Front Cover
 Back Cover

Title: Annual report of the Florida Citrus Exchange.
Full Citation
Permanent Link: http://ufdc.ufl.edu/UF00075941/00035
 Material Information
Title: Annual report of the Florida Citrus Exchange.
Physical Description: Serial
Creator: Florida Citrus Exchange
Publisher: The Exchange,
Publication Date: 1951-1952
 Record Information
Bibliographic ID: UF00075941
Volume ID: VID00035
Source Institution: University of Florida
Holding Location: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: ajg6778 - LTUF
46798761 - OCLC
001753794 - AlephBibNum

Table of Contents
    Front Cover
        Page 1
        Page 2
        Page 3
        Page 4
        Page 5
        Page 6
        Page 7
        Page 8
        Page 9
        Page 10
        Page 11
        Page 12
        Page 13
        Page 14
        Page 15
        Page 16
        Page 17
        Page 18
        Page 19
        Page 20
        Page 21
        Page 22
        Page 23
        Page 24
        Page 25
        Page 26
        Page 27
        Page 28
        Page 29
        Page 30
        Page 31
        Page 32
        Page 33
        Page 34
        Page 35
    Back Cover
        Page 36
Full Text

'ERIAL #904@


v. Florida Citrus Exchange



A. R. Updike

I. J. Pemberton

Tom B. Swann

W. M. Moseley

Jack N. Strong

Charles G. Metcalfe

J. B. Prevatt

John L. Olson

C. G. Wilhoit

0. J. Harvey

P. C. Peters

F. W. Moody

Armer C. Johnson

J. P. Ellis

E. G. Todd

George B. Aycrigg

Lake Wales


Winter Haven

FIort Pierce

Vero Beach

Avon Park





Winter Garden

Palm Harbor

Mt. Dora


Avon Park

Winter Haven



J. B. Prevatt Tavares
P. C. Peters Winter Garden
C. G. Wilhoit Wabasso
John L. Olson Dundee
F. W. Moody Palm Harbor



John T. Lesley Tampa
Fred S. Johnston Tampa
Marion J. Young Tampa
Frank J. Poitras Tampa
James Samson Tampa
E. D. Dow Tampa
Counts Johnson Tampa
Carlisle Kyle Tampa
Walter J. Page Tampa

1 9 5 1 1 9 5 2



THE biggest and one of the finest Florida cit-
rus crops in history was marketed at ridiculously
low prices during the 1951-52 season.
Highlights of the season included:

1. The generally low, and frequently red-
ink price returns for Florida citrus, while Cali-
fornia citrus sold at handsome prices.

2. A record-breaking crop, estimated at 119
million boxes, along with a heavy carry-over
of both single strength juice and frozen concen-
trate stocks.
3. The unnecessary price cut by frozen con-
centrate producers in the face of an apparent
shortage of frozen concentrate before next sea-
son's pack goes into production. The consump-
tion of frozen concentrate has continued to in-
4. Ideal growing conditions, with no freeze
or hurricane, and generally sufficient moisture.

5. Excellent quality of both oranges and
6. The high purchasing power throughout
the nation.

7. High cost of living.

8. Minimum competition from other fruits,
such as Western apples which have maintained
a high price structure, despite the heavy supplies
of low-priced Florida citrus.

9. High cost of production for Florida

10. Failure of a noisy, but misinformed
minority group in its efforts to abolish the Fed-
eral grade and size regulations.

11. Inability of Florida Citrus Mutual to
maintain a minimum price floor on cannery
fruit without sufficient control.

12. Completion of negotiations between the
Exchange and Snow Crop for the processing of
Exchange fruit by Snow Crop.

13. Increased advertising of the Florida Cit-
rus Commission with more emphasis on news-
paper advertising and television.

14. Increase in shipments and consumption
of fresh Florida citrus.

15. The history-making orange concentrate
order for the school lunch program. This gov-
ernment purchase of 761,695 gallons of hot-
pack three to one orange juice concentrate was
one of the major stabilization influences of the
current season. The order was completed five
days ahead of schedule.

16. The lack of cooperation, confusion, and
overshipment on the part of the citrus industry
which resulted in an all-time low in both price
and prestige.



