Front Cover
 President's message
 Better prices for next season
 Report of grower's industry...
 With the editor
 Back Cover

Group Title: Citrus grower (Orlando, Fla.)
Title: The citrus grower
Full Citation
Permanent Link: http://ufdc.ufl.edu/UF00086640/00019
 Material Information
Title: The citrus grower
Uniform Title: Citrus grower (Orlando, Fla.)
Physical Description: v. : ill. ; 30-44 cm.
Language: English
Publisher: Florida Citrus Growers, Inc.
Place of Publication: Orlando Fla
Publication Date: September 1, 1939
Frequency: weekly (semimonthly july-sept.)[<1939>]
semimonthly[ former 1938-]
normalized irregular
Subject: Fruit-culture -- Periodicals -- Florida   ( lcsh )
Citrus fruits -- Periodicals -- Florida   ( lcsh )
Citrus fruit industry -- Periodicals -- Florida   ( lcsh )
Genre: periodical   ( marcgt )
Dates or Sequential Designation: Vol. 1, no. 1 (Nov. 15, 1938)-
Dates or Sequential Designation: Ceased in 1942?
General Note: Latest issue consulted: Vol. 4, no. 9 (May 15, 1942).
 Record Information
Bibliographic ID: UF00086640
Volume ID: VID00019
Source Institution: University of Florida
Holding Location: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: oclc - 03227648
lccn - sn 96027371

Table of Contents
    Front Cover
        Page 1
    President's message
        Page 2
        Page 3
    Better prices for next season
        Page 4
        Page 5
        Page 6
        Page 7
        Page 8
    Report of grower's industry committee
        Page 9
        Page 10
        Page 11
        Page 12
        Page 13
    With the editor
        Page 14
        Page 15
    Back Cover
        Page 16
Full Text










September 1, 1939


In this Issue:
"The clearness of thinking in this report is the
best evidence of genuine willingness Ion the
part of growers) to adopt whatever means. are
necessary to put us on our feet."
L. H. Kramer.

INV. '60


There is printed in this issue the complete text
of the report of the industry committee of your or-
ganization. This report was made by growers for the
benefit of growers. It is the result of much research
and examination of citrus history, and of hundreds
of meetings with shippers and marketing authorities.
It takes the questions of industry regulation completely
apart so that the grower may see all the complicated
machinery that must be adjusted before there is any
definite promise of a profitable return to the grower.

Read for Profit

I believe this matter is presented in such interesting
form that a grower will read it for pleasure. But, if
growers find no pleasure in the reading, it is up to them
for the sake of their own best interests that they study
this report.
The growers' need for higher prices is loudly
calling for orderly marketing of fruit and coordination
of sales to prevent the cut throat competition due to
our present several hundred competing sales agencies.
The few buyers in the North only have to wait until
all the bids are in and take the lowest.

Action Up to Growers

This system of selling is taking from us an
amount variously estimated from 25 cents to 75
cents per box. The gluts and scarcities in markets.
due to no regulation, is also expensive; and the fact
that we have no basis from which to launch a drive
for new markets and better service to starved markets
also demand our attention. The industry report printed
here discusses all these questions. It leaves the matter
of taking action up to us growers.
I wish to join the committee in urgently recom-
mending that the growers study this report, put them-
selves in position to make intelligent decisions, and

then take what action they see fit for their own in-

To Avoid Future Errors

I believe you will find the report clear, impartial,
and fearless. It represents, I believe, the first case on
record where a growers' organization has maintained
its existence for a sufficient length of time to strive
not only for immediate improvement in the industry
along specific lines, but also to study all past-efforts
to stabilize our marketing, analyze those efforts, dis-
cover the reasons why they failed, and indicate the
lines along which future efforts should be directed.

Shippers Can Help

In this connection I wish to commend the report
to the growers' friends among the independent ship-
pers and the independent cooperatives. The facts show
that many of these have done a highly satisfactory
job of low cost packing and of efficient merchandising
under present chaotic conditions. I believe there is a
place for such talent, even a crying need for it in an
industry where sales are coordinated to cut out hun-
dreds of competing sales agencies.

Suggests Working Together

The report calls attention to the fact that an
independent cooperative is just another sales agency,
fighting for business, so far as the general citrus picture
is concerned. The industry will be handsomely bene-
fitted when these independent cooperatives, the grower
shipper, and the constructive buyer for cash find a
way of getting themselves together so they will not con-
tinue to fight each other and destroy values.
Upon such shipper friends we call now, not only
for cooperation in any constructive plan that may
be devised for coordination of selling; but for initiative
upon the part of these men, who are able and in
the best position to bring about a workable scheme
of industry wide cooperation in marketing.

Florida Citrus Growers, Inc.

The Citrus Grower

Official Publication of Florida Citrus Growers, Inc.
VOLUME 1 SEPT. 1, 1939 NUMBER 19

Our Organization

Florida Citrus Growers, Inc., is an agency through
which 21 county organizations work together for the
purpose of making citrus growing profitable. The
county organizations are made up of growers who have
no financial connection with or interest in the ship-
ment of fruit. In these units are growers who ship
through cooperative marketing associations as well as
growers who dispose of their fruit to cash buyers or
on consignment. So called "cooperative" growers and
so called "independent" growers are fighting side by
side in the ranks of the county units and, through the
county units, in the state organization for the benefit
of the citrus industry. The grower must work for a
stable market with a healthy demand for fruit at a
price that pays, in addition to distribution costs, the
cost of production and reasonable profit to producers.
Unless this price ideal of the grower is attained, the
grower eventually must go out of business and with
him will fall the whole super-structure of the industry.
Only through organization can the grower realize this
ideal. Consequently an effective grower organization
is of the greatest concern to every element within the
industry and to all those business, professional and
other working people in the citrus area whose pros-
perity directly and indirectly depends upon the citrus
Florida Citrus Growers, Inc., is the means through
which the grower works and expresses himself in striv-
ing for this ideal.
The state officers are:
L. H. Kramer, Lake Wales, President; J. J. Banks,
Jr., Orlando, 1st Vice-President; C. B. Van Sickler,
Ft. Pierce, 2nd Vice-President: W. L. Burton, Orlando,
Secretary; E. G. Todd, Avon Park, Treasurer, W. J.
Steed, Orlando, General Counsel.

Collective Action

"During those years when demand kept just a
little ahead of supply the citrus grower was not con-
scious of the necessity for him, individually, to under-
stand marketing problems. Marketing was largely a
matter of distribution and not of merchandising.
"The grower was primarily a producer and he left
the problem of distributing his fruit to others. The
supply was not in excess of demand, the prices on the
tree was satisfactory and he could dispose of his en-
tire crop.
"But, due to increased plantings, a surplus does now
actually exist. Under such conditions the disposition
of citrus becomes a matter of intelligent merchandising
and not merely a question of distribution only.
"And so long as the surplus problem exists, the
grower is powerless working as an individual to cope
with the problem. We cannot, as individuals, control
surplus; that is, of necessity, the problem of the group
working under a unit plan and not the problem of the
individual working as cross-purposes with all other in-
dividuals. In this case we work with law of supply
and demand and all prosper, or we individually ignore
it and individually do not prosper."
The above paragraphs are from a radio address by
J. J. Banks, Jr., chairman of the Marketing Agreement
Committee of Florida Citrus Growers, Inc. We are
conscious of the fact that this newspaper has quoted
fruit packers as saying there is no surplus-that the
whole trouble lies in inadequate marketing efforts.
We are conscious, too, of the fact that we have backed
up those expressions editorially.
On the other hand, this paper has printed news
stores and diagrams to show that there is actually a
limit to the amount of fruit that can be sold at a
profit in this country. The figures are stated as 25,000
cars of grapefruit and 75,000 cars of oranges. They
are arrived at after a study of the purchasing power of
the American people.
Whether the actual fact is that we are suffering from
over-production or whether it is that we are suffering
from inadequate marketing efforts, the solution lies in
organization. Citrus growers are being forced to band
together for their own protection and also for their
own advancement. The faster they become better
organized, the better their condition will be.-Eustis
Lake Region.

