ANNUAL REPORT

OF THE

FLORIDA CITRUS


EXCHANGE


SEASON
1928-1929


6T31A, 8


General Manager


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ANNUAL REPORT

OF THE


FLORIDA CITRUS


EXCHANGE



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SEASON

1928-1929





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CONTENTS
THE SEASON 1928-29 ........................... 3
Chart Comparative Production ...................... 4
Chart Comparison of Volume By Sizes ............... 6
Texas Competition .............................. 6
Comparative Florida and Texas Unloads ............. 7
Clearing House ............................... 8
Mediterranean Fruit Fly ........................... 9
M aps of Infestations ............... ............... 10
Diagram Life Cycle of Fruit Fly ................... 1
Map Carlot Markets of Exchange ................... 12
Map Exchange Sales Organization .................. 13
C anning ...................................... 14
FLORIDA CITRUS EXCHANGE SALES .......... 15
Auction Prices ................................. 18
Export Shipments ........... ..................... 20
Eastern Division ................................ 21
Indian R iver .................................. 2 1
M id-W western Division ........................... 21
Cincinnati Division .............................. 23
New England Division ........................... 23
Southern Markets ............................... 23
Deciduous Tonnage ............................. 24
FIELD DEPARTMENT ACTIVITIES .............. 25
Clearing House Contact .......................... 26
Citrus Legislation .. .. ... ...., ................. 26
Educational W bik ...:.. .*".. . . . 27
ADVERTIS .. .. .. ... ... 28
Dealer. Seit '..................... ........ 28
Results ..... .... ......... ..... ... 31
TRAFFJI' DEPATMi T ';. .:.".:..... ...::.-;.:..... 32
Rates ... ..: ..:. .. :. .. ...... .. 33
EXPENSE OF OPERATION ................ : ... 35
APPENDICES-
A. Digest of Quarantine Regulations ............... 37
B. Citrus Acreage ............................. 39
C C anneries ................................. 4 1
D. Importance of Canneries ...................... 41
E. Per Capita Consumption of Citrus Fruits .......... 42
F. Shipments and Distribution ................... 43
G. Growers Loan & Guaranty Company ............ 44
H. Exchange Supply Company ................... 44
I. Crop M movement ............................ 45












ANNUAL REPORT

SEASON 1928-1929

The season of 1928-29 has been one of the most difficult that
the Florida citrus industry has ever faced: The difficulties engendered
by the situation, however, have been met even more satisfactorily than
is fully realized. True, per box returns have been low. The averages
of our own members, however, have been well above those received
during any previous season which may, by virtue of its volume, be
compared with the present.
Probably the greatest single factor with which all marketing
agencies were taxed this season has been the exceptionally large crop
of citrus fruit produced and shipped to domestic markets. The com-
bined production of the areas feeding American markets during the
past season to date reaches the very appreciable total of 60,967,330
boxes. Of this, 38,000,000 boxes*, or 62.6 per cent, were pro-
duced by California; 21,637,440 boxes", or 35.4 per cent, by
Florida; 772,440 boxes, or 1.2 per cent, by Texas and Arizona;
404,800 boxes, or .6 per cent, by Alabama and other territory; and
152,650 boxes, or .2 per cent, by Porto Rico.
This total is 33.8 per cent greater than last season's combined
production of 40,167,800 boxes. It is greater by 19.1 per cent than
the previous large production season of 1923-24, when markets con-
sumed a total of 48,102,680 boxes. The comparative productions
of these areas and a comparison of these totals for the three seasons
mentioned are graphically illustrated on next page.
The marketing situation this season was involved further by a crop
of relatively poor quality. Exchange fruit in a normal year will be
graded out approximately 70 to 75 per cent Seald-Sweet, or Govern-
ment Number Ones, with 20 to 25 per cent Choice and the balance
Plains. These percentages may vary slightly according to the strict-
ness with which grading regulations are interpreted or applied by var-
ious operators.
Fruit of Poor Quality
During the season just past, however, the percentage of Choice and
Plain fruit greatly exceeded the first grade fruit. The probable aver-
age of Government Number Ones shipped by the state at the close of
the season will be in the neighborhood of 40 per cent of the total crop.
This figure is to be compared with the normal 70 to 75 per cent.
Much of these difficulties with the quality of the fruit may be
traced to the two severe wind storms which swept the state during the
*Estimated to September 30, 1929, by California Fruit Growers Exchange.
**Estimate for season is 22,500,000.
3
110 870















Milons 1923- 24
62


58 '

54 !

52 S
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48




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42

32









2, 3







Ai


1927- 28


02
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1928- 29
G64/i'9TO7TL 6/82~9~80













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Comparative Production Volumes for Pertinent Seasons








early part of last Fall, when the fruit was approaching full size and
maturity. The inferiorities in quality apparent in the visible defects,
such as thorn pricks and limb rubs, caused by the storms were made
more pronounced by the lack of the proper climatical conditions during
this period necessary to accelerate natural coloring. Fruit was slow
in maturing and too often was permitted to remain for so long in the
coloring rooms that rapid decay while en route or in the market
resulted.
The natural reluctance on the part of the trade to accept fruit
thus effected swung demand away from Florida fruit during the early
part of the season to an alarming extent and made the sales work on
the later maturing crop even more difficult. It was alleviated to a
certain extent by the application of the Green Fruit Law, the reason-
ably successful execution of which shortened the volume of this type of
fruit very considerably.
The word "reasonably" is used advisedly. In spite of the earnest
efforts on the part of the authorities in charge of this work, it is no
secret to those familiar with the markets and trade that a damaging
volume of immature fruit was distributed.
To meet the acute sales problem presented by this preponderance
of choice fruit, the Florida Citrus Exchange developed a brand name
for its choice grade. This name, "Mor-juce," was extensively adver-
tised and merchandised by printers' ink and man power in those mar-
kets which were logical consumers of choice grade fruit. This Mor-
juce campaign was operated coincidentally with the Seald-Sweet ad-
vertising and merchandising campaign. Considering the short time
available for preparations (the plan was conceived and the idea of the
brand name originated and approved in the middle of December,
1928), the Mor-juce campaign was remarkably well supported. Box
sides, paper and labels were prepared by a large majority of our
houses and many of them perfected arrangements which permitted the
branding of a large percentage of the fruit.
The Mor-juce campaign and the ideas for which it was originated
were received with marked approval on the part of the trade in general.
The campaign marks a step forward in the merchandising efforts of
the Exchange in that it permits wide-spread sales effort to be made on
second grade fruit in markets and sections of markets which, because
of their economic conditions, cannot permit a volume sale of the higher
priced first grade product.
The proportions in which the fruit sized up also left much to be
desired. The lack of a reasonable percentage of merchantable sizes
in this season's crop served to further increase the already appreciable
marketing difficulties. The crop, both of oranges and grapefruit, ran
much more heavily to small sizes than is true in a normal year.
In the chart following a comparison of the volumes of the various
sizes of oranges and grapefruit is made and clearly illustrates the im-
portance of this point when it is remembered that in oranges 176s and
200s are premium sizes and in grapefruit 54s and 64s are the most
desirable.












A Comparison of Volumes by Sizes Season 1928-29 to Season
1927-28.


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CrCr)
LO=S


CO __Cy

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176's and
Larqer


200's
and 216's


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250s and
Smaller


Stopped packing 288's and cut down heavily on 250's in 1928-29, probably
represents less than 60% actual volume of these sizes produced.

Texas Competition

Citrus competition with Florida's product has always been in exist-
ence. Florida oranges, since their rise to commercial importance, have
had to compete with those of California.










Until this year, however, Florida grapefruit faced little or no
competition. The rise of the commercial standing of Texas grapefruit
has reached proportions which command the earnest attention of every
Florida operator in the state. The successful distribution obtained on
Texas grapefruit during the past season is ample evidence of this fact.
Markets which heretofore had received nothing but Florida grapefruit,
with the possible exception of a few scattered cars of the admittedly
inferior product of California, this season bought in many cases a
volume of Texas grapefruit comparing very favorably with the unloads
from Florida.
It is impossible at this time to get data on the complete distribution
of the Texas product. Those which are available, however, indicate
that important markets as far north as Minneapolis and St. Paul,
reaching through a fan shaped section east to St. Louis and west to
Denver and farther, have received their first appreciable volume of
the Texas product.
The map below indicates the comparative situation in those mar-
kets on which data were available.







T _-_ .







TXAS PRO0UCEO 230o0cAS
SOLD n TEXAS 1200
0,LASOMA- oo .
SELSEWHtRE 900 *
AODn.TEXAS- ISO *
OKLA SO -


Above is represented graphically the distribution spread
which now has been acquired by Texas. Six representative
cities have been selected to show the comparative unloadings
of Florida and Texas citrus.

Comparative Florida and Texas Unloads
And this competition is just in its infancy. Only 11 per cent of
the groves of that state are in bearing. (See Appendix B). It is
but a matter of a few years until the entire present 83,500 acres come
into bearing. This figure compares very favorably with the total
acreage of Florida, slightly over 80,000, of which over 60,000 are
already in bearing.
Texas is in a position to adequately merchandise the product of









her total acreage. She is organized. She is making a strong adver-
tising and merchandising bid for the markets which she is entering. She
has a product which compares favorably with that of Florida. She
has in her favor freight rates and refrigeration charges. She is closer
by hours to these markets than Florida.
Texas has become a factor in the sale of grapefruit to the nation's
markets-and her importance will increase.

Clearing House
The only change in the marketing machinery of the state made
during the season was the formation of the Florida Citrus Growers
Clearing House Association. While this organization as constituted
leaves much to be desired,- it undoubtedly has been of some value to
the success with which the season's marketing problems were met.
It is unnecessary here to detail the organization plans and proced-
ures of the Clearing House. We may briefly describe it as an organ-
ization of growers operating through their respective shippers, who
represent approximately 70 per cent of the fruit of the state, to attain
three objectives, namely, first, to standardize the grade and pack of
Florida citrus; second, to regulate the volume released for distribution;
and third, to support a national advertising campaign on the commodity.
Each of these objectives is fundamentally sound and essential. If
the plans suggested by these three fundamentals were uncompromisingly
followed, there is no doubt that their effect would be reflected imme-
diately and appreciably in the form of larger and more consistent re-
turns on grove properties. It remains to be seen, however, whether
interests so widely divergent in their inherent make-up as those of
growers in their cooperative selling organization and the private or
speculative operators can be brought together for result-producing
work in an organization of this kind.
The Clearing House, launched last Fall, has to date been mod-
erately successful. It has achieved a greater degree of success in the
standardization of the various grades and packs in the state than was
believed possible in so short a time. Records on this phase of the
work will show very clearly that it has been of material help in the
merchandising of this season's crop.
The most important and far-reaching of all functions performed
during the past season by the Clearing House organization has been
that of commodity advertising. The campaign was well planned and
executed. It was sufficiently flexible to permit the timely use of
specific copy in those markets and at those dates when influenza was
of epidemic proportions.
The campaign as a whole unquestionably produced good results.
Unfortunately, however, the campaign was too small and of too short
duration to permit it to meet successfully the heavy citrus advertising
and sales competition which it faced.









