Annual report of the Florida Citrus Exchange
Full Citation
Permanent Link: http://ufdc.ufl.edu/UF00075941/00005
 Material Information
Title: Annual report of the Florida Citrus Exchange
Alternate title: Seald-Sweet story
Seald-Sweet annual report
Physical Description: v. : ill. ; 24 cm.
Language: English
Creator: Florida Citrus Exchange
Publisher: The Exchange
Place of Publication: <Tampa Fla.>
Creation Date: 1931
Frequency: annual
Subjects / Keywords: Citrus fruit industry -- Statistics -- Periodicals -- Florida   ( lcsh )
Citrus fruits -- Statistics -- Periodicals -- Florida   ( lcsh )
Citrus fruits -- Marketing -- Statistics -- Periodicals -- Florida   ( lcsh )
Genre: government publication (state, provincial, terriorial, dependent)   ( marcgt )
statistics   ( marcgt )
serial   ( sobekcm )
General Note: Mimeographed, 1933/34-1934/35.
General Note: Description based on: Season 1926/27; title from cover.
 Record Information
Source Institution: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: aleph - 001753794
oclc - 46798761
notis - AJG6778
lccn - 2001229399
System ID: UF00075941:00005
 Related Items
Preceded by: Annual report of the business manager of the Florida Citrus Exchange

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SEASON 1931-32 .............................. 3
Competition of Tomato Juice .................... 3
Florida's Volume Decreased ..................... 4
Chain Stores in State .......................... 4
Truck Operations Dangerous .................... 4
Bulk Movement Heavy ........................ 6
Economies Effected ........................... 6
Pro-Rating Committee Operations ................. 8
F. O. B. Business Developed ................... 9
Premium Prices Obtained ....................... 10
Export Volume Decreases ....................... 10
Bag Package Continued ........................ 11
Data on V olume ............................. 12
Distribution to Auction and Outside Markets.......... 13
Season's Price Averages ........................ .14
ADVERTISING ACTIVITIES ................... 15
Advertising Volume Limited ..................... 15
Tangerine Campaign Produces Results ............. 16
A appliances .................................. 16
TRAFFIC DEPARTMENT ..................... 18
Rate Cases ................. ........... 19
Proposed Charge for Use of Refrigerator Cars........ 19
Reduced Rates to Eastern Markets .............. 19
Refrigeration Case ............................ 20
Packing in Transit Rates in Atlanta ............... 20
Containers .................................. 2 1
Car Loading ................................ 22
Claims ................................... 22
Clyde Line Strike ............................ 23
American Fruit & VegetablD.e .hip'es' .Convention ...... 23
ORGANIZATIpN1.Afli I SPECTIO:j *:.;.. ..... 23
EXPENSE OF- IPERATION ........ .:'...:'.... 25
APPENICJ *.* ... "" :.
A. Grwoers Loan &";wr'rnty opbQwny. ......... 27
B. Exchange Supply Company ................. "* 27


SEASON 1931-32

The total American production of citrus during the 1931-32
season dropped below the preceding season, but with that single ex-
ception was still greater than any other season in the history of the
industry. The season totals by cars since 1923-24 by major pro-
ducing sections are as follows:

1923-24 1924-25 1925-26 1926-27 1927-28 1928-29 1929-30 1930-31 1931-32
California- 60.732 53,529 73.504 70.600 67.536 73.361 68.175 87,120 75,000*
Florida.-- 56,442 49.398 37,445 45.145 36,839 55.875 39,564 74,480 48,670*
Texas.... 290 706 1,036 2,106 4,620 2,636 8.000**
Total..... 117,174 102,927 111.239 116,451 105,411 131,342 112,359 164,236 131,670
*-Estimated to close of season, exclusive of trucked volume.
S"*Includes 2,000 cars truck, figures submitted by W. A. Canon,
Market Division, Austin, Texas.
This heavy production was marketed in the face of what eco-
nomists have described as the most severe economic depression experi-
enced in the country since the Civil War. Low prices on Florida
citrus, therefore, on a general average maintained throughout the
season, although the average net returns to Florida citrus growers have
been far in excess of those obtained by producers of other agricultural
commodities throughout the United States.