Virgil H. Conner .--.------ -. Editor
Vernon Keith ---...-- Advertising Manager
Kemp, Chairman; Carl D. Brorein, R.
J. Kepler, E. G. Thatcher. W. L. Burton,
C. A. Garrett. Karl Lehmann.
Printed by Chief Press, Apopka -z-t

Published the First of each month by able. The publishers can accept no re-
The Florida Citrus Growers, Inc., Orlando, sponsibility for return of unsolicited manu-
Florida. scripts.
Entered as second-class matter Novem- Subscription Bates
ber 15. 1938, at the postoffice at Orlando, In United States, one year $1.00 to non-
Fla.. under the Act of March 3, 1879. members of Florida Citrus Growers, Inc.,
Membership subscriptions, one year 50c.
, Manuscripts submitted to this maga-
zine should be accompanied by sufficient Address all mail to The Citrus Grower,
postage for their return if found unavail- P. 0. Box 2077, Orlando, Florida.

Page 4 THE CITRUS GROWER, September 1, 1939

What Stands In The Way of---

Better Prices For Next Season

T HE GROWER organization has
set its task as that of getting
the grower a profit on his fruit.
It expects the new green fruit laws,
the new laws regulating packing
house practices, the frozen fruit em-
bargo, and other beneficial legislation
to increase the popularity of Florida
fruit and broaden demand. It will
continue to insist on lowered costs
of production and lowered costs of
processing and selling, and upon the
development of markets that are now
partially or wholly starved for cit-
rus fruit.
In addition the organization has
the present objective of three fun-
damental reforms in our marketing.
These are (1) an elimination pro-
gram for ready use in case it is need-
ed to adjust the size of the crop to
meet effective demand, (2) orderly
marketing, (3) concentration of sales
in a few agencies to prevent ruinous
competition. These are immediate
steps that undoubtedly will have a
strong and positive effect to raise
Grower-Shipper Relations
In connection with these tasks,
most important in the immediate
picture is for growers to adjust their
relations with their shipping agen-
cies. This question is up prominent-
ly now because it has everything to
do with the success of any effort to
make a sane marketing plan work-
able. This relationship is the prob-
lem now crying most loudly for so-
More and more the growers and
their leaders in the grower organiza-
tion are learning that it will be nec-
essary to make some basic and fun-
damental changes, changes that go
deep down to the very roots of the
industry, before any constructive
merchandising plan involving the en-
tire citrus picture may be worked
We Are Learning
More and more the leaders are

deal can
rest any

that some factors in the
not be blended with the
more than can oil with

More and more they are learning
that the factors which would make
possible a coordinated industry
program successful are missing in
More and more growers are learn-
ing the impossibility of changing an
industry from the top down, and
are becoming more conscious of the
absolute necessity of first changing
the industry at the bottom, down
among the growers themselves, with
the firm realization that the change
at the bottom, or at the roots of the
industry, would create a condition
upon which may be moulded any
type of an industry program design-
ed to improve the merchandising of
our crops.
Difficulties and Limitations
More and more growers and their
leaders are appreciating the difficul-
ties involved, and the limitations of
the growers' organization in devising
programs calling for either Federal
regulation, or voluntary industry
regulation, when such regulations
are practically impossible of enforce-
ment under present conditions of
selling fruit in Florida.
More and more the leaders are un-
derstanding that the grower organi-
zation does not have the power to
regulate or change an industry, the
organization can only point the way,
and only the grower can bring
about these desirable changes, and
the proper changes will make pos-
sible any type of regulation neces-
sary for a constructive industry pro-
Changes Necessary
The Florida citrus industry at the
present time is suffering purely and
simply from growing pains. It has
grown up, and the costly, inefficient,
individualistic practices which have
been possible in past years must be

replaced with economical, efficient,
coordinated practices, if we are to
It is entirely up to us to bring
about the conditions under which
these changes can be effected. We
do not expect groves to thrive and
produce and give us large quantities
of fruit if the soil is too acid. But
we growers do seem to expect mar-
kets profitable to us to spring from
the very sour soil of our present mar-
keting practices. We insist on re-
maining in ignorance of correctly
designed marketing plans; we insist
on selling our fruit to, and thus giv-
ing our support to shippers who nev-
er have, and do not now promise to
work with the industry in providing
marketing schemes that will raise the
general level of prices.
Attitude Is General
This attitude is shared by grow-
ers who are in cooperative marketing
associations, where the grower, the-
oretically, is himself his own ship-
ping and marketing agent, it is also,
and to a larger extent unfortunately
the attitude of growers who sell their
fruit independently to this or that
Find a "Home"
This relationship of grower to
shipper must be placed on a more
intimate and more nearly permanent
basis. The grower's fruit must find
a shipping "home." It is at the
packing houses that regulation of
marketing must be applied and any
system of packing house regulation
can readily be upset and made un-
workable by a large volume of fruit
in the hands of growers who refuse
to accept the terms of this regula-
This is the basic reason the Agri-
cultural Adjustment Administration
was unwilling to accept responsibil-
ity for making a volume control mar-
keting agreement work in Florida.
A large part of Florida fruit has no


that wkat eadk qmmis!

When I hear about these fancy per box returns somebody else got, my
curiosity pops into action. I want to know on how many boxes, and even
more important-what was the return per acre?
I have learned through bitter experience that nobody can get me more than
the market for my fruit season after season. And I am in this deal for my
living-not just a chance to outsmart the other guy.
That's why I employ Exchange service. Through my association I get
grove service which has increased my production per acre about 50 precent,
and doubled my percentage of top-grade fruit. That means more income per
But my costs per acre are down in proportion. Because the association
operates the most modern and efficient equipment in my grove, buying our
supplies with quantity discounts, my costs are as low as the biggest in the
-and that's where the only sure profit lies.

Know the FACTS about the Exchange

Through 30 years of uninterrupted operation the Exchange system of
grower ownership and control in fruit handling has served constantly
increasing tonnages. Today through 56 associations and associate
shippers, about 5,000 grower-members ship more than twice as much
fruit as the crops of the entire industry at the time it was organized.
Most member associations offer advantages available in no other way:
an expert grove service at costs in line with the lowest; horticultural
advice and inspection for disease and pest control; picking, hauling
and packing at cost; the advantages of adequate house volume permit-
ting orders to be filled to specifications; intimate daily contact with
all markets through a complete sales service unparalleled in the in-
dustry; economical financial help "without strings" other than mem-
bership obligations at rates formerly available only to the largest
These are the FACTS-discuss what their details may mean to you
with any of the association managers or the district' office in your



We all want better markets. To get
them for our vastly heavier produc-
tion is a job for an industry organ-
ized to provide
1. Uniform standards or grades
and car-loadings.
2. Equalization of freight rates
to make possible a balanced
distribution of fruit to all
3. Equitable volume control to
keep volumes moved in line.
with existing demand at price
levels profitable to producers.
4. Development and expansion
of trade channels for fresh
fruit consumption.
5. Adequate research for addi-
tional uses and more convinc-
ing sales and advertising
material so that demand may
be increased.
Help yourself by placing your fruit
with an organization which has only
one interest-YOURS.


