Title: Annual report of the business manager of the Florida Citrus Exchange
Full Citation
Permanent Link: http://ufdc.ufl.edu/UF00086641/00001
 Material Information
Title: Annual report of the business manager of the Florida Citrus Exchange
Physical Description: v. : ill. ; 23 cm.
Language: English
Creator: Florida Citrus Exchange -- Business Manager
Florida Citrus Exchange
Publisher: Grower Press,
Grower Press
Place of Publication: Tampa Fla
Publication Date: 1921-1922
Frequency: annual
Subject: Citrus fruit industry -- Statistics -- Periodicals -- Florida   ( lcsh )
Citrus fruits -- Statistics -- Periodicals -- Florida   ( lcsh )
Citrus fruits -- Marketing -- Statistics -- Periodicals -- Florida   ( lcsh )
Genre: statistics   ( marcgt )
General Note: Description based on: Season of 1921/22 ; title from cover.
 Record Information
Bibliographic ID: UF00086641
Volume ID: VID00001
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 - 46798872
alephbibnum - 002695037
lccn - 2001229402
 Related Items
Succeeded by: Annual report of the Florida Citrus Exchange

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AUGUST 31, 1922

Practically all farm products, during the past year, sold at un-
satisfactory prices. The readjustment of general business created
a condition which affected the sale of these products. Citrus fruit
from Florida, however, was an exception. The first part of the
season it sold at satisfactory prices with every indication pointing
to a reasonably good season, because, although the country was
being threatened with strikes; business was undergoing drastic
liquidation and the process of reconstruction was in full swing, it
was soon realized that the methods of this organization were being
felt in the markets more than ever before. This was because our
methods under our new Sales Manager were being changed grad-
ually during the two years previous, and a more aggressive policy
used in our selling. The development of new markets last season
was the greatest of any year in the history of the Exchange. The
Exchange was the greatest factor in the markets, last year; it soon
got control of the situation and worked to stabilize prices. Our
wide distribution tended to diminish slumps. On January 19,
1922, a freeze in California practically stopped shipments from that
state and so damaged that crop that they were not a material factor
for the remainder of the season. This condition was reflected im-
mediately in prices realized on Florida citrus. The Exchange at
this time had the greater portion of its holdings to move, and mem-
bers were able to realize much greater returns for their crop.
In a year when business was in the condition above mentioned
the advantages of cooperative marketing, making for orderly distri-
bution, were apparent. Undoubtedly the greatest factor in stabiliz-
ing the market before the California disaster, and the greatest
factor in getting the high dollar after the California freeze, was
the Exchange.
The Florida crop amounted to 33,023 cars, made up of 14,930
cars of oranges, 18,093 cars of grapefruit. The Florida Citrus Ex-
change handled 10,572 cars, or 32%, or Y4 of 1% less than the
percentage controlled last year; this loss was occasioned, prin-
cipally, by the storm of October 25, 1921, and the losses to growers

were heaviest in those sections where we had made our best gains.
Further, the storm affected grapefruit to a considerable extent in
Polk County, causing losses which continued throughout the year.
Prior to this storm all Sub-Exchanges had reported very material
gains, and we have reason to believe that these estimates were
accurate. However, the final results show gains only in Dade,
DeSoto, Indian River, Lee and Volusia, amounting to 367,053
boxes, and losses in Highland, Hillsboro, Manatee, Marion, Orange,
Pinellas and Polk, amounting to 466,952 boxes. Two main con-
ditions affected the percentage of our crop. First, a change of
managers in the Highland Citrus Sub-Exchange and Marion County
Citrus Sub-Exchange probably was the cause of a loss there of
190,930 boxes. Second, although Orange County reported a con-
siderable gain in membership, they were confronted with a short
crop of oranges in the very territory where they had made their
/ gains.
Total amount remitted to Sub-Exchanges for fit amounted to
$11,926 99.01 for 3,805,942 boxes, or $3.4 per box; Sub-Ex-
c angeand Association charges to be deducted from this to get the
net amount the grower received. The price includes all grades and
qualities of fruit.
Storm damage made a large percentage of the fruit, last year,
low grade. This condition was reflected in the prices.
Mr. J. Reed Curry is Chief Organizer, having held that position
with the Exchange for seven years.
The many duties embraced in the work of the Organization De-
partment appear to the observer only after he has become thor-
oughly familiar with the comprehensive plans and extensive efforts
being made, through this department, to accomplish more complete
cooperation among the growers of Florida.
Its operations are not only necessary in the progress of our busi-
ness, but are, in reality, fundamental; and to a large degree the
success of the Florida Citrus Exchange is dependent upon the
initial work done by this department through the main office and
the various sub-exchanges and associations. Additional volume of
fruit and new members must be obtained each year throughout the
state in order that the Florida Citrus Exchange may grow larger
and increase its control of the fruit production of the state. In
accomplishing this, the growers must be visited, and their affilia-
tion obtained.
While it is true that much has been written and published re-
garding the methods and purposes of the Florida Citrus Exchange,
and it would therefore seem reasonable that by this time all grow-
ers of the state would fully understand and appreciate the value
and need of it, yet it is a fact that a very large per cent of the grow-
ers, both in the organization and out of it, have not yet compre-
hended the system of cooperative marketing in all its important

