percent, with a
maximum of 2c per 100 lbs. to all territories.
The chief traffic officers of the nation's railroads met in Chi-
cago March 22, to weigh the probable effect on revenues of the
Commission's order and discuss the rise in costs of fuel, materials
and supplies since Jan. 1 and the cost-of-living pay adjustments in
the future. They came up with a decision to petition the I.C.C.
for a further increase in rates of 15 percent, which is now pending.
It becomes necessary for the Traffic Department to issue rate sheets
to all associations, special shippers and sales representatives and,
needless to say, we have been quite busy with figures because of the
frequent changes in rates this season, and in all probability, the
end is not yet in sight.
Intermittent car shortages have occurred throughout the season,
but the climax was reached following the switchmen's strike com-
mencing Jan. 30, which resulted in severe yard congestion, pre-
venting the prompt return of empty refrigerators to Florida. By
Feb. 9 the situation became so acute, the Bureau of Service of the
Interstate Commerce Commission issued an order prohibiting the
placement of refrigerators for loading citrus, with the exception
of tangerines and Temples from Monday through Wednesday of
the weeks of March 12 and March 19. Vigorous protests to the
I.C.C. and our congressmen in Washington developed the fact
that in addition to congested yards, refrigerator cars were being
used throughout the North for the loading of canned goods, war
materials and other dead freight. The situation has been largely
corrected by now, but the fact remains that in recent years and
at the present time, refrigerator cars are being retired faster than
new ones are being built to replace them. In the last annual report
it was mentioned that the Fruit Growers Express Co., as of Feb.
15, 1950, had in operation 20,403 cars, with an additional 916 cars
on order for construction and delivery as soon as possible. As of
March 1, 1951, the same company reports 20,164 cars in operation,
with an additional 1,821 cars on order. It will be noted that they
have less cars in operation now than a year ago, in spite of their
building program. Records show that for the past ten or twelve
years the supply of refrigerators used in the fruit and vegetable
movement has been gradually diminishing. In 1939 there were
approximately 130,000 to 135,000 cars in use. At the present time
we have approximately 85,000 to 90,000 available for all perishable
loading of the country. With the tremendous increase in the pro-
duction of fruits and vegetables since 1939, it is clear that the
supply of cars must be increased to the point of adequacy. The
railroads are expending billions of dollars in the building of new,
and extending old yards, right-of-way improvements and the pur-
chase of Diesel power, but without sufficient cars to handle the
increased business, these improvements are of little value.
Speaking of Diesel engines, which have taken the country by
storm-in the last five years they should prove beneficial to citrus
(Continued Next Page)
growers, because of their ability to stop and start long trains
smoothly, thus eliminating much rough handling, breakage and
decay in transit. Cinder troubles are also eliminated when ship-
ping in ventilated box cars.
During the period of Sept. 1, 1950, and May 1, 1951, we have
collected 128 claims, amounting to $24,904.90.
During the same period we filed 212 claims, amounting to
Claims are not running heavy. Even with the cars delayed by
strikes, shippers profited in most cases in that they hit a compara-
tively bare market, resulting in higher prices than would have been
the case under normal conditions.
General Counsel .
DURING the past year the Law Department of the Exchange,
in addition to a heavy schedule of routine matters, has had to con-
tinue and increase its services to Exchange affiliates in the legal
field. The general defense mobilization efforts by various new
Federal agencies, resulting in innumerable regulations, orders and
rulings, has caused a heavy and increasing volume of work.
In addition to the many problems posed by price, wage and
materials controls orders and regulations, the 1950 amendments to
the Federal Social Security Act also required considerable analysis
The Exchange's general counsel joined with others in the indus-
try in considering changes in citrus fruit maturity standards, and
certain amendments effecting some slight changes in maturity
standards for grapefruit and tangerines were submitted to and
adopted by the Florida Legislature. These changes were recom-
mended by the Florida Citrus Commission and apparently had the
approval of practically the entire industry.
The Law Department has handled a large number of trade-
mark matters for Exchange affiliates this season, including some
charges of infringement.
During the past year the Bureau of Internal Revenue has under-
taken in a number of instances to assess and collect Federal income
taxes from grower-members of cooperative associations on evi-
dences of equity or interest in the assets (generally the reserves
allowed to and maintained by such cooperative associations) of
their cooperative for the year in which such evidence (whether
retain certificate, revolving fund certificate, stock, script, book
equity or the like) was issued, rather than for the year in which
the grower-member received the cash. This matter is obviously
of vital importance to all grower-members of cooperative associa-
tions, and it is confidently expected that most, if not all, coopera-
tive interests in the Florida citrus industry will vigorously contest
the validity of the Bureau's position, the more so because such
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position is a complete reversal of the Bureau's view and attitude in
the matter that has obtained for more than twenty-five years.