PRODUCTION of Florida citrus will continue
to increase at an annual rate of about 10 percent.
While the increase in consumption has been
phenomenal compared to other fruits and vege-
tables, the rate of this increase in the use of
citrus must be stepped up even more if the
grower is to receive a fair profit.
This additional increase in consumption can
be achieved only by promoting citrus in all forms
-fresh, frozen concentrate and single strength
juice-and by making further advances into
the beverage field. More by-products of citrus
must be developed and sold.
Hard-hitting advertising in sufficient quan-
tity will be absolutely necessary to keep demand
in relation to supply.
Quality must be maintained, and improved,
for citrus in all forms. The Florida product
should be identified as being from Florida.
Growers will find it necessary to study their
production costs carefully and keep these costs
as low as is consistent with the growing of good
quality fruit and maintaining the trees in healthy
Because of the vast acreage planted during
the last 10 years, the supply of citrus might in-
crease at a faster rate than the fruit can be mar-
keted at a fair profit to all concerned. If that
condition prevails, it might become necessary
to consider a plan to remove a portion of the
crop from the market. The utmost cooperation
among the growers, themselves, would be re-
quired to put any surplus plan into effect.
An improved size plan, devised by Harry
Gumprecht, Exchange assistant general sales
manager, is in the mill for next season. Backed
by the Sales Managers Club, the novel plan to
reduce orange sizes packed in Bruce boxes from
the present nine to five is to be installed indus-
trywide on a mandatory basis. Actually only
three sizes will normally be used with the ex-
tremely large and small fruit being withheld
and packed only in the case of shortage resulting
from freezes or hurricanes.

Detailed Review of 1951-52 Season

FLORIDA opened the 1951-52 season with its
biggest citrus crop in history, originally esti-
mated at 112.5 million boxes and later revised
upward to 119 million boxes of all varieties.
The previous crop of 105.5 million boxes had
been marketed at prices moderately profitable
to growers.

The California navel crop estimate of 15.4
million boxes was a million higher than the pre-
vious season. Texas, almost wiped out by pre-
vious freezes, was not to be a factor this season.

By mid-October the Florida Citrus Mutual,
which had received considerable credit the pre-
vious season for maintaining a satisfactory price
structure, had signed 210 of the state's 228 fresh
fruit shippers.

There was a rather heavy carry-over of proc-
essed citrus, especially canned grapefruit juice,
but an intensive summer advertising program
by the Florida Citrus Commission, and others,
had increased consumption. Consumers were
drinking frozen orange concentrate at a record-
breaking pace. (727,000 gallons week of Sept.
29) The increased consumption cut deeply into
the carry-over as the season progressed.

It was predicted that one-third of the orange
crop would be marketed as fresh fruit, one-third
concentrate and one-third single strength juice.

By the first of November, Mutual had estab-
lished $1.03,/V per box delivered as the minimum
price for the lowest grade of oranges which
could be accepted by processors. At the same
time, it established $2.15 per box as the mini-
mum price for the lowest grade and least desir-
able size at which fresh fruit shippers could sell
oranges at the FOB level. It was emphasized
that these prices were intended to be the floor
and not the ceiling. It was also pointed out that
the floor prices would not be changed during
the season.

Wage Ceilings
Wage ceilings, effective Dec. 11, were set by
the Wage Stabilization Board on wage rates for
pickers and other grove workers in Florida. The
order was temporary and the ceilings permissive,
not mandatory. Top rates which could be paid
without violating the law:
Orange picking: General clean picking bud-
ded trees, 20c per field box. Spot picking bud-
ded trees, 22c. Final cleanup budded trees, 25c.
Grapefruit: General clean picking, 1lc. Spot
picking, 13c. Cleanup picking, 13c.
Tangerines: 45c.
Loaders: 134c per field box.
Truck drivers: $1.05 per hour with no over-
time. Ninety-five cents an hour for waiting
time at grove by pickers or piece work employ-
ees. A three-cent differential for clipping.
FOB Market
In early December the FOB market for or-
anges was $2.50 on 200's and larger, $2.25 on
216's, $2.15 to $2.25 on 250's and $2.15 on
288's. Duncans were selling at $2.50 to $2.75
on 46's and 54's, $2.25 on 64's and 70's. Marsh
at $3 on 70's and larger, $2.75 on 80's, $2.50
on 96's. Marsh Pinks from $5 to $5.50 on 80's
and larger, $4 to $4.50 on 96's with heavy dis-
counts on 112's. Tangerines were moving in
heavy volume from $2 to $2.25 on 176's and
larger with a discount of 50c on 210's.
Heavy shipments in December were brought
to a halt by the longest shipping holiday ever at-