Therefore, one of the main objects of the Organization Depart-
ment is to meet such growers individually and collectively, and,
by patient and exhaustive effort, explain what the Florida Citrus
Exchange is, why it exists, how it is formed, how it is operated,
methods necessary to increase demand and build up markets, show
the needs of grove records and the production of high grades of
fruit, and all other things which affect the welfare of the business.
It is readily seen that much of the work of this department is
EDUCATIONAL, and in order to get best results close attention
must be given to the differences in personality of the growers, their
peculiarities, environments, and past experiences. In approaching
them upon the subject of cooperative marketing, it is necessary that
this department should have a complete knowledge of their problems,
and be actuated by an honest desire to assist in solving them.
In visiting hundreds and hundreds of growers during the past
year, we have found it advisable to spend hours with many of them
in order to clear their minds of misunderstanding or prejudice, and
convince them that their interests are dependent upon our success,
and that their cooperation would be of advantage to themselves
and to us.
One of the functions of this department is to get together the
growers of new communities, organize them into associations, assist
them in plans for financing and building new packing houses, and
visit them at regular intervals thereafter, to help them to operate
Your organizer attends as many association meetings as possible,
to address the members upon subjects of interest and inform them
regarding new methods, and also keep them advised regarding pro-
gress of other associations and the general work throughout the
state. During the past year he has attended 73 meetings of mem-
bers and directors of associations and sub-exchanges.
Sometimes it becomes necessary to adjust differences which have
arisen among the members of associations, and this particular duty
calls for the most diplomatic and careful efforts, since to take sides
with one faction will invariably antagonize the other.
The effort therefore must always be to appeal to the loyalty of
the members as a whole, and if possible effect a compromise of the
During the past year it has seemed that the competitors of this
organization have been unusually active in spreading reports and
statements that were false and misleading. To offset and correct
such propaganda the organization department has been compelled
to follow up, and trace down reports. It has always found them to
be started by speculators, whose motives were to discredit the Flor-
ida Citrus Exchange.
New associations have been organized during the past year in
such localities as needed them, and there are already prospects for
several additional packing houses for next season.

In connection with the organization work of this department your
organizer has travelled, during the year, approximately 28,000
miles, and has visited every important citrus section of the state.
Because a large per cent of growers are non-residents, it has been
necessary, at times, for visits to be made to northern states to se-
cure their cooperation.
Such recommendations as might be made by this department
would include more active efforts to reach the non-resident growers,
and acquaint them fully with the work of this organization.
Taking the state as a whole, your organization departments feels
much gratified over the present interest and enthusiastic coopera-
tion of the entire membership, and considers the conditions at this
time to be more favorable than has ever before existed.
During the past year we have issued from this office three book-
lets under the following titles:
"The Florida Citrus Exchange and How It Operates."
"Florida Citrus Exchange Catechism."
"Pertinent Points for Growers to Consider."
This is mentioned to let you know that there is an effort made
to keep up-to-date printed matter in the hands of our Sub-Ex-
changes and Associations, so that they, and the growers, may be
informed on all new points that are coming up, and reminded of
such conditions as seem especially timely. Special mention should
be made of the Exchange Catechism. This book consists of 108
questions regarding the organization, the purposes, policies and
operations of the Florida Citrus Exchange, each question answered
in detail. At the time it was issued, it contained practically every
question that had ever been asked us regarding the above points.
It has met a most gratifying reception, and will no doubt be re-
vised and reprinted from time to time, as it is the simplest means
of giving growers information.
The Cashier's Department is under the management of Mr. W.
T. Covode, who has filled this position for six years, and has been
continuously in the employ of the Exchange since the first year of
its organization.
The total receipts for this past season were $13,161,122.46,
V 12,062,648.85 of which was the net amount received from the sale
off .j. The balance of $1,098,473.61 represents returns on vege-
tables and miscellaneous items.
There has been a noticeable improvement in the promptness most
of our representatives have shown in making remittances. Except
in one or two southern offices and a part of the northeastern ter-
ritory, our remittances east of the Mississippi have been very satis-
factory. There has not been been much improvement in the west
and northwest, as it takes the mail much longer from these distant
points, but an effort to remit more promptly was apparent. Col-