THE CITRUS GROWER, September 1, 1939

Page 5


r .. -


THE CITRUS GROWER, September 1, 1939

Speculation Out
Growers who have been giving
considerable thought to their indus-
try have generally agreed that our in-
dustry has grown to a sufficient size
that it is absolutely essential that it
be controlled and regulated. Many
of them have gone further with their
thinking and appreciate fully that
control and regulation mean a stabi-
lized market, and that a stabilized
market eliminates the speculator.
That means the speculative seller as
well as the speculative buyer must
adjust their operations to a more
stable basis. It means, if you please,
that a packing house then becomes
simply an incidental service, and is
not the dominating factor in the in-
dustry. It also means a more even
level of prices throughout the sea-
son and the incentive to speculative
selling will practically disappear.
As has been stated that if an effec-
tive marketing program were to be
made it would be necessary to go
back to the very roots of our indus-
try, and by that was meant the re-
lationship between the grower and
the shipper.
Kinds of Sellers
We will pause a moment to ana-
lyze the various kinds of grower sell-
ers. First, we will look at the prob-
lem confronting the grower in the
Florida Citrus Exchange. In all too
many cases he has joined the Ex-
change because it offered an easy way
for him to dispose of his fruit. As
a consequence he has done practically
no thinking on his merchandising
problem, but has been content to
leave that thinking to others. Simply
joining a cooperative association does
not make a grower a good business
man, but putting his shoulder to the
wheel with fellow growers and see-
ing that his exchange practices sound
economies and sound merchandising
policies does make him a good busi-
ness man, and will produce a sound
organization. A cooperative suc-
ceeds in proportion to the interest
its growers take in its affairs and their
demanding that that interest be re-
flected in sound management. A co-
operative will not succeed on person-
alities or inefficiencies. An exchange
member who permits his fruit to be
handled through an inefficient, un-
economical house has no hope of

meeting competition in this new era.
There are plenty of highly efficient
houses in the Exchange which offer
a splendid yard stick for a compari-
son of costs.
Under present and future condi-
tions only those growers who prac-
tice every economy in production and
in their packing house costs will sur-
vive. The inefficient producer and
the inefficient packing house is sim-
ply holding an umbrella over the
efficient, whereby the efficient pros-
per on price levels that mean ruina-
tion to the inefficient.
Independent Cooperatives
Most of the above analysis applies
also to members of the independent
cooperatives. It should be noted,
however, that growers in independent
cooperatives have a much greater
problem confronting them. Their
independent cooperative is simply
one of that more than three hun-
dred sales agencies now engaged in
desperate cut throat competition for
The grower members of such co-
operatives must realize that their fu-
ture depends not only on the efficiency
of their particular cooperative, but
in order to obtain the lowest possible
sales costs and most favorable pro-
tection against ruinous competition
their cooperative must be joined with
other houses to provide sufficient
volume to assume a place of impor-
tance in the industry. This does
not mean that these independent co-
operatives should necessarily join the
Florida Citrus Exchange. It does
mean that they should join with all
other cooperative elements in the in-
dustry to concentrate their sales in
fewer hands. Only through such
concentration or coordination of sales
can there be any hope of meeting
the concentration of buying power
which each year finds more and more
retail stores blocking together to con-
centrate their purchasing.

9 Gallon Junior
Louvre Heater

Grower Interest Paramount
The grower in the independent co-
operative must keep clearly in his
mind that the obligations of his co-
operative are to the growers, and that
simply maintaining an independent
cooperative is not the answer when
the sales of that independent coopera-
tive are just as competitive as the
sales of any speculative handler and
just as contrary to successful work-
ing of a general marketing plan.
The concentration of sales in the
hands of a few sales agencies in Flor-
ida offers a great deal more chance
for profit to the grower member of
an independent cooperative than does
his own private brand. A realiza-
tion of this may somewhat dampen
his pride in his own sales organiza-
tion when he realizes that indepen-
dently his present sales organization
under present conditions is powerless
to do other than meet all other de-
structive price cutting competition.
"Independent" Grower
We proceed from various coopera-
tive growers to the grower who sells
for cash and asks that his independ-
ent be regulated. Such grower must
learn that that regulation will be
possible only when those to whom he
sells his fruit are willing to be
regulated. No definite program can
be made in the industry until the cash
seller realizes that there is more to a
cash sale than simply the price which
he obtains. The cash grower-seller
has not yet realized his obligation to
bring the cash buyer to the point of
willingness to cooperate in a plan of
industry regulation.
In admitting that his industry has
grown up, that it needs regulation,
the grower is in reality admitting
likewise that speculative profits are a
thing of the past. The spectacular
risks and triumps of youth are over
and we must now get down to the
plodding business of producing fruit

For 25 years National-Riverside
Heaters have saved millions of
dollars to citrus, deciduous and
truck growers. Low in Cost and
High in Efficiency... Write to
National- Riverside Co. 3 and 9 Gallon
P.O.Box 925, Tampa, Florida Smudge Pot

Page 6


THE CITRUS GROWER, September 1, 1939

cheaply, processing it cheaply and
selling it efficiently, or a lot of us
will soon be out of the business of
producing citrus fruit.
Buyers Should Cooperate
There is no reason why cash buy-
ers should not concentrate their sales
in the hands of a few the same as
other factors in the industry are will-
ing to do.
The cash seller who wants his
independent buyer regulated can ar-
range for that regulation at the time
he sells his fruit. First, he should
make an alignment with a cash buyer
who has an efficient packing plant,
and in whom he has faith and confi-
dence. In addition to a contract
which gives to the buyer control of
the seller's crop, the contract should
assure the grower of fair handling
and equity. In assuming the obli-
gation to handle the grower's fruit
the cash buyer should agree to sup-
port the grower's program, and
should indicate his willingness to
concentrate his sales with others in
the industry.
Who Deserves Grower Support?
Any cash buyer who does not
recognize that the industry has
grown up, that it needs regulation,
that prices cutting practices must be
stopped, is certainly in no position
to demand support of the growers,
and should not be permitted to han-
dle growers' fruit regardless of the
price which he pays. Every grower
selling for cash owes it to his indus-
try to align himself with a construc-
tive cash buyer who will have ex-
pressed his accord with the grower
program prior to next season.
It is the firm conviction of the
leaders in the growers' organization
that when the growers who do not
now have permanent shipping con-
tacts show a willingness to align
themselves with a reliable cash buyer
that he will find many buyers who
are willing to meet the grower half
way, and will honestly admit that
until such time as our merchandise
is concentrated in fewer hands that
we may not hope for important price
Grower and Handler
May we repeat once more that the
root of the entire trouble is in the
relationship between the producer

and the handler. If the grower builds
constructively in the way he sells
his fruit the growers' organiza-
tion will have little trouble in bring-
ing the industry together on an in-
dustry program designed to increase
the returns to growers.

Growers Alone Responsible
The selfishness and pride which at-
tempts to preserve the hundreds of
brands of Florida fruit, preventing
the industry from coordinating its
sales, must be replaced by a concen-
tration of our sales to meet the or-
ganized power of our buyers, and
this will be possible only through
the insistence of growers at the time

they agree to sell their fruit that the
shipper who buys the fruit assist in
formulating and in working out the
needed marketing reforms for which
growers are striving. Such a coop-
erating shipper is a constructive
"Wild" Fruit
We, perhaps, should repeat that
our chief problem is the link be-
tween grower and handler. Regula-
tion affects handlers. Any success-
ful plan of regulation is based upon
growers having previously put their
fruit in the control of the handlers.
Under any marketing plan it is nec-
essary to know how much fruit is

"Sell Fruit and Produce the Auction Way,
Where Supply and Demand Meet Every Day"


Supplies of various commodities are centralized and the full buying
power of each metropolitan area is concentrated.