Mediterranean Fly Discovered
Saturday evening, April 6th, marked the discovery in Florida of
the most serious pest known to fruit, the Mediterranean fruit fly. J.
C. Goodwin, nursery inspector of the State Plant Board, on this date
noticed unusual decay spots in grapefruit which came from the grove
of the United States Department of Agriculture Experimental Station.
Upon examination, he found maggots which were different in appear-
ance than those normally found in decayed fruit. He immediately
forwarded a specimen to Washington for positive identification and
found that the fruit contained the larvae of the Mediterranean fly.
Since that date, eradication forces have been organized under the
able head of Dr. Wilmon Newell, Plant Commissioner. Quarantine
regulations have been drafted, approved and placed in operation by
the Federal Department of Agriculture. The work of control and
destruction of the fly is now well under way.
Immediately following the discovery of larvae on April 6th, the
State Plant Board started its inspectors through every grove in the
state. Additional infestations were found and these territories placed
under quarantine.
The present (May 20th) status of the territories which are under
quarantine regulations because of the discovery of the fly.is illustrated
in the map on the following page. It is to be remembered in examin-
ing this map, that no appreciable percentage of the total acreage is in-
fested, but that the nine-mile limits as shown are developed and guarded
to prevent any further spread of the fly to adjacent counties in which
citrus and other commercial host plants are highly developed. (For
full description of quarantine regulations see Appendix A).
The nature of the fly and its method of reproduction makes the
control and eradication work exceptionally difficult. The life cycle
of the fly, as illustrated on a succeeding page, has four successive
stages. The periods of development of the fly life are variable and
dependent primarily upon food and temperature conditions.
General methods of eradication now in operation include the de-
struction of all host plants in Zone One, or the infested area. This,
completely accomplished, removes all possible locations for egg de-
posits on the part of the adult fly. It further destroys all eggs and
larvae in these plants and prevents the shipment and consequent spread
of the pest. Further measures being taken are the use of a sweetened
arsenic spray upon which the adult flies feed and die. Many other
experiments looking to newer and more immediately effective methods
of combatting the pest are being developed.
Ample funds for the beginning of this work are being supplied. The
Federal Government rushed a bill through Congress placing at the dis-
posal of the state authorities $4,250,000. The State of Florida ap-
propriated $500,000. And more will be forthcoming as the need arises.
That the Mediterranean fly is a national problem is evidenced by
the fact that there are over seventy plants in which the fly can deposit
its eggs and the larvae develop. These plants are generally distributed
throughout the states in the South and West having a mild climate.




















































Zones of Infestation of the Mediterranean Fruit Fly
10






















































Life Cycle of the Mediterranean Fruit Fly.









The economic consequences of the spread of the fly throughout the
balance of the state of Florida are vitally serious, but for the fly. to
reach and make headway in the Southern and Western fruit and veg-
etable territories is unthinkable.
To prevent this calamity, Federal authorities have placed an em-
bargo on the shipment of host fruits and vegetables from Florida into
all of the territory shaded on the map below.



...





Fortunately, this territory closed to the distribution of Florida













InAs to the effabove chart each dot represenactual distribution as now main-ch
tned o e cars o Exchage frd t f t he 43 c ar lt markets, on

or 3 per e, i i ii territory. t he dis n of F a



citrus now reprelosentsd received but 9.7 per centage of the total actual and potentials.
markets for the product. Whileon of the Florishaded territrus Exchange will not
of the seriously effectea and by29.4 per clsing of theis territotal population, it repreentswo
As to the effe, ct on present or actual distribution as no main-
tained by the Exchange, we in theat terror e e t lo t markets, o
I, or 33 pe cnt, a in this prohibited territ oriyt r s aus mar inhi







be shipped, the Florida Citrus Exchange sales organization is the
most highly organized and contains 48 salaried men whose bread and
butter depends upon the efficiency and success with which they handle
butter depends upon the efficiency and success with which they handle









our product. The Exchange, therefore, is in a position to concentrate
successfully in this territory as long as the rest of the nation maintains
its quarantine on Florida citrus.
In anticipation of this general quarantine on Florida citrus, it was
but natural that operators should rush fruit to markets practically re-
gardless of their capacities. Such action was necessary if fruit from
the nine-mile protective zone was to be saved.
The Florida Citrus Exchange protected itself against this probable
break in prices by moving this fruit into storage. Much of this stored
fruit was later released on a market much stronger because of the
shortage caused by the quarantine action.
This plan, developed and put into operation practically over night,
was more than moderately successful. It is one which is worthy of
the careful consideration of other operators. Coordinated action on
this plan would save many market depressions caused by excessive
volumes during any average season.
Thus, while it is impossible to deny the seriousness of the situation
caused by the Mediterranean fly, there are some favorable aspects in
the situation. Not the least of these is the fact that groves of all sizes
will be more closely inspected and cared for. Further, all packing
houses will be licensed, which will tend to greater standardization and
control. Finally, the shipments of bulk fruit which have caused ser-
ious and unnecessary handicaps in the profitable sale of boxed citrus













Lt .. .






Exchange Sales Organization Highly Organized in Markets at Present
Open to Florida Citrus









during the past season, will be eliminated under the quarantine reg-
ulations.
While prompt and effective measures are necessary in the work
against the fly, there is no cause for undue alarm. W. J. Howey has
well expressed the situation in the following terse paragraph:
"When we review the citrus industry, we realize that,
with the introduction of the white fly, the alarm was na-
tional in scope. Indeed, many people chopped down their
trees, but today we pay no attention to the white fly. With
the introduction of Cottony Cushion scale, many people
stampeded and sold their groves in alarm. But today we
pay no attention to Cottony Cushion scale. When the citrus
canker was discovered, everyone became alarmed. But now,
apparently, we have no more citrus canker."
The drastic, but possibly justifiable, embargoes placed on the ship-
ments of Florida citrus into other states will tend to force a much more
rapid development of methods of distributing the fruit parts or its juices
in some prepared and more or less non-perishable form.
Grapefruit hearts have been successfully packed and distributed
commercially for a number of years with increasing volume. In the
past two years a wide market has been developed by. certain canners
for grapefruit juice, both in the single strength and concentrated form.
At the present time, however, there is no known way of preserving
oranges or orange juice to retain the original flavor and body. There
is some considerable volume of orange concentrates being sold for use
in soda fountains, bakeries, etc., but the sale is greatly limited by the
dissimilarity between the fresh fruit juice and the concentrated product
when brought back to natural strength.
It is highly probable, however, that the present need for distri-
bution of this kind will foster the discovery and development of some
method for the distribution of a preserved orange juice which can
reach wide-spread distribution and volume sales. The Florida Citrus
Exchange is at present working on several experiments looking to this
end. With some method of this kind in operation on oranges and an
enlargement of the present activities on grapefruit juice, it is possible
that a very considerable percentage of the coming season's crop will be
sold in this manner.
Canning Prospects
There are at present nine major canners in the state. (See Ap-
pendix C). These canners have ample facilities to handle the volume
discussed. Coordination of their plans and standardization of their pro-
duct will make possible a growth in their production and distribution
which will be adequate to meet the situation forced on the industry
by the fly.
Florida is in a peculiarly fortunate position with respect to the
development of its by-products or canning industries. With the pos-









sible exception of Texas, the production costs of citrus in Florida are
lower than in any other territory from which citrus is shipped to Amer-
ican markets. There is sufficient demand for canned citrus and citrus
juices at a price which permits adequate trade margins, a profit to the
manufacturer and a return to the grower of approximately $1.00 a
box. (See Appendix D.)
Given this price on all edible fruit taken from the grove, citrus in-
vestments will provide very satisfactory returns in Florida and the
industry still can make definite progress.
The present season has been a severe test of the marketing ma-
chinery of the state. The large crops of Florida and California, com-
paratively poor quality of fruit and the increasing competition from
Texas will serve to emphasize more strongly than ever before the
comparative necessity for thorough and complete organization of the
Florida industry. The awakening realization of this necessity has
found partial expression in the formation of the Clearing House Asso-
ciation. It will never be definitely obtained or fully satisfactory, how-
ever, until a dominant percentage of the state's crop is placed in one
organization and merchandised under one sales head and brand name.
Complete success demands that there be no compromises with coopera-
tion.
The world's largest crop of citrus has been produced and sold this
season. The world's largest crop has been consumed. The bugaboo
of over-production definitely is proved a fallacy. (See Appendix E).
There has not been a lack of markets or consumer demand which has
prevented a far more satisfactory return on Florida citrus. Quite on
the other hand, it has been a lack of the necessary efforts which,
through organization, could have obtained in these markets fair and
adequate prices.
California, with her record crop, succeeded in this respect. Re-
turns to California growers throughout the season have surpassed those
of Florida. The only and basic cause for this difference in the returns
made to Florida and California growers is found in the highly organ-
ized condition of the latter's growers.

FLORIDA CITRUS EXCHANGE SALES
Total shipments of citrus fruit from the state during the season
of 1928-29 to May 15th were 56,963 cars, or an increase of 61.35
per cent over last season. This total is divided by varieties as indi-
cated in the following table:
Per Cent
1928-29 1927-28 Increase
(By cars)
Oranges .......... 30,385 17,471 73.98
Grapefruit ........ 24,120 16,679 44.61
Tangerines ........ 2,458 1,154 113.00

Totals ......56,963 35,304 61.35









During the same period the Florida Citrus Exchange shipments
have been as follows:
Per Cent
(By cars) 1928-29 1927-28 Increase
Oranges .......... 9,758 5,751 68.56
Grapefruit ........ 7,236 4,191 71.68
Tangerines ......... 873 312 179.81

Totals ...... 17,867 10,254 74.24
A comparative examination of these two tables indicate that the
Florida Citrus Exchange has increased its holdings considerably above
the general state increase of crop volume. In other words, the Ex-
change materially increased its percentage of control, particularly in
grapefruit and tangerines.
Fine Markets Inherited
California passed to us at the beginning of our season what ap-
peared to be one of the finest market conditions we could hope to ob-
tain. California stocks were almost entirely cleaned up; prices had
been ranging at highly satisfactory levels. There was but little stock
in the hands of the dealers. Under normal conditions, everything
pointed to a favorable season for Florida.
As previously discussed, however, the poor quality of the fruit
and the predominance of unmerchantable sizes operated to quickly
destroy this practically ideal market condition.
Orange Sales
Almost immediately after the opening of the season it was evident
that Florida fruit was maturing slowly and was of poor color, and
that sizes were small. Practically every car had to be artificially
colored. Customers at first took fruit freely, only to learn that it
went to pieces very rapidly after being received and taken out of re-
frigerated cars.
Prices dropped rapidly. Private sales markets bought only spar-
ingly and then only for their immediate wants.. Shipments were
reasonably heavy during this period and heavy quantities were forced
into auctions for quick distribution.
The fact that our fruit was running heavily to choice quality be-
came apparent fairly early in the season. There was an insufficient
volume of the Seald-Sweet quality fruit to take care of even the larger
markets which had been developed on this brand. It became neces-
sary to force the sale of choice fruit in markets which had heretofore
taken only the best.
The development of the trade mark for choice fruit-"Mor-juce"
-made possible very effective and successful work on the situation.
Coupled with the advertising and dealer, sales work on this brand, it
was possible to not only increase volumes in markets already distinctly
Choice, but to swing large quantities of choice fruit at satisfactory
prices into markets and sections in which the demand heretofore had
been dominantly for Seald-Sweet.