elections for the past season were 100%, as we collected in full for
every box of fruit shipped. Our records show that during the
history of the Exchange we have shipped 26,194,456 boxes of
citrus fruit, the sale of which has netted to this office in excess of
67 million dollars and the only loss we have ever charged off, for
failure to collect, was $458.00.
While we have added a number of new statistical records to the
work of this department, we have been able to keep all this work
up to date and complete. Detailed reports of these have been sub-
mitted from time to time. These records include a statistical book,
showing a complete record of fruit handled by each district and the
net amount of money received, based on an f. o. b. Jacksonville
sale; a shipping register, with a record of boxes shipped by each
Sub-Exchange and the net amount of money received in this office
for each shipment, based on an f. o. b. Tampa sale. This record
also gives the number of boxes shipped by each Sub-Exchange, by
months, and the amount of decay reported. We have a record for
the information of the Sales Department, showing the sale of fruit
in each district and every town covered by that particular district.
When completed, this record will show the total sale of fruit in
every town or city, the name of the purchaser, the brand of the
fruit and the total number of boxes purchased by each customer.
A summary of this record gives us the total sales by districts,
divisions and states. We have completed a record of the receipts
and disbursements, by months, since the organization of the Ex-
change, giving the total received and expended for each account
every month in each year, and a comparison with each previous
Each account sale received for fruit outside of auction is care-
fully checked in this office, and if a mistake is found in price, ex-
tension of figures, or shortage in number of boxes in car, a request
is made at once for a corrected account sale, and when received a
correction is made to the Sub-Exchange. The checking of these
account sales holds up the money in this office for 24 hours and it
is forwarded the next day.
Making maps and charts is comparatively new in this department.
Each morning the Sales Department and the Manager are fur-
nished a chart showing the number of cars shipped out of the state
the day before by the Exchange, and all other shippers. This
chart gives the total shipment to date, and the percentage of Ex-
change shipments. A summary of each week's shipments is made
up on Saturday, and a blue-print made and forwarded to each Sub-
Exchange. A daily record of the car lot shipments is also kept,
and the exact time that the manifests are received in this office. A
weekly report is furnished, showing the shipments by Sub-Exchanges
with a comparison of the previous year. This weekly shipment is
recorded on a map in the directors' room, and is a comparison of
shipments for the past six years. A large map of the United States
and Canada shows the distribution of fruit in every part of the

country. As the account sales are received, a colored tack is placed
on the map showing the town, and if it is a new market, a different
colored tack is placed beside it. A summary of this map shows that
we have placed carload shipments in 354 separate markets of the
country. Of this number 115 towns were markets we did not sell
the year before. We have sold fruit in 44 states and Canada. A
glance at this map gives a picture record of the distribution of sales.
The Traffic Department is under the direct management of Mr.
E. D. Dow, who has held this position for 10 years. Mr. Dow
has been in the employ of the Florida Citrus Exchange for 13
years and, by a few months, has the longest record of any employee.
During the shipping season of 1921-22 there was a noticeable im-
provement in the service rendered by the carriers throughout the
country, in that shipments were handled more expeditiously. An
adequate car supply was available throughout the season, and a
noticeable spirit of cooperation displayed, all of which tended to re-
duce somewhat the amount of claims. However, we filed during
the past season claims amounting to $71,419.87, of which $33,-
602.37 has been collected to date. Within the past year we have
collected on outstanding claims, a total of 4369, amounting to
On January 1, 1922, a voluntary reduction in rates on fruits
and vegetables was made by the carriers as an experiment, to
determine what effect such a reduction would have in increasing
traffic. Apparently the result was not altogether satisfactory, as
the carriers signified their intention of restoring the old rates at the
end of the six months' experimental period. In the meantime,
however, the Interstate Commerce Commission conducted a general
rate inquiry and we appeared in Washington during February, 1922,
and submitted numerous facts and figures showing why the rates
made effective on January 1st should be continued. The shippers
were successful in having the reduced rates kept in force.
Another case of vital importance to the growers of both fruit
and vegetables was the so-called refrigeration case, re-heard by the
Interstate Commerce Commission in Jacksonville during the month
of January, 1922. Your Traffic Department submitted consider-
able data in support of the present refrigeration charges which the
carriers were attempting to raise approximately $10.00 per car.
While the Interstate Commerce Commission has not yet rendered its
decision, the Examiner for the Commission has rendered a tentative
report recommending that the present rates be continued in effect.
In the distribution and sale of fruits and vegetables it becomes
necessary to bill the majority of shipments on diverting points.
Consequently the matter of diversion and reconsignment is one of
vital importance to the industry. This is a matter that your Traffic
Department watches very closely, with a view at all times to using
such points for diversion and reconsignment, and establishing new
diversion points that will prove beneficial to the growers, and assist