Liberal buyer credit and cultivated buyer confidence creates stimu-
lated demand from all the various types and kinds of buyers.
The full routine from unloading and sorting to sales and delivery
gives all producers a well rounded service with positive economy.

Fruit & Produce Auction Association, Inc.
66 Harrison Street, New York, N. Y.
American Central Fruit Auction Co. H. Harris 8 Co.
St. Louis Boston
Baltimore Fruit Exchange New York Fruit Auction Corp.
Baltimore New York
Consolidated Fruit Exchange, Inc. Philadelphia Terminals Auction Co.
Cleveland Philadelphia
Detroit Fruit Auction Company Union Fruit Auction Company
Detroit Pittsburgh
Fruit Auction Sales Company United Fruit Auction Company
Chicago Cincinnati

Page 7

THE CITRUS GROWER, September 1, 1939

being regulated, whether or not the
volume under control by shippers is
sufficient to insure success of the
plan. The fruit in the hands of the
cooperatives and in the hands of
grower shippers is under control now.
It has a home. The other fifty-per-
cent of the crop, known as "wild"
fruit must be under control just as
definitely, in order for any market-
ing plan to work. Some arrange-
ment must be made between inde-
pendent grower and independent
shipper to assure that control. The
independent grower and independent
shipper must work out this problem
before we can be hopeful of taking
the next important steps toward
marketing improvement, and these
steps must be taken if thousands of
growers hope to save themselves and
their investments.
Self-Preservation Demand
It is far from the intention of
Florida Citrus Growers, Inc., to de-
mand that growers join cooperatives.
It is far from our intention to sug-
gest that we would deprive any
American citizen of his right to do
as he will with his own, or to sell
his fruit in whatever manner and to
whomever he pleases. We are all
justly jealous of protecting our lib-
Responsibility to our own best in-
terests, however, demand that we use
our liberties with discretion. When-
ever any perfectly legal practice
threatens our own means of liveli-
hood and brings bankruptcy upon
our neighbors, good common sense
requires that we forget the pure
theory of freedom of action and con-
sider by what means we may best
regulate our own acts for the bene-
fit of ourselves and the other mem-
bers of our industry.
It is entirely too long a story to
try to go over it in the space allotted,
but may__ each grower_ read his
file of "The Citrus Grower" for the
past few months, and endeavor to see
for himself that some intimate rela-
tion must be worked out between
himself and his shipper, and set him-
self about taking steps to perfect the
proper shipping connections.
This is the important link to
weld the chain of a strong, united
closely integrated Florida citrus in-

(Editor's Note: A very smart point
is raised by Valentine about picking.)
The letter of 0. J. Graham of
Altoona, Fla., is thought-provoking,
to say the least. The idea of "elim-
ination" does not look very attrac-
tive to the average grower. There
are a good many loop holes for abuse
and it may cause a serious rift among
the members where unity is sorely
When grading fruit, why must it
all be done at the packing house? A
grower may sell perhaps only No. 1
and No. 2 fruit. When he gets
his report he finds that most of it
may have turned out to be No. 3,
yet his charges for packing, hauling,
etc., is just as much on the No. 3
that had to be rejected. It seems to
me pickers could be trained to be
more discriminating, but this would
require better supervision and per-
haps pay by the day instead of by the
In reference to "color added" fruit,
I have visited markets several hun-
dred miles north of Florida, and
talked with buyers, including house-
wives and persons who buy for com-
mercial use. My impression has been
that this is an increase in cost, with-
out adequate result, and in many
cases it has not only a complete lack
of appeal to the purchaser, but gives
them a feeling that an attempt is be-
ing made to conceal unripe fruit.
Buyers reject what they consider an
attempt to put something over on
them. This is particularly had,
when we have for a slogan "For Bet-
ter Health-Eat Florida Fruit."
"Color Added" seems to mean an
adulterated product to many. Dis-
criminating buyers want plenty of
rich juice and good pulp, "for better
Then another thought about a
bright smooth skin; let us grant its
eye appeal, but if this is the chief
objective, the "color added" mark
reminds one of a beautiful calendar,
marred across the face with advertis-
ing that you wish had been forgot-
The "color added" label does not
appeal to many consumers, who after
all are the persons to be plesaed.
Yours very truly,
E. S. Valentine.
Leesburg, Florida,


Launched last night at a meeting
held at the Driftwood was an inten-
sive drive to build up the membership
of the Indian River County Citrus
Growers Association.
M. T. Baird, chairman of the
membership committee has enlisted
the aid of the Chamber of Com-
merce to carry out a plan to bring
the total enrollment up to 250. E.
G. Thatcher, who serves as secretary
of both organizations will direct the
activities. Those who will serve in-
clude all members of the board of
directors and a group of additional
citrus growers who have been enlisted
by Chairman Baird. In addition to
the enrollment of regular and sustain-
ing members, opportunity will be
given to business and professional
men in the county to make a finan-
cial contribution toward the associa-
tion's program of bringing prosperity
to the cirtus industry, by becoming
associate members. The appeal is
based on the well recognized fact that
the general prosperity of all business
in the citrus producing areas is to a
large degree dependent upon the prof-
its made by citrus growers.
The present canvass is to be
brought to conclusion at the month-
ly meeting of the citrus grower's
association at the Community Build-
ing on Thursday night, August 17.
-Vero Beach Press-Journal.





Orlando, Fla. Phone 5791

Page 8

THE CITRUS GROWER, September 1, 1939

Page 9

Of Vital Importance to Florida---

Report of Growers' Industry Committee

THIS IS A report of your indus-
try committee but not of the
industry committee only because
the executive committee of your or-
ganization has met with the industry
committee in the last several series
of conferences. Consequently, the
report represents the combined find-
ings of both the industry committee
and the executive committee.
The Challenge
The industry committee, as you
will recall, several weeks ago was
charged with the responsibility of
putting into effect the grower organ-
ization's challenge to the other ele-
ments in the citrus industry. This
challenge briefly stated called upon
the other elements to work with the
growers in devising a plan for han-
dling future citrus crops with the
hope that such a plan would guaran-
tee greater returns to the grower.
The industry committee waited a
reasonable length of time after the
issuance of the challenge, and in the
absence of replies from other ele-
ments, then took the initiative upon
itself, called shippers of fresh fruits
and canners together for the pur-
pose of considering this most impor-
tant and fundamental question. This
report concerns the results of those
Grower Purposes
Florida Citrus Growers, Inc., was
organized as a grower group for the
purpose of studying the citrus in-
dustry and making the grower fa-
miliar with those phases of his own
business that he has known so little
about which greatly affect the
amount of money he gets for his
fruit. It is presumed we are all in
the citrus production business for
No Interference
When we began we said that the
organization would not attempt to
tell the grower how he should sell
his fruit. That continues to be our
policy, even after the discouraging