This work on the Mor-juce brand was maintained throughout the
season and its success makes a continuation of this work desirable in
the future.
During the beginning of the second half of the season the markets
were asked to take heavy shipments of large sized fruit. This the
trade did not want, especially in view of the fact that during the earlier
part of the season it had been compelled to buy small sizes almost
entirely. This situation required further readjustment, not only of the
selling plans of the Exchange, but also those of every individual
customer.
From the beginning of the Valencia season to the present time,
the trade has been reluctant to purchase because of the fear of dry-
ness. In spite of this subnormal demand, however, considerable quan-
tities of large sized Valencias were forced onto the market, with a
consequent drop in prices.
These various obstacles to the wide distribution of Florida oranges
have continued throughout the season and have been a serious hind-
rance to ready sale at satisfactory prices.

Grapefruit Sales
All of these difficulties were not encountered in the sale of Florida
grapefruit. The pressure on customers to buy second grade fruit,
however, has been necessary throughout the entire season.
This sales effort on Choice fruit was fought by many of the
largest customers in the country who had heretofore handled Number
One fruit exclusively. This situation resulted in a larger differential
between the prices of Number One and Number Two fruit than is
usual. The various factors in the trade who had been in the habit
of using large supplies of Number One fruit in many instances refused
to supply their trade with the full requirements of Number Two and
therefore handled a considerably less volume than in previous years.
Tangerine Sales
Sales difficulties were also experienced in the marketing of tan-
gerines because of the nature of the crop. The volume was more
than double that of the previous year, and yet the crop ran heavily
to very small sizes. The trade demand continued for I 68s and larger.
Small tangerines, therefore, continued to sell at low figures
throughout the season as compared with the larger sizes. Because of
the excessive quantity of small sizes, total averages on tangerines were
low.
Wide-Spread Distribution Maintained
Of the 17,867 cars of fruit shipped by the Exchange, 8,864 or
49.6 per cent, were sold at private sale; 8,578 cars, or 48.0 per cent
were sold at auction; 152 cars, or .9 per cent have been placed in
storage and 273, or 1.5 per cent, were unsold as of May 15th. Of
the 8,578 cars sold at auction, 4,863 cars, or more than 60 per cent,
were shipped direct to these destinations by our associations.









In view of the large volume in the state, the sales department has
concentrated on the distribution of the Exchange volume as much as
i possible to smaller, interior markets. This policy was continued to
prevent as far as possible the accumulation of disastrous surpluses in
the larger marketing centers.
This effort met with considerable success; 54 more car lot mar-
kets were entered this year than last. Twenty of these had not re-
ceived Exchange fruit before. The details of this distribution and a
comparison of the situation for the past two years is cited in the table
below:
1928-29 1927-28 Gain Loss
Towns ................. 433 379 54
New Towns ............. 78 58 20
Customers ............. 976 930 46
New Customers .......... .281 209 72
Canadian Provinces ....... .6 7 1
States Entered ........... 46 44 2

Exchange Fruit Brings Premium
While fruit returns throughout the season have been generally un-
satisfactory, it is significant that Exchange growers have received
greater average returns than those growers who have marketed through
our competitors.
Proof of that statement exists in a comparison of auction price
averages for the season to date, capitulated for all Exchange fruit
as against all fruit of competitors. Such a comparison is basically
sound (see page 12, 1927-28 Annual Report) because fruit at
auction is bought after inspection on its merits. The prices obtained
directly reflect the confidence of the trade and the buying public in
the lines offered.
In the following table these averages have been drawn for sales
made in the largest auctions of the country, with the exception of
Pittsburgh, the records of which were destroyed by fire during the
past season. These averages are for Seald-Sweet Brights, Goldens
and Russets and U. S. No. 1, U. S. No. 1 Russets, Choice and Plain.

AUCTION PRICES REALIZED
Of the 40 different averages furnishing points of comparison, the
Exchange has exceeded its competition in 38. This is adequate proof
that buyers in the barometer markets of the country are showing an
increased confidence in the higher uniform standard of grade and pack
maintained by the Exchange. This data is taken from all auction sales
at the following points from the beginning of the season to May 1st.









NEW YORK- s.s. Brihts S.S. Golden Rss
Russets


Exchg. Aver. 4.71
Compet'rs' Avgs. 4.34
Exchange Ahead .37
CINCINNATI-
Exchg. Aver. .. 3.14
Compet'rs' Avgs. 3.36
Exchange Ahead
Compet'rs Ahead .22
CHICAGO-
Exchg. Aver. 4.62
Compet'rs' Avgs. 3.82
Exchange Ahead .80
PHILADELPHIA-
Exchg. Avgr. 5.33
Compet'rs Avgs.. 3.72
Exchange Ahead 1.61
BOSTON-


Exchg. Avgs. ..
Compet'rs Avgs..
Exchange Ahead
CLEVELAND-
Exchg. Avgs. .
Compet'rs Avgs..
Exchange Ahead
Compet'rs Ahd.


4.49
3.81
.68

4.41
3.80
.61


4.28
4.05
.23

2.83
2.81
.02


3.45
3.42
.03


U. S. No. 1
3.89
3.69
.20


2.87 3.28
2.69 3.13
.18 .15


U. S. No. 1
Russets
3.49
3.42
.07

2.96
2.82
.14


3.83 3.34 3.75 3.34
3.13 3.08 3.40 2.97
.70 .26 .35 .37


3.83
3.21
.62

4.02
3.56
.46

3.63
3.25
.38


3.10
2.72
.38


Choice
3.07
2.86
.21


2.67 2.08
2.60 2.03
.07 .05


2.86
2.70
.16


2.91
2.97 2.57 2.50
.41


3.25 3.37 2.86
3.18 3.21 2.84
.07 .16 .02

2.84 3.63 3.05
2.83 3.21 2.82
.01 .42 .23


2.76
2.63
.13

2.89
2.67
.22


Average prices for Exchange sales on all fruit from the beginning
of the season to date, f. o. b. Tampa, are as follows:


ORANGES-
A auction ..................$2.12
Private Sales .............. 2.13
General Average ...........
GRAPEFRUIT-
Auction .....'............. 2.00
Private Sales .............. 1.98
General Average ...........
TANGERINES-
A auction .................. 2.83
Private Sales .............. 3.15
General Average ...........
Bulk Oranges, Average .......... .90
Bulk Grapefruit, Average ......... 1.03
Bulk Tangerines, Average ......... 1.19
Cannery Grapefruit, Average ...... .52


$2.13



1.99



2.89


Plain
2.79
2.33
.46


2.38
2.30
.08

2.15
2.05
.10

2.20
2.05
.15

1.66
2.56

.90









Export Shipments
Following the policy of the development of foreign markets for
Seald-Sweet grapefruit, the Florida Citrus Exchange continued its
connection with the S. B. Moomaw Company and kept its own sal-
aried representative in European markets. This work has met with
outstanding success during the past season.
The Seald-Sweet trade mark more firmly than ever is becoming
established in the minds of the European trade and consuming public
as a mark of quality grapefruit. This condition is fostered by con-
sistent sales and display advertising work on the part of the Exchange.
The European demand for Seald-Sweet grapefruit again increased.
More than twice as much fruit was shipped to Europe this year than
during last season. Car lot supplies have been going forward steadily
to Liverpool, London, Glasgow and Hull. Less than car load lots
have been going forward regularly from New York to Copenhagen,
Antwerp, Rotterdam, Hamburg, Oslo and New Castle.
From those distributing points, Seald-Sweet fruit has entered the
lesser markets of ten countries in Western Europe during the past sea-
son. The important markets of these countries-England, Scotland,
Germany, Belgium, Sweden, Norway, Holland, Denmark, France and
Finland-have received the greater proportion of the export volume.
Seald-Sweet fruit again led all other grapefruit during the season
in prices obtained in European markets.
Of the entire Western European territory, the United Kingdom
represents the most highly developed and responsive market for Florida
grapefruit. The chief cause of this situation may be traced to the
demand for fruit stimulated by the "Eat-Mor-Fruit" campaign con-
ducted by the Fruit Brokers Federation. Much of this wide-spread
interest in fruit on the part of the general public was swung to Florida
grapefruit by the publicity campaign conducted by the Florida Citrus
Exchange.
The growth in volume of shipments of Florida grapefruit to the
United Kingdom reflects the success of this work. Beginning in 1923
with approximately 10,000 boxes, the total during the 1928-29 sea-
son is reported to be well over 200,000 boxes.*
In fact, the United Kingdom is becoming as valuable a mar-
ket to the Florida industry as the Dominion of Canada, which, during
the past season, received approximately 250,000 boxes of Florida
grapefruit.
Low Grade Fruit Sales
A department for the sale of very low grade fruit of Exchange
growers was formed and placed under competent management at the
beginning of the season. This department operates in connection with
the regular sales department of the Exchange.
Up to May 15th it has handled 865 cars. Practically all of this
volume was sold at private sale with results which were satisfactory,
considering the general condition of the markets.
*Reference: United States Department of Agriculture, Jacksonville Bul-
letin, May 20, 1929, "International Trade Citrus Fruits."









Distribution statistics on this volume are included in the general
data previously cited on the Exchange volume.

Eastern Division
Exchange fruit received wider distribution throughout the mar-
kets of the Eastern Division than ever before. This is due in part to
the fact that this division has received consistent merchandising and ad-
vertising during the past few years. This year the work was not cur-
tailed during the height of the season and the Eastern Division received
its full share based on the potentiality of its markets.
The averages for the New York auction cited in the table on Page
19 reflects the general prices throughout this division for the private
sale markets, for which New York and Philadelphia are barometers.
While there are no total averages based on competitors' shipments
throughout the season available in private sale markets, it is safe to
say that the premium paid for Exchange fruit at private sale in this
division approximates that paid at auction in New York and Phil-
adelphia, grade for grade.
The New York Division office has been active in promoting an
increased export business on Florida grapefruit. Shipments, not only
to Great Britain, but to Continental points, were handled through New
York.