the Sales Department in distribution. Because of the increased
number of cars handled last season we found it necessary to relieve
Waycross as a diversion point and a new office was opened at
Florence, S. C., for reconsigning shipments to Eastern and North-
western markets. This gave the Sales Department twenty-four
hours additional time to effect sale before the car arrived at Florence,
thereby eliminating, in a majority of cases, any delay at diverting
point, or any demurrage or extra icing on account of such delay.
Another matter involved in the sale and distribution is that of the
so-called pocket markets, where it is impossible to move a car for-
ward on the through rate, thereby involving a back haul at a local
rate. We have experienced considerable trouble in this regard,
at some points in upper New York, and your Traffic Department
has been successful in eliminating the trouble, to a certain extent,
by arranging for back hauls at a normal ton per mile rate. The
matter is still being handled with the carriers in that territory for
further relief.
One of the functions of your Traffic Department is to arrange
for the publication of through rates to all markets. There is also
a movement of fruit in field boxes throughout the State of Florida,
and while there are numerous rates on fruit in field boxes published
between various points, yet it frequently occurs that some of our
packing houses desire to move fruit in field boxes from some point
to their packing house where no established rate has been published.
Your Traffic Department promptly handles with the carriers the
publication of rates covering these new movements.
The account sales, on reaching the Tampa offices, are carefully
checked by the Traffic Department to determine the correctness of
all deductions of freight and transportation charges. Any over-
charge claim is therefore filed in due course. The Traffic Depart-
ment also makes a careful check of the handling of each and every
shipment, for the purpose of determining damage, of any nature,
and, if due to negligence on the part of the Transportation Com-
pany, claim for the full amount of discount is prepared and filed.
Prior to the season of 1921-22, it was the custom of the Exchange
to file practically all claims against the originating carriers. Dur-
ing the season of 1921-22 we adopted the policy of filing claims for
small amounts against the delivering carriers, and the result in
prompt payments has been highly satisfactory. On large amount
claims, however, it is best to file with the initial carriers, because
such claims sometimes involve questions upon which we and the
carriers cannot agree, and in the event that it becomes necessary to
resort to law for collection, it is more economical and convenient to
enter suit, and prosecute to a conclusion, in Florida than at some
distant point.
We made a thorough investigation of the possibilities of water
transportation for citrus fruit, and found that while it was easily
possible to obtain boats, yet the guaranteeing to them of adequate
tonnage was another matter. In order for a boat line to operate

profitably it must run upon a regular schedule and be provided with
adequate tonnage. We found that a tonnage of approximately
50,000 boxes of citrus fruit would be required to operate a line of
steamers. You will readily appreciate the difficulty of assembling
and loading that amount of fruit at shipside, without either ser-
iously delaying the ship or the fruit. Furthermore, to place that
amount of fruit on any one market, together with carloads arriving
by rail, would doubtless glut the market. With this fact in mind,
the matter of shipping by rail from port of discharge to interior
points was considered. It was found, however, that no particular
benefit would accrue to the growers because of the accumulated
charges of the movement to ship-side, and from port of discharge
to interior destinations, in addition to the steamer charges, practic-
ally equalling, and in some cases exceeding, the through rail rate
from the same shipping points to the same destinations. Of course,
there are regular established steamship lines from Jacksonville to
Eastern ports that handle considerable tonnage in citrus fruit, but
they have other tonnage to complete the cargo. We used the
steamers out of Jacksonville last season on shipments destined to
New York City, and effected a considerable saving in freight
charges. Where a regular steamship line is established, and is not
dependent upon one commodity alone for tonnage, operation at a
profit is possible, but we have not been able to find a way to
operate steamers profitably when dependent entirely upon citrus
fruit and vegetables for its total tonnage.
The Mailing Department is under the management of Mr. B.
C. Fraser, who has filled this position for six years.
Paper used for our daily bulletins and reports during 1921-22
approximates EIGHT TONS-more than one million sheets, each
fifteen inches in length. These sheets placed end to end would
reach more than 237 miles, or from Tampa to Jacksonville.
I am pleased to state that the Tampa superintendent of mails
advised me that if all large concerns would see that their mail is
as carefully addressed and stamped and segregated for mailing as
ours is, it would lessen their troubles and greatly facilitate their
Extent of Campaign
Exchange advertising is handled by a committee of the Board
of Directors, and has been placed through The Thomas Advertising
Service, Jacksonville, Florida, from the beginning.
An outstanding feature of the Florida Citrus Exchange adver-
tising during the year was the degree to which it was made to cover
a larger portion of the country than in any preceding season.
Sealdsweet advertising appeared in more than 25,000,000 copies
of nine of the leading home magazines of the United States-full
color pages were printed in over 6,000,000 copies.