efforts that have been made in the
last few weeks to bring some degree
of order out of present chaotic con-
ditions, even in spite of the fact your
committee feels sure that the way in
which the grower sells his fruit is
the fundamental stumbling block
now barring the way to beneficial
readjustments. That is, the industry
and executive committees reiterate
the assurance that they do not pro-
pose to interfere with the grower's
inherent right to dispose of his fruit
in whatever manner he pleases, at
whatever time he pleases, and to
whom he pleases. We are jealous
of our American liberties. We even
insist upon the exercise of those lib-
erties in such a way that they will
work to our own benefit, but com-
plete liberty is licensed and if uncon-
trolled may lead us into bankruptcy.
Pass on Information
In the course of its investigations
and conferences your committee
gained an intimate knowledge of
many efforts in the past to introduce
order and regulation into the citrus
business. We believe that before the
growers can make up their minds
constructively on this point that the
committee should briefly pass on an
outline of its findings:
No Single Remedy
It must first be borne in mind
that in the discussion of volume
control or any other ways of citrus

regulation, the committee has the
opinion (and this is based on care-
ful study of the history of the in-
dustry) that no substantial benefits
can be obtained through the work-
ings of any single scheme of control.
No real benefits are expected until
a complete comprehensive, all-em-
bracing, flexible scheme of regulation
can be devised and put into effect
for every single activity from the
time the tree is planted until the fruit
is consumed on the consumer's ta-
ble. Such views point to grower
control of every one of these many
Speculation Over?
Your committee hopes that you
will entertain no proposals that fail
to take into account the whole pic-
ture. But undoubtedly we have
reached the point where we must
definitely turn our faces in that direc-
tion. No one expects a complete
revamping of our marketing system
in a single day, or a single season.
For about thirty years the Florida
citrus industry has been feeling the
effects of declining youth and ap-
proaching maturity. It is still a
young industry, as the lives of in-

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THE CITRUS GROWER, September 1, 1939

dustries go, and now seems at the
very threshold of taking on the re-
sponsibilities of coming of age, of
regulating its affairs, and becoming
a stable economic force in the com-
munity. The period of unbridled
sowing of wild oats is over. It ap-
pears certain now that speculation
and horse trading are things that
must be abandoned for more or-
derly handling of affairs.
Cooperative Experience
It was in 1911 that grower con-
sciousness of his duty to his indus-
try resulted in the organization of
the first cooperative marketing move-
ment. Your committee regrets the
causes that have prevented that
movement from gaining and hold-
ing the confidence and support of
a sufficient number of growers to
make it the true representative of an
overwhelming majority of the ton-
nage produced in this state. Many
and frequent efforts in various other
directions have been made to bring
order out of chaos and establish a
basis that would give the grower
more security. It is these other ef-
forts with which we are most con-
cerned. They are indicators show-
ing us what pitfalls to avoid even if
they are not altogether clear and
definite in showing which is the
right course to take.
Voluntary Agreement
First we tried control by voluntary
agreement. We will use one out-
standing example which illustrates
the impossibility of securing order
in the industry by means of volun-
tary agreement among private ship-
pers. This example is the Florida
Citrus Growers Clearing House As-
sociation, which represented an effort
on the part of Florida growers and
shippers to stabilize prices. The
Clearing House Association was
based upon the earlier work of the
Fruitmen's League and afterwards
the "Committee of 50" which ef-
fected the actual organization of the
Clearing House. The Clearing
House came into being in April,
1928, after something over a year
of conferring and negotiating be-
tween the growers and shippers with
the representatives of the United
States Department of Agriculture
giving consultation and advice. It
was organized as a grower controlled,
non-profit body under the statutes

of the state of Florida and under
the Federal Cooper-Volsteadt act,
prescribing the manner of organizing
Classed As Failure
The original charter of the Clear-
ing House put growers in the ma-
jority in the control of its affairs
but subsequent amendments which
were insisted upon by shippers, fin-
ally put the administration of af-
fairs totally in the hands of shippers
and the clearing house soon became
ineffective and later passed quietly
out of the picture.
Its efforts at industry regulation
may be classed as a complete failure
and experience has shown that all
similar efforts to control the industry
under voluntary agreements have
come to nothing. This is based
upon a statement by Judge Hulbert,
then with the United States De-
partment of Agriculture, who as-
sisted in setting up the Florida Clear-
ing House venture and who has
since been connected with many
similar efforts.
These failures are based on the
fact that conflicting interests between
shipping units cannot be reconciled
to the extent that all the shippers
can be made to work together for
the benefit of their industry. Im-
mediate selfish interests predominate
over a desire to benefit by the indi-
rect means of helping the whole in-
dustry. This is the principle that
wrecked the Clearing House in the

opinion of your committee.
The failure of widespread efforts
throughout the country to regulate
agriculture by voluntary agreements
resulted in the enactment of the Fed-
eral Agricultural Adjustment act
setting up the Agricultural Adminis-
tration under which it is possible for
;members of an industry to vote for
a specific plan of regulation, and if
the vote indicates that a specified
,majority of producers and handlers
approve the given plan the Federal
Government may use its police pow-
ers to compel unanimous compliance,
if approved by Secretary of Agricul-
ture. Agreements under this act
have proved beneficial in numerous
cases. Your committee has found it
highly significant and profitable to
examine the causes of success and
failures of regulation under compul-
sory government supervised agree-
Results Discouraging
Efforts in Florida to take advan-
tage of the provisions of the AAA
have not been encouraging. In 1935
and in 1937 short lived volume con-
trol agreements were put into effect
in Citrus here. These were unsuc-
cessful for two different reasons.
The first reason is that which
caused the downfall of the Clearing
House, namely, that shippers were in
control and the conflicting interests
of shippers would not permit success-
ful operation of the agreement. The
second is, that these agreements were

Page 10

Of the condition of your trees during the summer
The immense amount of rain which has fallen during
the past two months has robbed many groves of much
of the plant food needed right now to properly mature
the crop already set and to build up tree strength for
the future.
In a great many cases a supplemental fertilizer applica-
tion is imperative right now.
Each grower can observe for himself whether his grove
needs more food-if it does we are prepared to offer
immediate service, the right ingredients and an eco-
nomical program.

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Growers are invited to take advantage of our free soil testing and
analysis service.

THE CITRUS GROWER, September 1, 1939

set up on what is commonly known
as a "past performance" basis, or
combination of current control and
past performance. That is, the shipper
was permitted to ship on the basis
of shipments made in the season im-
mediately passed, or on the basis of
average shipments over a number of
seasons past. Into the hands of the
shipper was placed right to ship and
he could use it as a club over the
grower who had the fruit but no
facilities to ship it. This put ship-
pers in a strong bargaining position
and, of course, raised justified and
strong protests from growers.
Shipper Control Out
Agreements permitting shipper
control or agreements on a past per-
formance basis, which in effect give
shipper control, are no longer coun-
tenanced by the Agricultural Adjust-
ment Administration and the Secre-
tary of Agriculture will not submit
for a vote an agreement that provides
for "past performance" allotments
or shipper control. The new method
is known as volume prorate on a
current control basis in which the
right to ship remains with the fruit.
As long as the grower owns the
fruit he continues to hold the right to
ship it. The right to ship follows
the fruit from one hand to another.
Consequently, the person in control
of the fruit has the right to ship or
to an allotment to ship.
Fits Some Shippers
This current control provision sets
up no difficulties for the grower ship-
per who owns his fruit, or the coop-
erative shipping associations which
in effect are growers handling their
own shipping problem. That is,
the fruit owned by such concerns
is capable of coming under control,
in fact is under control. As the
AAA says "such fruit has a home."
It is known which shipper will han-
dle this given fruit and that shipper
can come under the regulations very
handily. And the whole volume of
such shipments are under control at
the beginning of the season. It is
known exactly how much a given
shipper will handle and whose fruit
it will be.
Doesn't Fit Others
The independent and speculative
shipper is in a different situation
from that of the grower shipper
and the grower cooperative market-