The Exchange's general counsel has continued his work as a
member of the Legal and Tax Committee of the National Council
of Farmer Cooperatives and the American Bar Association's Com-
mittee on Statement of the Law of Cooperatives. While this work
requires considerable time and effort, it keeps him well posted and
in close touch with all current matters of interest to the Exchange
and its affiliates.
Each year witnesses a marked increase in the extent to which
affiliates of the Exchange confer with our attorney in seeking
advice and counsel with respect to their day to day problems, as
well as to matters of common interest and importance to all coop-
erative organizations. Such service is a practical demonstration
of the determination of the directors and officers of the Exchange
to give its affiliates the most complete cooperative service possible.
Immediately following the untimely death of L. M. Turner,
general counsel of Growers Loan and Guaranty Company, on Feb-
ruary 26, 1951, the Exchange's general counsel took over the legal
work of that Company.
GROWERS LOAN &
B ANKING more than ever is a vital part of cooperative produc-
tion, packing, processing and distribution of member grower crops.
The Growers Loan and Guaranty Company completes its 34th year
of financial service to the Exchange shipper members and their
grower members, in the best position of its history.
During most of these years, the organization has had as its
Executive Vice President and Treasurer, Samuel L. Looney, whose
sudden death on Jan. 25, 1951, shocked and grieved his thousands
of friends throughout the Florida citrus industry in general, and
the Florida Citrus Exchange system in particular.
The life of Samuel L. Looney is the story of the development
of the sound financing of the cooperative movement in the Florida
citrus industry. For 30 years he devoted his peculiarly outstanding
abilities to the creation and maintenance of adequate credit facili-
ties for the cooperative associations and citrus fruit growers con-
stituting the Florida Citrus Exchange system.
In 1934 he was elected Treasurer-Comptroller of the Exchange,
his duties as such being in addition to those with the Growers Loan
and Guaranty Company. He continued in this position with the
Exchange until his death.
James Samson, who had been auditor of the Exchange, the
Growers Loan and Guaranty Company and the Exchange Supply
and Service Cooperative since 1934, was chosen by the board of
directors to succeed Mr. Looney.
The excellent operating condition of the company emphasizes
to the entire Florida Citrus Exchange membership that where new
member finance is needed to complete shipper tonnage, the Grow-
ers Loan and Guaranty Company is willing and ready to consider
all applications for loans recommended by the association that meet
non-speculative eligibility requirements of good banking.
Loans for crop production to member growers, to affiliated
organizations for operating capital are made at low interest rates
which compare most favorably with the various government spon-
sored financial institutions organized for a similar purpose.
The importance and value of the services of this company in
financing sound grove and packing operations of Exchange mem-
bers are shown by its record of the current season's business-
$2,373,895.82, excluding credits to, and, the discounting of trade
acceptance for Exchange Supply and Service Cooperative aggre-
EXCHANGE SERVICE &
GUY E. HOWERTON
A PRIL 30, 1951, marks the end of the second year of the exist-
ence of the Exchange Supply and Service Cooperative. Our sales
at that date for the total fiscal period were $1,996,095.40 compared
with total sales of $1,386,538.13 for fiscal period ending April
30, 1950, or an increase of $609,557.27.
When we consider that the sales of the Exchange Supply Com-
pany (the predecessor of the Exchange Supply and Service Coop-
erative) for fiscal period terminating April 30, 1948, total $219,-
608.00 and for fiscal period ending April 30, 1949, total $1,194,-
080.34 it can be seen that very substantial increases in sales have
been made progressively each year since April 30, 1948.
These increases have not been due to accident. The board of
directors and officials of our supply organization, recognizing the
desirability of strengthening this organization, made possible and
laid the ground work for the expansion of activities which resulted
in the increases mentioned above.
The expansion program was two-fold, embracing, first, an
increase in the number of items handled by the supply organiza-
tion and, second, a more active contact with the members of the
cooperative with the end in view of acquainting these members
with the activities of the organization, impressing upon them that
the organization is cooperatively owned by the members, and
soliciting the business of the members on a competitive basis. Since
1948 we have added to our line of packing house supplies such
essential items as standard nailed shipping containers, wire-bound
shipping containers, and mesh bags, which articles are used in
large volume in the shipment of citrus fruits. In addition, we
have taken on other lines of less volume, all of which has given us
a rather well rounded line of packing house supplies with which
to service the needs of our members. These additions have, of
course, increased our sales potential in our solicitation of the busi-
ness of our members, and the combination of increased offerings
and a more vigorous solicitation has resulted in sales increases.