Eight of the leading and most influential medical and nursing
journals of the country carried Sealdsweet message in about half
a million copies. In addition, there was the usual space in fruit
trade and other similar periodicals.
Between November and March, Sealdsweet advertisements were
inserted in approximately 60,000,000 copies of 245 leading daily
newspapers. Dealers advertising, paid for by themselves, sup-
plemented the Exchange campaign in a considerable number of
these papers.
Requests for our recipe booklet, due principally to the magazine
and newspaper advertising, have been much more numerous than
previously. The second edition of 100,000 copies was exhausted
before the end of the season, though the first edition of same size
lasted nearly two years.
Cooperation Secured
The cooperation of most of the factors concerned in making our
advertising a success was notably good this year.
To a greater extent than ever before, our sales representatives
in the north took advantage of the campaign in an efficient and
persistent way.
Fruit dealers, too, gave increased assistance, including, as noted
above, the purchase of a large volume of space at their own expense.
Some magazines sent out handsome circular matter to the fruit
trade, calling attention to Exchange copy.
Other periodicals had salaried representatives call on leading
wholesale houses and explain the extent of our campaign, urging
them to handle Sealdsweet.
Perhaps of even greater value, however, has been the cooperation
given by the magazines through their editorial departments, in
featuring special articles devoted to citrus fruits, especially grape-
The service rendered by newspapers in helping to make our work
effective was on a broader scale than in preceding years. The pub-
lishers of the dailies in scores of cities assisted in getting both
wholesale and retail dealers to place Sealdsweet grapefruit and or-
anges on sale.
Many of the papers went further, inducing the dealers to pay
for advertising of Sealdsweet fruits themselves, in addition to our
own. Almost without exception, the newspapers on our list gave
material aid in the distribution of our store cards and other illus-
trated advertising matter. It is safe to say that if the work done
for us by the service departments of the newspapers had been paid
for, it would have cost the Exchange anywhere from $50,000 to
The fact that it has been possible, in the past year or two, to
extend the scope of our magazine and trade journal advertising,
unquestionably has made it easier for the sales department to open
new markets for Sealdsweet grapefruit and oranges, and to increase

the number of dealers pushing our brands of fruit. Practically the
entire trade desires newspaper advertising in addition, however, and
the difficulties of holding our territory have been multiplied wher-
ever the Exchange was unable to advertise in the newspapers. It is
significant that this year we failed to make sales of Sealdsweet fruit
in less than half a dozen cities and towns in which newspaper ad-
vertising was carried during the 1921-22 season. A much larger
number of the places which bought in carload lots last year, but in
which we were able to do no advertising either last season or this,
failed to buy our fruit during the current year. In making plans
for next season's advertising, it is our intention to provide campaigns
in the largest possible number of the new markets opened this sea-
Results Obtained
In response to questions asked them about the close of the ship-
ping season, 61 out of the 72 Exchange district and division man-
ager workers stated that the advertising had helped them to sell
more Sealdsweet grapefruit and oranges than they could have sold
without it.
At the same time, 1256 out of 1473 representative fruit dealers,
wholesale and retail, in 121 cities, testified that they had found
Exchange advertising helpful in increasing demand for Sealdsweet
fruits. Twelve hundred and thirty-two of these dealers said they
could have done an even larger business in Sealdsweet brands if
there had been more of the advertising.
The great expansion in consumer demand of Florida grapefruit,
undoubtedly due to Exchange advertising, is worthy of special
stress. When the first aggressive campaign for grapefruit was
undertaken by us, our advertising agency made a survey, on which
was based the estimate that not more than 5% of the people of the
United States ate grapefruit in any quantities. A similar survey,
made during the present year, indicates it is reasonably safe to
conclude than now 15% of our population eat grapefruit at more
or less regular intervals.
In an article published by the American Magazine for September,
1922, descriptive of the experiences of a woman who runs restaurants
in Chicago feeding 4,000,000 people a year, the author quotes this
lady, Miss Mary L. Dutton, as saying:
"The year round, grapefruit is the leader among uncooked fruits.
We serve it three times a day."
Several national advertisers of food products, including H. O.,
the breakfast food, have featured grapefruit in the recipes they
publish in magazines. There has been constantly increasing call for
our literature from domestic science schools and similar institutions
and our workers in this field have been warmly welcomed, and in
great demand.