ing association. He buys fruit on
a daily or weekly basis and does not
have a definite amount of fruit un-
der control to cover the whole sea-
son. In fact, it is not known how
much fruit he will ship or which
specific fruit he will buy. This
creates a bad control situation under
which the independent shipper finds
it impossible to get allotments.
A more serious situation, however,
than the plight of the independent
shipper is the fact that approximately
50% of the crop is in the hands of
independent growers which is "wild"
fruit and is hanging there uncon-
trolled as a threat to upset any plan
for industry regulation. Industry
regulation, it seems from experience,
must have its effect immediately upon
shippers, and if the shipping agen-
cies do not have control of the fruit
in their hands, any control of the
shipping agencies does not result in
control of the fruit and, conse-
quently, such attempted control in
the past has met with disaster.
This is the very reason the AAA
officials and Mr. Wallace, Secretary
of Agriculture, would not permit
a marketing agreement for volume
prorate on a current control basis to
come to a vote in Florida in Janu-
ary. The probability of failure was
too great and the conditions for ef-
fective control were absent.
The refusal of the Department to
submit the marketing agreement pro-
vision for volume prorate on a cur-
rent control basis brought about a
very disappointing situation for the
grower organization and its market-
ing agreement committee, which had
made such great efforts to get for
the growers the substantial benefit
of this sort of regulation.
All of us felt very badly about it
but the industry committee and the
executive committee unanimously
have lately come to the conclusion
that with 50% of the citrus crop
in such condition that it cannot
be regulated makes it foolish for us to
entertain the hope that such regula-
tion can be brought about until
fundamental readjustments in the in-
dustry and grower habits of selling
have been made. Your committee
is persuaded that as long as half or
more of the growers insist on pres-
ent bargaining practices Florida
growers must content themselves

with the very simple form of regu-
lation, which we now have, namely,
grade and size restriction, and grow-
ers must also content themselves with
its very limited benefits.
The growers' insistence upon the
exercise of his right to sell fruit when
and where and to whom he pleases
brought about the defeat in the last
legislature of an effort to secure vol-
ume regulation under state law. That
is, the grower habit of selling, and,

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Page 11

THE CITRUS GROWER, September 1, 1939

thereby, giving his support to specu-
lative elements in the industry
(whose primary interest is packing
house profits) permits these elements
to exist and they were at the legisla-
ture with talent hired by generous
sums of money which had been made
off of handling the growers' fruit,
and were able to defeat this regula-
tion item in the growers legislative
This "wild" fruit is a problem
of the broadest significance. But
"hope springs eternal" and the
grower organization was by no means
whipped by the long series of fail-
ures to bring order into our market-
ing methods and began immediately
to look for other ways out. Meet-
ings were held by the Administra-
tive officers of the organization with
practical fruit men and with econo-
mists in the State and Federal De-
partments. The industry was thor-
oughly examined from one end to
the other. Out of which grew the
proposition to request that the mar-
keting end of the industry sit down
with the grower to work out a mar-
keting program which would have
two features: One, a long term
view of the situation having for its
purpose a gradual reform of the in-
dustry to put in on a basis that
would guarantee the grower a return
above cost of production. The other
feature was to plan some immediate
steps to handle next season's crop
in such a way as to promise higher
returns to the grower than the dis-
astrous prices the past two seasons.
As said at the beginning, all ef-
forts to get agreements or to work
out a plan with handlers have been
unsuccessful. The two concrete sug-
gestions that have been made are:
(1) To revive the Clearing
House which has been demonstrated
here and elsewhere to be unwork-
(2) A proposition by a shipper
that all the shipping agencies in
the state might junk their sales
agency and thus eliminate destruc-
tive competition between hundreds
of competing selling agencies. This
suggestion brings up a picture which
is, indeed, alluring and something
that all of us hope for in the indefi-
nite future, namely, a single sales
agency handling the whole citrus
crop and combatting the influence

of a combination of buyers in the
consuming markets. The sugges-
ton offered no details and, in fact,
the shippre himself finally agreed
that it would not be acceptable to
any considerable portion of citrus
shippers, coopreative or independent.
pension of demand it seems to your
When no plan was forthcoming
from the shippers, the growers them
selves suggested a program consist-
ing of three main items:
program to be ready for use when
needed dto balance production with
(2) Orderly marketing.
(3) Fewer selling agencies or
the grouping of sales effort in a few
hands. This program of the grow-
ers has received no encouragement
from any substantial number of
We have outlined difficulties pre-
sented in the matter of orderly mar-
keting where we have independent
growers and independent shippers not
in a position to be controlled. Your
committee, in looking into the mat-
ter of concentrated sales in the hands
of a few agencies, has run upon sim-
ilar difficulties. Private shipping
concerns and independent coopera-
tives are each and every one jealous
of his own right to strive for su-
periority. Each regards himself as
more intelligent than his neighbor
and each wishes to take a fling in
the mraket to show that his bargain-
ing power is greater than his neigh-

bor's and that he can get 10 cents
more per box. _The result is that
the whole industry suffers from this
competition between sellers by re-
duction in price variously estimated
at 25 cents t oa dollar per box. In
fact, as our marketing is crgarizzd
at present, the fundamental reforms
of orderly marketing and concen-
trated selling seem to your commit.
tee to be (practically) impossible.
The only solution is fundamental
There is another item dear to the
hearts of many growers, which is,
that new markets should be devel-
oped in new areas. Under the pres-
ent competitive setup if one shipper
spends the extra money and effort to
build up a trade in a new location
he does it with the assurance that
he will immediately meet competi-
tion in the new area by other ship-
ping agencies shipping Florida fruit
an dthe extra effort will not pay for
itself. Consequently, he must take
the easy route and compete in the
established markets. Consistent ex-
committee can not be realized unless
the citrus industry is unified to the
extent that the whole industry can
put its united force behind the big
problem of broadened markets.
While a discussion of these prob-
lems is going on prospects of bet-
ter conditions are poor. Citrus fruits
will be produced in greater quanti-
ties as the years pass and will meet
fiercer competition from other fruits


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3. Mutual participation of packing earnings by all growers shipping
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5. Affiliated in all terminal markets with the American National Co-
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Today, as Always,
for Quality.

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Page 12

THE CITRUS GROWER, September 1, 1939

and vegetables. The grower organi-
zation will fail in its duty if it does
not point the way out of these diffi-
culties. Your committee sees no way
around present and future difficul-
ties.,except through well advised reg-
S4 We believe that growers agree with
us that regulation is necessary.
Unquestionably, much of the
thinking which inspired the forma-
tion of Florida Citrus Growers, Inc.,
was actuated by the hope that a
large organization of growers would
be the means through which Fed-
eral regulation of volume could once
more be obtained for the Florida
Citrus Industry.
It seems to me that thetremen-
dous effort put forth by the grow-
ers' organization during the latter
part of last year si certainly indica-
tive of the desire of the membership
of the growers 'organization to fur-
ther realize their need for regulation
and the hope that this organiza-
tion could bring about the type of
regulation required.
It is recognized that growers want
regulation in general and want its
benefits, and the only thing which
prevents such regulation is the con-
fusion and discouragement which
have resulted from past failures. We
have seen that voluntary shipper reg-
ulation has been ineffective either for
regulating fruit movement or for re-
ducing competition. We have found
that regulation under Federal market-
ing agreements has failed not only
with us but in other kinds of per-
ishable produce marking where we
have the usual methods of the in-
dependent grower and shipper com-
plicating the scene, and these failures
have repeated themselves to the ex-
tent that the Federal Government
will not risk attempting to admin-
ster a program of volume prorate
under conditions existing in Florida.
We have found that concentration
of sales is out of the question under
present conditions. We have found
that the incentive to broaden mar-
kets and increase consumption is lack-
ing in our present methods of mar-
keting. The question is, where shall
we go from here?
Since our failure to get any con-
structive proposal from the handling
side of the industry, your commit-
tee has called in state and federal rep-
resentatives who have watched grow-