Competition of Tomato Juice
Citrus producers for the first time this season faced a new
deciduous development which has proved to be severe competition and
which promises to be a dangerous competitor in future marketing.
Tomato juice was practically unheard of three seasons ago. Its com-
mercial pack has developed since that time to an estimated grand total
of 1,500,000 cases distributed and sold during the past 12 months.
This product has been strongly supported by intensive advertising on
the part of its packers.
As a result a wide spread consumer acceptance exists for canned
tomato juice. In most instances this product has replaced citrus juice
on the menu and, while there is no method of determining mathe-
matically how severely this product has cut into citrus markets, it is
apparent that this year-round staple will afford competition of the most
severe type.
Other commodities competitive to citrus have not abnormally
affected the marketing picture. The spring freeze which swept through
1108 7

the Southern states during March served to wipe out the spring straw-
berry crop with a favorable reaction to citrus in general. Apples,
grapes, peaches, pineapples, etc., have maintained normal movements
with respect to volume. Further, cantaloupes from the Imperial Valley,
because of weather conditions, have been delayed about thirty days.

Florida's Volume Decreased

The final totals for the Florida citrus crop were considerably
under the original estimates for the season. An unprecedented drought
maintained throughout the belt practically the entire season, with a
consequent heavy dropping. Fruit, because of the lack of rain, sized
up much smaller than usual, forming another factor in the shortened
volume. During February severe windstorms swept the state and shook
additional totals from the trees. All of these factors contributed to
the general rise in the market experienced during the latter part of the
season beginning in April.

Developments in the industry this season made apparent in the
marketing of Florida citrus have emphasized more than ever before
the necessity for unity of thought and organized action in the mer-
chandising of Florida's citrus crop.

Chain Stores in State

Probably the most alarming of these recent developments is the
entry of chain stores into the growth, tree purchase and shipment of
fruit within the state. This development of chain store control of the
product within the state seriously will affect future citrus markets. It
has been authoritatively stated that chain stores in control of 20%
of the milk supply can prevent the advantageous stabilization of prices
on that commodity from the producer's standpoint. This is inevitable,
as the far flung retail outlets of these units can dispense volume pur-
chases made at a low price in such a manner as to force retail com-
petition to drive the price on the balance of the commodity in line. If
this situation is developed to this point in Florida citrus, the industry
faces a most serious problem-one which can be met only through
complete grower organization. Either citrus growers must control their
product through their own marketing system, or it may be controlled
by chain stores.

Truck Operations Dangerous
The development of trucks as carriers and their operators as
nomadic and largely irresponsible sales agents for Florida citrus has
been another factor of considerable importance in the movement of
this season's crop. The apparent price advantage obtained by the sale
of fruit to these carriers at the packing house is sacrificed in the mar-
keting of the balance of the crop handled through standard channels.

In those markets reached by trucks filled with bulk fruit, driven day
and night with low overhead, a heavy price toll is paid by the standard
packs which must meet this price competition.

Government check on the truck movement of citrus from Florida
was maintained this season through December. The total moved by
these carriers to January 1st was 833,572 boxes, over half of which
moved in the single month of December. Truck sales did not begin
to decline appreciably until March of this year, and thus the total
movement for the season undoubtedly is many times the total of the
recorded period. The trucked volume, therefore, has become a large
factor in the movement of the total crop.

An examination of its wide spread distribution illustrates the
menace which exists unless some control is exercised. One truck load
sold at low prices in an average sized market will affect negatively
the prices on three cars of packed and graded fruit.
Disregarding those markets in which less than 50 boxes of fruit
were unloaded by trucks during the recorded period, the distribution
maintained by these carriers affected 964 towns extending as far
into the West as Evansville, Ind., with 840 boxes, and as far into
the East as Buffalo, N. Y. with 480 boxes, as compared with total
Exchange unloads in these markets for the same period of 1,140 boxes
and 16,720 boxes respectively.
A picture of this distribution is available in the map on the follow-
ing page. Careful examination of this reveals many markets heretofore
profitable for volume car lot unloads which can no longer be entered
with standard packages. Where such markets as, for instance, Bir-
mingham, Ala. received 52,440 boxes of Florida Citrus Exchange un-
loads alone during the 1930-31 season, during the present season only
18,240 boxes of Exchange fruit in standard packages were unloaded.
Assuming that Birmingham received competitive fruit in the same pro-
portion as Exchange fruit, which that season amounted to 40.1 % of
the total crop, Birmingham represented an actual market for 131,100
boxes of Florida fruit in standard packages during 1930-31.