We are aware of the desirability of further increasing the lines
we handle, and as conditions warrant our so doing, it is our plan
to make these additions. In view of the rather tight situation pres-
ently existing in certain lines of packing house supplies due to
current world conditions, we consider it more important to con-
centrate on the procurement and equitable distribution of the lines
that we handle now rather than to expand.
The industry is already beginning to feel the pinch due to
shortages on such items as certain shipping containers, and steel
products such as nails and strapping. We have been and are doing
all possible to protect ourselves with our suppliers for adequate
amounts of all items for the normal, current, needs of our mem-
bers. At the same time, we are not unaware of the fact that gov-
ernment regulations and restrictions can nullify our efforts in this
direction and complicate the program and plans we have set up.
However, we are encouraged to believe that the importance of
agriculture as an essential industry is being recognized by the Gov-
ernment and that the plan for controlling scarce materials which
is expected to be effective around July 1st will give to perishable
food producers, processors, and shippers a sufficiently high priority
rating to allow the industry to secure its essential supplies. If such
action is taken by the plan makers of our nation's economy, we
are confident that our suppliers will make available to us supplies
for use in filling the essential needs of our members.
We have done a considerable amount of work to the end that
government planners recognize how essential it is to our country
as a whole to have the perishable food industry unfettered by un-
workable, ironclad restrictions, which could only result in a tre-
mendous wastage of food before it could be harvested, processed
in fresh or canned form and shipped. We believe that our contri-
bution to the effort to get the thinking in Washington straight
on this subject has borne fruit.
We feel that we are in a strong position with our suppliers on
virtually every item that we handle. By this we do not intend to
convey the thought that all orders for any amounts of supplies of
all kinds will be filled on short notice. However, if our members
to whom we have been selling will cooperate by anticipating their
requirements in advance, and by ordering only their normal needs
of items that might from time to time be tight, we believe we shall
be in good position. We keenly feel the responsibility we have,
particularly during this period of shortages, and can promise that
there will be no decrease in our efforts to keep our customer mem-
bers supplied with their essentials.
WILLIAM CARROLL VAN CLIEF
Immediate Past President
Florida Citrus Exchange.
FOB Average p.******* ,-0 "
o-..o--O' 1949-50 FOB Average
Weeks 7 21 4 18 2 16 30 13 27 -
Ending Oct. Nov. Dec. Jan.
m 1950-51 Auction Average
0-0-0 1949-50 Auction Average
10 24 10 -24 7 21 5 19 2 16 -30
Feb. Mar. Apr. May. Jun.
M*e 1950-51 FOB Average
0--0--0 1949-50 FOB Average
Source: Growers Administration Committee, Lakeland, Fla.
0o o .........I. 9 .I
WEnks 23 7 21 4 18 2 16 30 13 -27 10 -24 -10 -24 7 21 5 19 2 16
SSept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Jun.
Source: Growers Administration Committee, Lakeland, Fla.
o0o o\ o \o
Weeks 30 7 14 21 28 4 11 18 25 2 9 16 23 30 6 13 20 27 3 10 17 24 3 10 17 24 31 7 14 21 28 5 12 19 26 2 9 16 23 30
g Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May. Jun.
Source: State Citrus & Vegetable Inspection Bureau, Winter Haven, Fla.
Florida Citrus Mutual-Statistical & Economic Dept.
FROZEN ORANGE CONCENTRATE PACK BY WEEKS
600 I 1 \0 0N\
I 0 \
Weeks 9 16 23 30 6 13 20 27 3 10 17 24 3 10 17 24 31 7 14 21 28 5 12 19 26 2 9 16 23 30
Ending Dec. Jan. Feb. Mar. Apr. May. Jun.
Source: Florida Canners Association, Tampa, Fla.
Florida Citrus Mutual-Statistical & Economic Dept.
o l7 P d .. I I I 1. .1
Weeks 16 30 14 28 11 25 9 23 6 20 3 17 3 17 31 14 28 12 26 9
Ending Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May. Jun.
Source: Growers Administration Committee, Lakeland, Fla.
9 23 6 20 3 17 3 17 31 14 28 12 26 9
Dec. Jan. Feb. Mar. Apr. May. Jun.
Source: State Citrus & Vegetable Inspection Bureau
Additional copies of
this report may be
obtained by writing the
Post Office Box 2349,
*:l~c U -i~~~