Part of the Seald-Sweet sales force in action at the Exchange
in Tampa

tempted by the industry, 11 days beginning
Dec. 21. The northern markets cleaned up in
fairly good shape and demand was brisk after
the holiday. The eating quality and carrying
quality had improved.
Processors began taking oranges at the rate
of 1,250,000 boxes a week (Jan. 5). But the
movement of canned citrus out of the state
was only 2 5 percent of the pack, compared with
40 percent of the pack in early January of the
previous season.
Up to Dec. 29, only 659,000 gallons of frozen
and 440,000 gallons of pasteurized concentrate
had been packed, compared with the previous
year when 1,601,000 gallons of frozen and
276,000 gallons of pasteurized concentrated had
been produced at that date.
Retail sales of frozen concentrate continued
at a high level.
The traditional post-holiday slump hit the
fresh fruit market. Interior oranges slipped
about $1 at auction to an average of about $3.
Grapefruit sold generally at $3 on 70's and
larger. Tangerines were generally $2.25 on all
Mutual Suspends Floor Price
Mutual reminded growers they must insist
on receiving $1 a box delivered for oranges when
sold for cash to a processing plant. By late
January, however, Mutual announced that the
best interests of the most growers required a
suspension of the floor price on early and mid-
season oranges going to processing plants. The

floor price on Valencias was retained and the
floor price on oranges sold on an FOB basis by
packing houses also was retained.
Minority Group Seeks Hearings
The U. S. Department of Agriculture agreed
to hold a hearing in Florida on a proposal that
grade and size regulations on Florida citrus ship-
ped out of the state into the fresh fruit market
should be suspended for the remainder of the
season. The hearing was in response to a peti-
tion submitted to the U. S. Secretary of Agricul-
ture by a small group of growers representing
an extremely small percentage of the state's
Shipment of Florida fresh citrus fruit is regu-
lated by grade and size, but not by volume, by
the Federal Marketing Agreement and Order,
which has been in operation for more than a
dozen years. Only fruit which meets the regu-
lations can be shipped over the state line. These
regulations are recommended by the Growers
Administrative Committee, after receiving the
recommendations of a Shippers Advisory Com-
The U. S. Secretary of Agriculture promul-
gates the regulations, usually following the rec-
ommendations made by the Florida committees.
Suspension of the regulations would have meant
that fruit could be picked and shipped without
being washed, graded, sized or otherwise pre-
pared for market, provided it met maturity re-
The U. S. Department of Agriculture, after
the hearings, refused to suspend the regulations.
Allotment Program
In an endeavor to reduce heavy shipments,
Mutual established a compulsory allotment pro-
gram early in February. It called for a ship-
ment during the first week of not more than
1,100 cars (550,000 boxes) of oranges and 700
cars (350,000 boxes) of grapefruit. Mutual
shippers were subject to a penalty of 25c per
box for any violation. The prorate was declared
successful and discontinued later that month.
The average price paid for Florida oranges in

auction markets increased 42c per box during
the three weeks the prorate program was in
effect as compared with the three previous
weeks. Grapefruit showed an increase of 18c.
Fresh fruit shippers affiliated with Mutual
shipped 11.9 percent more fruit, both oranges
and grapefruit, than the volume allotted for the
three-week period, Feb. 4 to 23, in which the
prorate was in effect. Non-affiliated shippers
shipped 60 percent more fruit than had been
allotted to them by Mutual.
Shipments Reach Half-Way Mark
During the first week of March, Florida pass-
ed the half-way mark in harvesting its record-
breaking crop of 74,500,000 boxes of oranges.
By coincidence, the half-way mark on the
grapefruit crop of 36,000,000 boxes was passed
the same week.
The Valencia movement was increasing rap-
idly and heavy shipments resulted in weaker
prices. They were generally selling at $2.25 to
$2.50 F.O.B. The Marsh seedless market also
showed some weakness, but the prices were gen-
erally $2.50 on all sizes.
More than a million boxes of Valencias were
shipped during the second week of March, and
Mutual stepped into the picture to establish
another prorate. It was hoped that this new

Seald-Sweet buyers are familiar with the voices of Irma Leonard
(below) and Mickey O'Hearn

prorate of 1,750 cars (875,000 boxes) would
send prices back up to a firm $2.50.
Processors were using record-breaking quan-
tities of oranges with prices steady at $1 delivered
for juice fruit, and $1 to $1.10 delivered for
fruit suitable for concentrate. The market for
processing grapefruit was still weak late in March
with canners paying from 30c to 35c for juice
fruit and 40c to 50c for sectionizing fruit.
The three major outlets for Florida oranges
-fresh fruit market, cannery and concentrate
plant-were using fruit at such a fast pace dur-
ing March that, despite an estimated increase
in the size of the crop of 8,700,000 boxes, there
were less than 3,000,000 more boxes yet to
harvest than at the same time last year.
Production of frozen orange concentrate for
the current season hit the three-quarters mark
the last week in April when Florida plants had
produced 30,000,000 gallons, or almost as much
as they did all of last season. It was then ex-
pected that 42,000,000 gallons would be made
into frozen concentrate this season.
A Federal survey indicated the grower was
getting 12 percent of the consumer's dollar when
his oranges were sold in fresh form, 9 percent
if his oranges were turned into canned single-
strength juice, and 9 percent when his fruit
became frozen concentrate.
A ridiculous price war between the Florida
frozen concentrate producers early in May
brought the price on the finished product down
to a point that aroused alarm and disgust among
By the middle of May, however, there were
indications of a trend upward in both processed
and fresh fruit prices. The FOB Valencia mar-
ket was generally $2.35 with a few sales at
$2.50. The auction market ranged from $3.40
to $3.50 on interior Valencias. Duncan grape-
fruit was $1.75 FOB for all sizes with a few sales
at slightly lower prices. Marsh seedless was gen-
erally bringing $2 to $2.25 for all sizes. Con-
centrators were paying from $1.15 to $1.25
delivered with single-strength juice canners pay-
ing $1.15 to $1.20.