The industry therefore sacrificed this market for 131,100 boxes
of standard packaged fruit to sell 25,'290 boxes by trucks during the
four months recorded period, or possibly 40,000 for the season total,
by truck. Similar conditions in many other markets might be cited
where a small volume of truck distribution has replaced an appreciable
previously maintained distribution of fruit in standard containers.

Bulk Movement Heavy
Car lot bulk fruit also moved this season in unprecedented volume.
It will be noted in succeeding tables that of the total car lot shipments
made by the Florida Citrus Exchange, approximately 15 % exclusive
of the truck movement were bulk. This condition inevitably created
further merchandising problems. While there are certain competitive
advantages in some markets to be gained through bulk shipments, the
general uncontrolled flow of bulk fruit from the state has served to
seriously impair price conditions on the regularly packed volume. The
situation created by this fruit, however, is by no means as serious as
that caused by the truck movement.
Certain adjustments have been made in the handling of bulk
fruit through the sales department. With the proper cooperation of
Associations, the difficulties experienced in the handling of third grade
and trade marked bulk fruit can be eliminated in the future. A de-
tailed plan on this phase of the sales work will be submitted during
the summer.
The successful handling of all these factors require a closely knit,
smoothly functioning, thoroughly cooperating organization through from
the Tampa office to the smallest Association. Such an organization
alone can achieve success.
Economies Effected
A policy in the operations of the Florida Citrus Exchange has
been developed which will concentrate all activities solely upon the
promotion and sale of Exchange growers' products. All other activities,
even though apparently allied to this general objective, will be

The operation of this policy, together with a reduction in estimated
volume through the season and for the coming season has made pos-
sible very definite economies which have been effected by the Florida
Citrus Exchange.
On July 31, 1931 salaries of employees in Florida and in the
markets which exceeded $100 a month were reduced 10%. An ad-
ditional 5% reduction on all salaries above $125 a month became
effective April Ist, 1932. Re-arrangement of departmental activities
where experience has indicated adjustments could be made without loss
of efficiency and the discontinuation of certain other activities have
also been made.
The savings accomplished by the reductions in salaries, the re-
arrangement of personnel and re-alignment of operating functions will
total close to $100,000 during the ensuing season.
The Florida Citrus Exchange withdrew from the Florida Citrus
Growers Clearing House Association prior to the beginning of the
season. This action resulted in the saving of 2c per box on total
Exchange shipments.
These savings effected in the Tampa office amount to a con-
siderable total. They effectively prove that the Board of Directors
has made every possible effort to eliminate all unnecessary overhead
and to conduct every necessary operation of the Florida Citrus Ex-
change in the most economical manner consistent with efficiency and
results. They are reflected in the fruit returns made by the Florida
Citrus Exchange to its Sub-Exchanges.
There the responsibility of the Exchange at present ceases. It be-
comes the function of the Sub-Exchange and the Association to see
that these savings are reflected just as effectively in the returns made
to individual grower-members. In other words, while the Tampa office
is bending every effort to effect these economies, it is just as important,
and even more so, that similar reductions of expenses be accomplished
in the operations of the Sub-Exchanges and Associations so that not
only can the Tampa office savings be reflected in grower returns, but
also an additional saving of an equivalent or greater amount may be
returned to the growers.
The finest organization argument to influence the grower to join
the Florida Citrus Exchange is the higher returns he has received or
can get by shipping through the organization. These returns must be
actual in dollars and cents. And the responsibility for these returns
rests equally upon the local Association, the Sub-Exchange and the
Florida Citrus Exchange.
The organization as a whole has everything in its favor to enable
it to reflect just such a picture. All units operate at cost. And if an
organization efficiently operated at cost cannot show a decidedly lower
price for the same operations that are charged by an operator who


must make a profit above these costs, given the same volume and
varieties, then inefficiencies exist.
In addition to these savings of profit which must be reflected in
growers' statements, there are also the economies which can be obtained
on volume operations. With 40% of the total crop, the organization
has the necessary volume which can and should produce such additional
It is well to remark in this connection that many Exchange Asso-
ciations have made long strides to this end. Some are advertising a
total house retain on fruit as great in some instances as 40% below
competitive house charges. This condition made standard in all Asso-
ciations, volume and varieties considered, would practically answer the
organization problems of the Florida Citrus Exchange.