ers at various times and in many
places work out problems such as
we ourselves have. They have
watched the successes and failures
and have given your committee the
benefit of their experiences.
In refusing to permit the volume
control agreement to come to a vote
in Florida last year the Department
of Agrictulture said that conditions
in Florida were not favorable, in
fact, made it impossible for such an
agreement to work here. They did
not leave us guessing at that time
but went further to say that volume

control works best in those indus-
tries where a majority of the prod-
uct is handled by grower coopera-
tive selling associations and that tne
degree of benefit obtained from them
has been in direct proportion to the
percentage of the industry actually
in such associations.
In addition to the easy adminis-
tration of orderly marketing where
an industry is organized by the pro-
ducers on a cooperative selling basis,
the advisers of your committee have
said that further benefits followed,
namely, a concentration of selling.

Citrus Needs Complete Fertilizers

All the elements
properly balanced
are provided in



Orlando, Fla.


Page 13

THE CITRUS GROWER, September 1, 1939


T HE FLORIDA CITRUS industry has grown up.
It is long overdue in making adjustments towards
its markets and customers. These adjustments are
made necessary by virtue of the industry coming of age.
They are just as important and fundamental as adjust-
ments in the views of a child when he ceases to be a
child and becomes a responsible member of his com-
munity. The grower who is the basis of his industry
must become conscious of his obligations to himself, to
his fellow growers and to the general prosperity of the
citrus belt.

The citrus industry may be said to have become of
age in another respect. It has enjoyed its youth up
to the very recent past. Bubbling over with this youth-
ful spirit the industry has been able to stand terrific
shocks and abuses. We could ship green fruit and good
fruit without any regard for the quantities the markets
would absorb, and sellers here could have a big time
cutting under a competitor, and still it has been pos-
sible to get enough for the fruit that the grower has
usually received cost of production and sometimes a
handsome return on his investment. Lately competitive
and surplus conditions have changed the situation.
Youth has now spent itself and the grower
organization has lately come upon the scene, born
,out of necessity, and has been grappling with problems
of adjustment for something over a year. We have
had some outstanding successes but there is much yet to
do and the loyalty and strong support of the growers
is more necessary now than at any time in the past, in
order that we may move forward and complete our
work of bringing about conditions that will assure a
profit to the grower.
Loyalty and support is needed now, because our
successes have excited the fear of our opponents. Con-
fusion and doubts are now being be sown among grow-
ers, and growers must be more able now to meet them
with truthful knowledge than has been necessary in the
past. Our county and local meetings, our official publi-
cation "The Citrus Grower" are the means the grower
organization is using to provoke thinking and discus-
sion and weld unity among the growers that we may
stand our ground in the present difficult situation.
The all important thing is to preserve the strength
of our organization. The growers must get together
and defend their interests. More and more we have
convincing evidence that this is the growers' only sal-
For instance, in this effort to put the selling of Flor-
ida citrus fruits on a sound basis, we naturally have
run up against the proposition that every individual
shipper, including the independent cooperatives, are
jealous of their own ability to sell fruit efficiently and

each one imagines he can get a better price than his
competitor. The resulting competition, however. ba4
the effect of bringing lower prices to everybody,.
What means are we going to use to put authority
to sell in the hands of a few agencies and cut out this
destructive competition? Frankly, we do not know.

The shipping fraternity to whom the grower or-
ganization suggested this problem have given no worth-
while suggestions. Every shipper, of course, is still
jealous of his individual place in the industry, and no
one can blame him for that, but, at the same time, the
grower who is threatened with continued prices below
cost of production must protect himself. He must
work for some method that will coordinate these
sales in such a way that Florida shippers will not con-
tinue cut throat competition.
The only suggestions that have come from the ship-
ping fraternity along this line are very poor suggestions.
Actually they do no more than suggest a revival of the
old clearing house for coordinating sales and a volun-
tary proposition for orderly marketing which is after
the pattern of volume control on a past performance
The history of the clearing house effort in Florida
and the history of similar arrangements throughout the
country have been uniformly unsuccessful. Also, or-
derly marketing, which depends for shipping allotments
on a past performance basis, has proved so uniformly
unsuccessful that the United State Department of Ag-
riculture will not sponsor any arrangement of that kind.
These instances are cited to indicate the well known
truth that any sort of industry regulation must be in-
itiated and supervised by growers themselves. Growers,
in fact, are the only ones standing to benefit from in-
dustry reform. This is the growers' worry. The other
elements in the industry get their profit so long as the
price of fruit is high enough to pay for handling and
marketing expenses.
But the failure of the shipping side of the industry
to offer constructive suggestions puts the necessity of
thinking out the problems squarely upon the grower.
The leaders of the grower organization through articles
in the magazine and through news releases to the papers
have endeavored to keep the growers advised as points
are developed. The magazine has also published let-
ters from the growers showing grower reaction. It
will take more of this discussing back and forth before
we can come to the definite plan of action, but we are
getting close to the time when discussions must be called
off and action must take its place.
The leadership needs grower support and grower
criticism in this crucial time.

Page 14

* *
* *

a sane, workable and efficient plan
of broadening markets and increas-
ing demand. These are desirable,
in fact necessary objectives in Flor-
ida and we hope the membership
of this organization will give the
arv ue of cooperative marketing
careful and critical consideration.
Lur committee must, however,
m its duty in calling attention
S possible chances of failure in the
direction of cooperative marketing.
The government officials were care-
ful to point out to us that just as
in private enterprise management has
everything to do with success or fail-
ure. Competent management is ab-
solutely ineispdnsible and, of course,
difficult to find. Faliures in coop-
eratives, however, are on a lower per-
centage than failures in private busi-
It is also impossible to operate
any cooperative as cheaply as a plant
of corresponding size operated by
an independent shipper. The inde-
pendent shipper especially under the
surplus conditions which now pre-
vail can selec tthe crops which he
buys. He can select them for qual-
ity and for their nearness to his
plant and he can select the larger
crops which can be picked and
handled more economically. A co-
operative organization would neces-
sarily be set up to take care of all
growers and we might say especially
small growers and growers in out-
lying locations which would not
attract the speculative buyer. The
handling of these crops necessarily
means that the cooperative would
incur expenses which the speculative
shipper would not incur. Coopera-
tives also with their large number
of bacthes of fruit going through
the plant and the fact that each own-
er's fruit must be handled and graded
separately; the operation of pools,
etc., encounters complications and
addition expense in packing house
operation, administration and book-
keeping. But even so, the tremen-
dous spread between costs of vari-
ous shippers, indicates that an ef-
ficient cooperative can do a real serv-
ice for even those small outlying
The experts say, however, that the
benefits resulting from possibility of
a regulated and orderly industry, due
to the predominance of cooperative
marketing organizations, more than

offsets the additional expense incurred
in this scheme of distribution.
The Federal Government is so
thoroughly persuaded that coopera-
tive marketing is the final solution
of a regulated industry that it gives
very substantial assistance to this
method. Cooperative marketing as-
sociations may be organized by grow-
ers and if they are in an area not
already sufficiently served with pack-
ing house facilities very liberal cred-
its may be had from the Farm Credit
Administration for acquiring plants,
for working capital and funds for
commodity loans for products in
storage awaiting favorable market-
ing conditions.
We would not wish to have it
understood that the Federal Govern-
ment recommends to growers that
they form cooperative marketing or-
ganizations. In fact, all of our ef-
forts to secure specific recommenda-
tions from the AAA and Farm Credit
Administration representatives were
futile. They said the growers only
can solve their problem and the Gov-
ernment stands by to give assist-
ance to anything the growers under-
take which the Government regards
as constructive.
Your committee is not recom-,
mending cooperative marketing as a
way out of present difficulties, but
it is simply laying before the state
directors and the county organiza-
tions and their membership its find-
ings from a study which has con-
sumed many weary days. We wish
to reiterate here that the growers or-
ganization does not propose to tell
any grower how he shall market his
fruit and no attempt will be made to
push any kind of marketing scheme
upon the grower, In fact, your com-
mittee sees great possibility of con-
fusion and niconvenience due to a
too hasty shift of a considerable
tonnage into cooperative marketing
channels. Your committee has had
before it representative grower mem-
bers from various sections of the cit-