General Sales Manager

THE sales department put on a hard hitting,
aggressive selling campaign throughout the
An additional salesman was added to the staff
to handle western sales made available to us by
the Texas freeze. Additional personnel also was
added to coordinate packing house information
with sales efforts for the accomplishment of
wider distribution. New markets were entered
and new sales contacts made.
Fred W. Davis, a former general sales man-
ager, was employed and sent into the markets
for personal sales contacts during the early part
of the season and up to January 1. After that
time, Mr. Davis, assisted by Mr. E. B. Hooten,
a former Florida Citrus Commission dealer serv-
ice man, covered many mid-western markets
putting on promotions, using automatic juicing
machines, making mass displays, helping to bet-
ter cement old connections, and making new
contacts for increased sales.
The "SEALD-SWEET Scratch Pad", a
monthly publication, was issued throughout the
season to brokers, customers, and prospective
customers. It created considerable goodwill and
friendly relations.
Our SEALD-SWEET grade and pack was im-
proved and standardized, backed up by our own
personal inspection in addition to government

inspection. This improvement proved most bene-
ficial, brought forth many favorable comments
from the trade, together with many repeat
As a result of these and other sales innovations,
we were able to show an increase by months
on FOB sales this season over last season per-
centage-wise as follows:
November 13.5 percent
December 23.1 percent
January 62.7 percent
February 40.4 percent
March 53.7 percent
April 44.7 percent
May 76.0 percent
This increase is an over-all average of increased
sales for the six months of 39 percent.
The sales department cooperated fully with
other factors in the industry in inaugurating the
Emergency Citrus Campaign in which the Na-
tional Association of Retail Grocers, the Atlantic
and Pacific Tea Company, and distributors of
all types throughout the country, pushed citrus
during the latter part of February and through-
out March. This promotion stimulated the
movement of an unprecedented volume that
avoided a total collapse of the market price

As of May 1, 1952
1951-52 1950-51
Interior Oranges $3.28 $4.12
Indian River Oranges 3.78 4.62
Interior Seeded Grapefruit 3.01 3.29
Indian River Seeded Grapefruit 3.76 4.02
Interior Seedless Grapefruit 3.32 3.72
Indian River Seedless Grapefruit 4.48 4.97
Temples, Std. Box 4.94 5.40
Tangerines, Std. Box 5.26 5.14


Fresh and Processed

Source: U.S.D.A.

(By Months)
Thru April 15, 1952 and 1951

Oranges Grapefruit
Fresh Processed Fresh Processed

$2.08 $ .77 $1.60 $ .17
.90 .66 1.08 .26
.79 .64 1.04 .29
.67 .44 .96 .22
.65 .42 .72 .12
.86 .64 .67 .07
.87 .62 .50 .00

2.06 .70
1.37 1.11
1.49 1.24
1.41 1.41
1.96 1.86
2.17 1.77
2.04 1.91
B.A.E., Orlando, Florida


Season 1951-52

Interstate Shipments
Percent Interstate Shipments
Percent to Processors
Non Commercial and others

U.S.D.A. Estimate
Remainder of Crop

Interstate Shipments
Percent Interstate Shipme:
Percent to Processors
Non Commercial and others

U.S.D.A. Estimate
Remainder of Crop

Thru May 3, 1952
Oranges Grapefruit
21,125,000 13,975,000
33.1' / 52.3%
38,300,000 10,775,000
60.0 9 40.3
4,425,000 1,990,000
6.9% 7.4"

63,850,000 26,740,000
78,500,000 36,000,000
14,650,000 9,260,000

Season 1950-51

Season to May 5, 1951
17,273,917 11,198,579
nts 33.8% 39.5 '
30,040,151 15,298,795
58.7"' 54.0%
3,855,730 1,842,636
7.5% 6.5%

51,169,798 28,340,010
67,300,000 33,200,000
16,130,202 4,859,990

Fresh Processed





63.9 "
7.9 '%










Frozen Concentrate Division
of the
Sales Department
Sales Manager .'
Frozen Concentrate Division

The Concentrate Division is a new depart-
ment composed of a sales manager, assistant sales
manager and to date, 15 brokers and 38 distrib-
utors. To the brokers and distributors go the
major credit of establishing a new brand of
frozen concentrate in some 70 cities in 26 states
in the amazingly short time of less than a year.