There has been a difference of opinion among growers regarding
the advisability of the practice of coloring fruit. Most growers
have misunderstood this operation and feel that the Sealdsweet
trademark is liable to suffer by this practice. With this in mind
your Manager wishes to make this explanation.
Some two years ago we were informed by United States Govern-
ment investigators that they had learned that the gas exhaust from
a gasoline engine would color fruit. That is, this gas tended to
remove the green color from the rind and the yellow color was left.
When immature fruit was subjected to this process, a very pale
lemon color was the result; but on fruit testing above the Govern-
ment requirements for immaturity, a color was obtained like that
on the tree. Government inspectors had not progressed far enough,
in their opinion, to warrant them in advising as to installation of
coloring plants in various packing houses, but during the latter
part of last season we were able to secure a man who had much ex-
perience in coloring fruit in California. Although his system was
slightly different from that employed by the government inspectors,
his credentials were such that we employed him, and last year
shipped a considerable amount of fruit, principally valencias, that
were artificially colored. At the same time the Government had a
man in the state, working along the same lines as we were working,
and by the end of the season we felt that we were ready to go
ahead and install rooms in various packing houses. This coloring
is progressing satisfactorily, and we are firmly of the opinion that
it will prove profitable to the growers. As the system is perfected
from time to time, it will no doubt come into general use through-
out the State.
Coloring fruit will operate, we believe, to minimize the shipment
of immature fruit, because it will be but a short time until the
trade will accept only full colored fruit from all Florida shippers.
Although the Government is keenly interested in developing this
process, it will not permit shipments that have been artificially
colored, unless the fruit passes the legal test for maturity, com-
monly known as 7 to 1 for grapefruit, and 8 to 1 for oranges.
The bureau of chemistry has sufficient power, under federal laws,
to confiscate any shipment if the fruit is artificially colored and
This will probably operate to make the shipment of green fruit,
uncolored, unprofitable, and make an illegal shipment subject to
seizure anywhere in the United States.
Canning of grapefruit is still in the experimental stage. How-
ever, we have to report some progress. After this office had sug-
gested a plan whereby a purely cooperative association might be
organized for the canning of grapefruit, six associations in Polk
County became keenly interested, forming a cooperative canning

association. Under the proposed operation of this association, the
grower will receive all the money that his fruit brings in the mar-
ket, less the cost of canning. As the association will operate at
cost under exactly the same plan as an association packing house,
the grower is assured of no intervening profit between himself and
the wholesaler. If this venture is successful, the grower will be in
exactly the same position as he is today with his shipments of
fruit through the packing house.
Sales will be made through the sales department of the Exchange,
and the association will operate under a season pool, beginning
about December 1. They have arranged to purchase adequate
machinery, and propose to put out a high grade product under a
brand that will be controlled by the Florida Citrus Exchange, in
exactly the same way as Sealdsweet. Reports will be made during
the season regarding progress.
Mr. J. W. Andrews, a former Government employee, has com-
piled all records, and has been instrumental in working out all
problems in this work. He has held this position for two years.
Credit must also be given to the splendid cooperation of the Asso-
ciation Managers and their assistants. Also, we wish to acknow-
ledge the enthusiastic assistance, and expert advice, of Paul Mande-
ville, of the Davenport Sales Company, and Mr. Geo. Braungart,
of the Southern Construction Company. The untiring efforts of
these gentlemen, in working out the problems of our first coolers,
brought about the speedy results in efficiency obtained.
Precooling has received considerable attention during the past
year. Three new plants have been erected, making a total of seven
plants at Exchange houses. Refrigeration research work has been
continued and this work, with comparative data, is proving valu-
able to member associations.
One extremely important advancement in precooler design and
operation was accomplished in the 15 car vegetable cooler erected at
Sanford, by the Sanford Farmers Exchange. After careful pre-
liminary tests it became apparent that much time could be saved
in cooling such vegetables as celery, lettuce and peppers, if ice-
water were used as the cooling medium, instead of the older cold
air methods. It was found that the ice-water system also produced
marked improvement in the quality, as the vegetables were not
wilted during the cooling process. Instead, they became so charged
with the cool water that they remained fresh and crisp. These in-
vestigations led the Sanford growers to erect a plant in which their
produce could be washed, packed, cooled, loaded into cars, and cars
supplied with ice. The plant, costing approximately $110,000.00,
was erected in 73 working days, and with materials bought almost
entirely through the Exchange Supply Company.
A general idea of advancement along cooling lines developed
at this plant, can be judged by the fact that a carload of celery
can be cooled and loaded in one hour and twenty minutes, whereas