Indian River Fruit
New York, because of its size and consequent ability to absorb
large quantities of fancy fruit at high prices, always has been the
logical market for Indian River fruit. In recognition of this condi-
tion, the Florida Citrus Exchange has continued its policy of applying
special sales and merchandising work to this fruit in New York.
Florigold Seald-Sweet, the fancy grade packed by our Indian
River houses, has met with increasing demand on the part of the fancy
fruit trade throughout the season. Average prices realized on this
brand, grade for grade, were superior in most every instance to our com-
petitors' Indian River, averages.

Mid-Western Division
The marketing situation in this division practically parallels that
of the Eastern Division with respect to the success of Exchange sales
efforts. Examinations of the records of the barometer market of this
division, Chicago, (given in detail in the table on Page 19) indicate
that here also we have definite proof of the superiority of Exchange
sales methods as measured in the higher prices paid for Exchange
fruit, grade for grade.
Chicago is being developed as a market for a standard grade or
Seald-Sweet Justice brand of Indian River fruit in the same manner
as that of New York. This pack has been well received. Prices
paid for this brand on oranges averaged up to 96c above that of









competitors and on grapefruit, up to $1.81 greater than our com-
petitors' average returns for the season to date, size and grades con-
sidered. At every point of comparison, Exchange average returns on
Indian River fruit exceeded those of the competitive Indian River
brands.
The preference enjoyed by the Exchange for its offerings in the
Mid-Western Division as exemplified by the situation in, Chicago finds
its source in a natural trade situation. In addition to the fact that
Exchange fruit is generally of a better grade and pack, that it is an
advertised brand and therefore receives consistent trade demand, it
receives the loyal support of practically all of the jobbers.
The, reason for this jobber preference for Exchange brands is
caused largely by the following condition. With one exception, the
Florida Citrus Exchange is the only receiver of Florida fruit in the
Chicago market not doing business on a commission basis. It has been,
the general experience of the trade that commission receivers, upon of-
fering their shipper's fruit at auction, will directly or indirectly support
that fruit in their own bidding. There have been instances where these
receivers have sold fruit at auction and in turn have jobbed the same
brands through their houses, basing their jobbing prices on the price
obtained at auction.
Such methods result in the fact that those of the trade who bought
these offerings at auction are at an average margin disadvantage of
from 25 to 50 cents. The trade, recognizing the fact that the Florida
Citrus Exchange cannot resort to such tactics, and knowing that all
Exchange fruit is sold at auction, can, without fear of such competi-
tion, buy Exchange brands with definite assurance of safety.
The satisfactory situation with respect to comparative returns ex-
perienced in the Chicago market maintains throughout the private sale
markets of the division. Without going into statistical detail, a greater
number of private sale markets were developed in this division than in
any other season.
Many of these markets were developed with highly satisfactory re-
sults on the Mor-juce brand.
The St. Louis territory in the Mid-Western Division, while it can-
not be regarded strictly as a Florida orange market, yet each year
takes a greater percentage, not only of Exchange oranges, but of
grapefruit as well. It is primarily a market for choice fruit and is,
therefore, typical of the results obtained by the Exchange efforts in
merchandising choice fruit this season under the Mor-juce label.
The St. Louis auction received approximately 250,000 boxes of
Florida citrus fruit during the past season to May 10th. The Ex-
change sold about 40 per cent of this volume.
Two-thirds of the Exchange offerings were choice fruit, while
less the one-half of the offerings of competitors were choice. In spite
of this fact, however, the Exchange averages on choice fruit in the
St. Louis auction for the season to May 10th was $2.79, as opposed
to the competitive choice fruit average of $2.45 per box-a premium
of 34c paid for Exchange choice fruit in a typical choice fruit market.









This situation is also typical of the private sale markets in the St.
Louis territory.
Cincinnati Division
In this division again may be noted evidence of the result-produc-
ing methods of the Exchange. The totals for the division it-
self, including its own auction markets, Cincinnati and Cleveland, in-
creased in volume 49 per cent on oranges and 55 per cent on grape-
fruit over last season for the periods up to and including May I st of
each year. We find that private sales markets, such as Dayton, Can-
ton, Akron, Youngstown, Lima, Ft. Wayne, Lexington and Evansville,
show increases up to 100 per cent over the Exchange sales of the same
period during the season before. These increases above the general
increase for the division are worthy of note because the private sale
markets which have been cited have generally obtained their supplies
by truck from the closest auction point in the division.
This private sales volume has been developed in spite of the natural
preference on the part of the trade in these markets to buy at auction
where they are generally able to satisfy their wants more specifically.
The auction markets of this division also reflect the general pre-
mium paid on Exchange fruit. Definite margins paid for Exchange
fruit over that of competitors are cited in the table on Page 19.
New England Division
The New England Division up to May 1st of this season received
1221 cars as opposed to 762 for the corresponding period of the
previous season, an increase of well over 60 per cent. Of this volume,
526 cars were sold at auction and 695 in the f. o. b. markets of the
division.
Examination of the auction averages in this division also indicated
a definite preference for Exchange brands. The table on Page 19
indicates that Exchange beat competition from 2c on russets to 68c
on brights.
These premiums were maintained in spite of the fact that Ex-
change offerings of oranges average approximately 55 per cent choice
as opposed to 15 per cent choice in competitive offerings. Exchange
grapefruit offered at auction averaged 65 per cent choice as opposed
to 19 per cent choice in the competitive volume.
Southern Markets
The South as a whole during the past- few years has experienced
a rapid material growth which has brought it into prominence as a
potential market for the distribution of Florida citrus fruit. The de-
velopment of its agricultural, poultry, manufacturing, rayon, lumber,
paper making, sugar, mining and power industries are rapidly increas-
ing the general purchasing power of the territory. In less than 30
years, its population has increased nearly 50 per cent; its wealth nearly
350, per cent and the value of its industrial output, 620 per cent.
The Florida Citrus Exchange, in recognition of this situation, has









been concentrating sales and merchandising effort in the South with
the result that the sales of citrus fruit, which were ordinarily confined
almost entirely to the Christmas season, are now spread throughout the
entire Florida shipping season. This naturally has made possible the
sale of a much larger volume in the territory.
The present season has brought two serious set-backs to the wider
development of this territory, both of which originate in Florida. The
hectic marketing conditions caused by the abnormal crop volume
caused many of the smaller marketing agencies in the state, who be-
cause of their limited organizations were without market information,
to use many Southern markets for the sale of their fruit on a con-
signment basis.
Others, in the mad rush to make sales at any cost, would quote
three or four brokers at once in a market and at the same time offer
direct to the jobbers in this same market supplies of "second" grade
fruit at a price far beneath the intrinsic worth of the fruit and the
price the market could have paid if controlled.
In addition, bulk fruit was moved into practically every market
without regard for its capacity. If on arrival there was no chance
for the sale of fruit, it was consigned to practically any organization
available, regardless of its commercial rating or standards of practice.
As a result, chain stores and peddlers during the height of the season
were able to offer choice Florida oranges for as low as 5c per dozen.
Honest competition and merchandising became almost impossible in
the face of these conditions.
That the Florida Citrus Exchange was able to maintain distri-
bution and sale in the markets of this territory in spite of these
conditions is largely due to the development of the Mor-juce brand
and the active sales and merchandising effort put behind it. Southern
markets, natural price buyers of choice fruit, welcomed the oppor-
tunity to obtain an advertised, standardized brand under which fruit
was packed with dependable uniformity.
The second factor which has operated to handicap the develop-
ment of Southern markets for Florida citrus is the embargo recently
placed on the territory because of the Mediterranean fly. This has
already been discussed in detail. And it is impossible at this time to
say how long this embargo will be in force.

Deciduous Tonnage
The reasons for the development of the deciduous business to be
handled by the Florida Citrus Exchange through its subsidiary, the
Exchange Sales Company, were discussed in detail on page 18 of
the 1927-28 Annual Report. Briefly, they are: first, to reduce the
gross maintenance cost of the organization; and second, to keep Ex-
change representatives closely in contact with the trade the year around.
The largest individual account in the California deciduous field
-that of the Pacific Fruit Exchange-was handled last season by
the Exchange Sales Company. That satisfactory results were pro-









duced is evidenced by the fact that the contract has been renewed
for the coming season.
This business, because of its stability and volume, is a decided
asset to the Florida Citrus Exchange.

FIELD DEPARTMENT ACTIVITIES
The season 1928-29 saw practically no change in the physical
composition of the field organization of the Florida Citrus Exchange.
It was composed of 11 active sub-exchanges, comprising 80 asso-
ciations and eight special shippers, operating 76 packing houses.
In line with the established policy of the Exchange which dis-
courages the establishment of a packing house unless there is in
sight for it a sufficient volume of fruit to insure its efficient opera-
tion, only two new packing houses have been added to our organiza-
tion since last season.
Twenty-six of our packing houses now possess precooling plants.
Fifty of them have operated marking machines during the present
season.
Holdings Close to Estimate
The original estimate of Exchange holdings to be handled through
these houses at the beginning of the season was a total of 7,566,087
boxes. Up to May 17, 6,684,442 boxes had been shipped. It is
estimated that the Exchange controls 519,740 boxes yet to be shipped,
which will provide a total volume for the season of 7,203,182 boxes.
The difference of approximately 350,000 boxes between the orig-
inal estimate and the probable actual shipments may be accounted for
through losses caused by several factors. Market conditions early in
the season prevented the sale of a considerable quantity of small sized
fruit and toward the end of the season caused the loss of the larger
sizes. Unmerchantable culls ran to an unusually high percentage of
the total movement from groves. Fruit fly infestation and some sales
of fruit on trees caused further losses. It is probable that these losses
totalled through the season would approximate 800,000 boxes.
Exchange fruit has graded lower this season than ever before in
the history of the organization. The latest figures compiled show a
general average for all houses of 40.6 per cent Seald-Sweet. This
situation has made the season exceedingly difficult from an operating
standpoint, but the sub-exchange and association managers practically
without exception have handled the situation well and have main-
tained our grades.