We did not think it wise to engage in a large
and expensive advertising campaign to introduce
our product. We felt that by building care-
fully, our distribution would be developed on a
much sounder basis. One of the most important
factors in our growth has been the favorable
brand recognition of Seald-Sweet carried over
from our fresh fruit and single strength activ-
ities. That, with the magic combination of
quality, price and loyalty on the part of the
distributors and chain store buyers has been
mainly responsible for the substantial gains in
all markets.

Though Seald-Sweet is primarily marketed in
the East and a few Midwestern states, we also

have distribution in Fresno, Oakland and San
Francisco. This distribution gives our friends
in California an opportunity to enjoy Seald-
Sweet and further strengthen its chances of
being marketed nationally in the future. The
necessary arrangements have been completed
with an aggressive firm for the marketing of
Seald-Sweet in Eastern Canada.

It is the intention of the Concentrate Divi-
sion to expand until Seald-Sweet has attained
national distribution. We have had many re-
quests from brokers and distributors throughout
the nation to handle our concentrate. These
requests are carefully screened so that when
additional territories are opened the most capa-
ble ones will be selected.

The future for the Concentrate Division is
very favorable. If our distribution were frozen
at its present level, our pack for the next season
must be doubled to take care of our present


Canning Division
of the
Sales Department
Sales Manager, Canning

CONTRARY to the greatly enlarged citrus
crop this season, Florida's single strength juice
pack will be considerably smaller than that of
last year. The Seald-Sweet single strength juice
pack has diminished also.
Our inventory of Seald-Sweet grapefruit and
blended juices is excellent, but orange juice is in
short supply. The latter pack is about com-
pleted for the season with concentrate plants
actively bidding for the remaining oranges.

The Florida Citrus Exchange submitted a bid
on February 4 to the U. S. Department of Agri-
culture to process 760,000 gallons of concen-
trated orange juice for the National school lunch
program. An agreement was entered into for
Clinton Foods, Inc. to process this order. The
federal government accepted the Exchange offer
on February 6 and five days later production
began with this office designated as coordinator
charged with the responsibility of procuring the

Over 20,000 boxes of oranges were delivered
daily in order to complete the order within the
specified time limit. Approximately 600,000
boxes of Florida Citrus Exchange fruit were
utilized in filling this order.
When the present agreement was signed be-
tween the Florida Citrus Products Exchange and

Clinton Foods, Inc. for the manufacture and
sale of frozen orange concentrate, this office was
again assigned the task of procuring fruits. Upon
completion of the school lunch pack on March
10, Exchange associates and members of the
Products Exchange started delivery of fruit to
Clinton's Dunedin and Auburndale plants. To
date more than 500,000 boxes of membership
fruit have been delivered and it is expected that
another 500,000 boxes will be processed in the
Exchange-Clinton pools.

The Canning Division was represented at the
National Canners Convention which was held
January 18-23 in Atlantic City. Many valuable
contacts were made with brokers and the trade
in the interest of future business.




Advertising Manager

SEALD-SWEET, the master brand of the Flor-
ida Citrus Exchange for the last four decades,
was advertised as fresh fruit, frozen concentrate
and single strength canned juice in markets
where these products were sold during the season.

The media included both radio and newspa-
pers. A more extensive dealer service program
was promoted in selected markets, and the re-
tailers in these cities were encouraged to advertise
Exchange brands in their own local newspaper
advertisements. Many retailers used the Ex-
change mat service offered for their convenience.
Advertising copy this season stressed the
economy angle-the fact that citrus is the best
buy in the store-the health angle, and the
Seald-Sweet guarantee of fine quality.

Thousands of pieces of display material ad-
vertising Seald-Sweet, and other Exchange
brands, were distributed. These included price
cards, posters, banners and three-dimensional
plastoramas. Numerous citrus recipe booklets
were mailed again this season on individual re-
An especially competitive advertising program
for Florigold and Flo, the Indian River Sub-Ex-
change brands, was conducted in New York,
Boston and Philadelphia, where these brands have
been advertised consistently for many years.