Reliable Varieties, Budded Trees. Bud-
Wood and Fruit. M. F. Goering, Rt. 1.
Box 259, Largo, Florida.
B. C. SKINNER (Brogdex System), Dun-
edin, Florida.

rus belt who now ship independently,
who have told the committee that
they are preparing to organize local
cooperatives in their own communi-
ties. Some of these growers have
closely followed the investigations
of this committee and have come to
the conclusion that copoerative mar-
keting is the final answer and are
proceeding to take that course at
Some Going Ahead
Many of these growers have had
experience in cooperation that was
not altogether satisfactory. They
are seasoned cooperators who know
some of the faults and failures but
now intend to form for themselves
cooperative marketing establishments
to serve their ow* needs, in the
full light of past successes and fail-
Agencies Must Combine
Another caution which is given
is that a new independent coopera-
tive in the citrus belt is merely an-
other sales organization and there-
fore another competitor in the termi-
nal markets, and more competition
among sellers will have the effect of
putting buyers in a stronger position
and enabling them to buy cheaper.
Therefore, we wish to go back to
a statement made earlier in this re-
port, namely, that no one thing will
solve all our difficulties, and assum-
ing that cooperative marketing is the
final answer, if cooperatives are or-
ganized independently and do not
band themselves into some sort of a
central selling group, which can
handle the selling for all of the
various affiliated packing associations.
that is, unless by this means a con-
siderable quantity of fruit can be
brought under one centralized ship-
ping organization we will still have
cut throat competition and we will
still be lacking the base from which
to launch a successful campaign to
broaden markets and increase distri-
bution. So if cooperative marketing
is the answer the cooperation must
extend to the point that the various
independent units will all sell
through some sort of a centralized
Old Opinions Deserted
The reading of this report thus
far has, no doubt, persuaded the di-
rectors that the committee has been
careless of pride of opinion and has

Smith Mr S R
General Crops Sec AAA Dept
Washington D C

not hesitated to cut through and
examine, even devastate past conclu-
sions. For this your committee
makes no apology. It regards itself
as conscientiously following its duty
of giving the growers the facts as
Constructive Shipper?
We will proceed to demolish an-
other policy which has been carried
in our magazine and discussed by
speakers at meetings. This is the
"constructive shipper." There are
many shippers in the industry that
have a most helpful attitude toward
anything calculated to help the in-
dustry. and who have given our
organization assistance in efforts to
secure regulation.
It has been presumed in the past
S that these shippers could be taken
care of in a scheme of regulation
by growers giving them control of
S their fruit at the beginning of the
season. fhis would require that the
grower have complete confidence he
would be treated right by such. ship-
per and the time of picking and other
details could be provided for. This
would give the grower a "construc-
tive home" and would give the ship-
per control of the fruit, and they
together could enter the scheme of
Impossible Protect Both
Our organization attorneys have
found that it is impossible to draw
a contract which will provide for all
the contingencies that may arise dur-
ing the season. The most important
feature of this investigation is that
it has been found possible to protect
the shipper absolutely, but it has
not been possible equally to protect
the interests of the grower. A more
accurate statement is that the grower
in demanding regulation, your com-
mittee believes, wants that regulation
to be fair regulation. He wants to
be treated, what the higher ups call
equitably" which means his inter-
ists will get impartial and just con-
sideration Hence your committee
hesitates to suggest that the grower
go into a contract that is admittedly
in favor of the shipper however
good that shipper mav be The legal
department of the Agricultural Ad-

justment Administration also states
it has been impossible to devise a
contract of this sort that will give
equity both to grower and to ship-
per. Your committee shares the de-
sire of other growers in wishing for
regulation that will raise prices, and.
at the same time. care for the in-
terests of every efficient grower, large
or small, and return to all growers
as great a share as possible of the
consumer's dollar. We are not rec-
ommending methods by which this
situation can be brought about. We
have endeavored to indicate the ways
that are open and the ways that
appear to us to be closed.
Recommend Action
Your committee does, however,
strongly reccommend and urge that
the grower act in some way for his
own interest. The disastrous condi-
tions of the past season are not ac-
cidental but are due to far reach-
ing causes. Orderly marketing and
better selling methods are the only
promise of relief from these threats.
Your committee urges that the board
of directors and the other growers
take the facts outlined in this report,
discuss them, and take action.
Shippers Also
Your committee and the United
States government are not alone 'in
stating that beneficial reforms in the
citrus industry can come only when
growers themselves act. The shippers
of Florida are unanimous in saying
that beneficial regulation is up to
the grower himself. The grower must
act in his own interest. No one else
will do it for him.
The committee feels that it has
served its purpose when it has care-
fully studied and analyzed bases on
which sound regulation may be ob-
tained and when it has transmitted
its findings to the board of directors,
and through them, to the growers.
We hope this report will prevent
growers from making further at-
tempts at regulation and further seek-
ing for fair play for the grower in
directions where probability of suc-
cess is unlikely. We are persuaded
the industry can not be regulated
from the top down, but it must
begin with the growers themselves,

who must accept the duty of serving
their own interests.
The members of the committee
will be pleased to answer any ques-
tions raised in this report which are
not answered therein, and hopes it...m
work will result in constructive
tion for which the grower sta y
so much in need.
Your committee proposes that we
growers use our minds, and our God
given liberties, to protect and pro-
mote our own interests.

Mr. Virgil H. Conner.
Orlando, Fla.
Our President Kramer really spoke
in The Citrus Grower of July 15th.
when he said "We have dressed up
our fruit." But the revision on our
system of grading failed to consider
the part of the fruit the consumer
uses. I sat in on the meeting when
the grades were being considered. and
I remember considerable discussion
over whether fruit with seven green
spots on the peel would be allowed
to go in a certain grade. The noise
we make over our grades is enough
to cause consumers to think some of
our fruit might be poison.
Since we grade our fruit by the
peel, I would suggest we change the
designation of our grades from Nos
1, 2 and 3, to No. 1 Bright. No. I
Bronze, No. 1 Golden (or Russet i
and a Combination grade, and let the
Combination be liberal enough to
take in all good fruit below the No.
1 grade in all those three colors, and
destroy the culls. Then the con-
sumer would know what he was bur.
ing. If he wanted fruit just to look
at,'he could select his color. if he
wanted it to eat, it is all good when
it is tree-ripened.
The members of the Fort lead
unit have gone on record. 28 to 2
favoring that system of grading
Best wishes.
Yours truly.
Ni. NM Loadholtes.
Fort Meade, Fla.
July 29, 1939

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