the usual time for the cooling alone, under the air circulation system,
has usually been from 12 to 20 hours, with a much more costly
plant and with two unnecessary handling of the product. The
Sanford plant operated successfully during the season, and the
prices obtained on competitive markets of the north for the washed
and precooled stock, when reduced to an f. o. b. basis, ranged from
10% to 25% higher than for field packed and standard refrigerated,
stock from the same locality.
Exchange associations at Kissimmee and at Mt. Dora are com-
pleting new precoolers which will be available for the coming sea-
son. In both cases radical changes have been made as compared
with plants formerly constructed, and decided economies in con-
struction and operation are indicated. The plants have been de-
signed for rapid, even cooling and, for the reason that no direct
comparisons can be made, it would be futile to express here the
ultimate advancement hoped for. However, prominent refrigeration
engineers, whose criticisms have been solicited, express the opinion
that the Exchange is contributing appreciably to the art of pre-
cooling and that the new plants will be second to none.
Investigations along precooling lines have been diligently fol-
lowed for the past two seasons. The first season's work demanded
technical tests, and eventually radical changes in houses already in
operation, to better adapt the plants to our needs. This work has
been continued, but in a lesser degree during the past season.
While it is not claimed that perfection has been reached in design
and operation, it is evident that precooling is well enough under-
stood, and its basic principles are well enough defined, to warrant
investment by such associations as desire to share in its benefits.
This view of the subject has occasioned the gathering of statistical
data on shipments from all Exchange houses, so that we may be
better able to render service to such associations as are contemplat-
ing precooling.
At the close of the past season a card index was prepared for
every carload of citrus fruit sold by the Exchange. Each card
shows many details, among which are: number of days in transit;
kind of refrigeration or treatment to prevent decay; contents of car;
date shipped; house from which car was shipped and amount of
decay found in fruit upon arrival at market.
Approximately 11,000 such cards are at present being studied,
and eventually the percentage of decay under the several methods
of shipment, will be determined and classified by houses, and by
general location. Copies will be furnished the associations. The
work of getting this data is of such magnitude that no complete
summary can be given for some time. However, to indicate the
extent to which it can be used for pointing the way to our economic
loss reduction, the following paragraphs are submitted from data
already obtained:
(a) In one of our packing houses with precooling plant,
shipments were made during last November, both under

ventilation and precooled. The precooled cars showed
69% less decay than the ventilated cars.
(b) In another packing house with precooling plant,
94.7 % of the box shipments of oranges, precooled, arriv-
ing at destination in 7j 8 and 9 days showed not more
than 3% decay. Of this total 77.8% were reported as
(c) In the plant mentioned in paragraph (b), the
average decay for 144 solid cars of oranges, precooled,
was .85 of 1 %, while the average decay on 53 cars of or-
anges from a neighboring packing house using ventilation
was 3.83%. In both cases only cars arriving at destina-
tion in 7, 8 and 9 days were taken.
These comparisons, together with many others which can, and
should be made, are of such interest to the associations, and to the
industry, that during the coming season the cards will be made
up as the returns come from the north, and following the work to
its logical conclusion, the Exchange will be able to submit valu-
able constructive criticism and recommendations to its members
along fruit conservation lines.
Telegraph messages between offices regarding sale and handling
of fruit are coded. Our book has 313 pages and a supplement of
24 pages.
The new code for quoting cars was only the idea of your Man-
ager. The details and actual code was worked out, under his
direction, by Mr. Raymond Welch, an expert stenographer and
typist in our employ for seven years, who studied our needs and
those of the Telegraph Companies for months before attempting to
build the new code. The result reduces expense-is more easily
coded and decoded, lessens errors by clerks and telegraph companies
and speeds up transmission of messages.
During the Summer of 1921 we revised our code and established
practically a new system, which accounts for the saving we have
made. As a test of our new system, a number of cars were selected
and the actual cost of handling the wires was computed. These
wires were then written according to our old code and the calcula-
tion made of the cost, showing an average of between $1.50 and
$1.60 more per car. This means that we have saved about $16,000.
Our shipments of 10,572 cars, at this figure per car, equals approxi-
mately that amount. As a proof of this we take the number of
wires for this season, 76,968, at the cost per wire for last season,
$1.302, and we have a total of about $100,000. From this deduct
$83,149.97, the amount we paid for telegrams during this season,
and we have approximately the same, about $16,000, representing
our saving as a result of the adoption and use of the new code.
Our telegraph expense for 1921-22 was $310.62 less than for
1920-21, yet a total of 13,022 more wires were handled. During