Sales activities of the Florida Citrus Exchange continued depart-
mentalized under the Sales Manager by varieties-oranges and grape-
fruit. This concentration of effort and responsibility for definite com-
modities has resulted in an appreciable co-ordination in the work of the
entire department.
A closer contact between producing sections and sales requirements
has been developed and maintained through the use of a Pro-Rating
Committee. This committee consists of three Sub-Exchange managers
and the Sales Department heads.
Pro-Rating Committee Operations
Regular meetings of this Pro-Rating Committee were held weekly
throughout the season. These meetings concerned general routine mat-
ters which came up during the week relative to crop conditions, the
movement of fruit and other factors affecting the markets, prices, Sub-
Exchanges or Associations. At each meeting a report was presented
from each Sub-Exchange indicating the number of cars of oranges,
grapefruit and tangerines which each unit expected to ship the following
week. After a decision as to the total number of cars of each com-
modity which should be moved during the following week, the amount
was pro-rated among the various Sub-Exchanges in accordance with
available supplies.
On the following Wednesday each Sub-Exchange made an addi-
tional report to the Sales Department advising the number of cars
actually shipped for the week to that Wednesday, and also the prospect-
ive number to be shipped during the balance of the week. The Sales
Department then was able to advise with the Sub-Exchanges under the
then current market conditions as to whether shipments should be
speeded up or retarded.
This information received twice a week from the Sub-Exchanges
placed the Tampa office in a position to keep an accurate regulation

over the movement of the fruit and to take advantage of any market
conditions which offered a possibility of securing higher prices.
This work was supplemented by daily reports of fruit supplies on
hand in each Association made by the Association to the Sub-Exchange
and thence to the Tampa office. This daily inventory of fruit on hand
in the packing house, together with the number of cars which each
Association expected to ship the following day, placed both the Sub-
Exchange and the Tampa office in a position to know where supplies
were available for orders and whether supplies were too heavy or too
light. Association picking operations thus could be intelligently regu-
lated. This system also tended to avoid heavy over supply of fruit
held for storage by the Association.
This detailed co-ordination of marketing and field operations
through the functioning of the Pro-Rating Committee, together with the
development of sales policies in these meetings, produced a sales flexi-
bility of sufficient scope to meet in the best possible manner the unusual
market conditions which existed throughout the season. This perfec-
tion of detailed handling methods has proved to be of marked ad-
F. O. B. Business Developed
The Sales Department again concerned itself with the development
of as many f. o. b. orders as possible. This necessitated the loading
of special orders.
A desk in the Sales Department was continued on handling special
orders and following up mixed cars in markets where buyers were un-
able to purchase in full car load lots. This feature in handling sales
enabled the Exchange to develop a considerable volume of new busi-
ness. Further, it has aided a number of small Associations who were
at times unable to load straight cars of any one variety to handle this
business to advantage.

Through the Division and District Managers, a close contact with
trade requirements in the individual markets was maintained throughout
the season. Regular outlets for Exchange brands were built up and
the trade, as far as possible, was supplied with sizes and assortments of
these brands to meet their requirements.
This work has been very beneficial to the organization, especially
during periods when the auction markets were depressed with heavy
supplies and f. o. b. business was at a premium. That this specialized
work, coupled with the general merchandising operations of the Ex-
change, has paid is evident from an examination of comparative price
averages in the two leading auction markets of the country-New York
and Chicago. These two markets serve as price barometers not only
for adjacent auctions, but for the numerous and densely populated
private sales territories near them which are constantly being worked by
the Exchange Sales Department. These auction records are public