Decay Losses Low
Considering the amount of low grade and storm damaged fruit
produced this season, Exchange decay losses have been remarkably
low. Computed as of March 16th, these losses averaged for all
houses are but .8 per cernt.,..Thr Excbhage has continued its experi-
ments with preservative'.b. djca'y py.ev~tatijds,:but at the present time
can report no defni.reob' nlenatio to na'k *. ',
'"'. '.'25









Clearing' House Contact
Since the organization of the Clearing House, the Exchange as
a member of that body has cooperated to the fullest extent in an en-
deavor to accomplish the purposes contemplated in the creation of that
organization. Most of the contact with the Clearing House has been
maintained through the Production Department, particularly since the
first of January, at which time shipping allotments were put into ef-
fect.
These allotments-while agreed to by the Exchange and, with
the cooperation of the sub-exchange and association managers, lived
up to in almost every instance-cannot be considered as entirely satis-
factory. This is principally due to the fact that there is an inevitable
conflict of interests between numbers of small shippers in the Clearing
House and their larger competitors. Many of the small shippers buy fruit
in a "hand-to-mouth" way and are under no necessity to provide for
the regulation of the disposition of a large volume of fruit throughout
the entire season, as are the larger shippers-principally the Exchange
and the American Fruit Growers-who have to handle such large
volumes.
It is believed that for another season an equitable provision should
be made, taking into consideration fruit volumes in place of the mere
number of shippers in working out representation on the operating com-
mittee. A statement released by the Clearing House under date of
April 30th shows that the Florida Citrus Exchange had, as of that
date, furnished 41.5 per cent of the total volume of fruit in the Clear-
ing House. The American Fruit Growers, according to the same re-
port, had furnished 14 per cent. These two organizations represented
a combined total of 55.5 per cent of the total volume handled through
the Clearing House. This majority percentage of the fruit was repre-
sented on an operating committee of eleven members by only two votes.
Provisions should also be made in the Clearing House for a much
more accurate and impartial estimate of the holdings than has been
possible during the past season.

Citrus Legislation
Various problems relating to legislation effecting the citrus indus-
try have arisen during the past year and have been handled through
the field department. The most important of these matters dealt with
a new bill on green fruit shipments and a proposed bill to change the
size of the standard orange box.
The green fruit bill at the present time has passed the Senate and
the House. The bill with reference to a change in the size of the box
has apparently been killed in the Senate. Further efforts to secure its
enactment as a law are not anticipated.
One or two bills with respect, to the coloring of fruit have been
introduced by individual'1egislator's. '"Up io'the. present time, these
have not secured consideration an'd it is belie :'.thalt,-in view of the
** 9 '2
"."- : .. .'-. ...
........ C









conditions now confronting the industry-the proponents of the bills
realize that it is unwise to push them.
The Florida Citrus Exchange, through this department, has also
maintained contact with the Florida representatives in the National
Congress looking to the industry's full protection by the participation
in any farm relief legislation which may be enacted.
Educational Work
During the past year, more than the usual amount of propaganda
has been disseminated against the Exchange and against cooperative
marketing. Considerable extra effort has been required to offset its
effects.
These ends are accomplished chiefly by three methods-first,
through the use of an able organization representative; second, through
the Seald-Sweet Chronicle, the circulation of which has been checked
and increased to an average of 11,500 commercial citrus growers;
and third, by means of paid publication advertising.
Educational work has been carried on constantly among the fruit
growers to acquaint them with the advantages of cooperative market-
ing. This work was extended for the purpose of creating a better
understanding and more favorable public sentiment among industrial
and civic organizations and business men generally.
Realizing the importance of personal contact with growers, some
associations have appointed committees from their boards of directors
to visit each non-member grower and to enlist his cooperation. This
plan is meeting with considerable success and is recommended for
adoption by every association.
To assist in this educational work, two new booklets have been
prepared and distributed by the Exchange. One is a full explanation
of the formation, purposes and operations of the Exchange. The other
explains the systems of pooling as operated by the various associations.
Both of these booklets have been favorably received and have demon-
strated their value in organization work.*
These educational efforts, supplemented by the whole-hearted co-
operation of the sub-exchange and association managers, have obtained
a very considerable increase in the membership of the Exchange during
the past year and have enlarged the volume of fruit marketed through
the Exchange. Practically every association began the season with
additional members and more fruit than in previous years. The fact
that there have been fewer withdrawals is even more significant.
The discovery of the Mediterranean fruit fly in Florida discussed
in the earlier pages of this report naturally will materially effect the
work of this department. Because of the situation created by the fly,
it is impossible at the present time to estimate next year's shipments in
any way, either for the Exchange or for the state as a whole. In
general, however, the set of fruit has been much lighter than last year,
although the condition of the Valencia trees indicate a fairly good
crop. In some sections, grapefruit bloom has been reasonably good
*Copies-of these booklets may be obtained by addressing the Florida
Citrus Exchange, Box 1108, Tampa, Florida.








while in others it has been very short. At the present time, there are
reports of a considerable late bloom throughout the state.

Organization In Splendid Condition
From a financial standpoint, packing house operations have been
'in general the finest in the history of the organization. Most houses,
because of the volume handled, have been able to keep their costs at
a very satisfactory figure. This will enable them to make substantial
refunds to their growers.
The Exchange organization as a whole is more closely united than
ever before. It is in an excellent position to present a united front
to the many serious problems which present themselves for solution
during the coming season.

SEALD-SWEET AND MOR-JUCE ADVERTISING
The advertising campaigns* on Seald-Sweet and Mor-juce fruit
were handled by our Advertising Department and Erwin, Wasey and
Company as in previous seasons. The space or printers' ink cam-
paigns were confined almost entirely to the use of newspapers.
Newspaper Advertising
Schedules on Seald-Sweet and Mor-juce advertising were released
and completed in the newspapers of 144 markets throughout the
country. These markets, naturally, were selected so that the force
of advertising would best parallel the distribution desired and ob-
tained by the Exchange Sales Department.
The copy and layouts used in the creation of the advertising were
of such a nature as to emphasize the brand names. It was changed
during the season to capitalize on those markets in which influenza
epidemics developed during the Winter. Typical pieces of this copy
have been reproduced on the following page.
In addition to the newspaper campaign, radio advertising in the
Denver territory was purchased. This campaign, handled with the
assistance of our Denver representative, ably met the peculiar situa-
tion facing any advertising campaign in that territory. The Denver
broadcasting station, a unit of the National Broadcasting Chain, be-
cause of its standing, demands listeners in a radius of approximately
500 miles. To reach the same territory with newspaper advertising
would have required the use of a number of newspapers, the cost of
which would have been prohibitive.
Dealer Service
Fourteen dealer service crews were operated by the Exchange this
season. These crews comprised a personnel of 34 regular men,
assisted by local workers hired for the period in various markets.
Two crews were operated in the Mid-Western Division out of
Chicago, two out of Detroit, two in the Cincinnati Division, three in








the Eastern Division, one in the New England Division and four
crews in the two Southern Divisions.
These crews to date have put in a total of 1925/2 effective days'
work. They have covered 997 jobbers and 34,346 retailers. They
decorated 10,785 complete Seald-Sweet or Mor-juce windows. A
total of 180,977 pieces of advertising display matter have been used
in these windows and in wall and counter displays.
Of the 997 jobbers who were called upon, 740, or 74 per cent,
were found to handle Exchange fruit. Of the 34,346 retailers
reached through our crews, 22,081, or 67 per cent, handled Ex-
change fruit. This is further proof of the wide distribution which
has been obtained and maintained throughout the season.
It is to be remembered in considering these figures that this is a
generalized picture for the work, averaged for all markets. There are
sections of the country which run much over these distribution percent-
ages, as well as some sections which are under this general average.
Thorough dealer service work has been accomplished by the Ex-


Typical Exchange Advertisements
1928-29 Newspaper Campaign









change in 218 markets from Maine to the Dakotas and from the Gulf
into Canada, not including the very effective work done by our dealer
service representatives in the Far West and in Europe.
Display Material
These crews were supplied with a sales portfolio summarizing the
worth of Seald-Sweet fruit, its grade and its pack, and the Exchange
advertising activities. They were furnished with adequate quantities
of Seald-Sweet and Mor-juce display material.
The latter consisted principally of banners, window streamers,
window transfers, decorative crepe paper, suction cup window shelves,
price markers, etc., a total of 20 individual types of material.
The Exchange developed this season an illustrated flashing dis-
play unit. It was used as a central display piece in windows in im-
portant locations. This unit was built of sturdy material which per-
mitted its transfer from location to location and will permit its use
through several succeeding seasons. It was very well received by the
trade.
The "/4 More Juice" Slogan
Probably the most valuable single factor in Exchange advertising
has been the slogan used in all orange advertising-"/4 more juice."
It has served to emphasize in the minds of the trade and consumer the
greater juice value of Florida fruit.
It naturally has been fought by our competitors in other citrus
production areas, principally California.
This competition has offered the arguments that California juice
is richer, fuller bodied and of higher color. These arguments have
been presented to the consumer in advertising and to the retail trade
by their dealer service crews.
Before adopting the 14 more juice slogan, the Florida Citrus
Exchange anticipated a come-back such as this and had comparative
chemical analyses made on Florida and California orange juice ob-
tained from the regular offerings on the New York auction. These
analyses were made by the industrial chemical firm of Seil, Putt and
Rusby of New York.
They show a definite average superiority of Florida orange juice
over California orange juice, not only in quantity, but also in quality.
Florida oranges in this test averaged 40.5 per cent more juice, size
for size. The analysis continues as follows:
20% more soluble solids
64% more total ash
36% more phosphate
57% more lime
65% more potash
77% more iron
88% more soda, magnesium chloride, etc.
32% more combined citric acid
1 7% more free citric acid
20% more favorable sugar to acid ratio









The most far reaching effect of this advertising competition be-
tween Florida and California is of benefit to both sections. It serves
to make the American public juice conscious. Both products have
their merits and both are presented as juice in their most favorable
light. It is the increasing consumption of the juice and not of the
fruit which will dispose of larger and larger quantities of fruit from
the two producing sections.
Results
Such, in general, has been the advertising and merchandising effort
of the Exchange. A total of some $225,000 has been spent on the
work this season. In view of the prices which have been received
during the season, a question as to the worth of this work may well
be asked.
For the first time in the last five years, the Exchange is in a po-
sition to more or less definitely answer this question. There are two
methods by which this answer may be obtained. First, Exchange
fruit is bringing more per box averaged through the season, grade for
grade, than the fruit of its competitors. These details have been dis-
cussed and are summarized in the table on Page 19. The advertising
and merchandising work, however, is not alone responsible for these
premiums. Better loading, more consistent grade and pack, etc., have
also been of value in creating this margin.
The second method is by a comparison of average returns obtained
during similar seasons. Two such seasons are found in the present
1928-29 season and the 1923-24 season. The details of compara-
tive volumes of the two seasons for Florida and California are cited
in the chart on Page 4. For the purpose of a brief summary here,
it will be remembered that the total volume from Florida and Cali-
fornia shipped in 1923-24 was 44,692,414 boxes, as compared with
a total of the present season of 60,500,000 boxes. The fruit of the
23-24 season was of average quality with an average run of sizes.
This is in direct opposition to the conditions of quality and size found
in the present crop.
In spite of these adverse factors which should have made the
present season even more unsatisfactory than that of 1923-24, the
returns f. o. b. the Tampa office on Exchange fruit have been as
follows:
Season Orange Average Grapefruit Average
1928-29 ................. 2.13 1.99
1923-24 ................. 1.86 1.51

Increase ................. .27 .48
It is evident from these comparisons that 'a general average on
oranges and grapefruit of nearly 40c has been obtained to date this
season over the entire 1923-24 average returns. The effect of the
cumulative advertising campaigns of the Florida Citrus Exchange
from the season of 1923-24 to date are largely responsible for this
increased return.