The biggest advertising program in the his-
tory of these Indian River brands included news-
paper schedules in such big circulation dailies
as the New York World-Telegram and Sun, the
New York Journal-American, New York Post,
New York Times, Newark News, Philadelphia
Inquirer and the Philadelphia Bulletin. Also in-
cluded were the big Italian paper, II Progresso,
the Westchester Groups and a number of Jewish

Florigold's Song Weaver, a musical program
over Station WEVD in New York, was heard for
20 weeks again this season. In Boston, the Flo
and Florigold brands were featured on the
"Mother Parker Food Fair" on station WEEI.

The Exchange took part in the Florida State
Fair in Tampa with an exhibit that illustrated
the growing, harvesting and marketing of Seald-
Sweet citrus. The Exchange also participated in
the Florida Citrus Exposition at Winter Haven.


Public Relations Director

PUBLIC Relations, newest departmental func-
tion within the Florida Citrus Exchange, is a
forward step toward creating a closer bond be-
tween the overall organization, the industry,
and the lay public.

The department is headed by Walter J. Page,
former citrus news reporter who was appointed
to the Exchange post on January 11, 1952.
Though scarcely four months old, the Public
Relations section has already established active
news channels in both newspapers and radio.

The weekly "Citrus Box" column, easily iden-
tified by its familiar box heading bearing the
Florida Citrus Exchange name, services 47 news-
papers throughout the citrus producing area of
the State. Frequent bulletins clarifying the Ex-
change's position in controversial situations as
they arise, are issued from this office.

The department maintains active membership
in the Florida Public Relations Association with
the Exchange public relations director serving
as chairman of a standing nine-man citrus com-
mittee. Representing dominant factors within
the industry, the committee is doing much to

break down distrust and suspicion which has
long prevailed in Florida's second-ranking busi-

As a special service to Florida Citrus Exchange
members, the public relations department re-
cently completed two projects which received
widespread readership. The photo-documented
story of the Fruit of the Month Club selection
of choice Duncan grapefruit from groves of the
Clearwater Growers Association, was carried in
19 newspapers and a magazine. Shade-grown
citrus from the Hammock groves of the Mims
Citrus Growers Association received almost Na-
tional attention as the result of a story originat-
ing in the Exchange public relations department.

A speaker's bureau augments the day to day
work being carried on by the department. The
initial address in line with this new function,
was delivered before journalism students at the
University of Florida.

Exchange news release in the making-Walter J. Page,
well-known former newspDaerman





Traffic Manager

IN our last annual report we reported that on
November 1, 1950, the railroads reduced citrus
rates to points north of the Ohio, east of the
Hudson River, to meet truck competition. We
also mentioned that on January 19, 1951, the
railroads petitioned the Interstate Commerce
Commission for an increase of 6 percent. On
April 4, 1951, they were granted an increase of
2 percent and on August 28 they were granted
an additional 4 percent upon the carriers' re-
quest for reopening of the case and the granting
of the full 15 percent. On April 11, 1952, the
Commission granted the full 15 percent, which
included the prior increases of 2 percent and
4 percent. A maximum of 12c per CWT was
prescribed on citrus fruit, which means that all
rates in excess of 80c per CWT have been in-
creased, since April 4, 1951, 12c per CWT, and
those under 80c per hundred have been increased
12 percent.
Car Supply
In our last report we mentioned that the Fruit
Growers Express Co. as of February 15, 1950,
had in operation 20,403 cars, with an additional
916 cars on order. As of March 1, 1951, the
same company reported 20,164 cars in opera-
tion, with an additional 1,821 cars on order.
On February 15, 1952, they reported 20,878
cars in operation and 1500 new cars on order.
This indicates very little progress made in aug-
menting their refrigerator car supply during the
past two years to take care of the constant and
rapidly increasing production of citrus fruit and

vegetables. They report that since 1947 a total
of 9,485 cars have been placed in service, in-
cluding 165 cars equipped with Frigidaire and
Thermo King mechanical refrigeration units for
the movement of frozen citrus commodities. It
appears, however, that retirements have kept
pace with the additional cars built.
The truck movement of Florida citrus has
been extremely heavy, which was necessary and
a Godsend to Florida producers for the reason
that the railroads did not have enough equip-
ment to move the crop. With the slow produc-
tion of additional refrigerator equipment, it
looks as though shippers must look to trucks for
some years to come to provide the additional
transportation necessary in the marketing of
our crops.
During the period of September 1, 1951, to
May 1, 1952, we filed 243 claims, amounting to
$51,049.55. We collected during the same period
$37,622.16. The carriers have not maintained
their schedules the past season as regular as
heretofore and our claims are running very
heavy. Most of them resulted from failure of
carriers to maintain published schedules, causing
the shipments to miss the market for which they
were intended, resulting in a claim in the event
that the market was lower on the day sold than
on the day it should have sold. The filing of
claims at present entails a tremendous amount
of work in determining the loss in such cases.
Heretofore losses have been arrived at by taking
the average price on all sizes of each grade, but
now the carriers are demanding that losses be
figured on a size-by-size basis of comparison.
In a car containing numerous sizes and grades,
it will readily be seen that considerable time is
necessary in filing a claim on that basis. We
already have enough files thrown out for check-
ing of market prices to keep us busy throughout
the summer. We have 7,000 or 8,000 more files
yet to check for claims, so it looks as though
the traffic department is going to have a very
busy summer.