property and, as such, serve as a fair indication of comparable condi-
tions in these smaller markets in which no records are available.
Premium Prices Obtained
During the month of April, the fruit sold by Florida Citrus Ex-
change the Chicago auction brought an average price of $3.57 per box
for all varieties, grades and sizes. During the same month the fruit
sold by competitors at auction in Chicago averaged $3.12 per box for
all varieties, grades and sizes. Exchange growers, therefore, received
45c per box more on the general average than competitive growers
For the entire season through April 30thin Chicago the Florida
Citrus Exchange general average for all varieties, grades and sizes was
20c per box higher than that of competitors.
The sales situation in the New York auction for the month of April
and for the entire season through April discloses a similar condition to
that of Chicago. During April the Exchange sold 173,902 2 boxes
at an average of $3.56 per box for all varieties, grades and sizes. Com-
petitors during the same month sold 410,292 boxes averaging $3.27
per box for all varieties, grades and sizes. In other words, the Ex-
change obtained 29c per box more than competitors obtained on the
general average for all fruit sold in New York during April. The
average for the entire season shows a premium of 22c per box in favor
of the Exchange.
Export Volume Decreases
Florida Citrus Exchange export sales for the season were 19%
less than during the 1930-31 season.
This decline in volume was caused principally by the fact that
Great Britain went off the gold standard in October of 1931. The
English pound dropped from par to figures as low as $3.28. Another
factor which influenced this decline, was the tariff of 10% on all citrus
imports enacted by the English Parliament.
Under such conditions, the Exchange export volume this season
may be considered satisfactory. Export sales averaged $1.14 per box
f. o. b. Tampa, as compared to an average during the same period of
$1.45 f.o. b. Tampa for domestic sales. This difference in price also
may be attributed to the deflation in the English currency and the
duties. Export shipments were confined mostly to extremely small sizes
and the comparison of sales on these sizes alone in the domestic mark-
kets is favorable with prices received at export on the same sizes.
The percentage of the Mor-juce grade of fruit in the export vol-
ume this season has increased. Last season was the first time in history
that the organization ever had exported fruit of Mor-juce grade. The
total during that season was one-third of the volume exported. During
the past season, however, the volume of Mor-juce increased to slightly
more than 50% of the total.


Shipments were made almost wholly to London and Liverpool.
From these points the fruit was distributed to.Birmingham, New Castle,
Manchester and Hull in England; Glasgow in Scotland; Paris,
Hamburg, Bremen, Antwerp, Copenhagen, Rotterdam, Oslo and
Zurich on the Continent. The methods and facilities employed in the
sale and distribution of Exchange grapefruit in foreign countries is satis-
factory. The services of two of the best receivers in the United King-
dom are used. One sells almost exclusively at auction and the other
to the same extent at private sale. Thus distribution and sales to every
available channel are assured.
Export sales of grapefruit to the United Kingdom this season from
Florida will total approximately 500,000 boxes, as compared to
600,000 for the preceding season. With the increasing production
of grapefruit, the development of the markets in the United Kingdom
and Continental Europe must be continued.
Bag Package Continued
The bag container for citrus was developed by the Florida Citrus
Exchange and used exclusively by the organization in the commercial
movement of the 1930-31 season. A total of 705 cars were shipped
by the Exchange during that season. Orders were available for more
than twice this volume and could have been filled if packing facilities
and fruit had been available. This entire business brought a premium
above the market for the same grades and sizes of fruit.
Developments in the bag industry eliminated the possibility of a
continuation of the exclusive development of the bag business by the
Florida Citrus Exchange, with the result that other operators in the
state came into the deal during the 1931-32 season. The total ship-
ments from the state for the season increased slightly over the preceding
season. The Exchange movement, however, dropped from 705 cars
to less than 150-not 20% of the total state's bag movement.
There are essentially two basic reasons why the total bag business
in the state did not increase anywhere near in the proportions indicated
as possible by the 1930-31 operation. In the first place the Florida
Citrus Exchange had maintained throughout its entire movement an abso-
lute standard of uniform grades for both Seald-Sweet and Mor-juce
fruit as packed in bags. Other shippers when they came into the pic-
ture did not maintain these strict grading regulations, with the result
that consumers to a large extent lost confidence in the package.
The Exchange shipments decreased very materially, primarily be-
cause of the low competitive prices which maintained on the fruit packed
in bags. Wherever orders could be obtained at the market for fruit
properly graded, the Exchange accepted and filled such orders. Due to
the general tendency to degrade the package, however, with inferior
fruit, the Exchange could not compete in the matter of price and still
protect its growers.
Sufficient commercial movement, however, has been maintained on
this package to prove definitely its value in the movement of citrus.