During these seasons a total of approximately $750,000 was spent
in advertising and merchandising work by the Exchange. To apply
this 40c margin on this season's Exchange movement alone, we find
that Exchange growers received nearly $3,000,000 more for their
fruit this season alone than they would have received if the advertis-
ing and merchandising work had not been done. That Exchange
growers received most of this benefit is evidenced by an examination of
comparative average returns on Exchange and competitive fruit as
elsewhere discussed.
Premiums
Distribution of Seald-Sweet juice extractors, grapefruit corers and
recipe books has continued in satisfactory volume but has been short-
ened somewhat due to the fact that the only advertising distributed
on these items during the season was printed on the wrappers of the
fruit. Heretofore in the magazine advertising campaigns of the Ex-
change a coupon was used in each piece of copy. This coupon me-
thod is not productive or desirable in a newspaper campaign such as
was used this year.
The Seald-Sweet juice extractor continues to be the item most
in demand. Of the more than 60,000 Seald-Sweet juice extractors
in use today, 5,81.7 were sold this season. .Distribution on the machine
is practically world-wide, as agencies have been obtained on the ma-
chine in Europe, South Africa and Australia.
Seald-Sweet cook books were distributed on direct request of
12,000 consumers throughout the country. Approximately 25,000
were used by dealer sales crews in their work with the better class of
retailers in the markets entered, as well as by domestic science schools,
etc.

TRAFFIC DEPARTMENT
From September, 1928, to May st, 1929, the Traffic Depart-
ment of the Florida Citrus Exchange filed claims in the amount of
$41,946.39. The amount collected on claims during the above
period was $16,858.76.
To date, the Traffic Department has filed 59,336 claims amount-
ing to a total of $1,479,309.61. Of these, it has collected 56,955
claims amounting to a total of $1,099,189.58, leaving on hand un-
paid as of May Ist, 417 claims amounting to a total of $39,108.85.
The past season has been very similar to the proceeding season
in the matter of decay losses and claims on Exchange fruit. There
have been, up to May 1st, 1929, only seven claims filed for decay.
There also has been an absence of damage due to freezing in
transit. Only five claims were filed during the season for losses on
this count. Each season there are a few cars destroyed by wrecks. Dur-
ing the past season only six Exchange cars were totally destroyed, for
which carriers made prompt settlement.
The marked reduction in losses due to delay, over-heating and
freezing in transit may be credited to the rapid strides made by the









railroads in their Claim Prevention Campaign. This, coupled with
the fact that the industry is being supplied with a somewhat better
class of equipment, has served to minimize losses traceable to these
causes.
Our Traffic Manager attended the annual meeting of the Joint
Fruit and Vegetable Freight Claims Advisory Council, of which he
is vice chairman, held in Chicago on January 18, 1929. Various
matters relating to claims were brought before the meeting and fully
discussed. It was generally felt that the meeting was productive of
much good and that future meetings of the Advisory Council will
tend to bring about an even better understanding between shippers and
carriers on claim problems.

Car Supply
The supply of refrigerator equipment during the past season has
been entirely adequate and satisfactorily distributed in accordance with
orders filed by our associations with the railroads. There have been
but one or two instances where our associations were not supplied with
cars as ordered. Investigation of these cases revealed that they were
caused, not by a general shortage of equipment, but rather by local
conditions.

Rates
The Interstate Commerce Commission has rendered its decision
in the Line Haul Rate case in so far as citrus fruit shipments are
effected. It withheld decision on vegetables because of the absence
of satisfactory information as to the actual average weights on the
various sized packages used in the shipment of vegetables.
A conference was held in Jacksonville during the first part of Feb-
ruary, 1929, and arrangements were made for making test weights
under the supervision of representatives of the Interstate Commerce
Commission, the Southern Weighing and Inspection Bureau and the
Growers and Shippers League of Florida. These tests are now prac-
tically complete and as soon as the data can be assembled, they will
be placed before the Interstate Commerce Commission. It is hoped
that the Commission will then be in a position to make a determina-
tion on the proper line of vegetable rates and will order them into
effect prior to another shipping season.
The rates established by the Commission on citrus fruit went into
effect on November 9, 1928. Shippers have received full benefit of
them throughout practically the entire season. These rate changes
provided a saving to growers of approximately $1,500,000.

Refrigeration Rates
Refrigeration rates on Florida perishables have been a bone of
contention between shippers and carriers for many years. Several
cases were heard and decisions rendered by the Interstate Commerce
Commission, in which the shippers usually were victorious, much to
the dissatisfaction of the Fruit Growers Express Company.









Not being satisfied with the last decision rendered by the Inter-
state Commerce Commission, they invited that body to conduct a
thorough investigation of every phase of refrigeration service, even to
the extent of examining their books and accounts. The Commission
accepted the invitation and, based on the investigation of its own in-
spectors and accountants, they found the refrigeration charges unrea-
sonable for the future and ordered a reduction to take effect on May
15th, 1929.
In an effort to prevent the new refrigeration rates becoming ef-
fective on May 15th, the Fruit .Growers Express Company made
application to the Federal court at Richmond for an injunction. This
was denied. At the present time, no further move has been made.
It is assumed, however, that they will exhaust all legal possibilities in
an effort to defeat the Commission's order.
This reduction, it is estimated, will save the growers and shippers
of Florida approximately $500.000 annually.
New Fruit and Produce Terminals
Four gigantic fruit and vegetable terminals are now nearing com-
pletion at Detroit, Cleveland, Pittsburgh and Providence, R. I.
The new terminal at Detroit is expected to open for business on
July 1 st. It is situated at Fort and Green streets in the western
section of Detroit, or about three miles from the present location. The
terminal covers 38 acres, with additional acreage available for future
expansion. Two two-story terminal houses, one 1080 feet long by
70 feet wide, and the other 670 feet long by 70 feet wide, form the
major structures. These houses will be served by eight tracks with
a capacity of 240 cars at one placement.
It will be possible to display in these houses 300 cars of fruits
and vegetables at one time. The larger terminal house has been pro-
vided with an auction room and 90 offices for the convenience of
sellers and receivers on the auction market. The total cost of this
new terminal will approximate $5,000,000.
There is no detailed information available regarding the size and
capacity of the new terminal at Cleveland. It is understood, however,
that it compares favorably with the one being constructed at Detroit.
The Cleveland terminal is situated on the tracks of the Nickel Plate
Railroad about three miles from the present downtown auction loca-
tion. It is expected to be opened on June Ist, 1929.
The new terminal at Pittsburgh will displace the old Pennsylvania
Produce Yard facilities. It'is expected to greatly simplify the receipt,
unloading, sale and delivery of fruits and vegetables in the Pittsburgh
market.
The new terminal at Providence, erected on the New York, New
Haven and Hartford Railroad, consists of approximately 70 stores
equipped with cold storage plants. These will be leased to the fruit
and produce dealers for display and sale purposes. This terminal is
very similar to the one constructed in Chicago a few years ago, which
has by now almost entirely displaced the old South Water Street
Market.









Growers and Shippers League
The manager of the Growers and Shippers League was selected
to act as manager of the Clearing House Association during the past
season. Our Traffic Manager, as chairman of the traffic committee
of the League, was called upon to attend meetings and handle other
phases of the League work.
During the month of April he attended as a representative of the
League the meeting of the National Perishable Freight Committee at
Chicago. There were several subjects on the docket of the committee
which were of vital importance to Florida growers and shippers.
Among these was a proposal to change the standard ventilation in-
structions from 32 to 38 degrees, with a tolerance of 34 to 42 degrees.
The League vigorously opposed this proposition, since closing the
ventilators above 32 degrees will produce heavy decay.
This committee also proposed to assess a charge for the use of
refrigerator equipment when transporting shipments of canned grape-
fruit and citrus juices. It also proposed a bunker charge practically
double that now in existence on reconsigned shipments moving under
Rule 240 where out of line or back haul is involved. It also con-
templated a charge for the use of refrigerator cars in the shipment of
pre-cooled vegetables without ice in the bunkers.
It is our understanding that, by reason of the objections entered
by the shippers through the League, several if not all of them have
been eliminated from the docket.

Railroad Service
Generally speaking, the service' rendered by all of the railroads
throughout the country this season has been entirely satisfactory. The
car supply has been adequate and shipments have been handled ex-
peditiously. There were, of course, some delays in transit, but they
were not of a serious nature.
Delay of a few hours in reaching the market will frequently cause
a shipment to sell a day late. This at times results in a loss to the
shippers as compared with the prevailing market prices on the previous
day. Practically all of the railroads are now recognizing responsibil-
ity for failure to make market delivery as scheduled.
As a whole, carriers should be highly commended for the class
of service now being rendered to the shipping public.

EXPENSE OF OPERATION
While the operating statement of the Florida Citrus Exchange
shows an increase of $44,091.49, the average cost per box is 3c less
than on the same date last season. The cause of this per box reduc-
tion is found in the fact that over 2,500,000 more boxes have been
shipped by the Exchange this season as compared with last.
The fiscal year of the Exchange ends on September 10th. Ship-
ments stop on June 15th. As expenses continue for about two and one-
half months after revenue ceases, the final showing on September 10th










will reflect a somewhat higher average per box cost of operations than
is indicated in the computations as of this date.
Details of the comparative costs of operation this season and last
are shown in the tabulation below:

COMPARATIVE OPERATING STATEMENT, SEASON
1927-28 AND 1928-29 TO MAY 10


Items of


1927-28


Expense Amount
Agents Expense ......$ 29,652.08


Agents Salaries less
Brokerage Received .
General Expense,
Postage & Telephone .
Office Supplies .
Rent Paid. . .
Florida Salaries &
Traveling Expense
Telegraph Expense. .
Sub-Exchange & Capitol
Fruit Co. Expense ...


1928-29


Per Box Amount Per Box
.007 $ 32,403.82 .005


46,578.21 .013


17,243.81
6,950.32
4,648.33

131,236.62
79,149.74


.005
.002
.001

.036
.022


54,023.66 .008


17,578.51
9,636.84
4,095.00


.003
.002
.001


141,598.07 .022
79,914.39 .012

20,300.31 .003


Totals ............. $315,459.11 .086 $359,550.60 .056

A study of the cost of acceptance by divisions reveals a method
by which the costs of sales in various territories can be analyzed.
These data are presented in the table below:

COST OF ACCEPTANCE BY DIVISIONS
TO MAY 10, 1928


Division Salary
New England ......$10,060.00
Eastern ........... 44,940.00
Southwestern ........
Mid-Southern ....... 2,853.30
Cincinnati ......... 13,404.55
Mid-Western ....... 23.442.00
Southwestern ....... 3,400.00
N. W. & Canadian ...