last season the average number of wires per car was 5.8 and during
the season just closed 7.2 which shows that we have used about one
and one-half more wires per car this season, at a lower total cost.
During 1920-21 we sold in 286 markets, and handled 224 wires
per market at a total cost per market of $291.82. In 1921-22 we
went into 354 markets, handling an average of 218 wires per market
at an average cost of $234.88 per market. This shows that we
have gone into 68 more markets this season, handled only six less
wires through each of them and the total cost per market has been
$56.94 less than last season.

Judge William Hunter has been attorney for the Florida Citrus
Exchange for twelve years, under a yearly retainer.
The growth of the Exchange and its various Sub-Exchanges and
Associations naturally called for a large increase in legal work
required. Relations between growers and the Associations, Asso-
ciations among themselves, and the relations of the Associations to
the Sub-Exchanges and the Florida Citrus Exchange, involved fre-
quent legal questions. These arose in great numbers during last
year, and have been practically all handled through the legal de-
partment, which has carried the burden for the Exchange, the Sub-
Exchanges, Associations and frequently growers themselves. In
addition, the Growers Loan & Guaranty Company has created
business for the legal department, which has been promptly attended
The relations of the the Exchange and its affiliated organizations
to the Internal Revenue Department, and the question of income
tax to be paid, if any, by these organizations has been taken up
and is now pending in Washington.
During the year this department has practically closed up the
matter of the contract with the Standard Growers Exchange and our
purchase of its packing houses, which involved the examination of
the titles to all of these, the drawing and examining of deeds and
other documents and the handling of questions arising out of that
We have put out new contracts between the Exchange and Sub-
Exchanges, and new contracts between the Sub-Exchanges and Asso-
ciations. These incorporate various changes advised by our attorney.
Changes have also been made in our specimen by-laws for Asso-
ciations, affecting the affiliation of members and their agreement to
ship their fruit through an association. These permit the use of
a form of application if the grower wishes to become a mem-
ber of the association. This, when acted upon by the board of
directors of the Association, operates, after the grower has been
notified, in a more satisfactory way than the old crop agreement
contract, and is much more easily handled by our association man-
agers and organizers.

Our membership campaign culminated in an intensive drive dur-
ing the week of September llth to 16th.
We realized that this year our Association and Sub-Exchange
meetings were a little late, as many growers had left the State for
vacations and others who only maintained a winter residence here
had gone North. Nevertheless, meetings were held in each Sub-
Exchange, at which were present all Association Directors and
Association Managers, together with the Directors of the Sub-
Exchanges. After this series of meetings each Sub-Exchange
arranged for a meeting at practically every association in its ter-
The response of the growers was beyond our expectations, and
the realization of the duties of directors and members, when pro-
perly explained, created an enthusiasm that was most gratifying.
This organization is built on membership, and so this was termed
a membership campaign. We gained many new members, and a
very considerable volume of fruit. One Sub-Exchange shows an
increase of nearly 50%, not counting fruit that had been pur-
chased in their territory by the Standard Growers Exchange. The
gain in membership, and fruit, varied considerably in different
Sub-Exchanges, but there was no difference in the enthusiasm
This is probably the first of many similar campaigns, and we
feel assured that we have accomplished the first step, which is to
bring our present membership into a more solid unit. They now
realize that during the past few years they have been accepting
many statements as facts, that were not facts but originated from
the ambitions of competitors to discredit our organization and its
accomplishments. If this campaign accomplishes nothing more than
to have the membership realize that its sole source of reliable infor-
mation is from the organization itself, we should be satisfied; and
we are satisfied, because members now understand that there are no
operations about which they cannot get full information, and that
it is their duty to keep in close contact with the associations and
the sub-exchanges. Further that it is their duty to spread reliable
information regarding the operations of the Florida Citrus Exchange.


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