Given more satisfactory regulations so that consumer confidence can be
restored and maintained, there is no reason why this business should
not increase materially to the advantage of Florida growers.
Data on Volume
Total shipments of Florida citrus fruit for the season of 1931-32
through May 22nd decreased 32.4% under the same period of the
preceding season. The details are as follows:

1931-32 1930-31 Decrease
Oranges .23,868 Cars 36,333 Cars 12,465 Cars
Grapefruit .20,467 Cars 30,414 Cars 9,947 Cars
Tangerines 3,794 Cars 4,440 Cars 646 Cars

Total .48,129 Cars 71,187 Cars 23,058 Cars 32.4%

The Florida Citrus Exchange shipments during the same period
reflect a comparable decrease. The data by varieties arranged to show
a comparison with the above table of state's shipments for the reported
periods follows:

1931-32 1930-31 Decrease
Oranges 8,851 Cars 15,564 Cars 6,713 Cars
Grapefruit 7,353 Cars 13,280 Cars 5,927 Cars
Tangerines 1 833 Cars 1,953 Cars 120 Cars

Total .. .18,037 Cars 30,797 Cars 12,760 Cars 41.1 %

The above figures show the Exchange totals through May 22nd.
It is probable that the percentage of Exchange fruit will be increased
somewhat when the final figures for the season are available, as almost
all the fruit remaining in the state is controlled by the Exchange. On
the other hand, the final percentage for the season of Exchange control
will be somewhat under that of last season because of the heavy buy-
ing of fruit on the trees. The cash buying this season has been heavier
than ever before in the history of the industry and, since such purchases
are made by or through independent operators, the fruit is lost to
Exchange packing houses and sales.
A satisfactory balance of fruit sold at auction and private sale has
been maintained throughout the season. This detail through May 21st
as compared with the season 1930-31 is listed in the following table:

As of May 21st, 1932

MARKET Oranges Grapefruit Tangerines Mixed Totals
Auction 3170 2330 851 1113 7464
50.8% 40.3% 65.4% 52.4% 48.3%
Outside 3071 3453 450 1011 7985
49.2% 59.7% 34.6% 47.6% 51.7%

Total .

6241 5783 1301 2124 15449

Cannery & Truck Sales ............... ................. 2206
Exports, Carlots ............. ............ ........... 129
Rolling Unsold:
To Auction .......... 107
To Outside ........... 69
Diversions ........... 39

Total .............. ............. ....... 215
In Storage ................... ............ .......... 38

GRAND TOTAL (SHIPMENTS) ......................... 18037

SEASON 1930-31

MARKET Oranges Grapefruit Tangerines Totals
Auction 5623 3320 1208 10151
46.1% 35.3% 66.5% 43.4%
Outside 6559 6069 598 13226
53.9% 64.7% 33.5% 56.6%
12182 9389 1816 23377
Cannery, Juice and Truck Sales ......................... 644 I
Exports ....... ...................... ............ 170
Rolling Unsold:
To Auction .......... 184
To Outside .......... 209
Diversions ............ 141 534

In Storage ....................... ... ................ 275

GRAND TOTAL (SHIPMENTS) ......................... 30797

The comparative distribution by divisions for the present and past
seasons, with percentages by varieties, follows:

Season 1931-32-May 21st

Division Oranges Grapefruit Tangerines

New England 849
Eastern 3706
Southeastern 394
Southern 519
Cincinnati 725
Mid-Western 1290
Northwestern 4
Southwestern 18
Miscellaneous 1346



TOTALS 8851 7353 1833
100% 100% 100%


Season 1930-31-May 2nd
Oranges Grapefruit Tangerines Total

1067 703 154
9.56% 7.43% 7.88%
4880 2433 1085
43.69% 25.72% 55.56%
738 291 70
6.60% 3.08% 3.60%
923 392 45
8.26% 4.14% 2.32%'
1021 894 166
9.14% 9.45% 8.50%
1959 3041 427
17.55% 32.14% 21.84%
4 300 1
0.04% 3.17% 0.03%
10 31 0
0.09% 0.32% 0.00%
566 1375 5

18037 11168 9560 1953 22581
100% 100% 100% 100% 100%

This distribution has been made to customers, towns and states as
Customers sold ........... 737
New customers sold ....... 158
Towns sold ............. 301
New towns sold .......... 34
States sold .............. 44
Canadian provinces sold .... 6

Season's .Price Averages

An analysis of the accounts of sales up to and including May 10th
obtained on all grades and varieties of Exchange fruit are shown in the
table below. In considering these prices it must be remembered that
they are f. o. b. Tampa, with sales and packing retains yet to be de-

Oranges ..............$ 2.32
Grapefruit ............. 1.46
Tangerines .............. 1.93

TOTAL ..........$ 1.96

Oranges ...............$ 2.25
Grapefruit .............. 1.45
Tangerines ............. 1.58