Expense Total
$ 2,796.33 $ 12,856.33
3,703.44 48,643.44
Handled by Brokers
664.62 3.517.92
5,112.69 18,517.24
9,115.70 32,557.70
376.39 3.776.39
Handled by Brokers


TOTAL .......... $98,099.85 $21,769.17
Waycross Diversions 3,209.00 634.65
TOTAL COSTS...$101,308.85 $22,403.82
Florida ............
Export ............
Miscellaneous .......
Total Acceptances ...


$119,869.02
3,843.65
$123,712.67


Per Box
$.0249
.0187
.0096
.0309
.0287
.0623

.0195
.0006
.0201


Boxes
516,475
2,600.980
468,016
364,567
599,544
1,133,293
60,570
213,301
5,956,746
5,956,746
5,956,746
192,170
49,785
3,535
6,202.236









APPENDIX "A"
Digest of the Quarantine Regulations
(Effective May 1, 1929)
Regulation 1-General citation of quarantine.
Regulation 2-Requirements on Quarantined State.
State Plant Board to prescribe (a) infested zones, (b) protective
zones.
Infested zones shall include the area within one mile of any prop-
erty on or in which infestation has been determined. Within the in-
fested zone all host fruits, wild and cultivated, and all host vegetables,
shall be destroyed. Soil shall be treated, and no host fruits or vege-
tables shall be permitted to develop to susceptible stages of maturity
or to remain within such zone. These restrictions shall remain in
force with respect to said zone until released by the State Plant Board
with the approval of the United States Department of Agriculture.
Protective zones shall include the area within nine miles of the
outside boundary of the infested zone.
Within the protective zone a host-free period shall be maintained
for six months each year beginning on May 1, but for 1929 such
period is expected to approximate five months and to begin about June
1. During the host-free period, no host fruits or vegetables of any
kind shall be permitted to grow or exist within the protective zone
except citrus fruits on the trees in such stages of immaturity that it
is not susceptible to infestation, and host fruits and vegetables in stor-
age or on retail sale for immediate consumption.
The State is further required to maintain a system of inspection.
satisfactory to the United States Department of Agriculture to bring
all intrastate movement of restricted articles within the quarantined
State under such control as shall be satisfactory to the United States
Department of Agriculture and to maintain control of the operation
of all groves, orchards, packing plants and other places in which fruits
or vegetables are produced, packed, processed or otherwise utilized.
Regulation 3-Restrictions on Interstate Movement of Citrus
Fruits from the Quarantined State.
Permits required for movement from any part of State.
Citrus fruit shall not be moved in bulk or by mail or by auto-
mobile truck.
Citrus fruit may be moved only in carlot shipments from regular
packing houses under permit.
No permits for the interstate movement of citrus fruits produced
or packed within an infested zone will be issued.
Citrus fruits from a protective zone may be shipped only to the
District of Columbia, the Potomac Yards in Virginia, and to destina-
tions in the States of Maryland and Pennsylvania and States north
and east thereof, or to foreign countries via such states. No diversion
orders permitted to points outside that area.
Throughout the State of Florida as a whole permits will be re-
quired and such permits are to be issued for each car, the permit to
be attached to the way bill.









The issuance of such permit shall be conditioned on such district
inspection or such grove inspection or such packing house inspection
as may be required by the inspector. The inspector must approve the
list of orchards from which the fruit is to be secured before such fruit
may be packed.
Regulation 4-Restriction on the Interstate Movement of Non-
Citrus Fruits.
No restrictions are placed on the interstate movement of water-
melons, pineapples, cocoanuts or other nuts or fruits which have been
manufactured or processed. Permits are required for the shipment of
non-citrus fruits from any part of the State of Florida. Such permits
may be issued on the receipt of evidence that the fruit concerned was
not produced in an infested zone, that the premises were operated in
compliance with quarantine regulations, and that the shipment con-
cerned does not involve risk of spread of infestation.
Non-citrus fruits shall not be shipped from any part of Florida
in bulk nor by mail nor by automobile truck.
Non-citrus fruits shall be moved only in carlots except that pro-
vision is made under permit for individual boxes for express shipments
in less than carlots.
Non-citrus fruits shall not be moved or allowed to be moved in-
terstate from a protective zone during the host-free period.
Regulation 5-Restrictions on the Interstate Movement of Veg-
etables.
These restrictions apply only to peppers, gourds, squashes, toma-
toes, beans and eggplants.
No permits are required with respect to those host vegetables
grown at points outside the protective zones except that tomatoes shall
be green.
Permits are required for shipments from the protective zone of the
host vegetables named. Such permits may be issued on evidence that
the vegetables concerned were produced outside an infested zone and
that the premises in which they were produced were operated in com-
pliance with the quarantine regulations and that the shipment does not
involve risk of spread of infestation.
Host vegetables from protective zones are not allowed to be moved
interstate in bulk nor by mail nor by automobile truck.
Movement of host vegetables from protective zones is confined to
carlot shipments except that provision for express shipments in less than
carlots by permittees are made.
Regulation 6-Restrictions on the Interstate Movement of Sand,
Soil, Earth, Peat, Compost and Manure.
No restrictions are placed on the movement of these articles orig-
inating outside the protective zones.
These articles originating inside infested or protective zones are
prohibited movement except that this shall not apply to Fuller's earth,
kaolin clay, phosphatic sand, or clay, peat or muck and similar mined
or dredged products, including sand, when in the judgment of the









inspector such movement does not carry any risk of spread of infection.
Regulation 7-Cars, Boats and Other Vehicles and Containers
of Restricted Articles are to be Cleaned.
Such cleaning is to be carried out at the point of unloading either
within or outside the state of Florida after such vehicles or containers
have handled the restricted articles.
Regulation 8-Restrictions on the Interstate Movement of Miscel-
laneous Articles:
Packing equipment and articles which have been associated with
the production of or commerce in fruits or vegetables or are or have
been contaminated with sand, soil, earth, peat, compost and manure,
shall not be moved interstate from any part of Florida except under
permit. Permits may be issued for such interstate movement upon de-
termination by the inspector that the articles have been cleaned or
treated to eliminate infestation.
Regulation 9-Nursery Stock.
All nursery stock movement from the quarantined state shall be
under permit. Permits may be issued on condition either that the
nursery in question was so situated and so protected as to eliminate
the risk of soil infestation or that the nursery stock has been so cleaned
or treated as to eliminate danger of infestation or that the articles have
originated outside any protective zone.
Regulation 10-Marking Requirements.
Each container of restricted articles shipped in less than carlots
must bear a permit tag. In the case of carlot no certification will be
required of individual boxes but the permit shall accompany way-bill.
Conductors' manifests, memoranda and bills of lading pertaining
to such shipments shall be marked with the number of permit and the
cleaning requirements prescribed in said permit.
Regulations 11 and 12 authorize inspection of restricted articles
in transit and the cancellation of permits.
Regulation 13 prohibits movement of restricted articles for ex-
perimental or scientific purposes in any other manner than in the full
restrictions prescribed in these regulations.
APPENDIX "B"
CITRUS ACREAGE
The following tables are the latest available data on the citrus
acreage by varieties and whether non-bearing or bearing for those
countries the products of which feed American markets.
Florida Citrus Acreage and Trees
Reported by State Marketing Bureau, October, 1926
Variety Bearing Non-Bearing Total
Fruit Acres Trees Acres Trees Acres Trees
Oranges ...... 108.040 6.904,420 83.245 5,538.136 191,285 12.442,556
Grapefruit. 60,651 2,971,910 19.610 960,909 80,261 3.932,819
Tangerines. 5,774 381,080 4,212 278,025 9.986 659,105
Satsumas 337 20,172 6,578 280.700 5,015 300,872
Lemons 1.053 84,273 861 68.909 1,914 153.182
Limes ..... .. 145 11.730 50 4.220 195 15,950
Totals . 176.000 10,373.585 112,656 7.130.899 288.656 17,504,484









California Citrus Acreage
Reported by California Cooperative Crop Reporting Service
in 1927


Variety Bearing
Oranges ........... 185,543
Lemons ............ 43,179
Grapefruit ........... 6,223

Totals ............ 234,945


Non-bearing
15,366
1,535
4,419

21,320


Total
200,909
44,714
10,642

256,265


Texas Citrus Acreage
Reported by J. M. Delcurto, Chief, Seed Division, Austin, Texas
April 10, 1928


Variety
Oranges ...........
Grapefruit ...........

T otals ............


Bearing
2,300
6,200

8,500


Non-bearing
22,500
52,500

75,000


Total
24,800
58,700

83,500


Arizona Citrus Acreage
Reported by T. S. Bishop, Chairman Commission,
April 10, 1928.


Variety
Oranges ...........
Grapefruit ..........

Totals ............


Bearing
1,000
1,200

2,200


Non-bearir
1,700
2,000

3,700


Alabama Citrus Acreage
Reported by J. W. Pace, Chief Citrus Inspector,
April 10, 1928


Phoenix, Ariz.

ng Total
2,700
3,200

5.900


Mobile, Ala.


Variety
Satsuma Oranges .....


Bearing Non-Bearing
4,030 7,120


Isle of Pines Citrus Acreage


Variety
Grapefruit ..........


Bearing Non-Bearing
1,000 200


Porto Rico Citrus Acreage
Reported May, 1927


Variety Bearing
Grapefruit .......... 3,145


Non-Bearing
615


Total
11,150



Total
1,200


Total
3,760









APPENDIX "C"
CITRUS CANNERIES
As in past seasons, citrus canning factories and juice plants have
been of great assistance to the industry in handling a very considerable
quantity of our low grade fruit. There has been quite an increase in
production from the juice plants, especially in oranges. It is probable
that the total volume canned this season will approximate 380,000
boxes.
Under the conditions confronting the industry brought about by
the Mediterranean fruit fly, it is imperative that these by-products in-
dustries should be fostered in every way possible so that they may be
able to take an appreciable percentage of next season's crop.
The development of this work, even under normal conditions, is
vital to the fresh fruit industry. The consumption of low grade, off-
size fruit in this manner relieves the box lot market, permits the load-
ing of more desirable cars and tends to increase the general averages
received on fresh fruit.
Sales of fruit to canners by the Exchange have been continued
this season under contract, as in previous seasons.
The major canners of the state now in operation include:
The Polk Company .................... Haines City, Florida
Florida Fruit Products Company .......... Eagle Lake, Florida
Hills Bros. Co. of Florida ................ Clearwater, Florida
West Coast Fruit Co. ................... Clearwater, Florida
Shaver Brothers Co. ..................... Jacksonville, Florida
DeSoto Canning Co. ...................... Arcadia, Florida
Highlands City Canning Co ............. Highlands City, Florida
Florida Fruit Canners Co. ................. Frostproof, Florida
Kingsway Corporation ............... ... Tampa, Florida