General Counsel

IT is no exaggeration to say that during the
1951-1952 season the Law Department experi-
enced the heaviest schedule ever. In addition to
the ever increasing load of routine matters the
Exchange's general counsel was engaged in the
following principal efforts:

Handling of all legal matters for Growers
Loan and Guaranty Company and Exchange
Supply and Service Cooperative, as well as dis-
charging the duties incident to the office of
secretary of both those organizations and the

Organized and served as secretary and general
counsel of the Exchange's new subsidiary, Flor-
ida Citrus Products Exchange. This organiza-
tion carried on the negotiations for the purchase
of the multimillion dollar processing facilities of
Clinton Foods, Inc. (Snow-Crop). Such nego-
tiations extended over a long period of time and
involved countless meetings and conferences as
well as the drafting of a great number of im-
portant contracts, documents and other papers.
Although the proposed purchase was never con-
summated the new subsidiary did succeed in
negotiating the present operating agreement
with Clinton Foods, Inc. covering the produc-
tion and sale by the latter of frozen orange con-
centrate for Exchange patrons, of which Clinton
Foods, Inc. is one.

Attended meetings in Washington and other
places prior to and following the passage of the

1951 Revenue Act which effected such impor-
tant changes in the status of income tax exempt
cooperatives and their patrons. Exchange grow-
ers should know that as much as they undoubt-
edly dislike this new tax law as it relates to coop-
eratives, with all the attendant doubt and con-
fusion as to its proper application, it could, and
in all probability would, have been much more
drastic except for the unrespited efforts of the
Legal and Tax Committee of the National Coun-
cil of Farmer Cooperatives, of which committee
the Exchange's general counsel is a member.
Handling of an unprecedented number of
inquiries relating to: trademark matters; price,
wage and materials controls orders and regula-
tions under laws governing general defense
mobilization efforts; Fair Labor Standards Act;
Robinson-Patman Anti-Price Discrimination
Act; and laws and regulations being administer-
ed by the Florida Citrus Commisison.

A candid view of one of the nation's foremost atto
the subject of Farmer Cooperatives

27 .

27 ""i f


irneys on

0 L,- .


Treasurer-Comptroller /

(This is an excerpt from the annual report,
April 30, 1952, of James Samson to the Board
of Directors of the Growers Loan and Guaranty

ON April 30, 1952, your Company completed
its thirty-fifth year of financial service to the
Florida Citrus Exchange, its affiliated shippers
and their grower members, during which time
loans approximating $67,500,000.00 have been

In addition to comments on some of the im-
portant aspects of the year's operation, the fol-
lowing pages include Comparative Balance Sheet
for years' ending April 30, 1952, and 1951, and
Statements of Income and Expense and Earned

Cash and Liabilities

Cash in banks totaled $176,975.70. Liabilities
consist of accrued taxes-not yet due-amount-
ing to $276.89.

The volume of loans in the 1951-52 fiscal
year aggregated $3,545,332.67 an increase of

in, Assistant Secretary of the Florida Citrus Exchange

$802,254.24 (23 ) compared with the previous
year. Loans outstanding as of April 30, 1952,
totaled $1,680,499.70, at the same date last year
they were $1,367,045.12.


Gross income for the year is $72,929.93 com-
pared with $65,149.63 for the prior fiscal period,
an increase of $7,780.30. Operating expenses
for the twelve months ended April 30, 1952,
were $27,283.93, compared with last year's
$33,635.49, a decrease of $6,351.56 (19%7).
Non-operating income and expense shows a net
charge of $6,991.03.

The Net Income from current year's opera-
tions was $38,654.97, an increase of $5,687.83
over the previous year.

Capital, Surplus and Reserve

At April 30, 1952, Common and Preferred
stock having an aggregate per value of $1,186,-
175.94 was outstanding. The Net Worth of
the Company at this date, including the Reserve
for Contingencies is $1,959,374.49.