APPENDIX "D"
IMPORTANCE OF CANNERS IN PRESENT SITUATION
The economic situation of the citrus industry in Florida is such
that canning industries can pay a price for fruit which affords a fair
margin on groves, based on the cost of production of the fruit. That
trade conditions in the sale of the canned product are such that this
is made possible is indicated in the following letter from W. E. Parker,
President of the Mexican Crude Rubber Company, which owns the
Fruit Products Company of Florida, operating canning plants at Lake
Alfred and Eagle Lake, to C. C. Commander:
"In addition to being president of the Fruit Products Co., I am
president of a company that is among the largest growers of citrus fruit
in Florida; therefore I preface this letter by saying that I view the fu-
ture as a grower of citrus fruit, as well as a canner.
"Our company, the Fruit Products Company, has had a contract
with the Florida Citrus Exchange for the past two years; under this
contract we guarantee to take the cannery fruit of your members at









a fixed minimum and the contract contains a clause providing that if
the market advances the growers receive a higher price than the guar-
anteed minimum.
"This contract, I may say, has been very satisfactory to both the
members of the Florida Citrus Exchange and to this company and has
in many cases given the grower more for his cannery fruit than he has
received for boxed fruit shipped to market this season.
"Today we are faced with a problem as to the crop of next sea-
son and do not know if the markets of the world for fresh grapefruit
are to be closed to Florida. If they are, the only outlet will be through
the medium of the canneries.
"Our company is prepared to enter into a renewal of our existing
contract with the Exchange at -once; and we think that a plan can
be worked out that, if the new crop at present on the trees is not in-
creased by a very heavy June bloom that you may rest assured that
the canning companies can buy and ship three to four million field
boxes at one dollar per box to the grower at the canneries.
"All of our present calculations are being based on the possibility
of a state wide quarantine and we will not be sure of that till definite
plans are made.
"But our experience has taught us that adequate advertising will
at once increase the sales at higher prices on canned grapefruit beyond
the present supply. A plan I would suggest is that the Citrus Ex-
change select some of the reliable firms of canners, ones that operate
thoroughly sanitary plants, that pack quality products, enter into a
contract with them to supply them with fruit at one dollar and fifteen
cents per box, that those companies that do make this contract receive
the benefit of having their brands mentioned in a general advertising
campaign for canned grapefruit to be conducted and paid for out of
the general advertising budget of the Exchange.
"Our company is prepared to enter into such a contract whether
any other cannery does or not.
"I do not hesitate to state that it is my belief that if this plan is
followed we can carry the Exchange members through the battle we
are faced with to exterminate the Mediterranean fly and give them a
sure return of from seventy-five cents to $1 a box on the tree for their
fruit.
"This company stands ready to devote all possible assistance in
this emergency and await your requests for further ideas."

APPENDIX "E"
PER CAPITAL CONSUMPTION OF CITRUS
Any prediction of present over-production in citrus is not sound or
founded on fact. There is a potential market for many times the
volume that the state now produces.
Pro-rated to the population of the United States alone-and here
it must be remembered that considerable quantities of Florida fruit are
shipped to Canada and Europe-the present bumper crop of Florida









oranges allows just 1.25 oranges per month per person. Even with
the inclusion of California's volume, the resultant figure of the per
capital supply is surprisingly low.
Considering Florida grapefruit on the same basis-and the state
produces over 80 per cent of the total sold in American markets-
there are available but 4.7 grapefruit per person per year.

APPENDIX "F"
SHIPMENTS AND DISTRIBUTION
Shipments Compared with Last Season
By Sub-Exchanges


1927-28 1928-29
Sub-Exchange May 11 May 10
Dade ..... .27,088 30,695
DeSoto. .. .. 98,923 227,975
Hillsborough 93,099 173,005
Indian River ... 210,670 250,598
Lake . .. 196,949 527,568
Lee ..... 26,614 105,960
Manatee . 87,626 265,563
Marion .... .24,771 53,214
Orange . 624,472 1,306,740
Pinellas . 79,050 463,261
Polk . .1,965,995 2,762,808
St. Johns 123,236 238,276

Totals . .3,658,493 6,405,663
3,658,493

Increase 2,747,170


Increase
Boxes
3,607
129,052
79,906
39,928
330,619
79,346
177,937
28,443
682,268
284,211
796,813
115,040

2,747,170


Per Cent
Increase
13.3
130.5
85.8
19.0
167.9
298.1
203.1
114.8
109.3
158.7
40.5
93.3

75.1


Distribution of Acceptances


Division
New England
Eastern. .
Southeastern.
Mid-Southern
Cincinnati ..
Mid-Western
Southwestern.
Northwestern.
Canadian .
Florida .
Export .
Misc. Sales .


Oranges
278,095
,527,234
311,526
268,291
302,985
307,919
21,531
2,657
10,518
2,565
270
1,735


Grapefruit
201,815
798,237
142,983
90,127
259,848
766,889
38,758
126,000
73,450
189,605
49,515
1,800


Tangerines
36,565
275,509
13,507
6,149
36,711
58,485
281
155
521


Totals
516,475
2,600,980
468,016
364,567
599,544
1,133,293
60,570
128,812
84,489
192,170
49,785
3,535


2,739,027 427,883 6,202,236


Totals.. .3,035,326









APPENDIX "G"
GROWERS LOAN AND GUARANTY COMPANY
This company is the financial subsidiary of the Florida Citrus Ex-
change. It is operated to make possible loans to Exchange growers
and associations.
During the fiscal year ended April 30, 1929, the total loans to
growers and to associations was $2,629,018.92, which was quite an
increase over the previous year; the total loans for the fiscal year ended
April 30, 1928, being $1,578,179.10.
During the past fiscal year the company increased its capital
through an authorized issue of 7 per cent Accumulative Preferred stock
in the sum of $500,000.00, of which the sum of $326,700.00 was
subscribed and paid for as of April 30th. The major portion of this
stock was purchased by an investment banking house in Baltimore. The
company also secured new capital through an issue of five year packing
house collateral trust notes in the sum of $600,000.00.
Short term production loans to growers were financed through an
issue of short term trust notes sold to fourteen Northern banks and by
straight rediscounts with the Federal Intermediate Credit Bank of Co-
lumbia, S. C. The total of rediscounts with the Federal Intermediate
Credit Bank and of collateral trust notes issued and sold in the North
during the past year was approximately $1,000,000.00.
The company is now making its plans for next year, and there is
every reason to believe that it, barring any further unfavorable develop-
ments, will be a little later in the season amply able to take care of
the production requirements of those growers who are entitled to credit.

APPENDIX "H"
THE EXCHANGE SUPPLY COMPANY
The Exchange Supply Company, the stock of which is owned by
the members and associations affiliated with the Florida Citrus Ex-
change, has had a very satisfactory season, having an increase in bus-
iness of 41 per cent over the amount of business for the previous sea-
son, and all departments have shown a very satisfactory volume.
The total gross business for the season 1927-28 was $429,000.00,
and the gross sales for the season 1928-29, just closed, was $608,-
000.00.
The Exchange Supply Company handles practically everything
connected with the operations of a packing house and while it is op-
erated on a close margin of profit, giving to the associations liberal
discounts, it has by purchasing in large quantities made a small net
profit.
The Exchange Supply Company is continuing to liquidate its fixed
holdings that were acquired in connection with its manufacturing de-
partments that were discontinued several years ago, and has retired
nearly all of the bonds that were outstanding and will probably retire
the remaining bonds within the course of the next year.














Seasons
1886-87
1887-88
1888-89
1889-90
1890-91
1891-92
1892-93
1893-94
1894-95
1895-96
1896-97
1897-98
1898-99
1899-00
1900-01
1901-02
1902-03
1903-04
1904-05
1905-06
1906-07
1907-08
1908-09
1909-10
1910-11
1911-12
1912-13
1913-14
1914-15
1915-16
1916-17
1917-18
1918-19
1919-20
1920-21
1921-22
1922-23
1923-24
1924-25
1925-26
1926-27
1927-28


APPENDIX "I"
TOTAL CITRUS CROP MOVEMENT
FLORIDA AND CALIFORNIA
As Reported in Boxes by the Railroads.
Florida California
.............. 1,260,000 840,560
.............. 1,450,000 957,600
.............. 1,950,000 1,067,040
.............. 2,150,000 1,333,800
............. 2,450,000 1,541,280
.............. 2,713,180 1,691,760
.............. 3,450,000 2,255,680
.............. 5,055,367 2,230,980
.............. 2,808,187 1,908,360
.............. 147,000 2,878,500
.............. 218,379 2,793,000
.............. 358,966 5,758,140
.............. 252,000 3,933,380
.............. 274,000 6,767,420
.............. 352,600 9,156,860
.............. 974,033 7,747,060
.............. 1,147,491 8,921,220
....... . 1,954,954 11,114,656
.............. 2,961,192 11,559,542
.............. 3,794,133 10,155,542
.............. 3,801,101 11,388,029
.............. 3,250,000 12,327,944
.............. 4,634,000 15,460,912
.............. 6,100,000 12,815,272
.............. 4,600,000 17,960,544
.............. 4,750,000 15,827,162
.............. 8,125,000 7,212,996
............... 7,946,926 19,160,724
............. 9,700,000 18,458,880
.............. 8,370,000 18,203,114
.............. 7,649,049 23,192,722
.............. 5,581,309 10,355,733
.............. 8,407,680 22,092,184
.............. 12,495,925 20,408,582
.............. 12,109,320 26,838,776
..............11,888,280 16,981,129
.............. 16,886,701 23,409,887
..............20,399,614 24,292,800
............ 17,781,120 21,411,660
.............. 14,692,320 29,401,680
.............. 16,588,800 31,350,000
.............. 13,635,360 27,322,160









APPENDIX "J"
VALUE OF FLORIDA CITRUS CROP TO
Season" Boxes
1909-10 ............ 6,100,000
1910-11 ............ 4,600,000
1911-12 .......... .. 4750,000
1912-13 ............ 8,125,000
1913-14 ............ 7,956,000
1914-15 ............ 9,700,000
1915-16 ............ 8,370,000
1916-17 ............ 7,649,000
1917-18 ............ 5,581,000
1918-19 ........... 8,407,680
1919-20 ............ 12,495,925
1920-21 ............ 12,109,320
1921-22 ............ 11,888,280
1922-23 ............ 16,886,701
1923-24 ............ 20,399,614
1924-25 ............ 17,781,120
1925-26 ............ 14,692,320
1926-27 ............ 16,588,800
1927-28 ............ 13,635,360


THE STATE
Amount
$ 9,699,000.00
8,740,000.00
11,685,000.00
17,958,000.00
16,550,406.00
16,199,000.00
18,497,700.00
17,286,000.00
20,706,656.39
31,696,953.60
45,235,248.50
35,117,028.00
40,657,917.60
48,464,831.87
42,337,200.98
53,165,548.40
52,822,352.00
46,945,704.00
51,424,100.00