Review in General

This is an agricultural credit corporation,
almost all of the stock being owned by the Flor-
ida Citrus Exchange, and, its local cooperative

The function of the Company is to extend
seasonal operating credits to member associa-
tions, and crop production advances to their
growers, the interest rates on both types of loans

compare most favorably with the various gov-
ernment sponsored financial institutions.

Loans to shippers are usually secured by an
authorization on the Florida Citrus Exchange
to deduct from the fruit returns a specified
amount per box and remit to the company until
the entire loan is paid.

The amount a grower may borrow is depend-
ent upon several factors. The earning power
of the grove, volume and quality of the crop,
current market conditions, and of course the
character and ability of the borrower. These
loans are secured by a mortgage and crop lien
together with an order on the local association
for the payment of said loans from the proceeds
of the grower's crops.

The Company's financial condition and rec-
ord of performance is such that the Florida banks
have from time to time extended substantial
lines of credit. During the year just ended the
Company retired all its obligations in advance
of maturity.

The Company is highly appreciative of the
constructive and friendly attitude evidenced by
the banks, without which it would be nigh im-
possible for us to maintain the high degree of
service to the Florida Citrus Exchange and its



ON April 30, 1952, the Exchange Supply and
Service Cooperative ended another fiscal year
with sales totaling $2,363,223.25. The sales for
the fiscal period which ended April 30, 1951,
total $1,996,222.06, giving us an increase this
year over last of $367,001.19.

We have just wound up the third year of this
organization, and in each of these three years
the sales have reflected an increase over the sales
of the previous year.

Increases in general are due to greater cooper-
ation from our members and, too, expansion of
lines which we handle to service the needs of
those members. The increase in sales during the
year just ended over the sales of the previous
year can be attributed to handling a greater
volume of wirebound boxes, nailed boxes, fruit
wraps, guards, box labels, label paste, box strap-
ping, ethylene gas, Skinner gas, picking bags,
etc., during the months when fruit was being
shipped, and to sales of field boxes, field box
strapping, nails, paint, floor resurfacing mate-
rials, roof coating materials, during the summer

The increase is also due, in part, to our having
this year entered the corrugated carton field,

this move being in keeping with our policy of
expanding the lines of merchandise which we
handle. We are now in position to furnish cor-
rugated cartons for canned citrus products, both
single strength and concentrated. We secure
these corrugated paper containers from the In-
land Container Corporation with head office in
Indianapolis, Indiana. Shipments are made from
their Macon, Georgia, plant. Overnight truck
deliveries from Macon to Florida points put us
in a good position from a service point of view.
We hope to be able to increase the volume of
business on these corrugated containers as we
have done on our other types of containers.

A very considerable amount of work has been
done in the past few years in an endeavor to
develop a corrugated paper box that will satis-
factorily carry fresh fruits to the markets. The
corrugated paper industry now believes that it
has reached the solution in a half-box size cor-
rugated container, chemically treated to retard
decay of fruit in transit and to prolong shelf
life of the fruit on arrival at destination. Our
connection with the Inland Container Corpor-
ation puts us in excellent position to furnish this
corrugated fresh fruit box. It is our intention
to try to increase our sales with this item, and,
at the same time, strive to maintain our position
in the sales of the wooden type containers.

The addition of this corrugated fresh fruit
box gives us a well rounded out line of all types
of fresh citrus shipping containers, and the addi-
tion of corrugated canned cartons opens a new
field for sales potential.

A year ago we were somewhat concerned over
the possibility of shortages of certain packing

house supplies. While shortages of a temporary
nature did occur in certain sizes of consumer
type mesh bags from time to time during the
year and while the ratio of supply to consump-
tion on other types of shipping containers was
uncomfortably close, there were no shortages
of a really acute and crippling nature. The
availability of steel products such as nails and
strapping gave us our greatest concern, but
even though deliveries were late and sometimes
we were on the anxious seat, we were able to
supply the needs of our members with these

At the present time, it is difficult to predict
as to the outlook for the coming year. It would
appear that most of the items we handle should
be in ample supply, but the picture can change
overnight. We are staying in close contact with
the people from whom we secure our supplies
and shall do our best to anticipate changes in
trends, and make our plans accordingly.

Our goal still is to be in position to furnish
the needs of our members in any phase of their
citrus operations. From time to time as the
opportunity presents itself and as we think the
need exists, we shall add to our line of merchan-
dise. We are very appreciative for the cooper-
ation given us by our members; it is this cooper-
ation that has enabled us to achieve the sales
record that we have made. It indicates a con-
fidence in our ability to perform and places a
responsibility on us which we welcome. Our
supply organization is the organization of our
members; we are here to serve them.


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