TOTAL ..........$ 1.81


Grapefruit .............. $ 1.14
Oranges ............... $ 1.30
Grapefruit .............. .81
Tangerines ............. .99

TOTAL ..........$ 1.10

The advertising activities of the Florida Citrus Exchange during
the past season have been restricted somewhat more than usual due to
a volume decrease below original estimates. This loss of volume may
be traced primarily to the drought and subsequent windstorms.
The shrinkage suffered through these factors, however, has been
increased in their effect on the advertising budget by the heavy truck
and bulk movement which took place throughout the season. On truck
fruit no advertising revenue is received whatever, and on bulk fruit
only 2c per box is received on that which clears through the Tampa
Advertising Volume Limited
With this sharply restricted revenue below the original estimates,
the advertising of the Exchange has of necessity been limited in scope.
A 24-sheet poster campaign planned for three months was operated
during the month of January in the 25 largest markets for Florida
fruit and discontinued for the balance. Two-sheet poster advertising
on the subway and elevated station platforms of New York and Chi-
cago was purchased and used through a four months period.
Publication advertising was limited in scope and paralleled di-
rectly with sales requirements. As an example, tangerine advertising
copy was released in the newspapers of certain markets selected for
the development and promotion of this commodity. These markets
located in the middle and far West were of normal buying power,
but had not received any commercial volume of tangerines prior to
this effort.
In handling these new, as well as other, Mid-Western markets,
tangerines of choice grades were packed and used in the distribution.
The first grades of tangerines were boxed for sale at auction. A new
bushel box container developed primarily for tangerines permitted a
satisfactory distribution in the West on these choice grades. This ac-
tivity considerably relieved the larger auction markets of gluts on
Exchange brands, permitting a better general average price to be real-
ized, not only on boxed fruit, but that packed in other containers as
well. This distribution effort on the part of the sales department was
backed up in these markets by intensive dealer sales and newspaper

advertising work. New markets have been opened and consumption
in old markets has been increased.
This added popularity of the tangerine secured by this merchan-
dising effort has been of value this season. The advantage does not
end here, however, as the cumulative effect of this work will carry
through future seasons for the benefit of the general market. This ef-
fort greatly increased the percentage of tangerines sold by the Exchange
at private sale over any previous season's operation. It has paved
the way for further and greater activity in this direction in future
Tangerine Campaign Produces Results
That it has paid is evident upon an analysis of tangerine prices
in the New York and Chicago auction markets for the season 1931-
32. These markets more than any other were relieved by the intensive
merchandising work of the Exchange in these Western private sales
markets. During the season the 18,3155/2 boxes of tangerines sold
by the Exchange on the New York auction returned $72,894.35, or
$3.98 per box. Florida competitors sold during the same period
23,707 boxes of tangerines for $81,651.50, or an average of $3.44
per box. The sales margin in favor of the Exchange tangerines for
the season, therefore, is averaged at 54c per box for the period.
A comparable analysis of the Chicago auction market shows 31c
per box average premium received on Exchange tangerines over com-
petitors. These figures definitely prove the value of the merchandising
work done on tangerines this year. It is important in this connection
to remember that this past season was merely the first work of this
nature applied on this commodity. Future seasons should produce like
and cumulative results.
General dealer service work was performed as usual through the
major markets of the country. Crews operating from divisional head-
quarters in New York, Chicago and Cincinnati covered a total of
23,124 retailers; installed 10,091 window displays and used 182,-
296 pieces of branded display material.
The Exchange also financed fifty per cent of a joint Clearing
House and Exchange emergency advertising campaign on grapefruit.
This money was spent in newspapers and radio broadcasts in the five
major Florida grapefruit markets of the country.

A total of 5,000 new model Seald-Sweet juice extractors were
sold to consumers on the $1.00 premium basis throughout the country
during the past season. These extractors carry the trade mark into
the home and keep it there permanently, while the machine itself
actively increases the consumption of citrus in that home by making
the preparation of the juice easier.

The new power model Seald-Sweet extractor developed during the
early part of the season for sale to soda fountains, restaurants and
hotels has been delayed in production. This unit, upon distribution
and sale, will deliver an entirely new outlet of distribution to Florida
grapefruit growers. The tremendous soda fountain market today is
denied grapefruit through the lack of facilities for the preparation of
the juice. This machine will open that channel. It is expected that
initial deliveries on the power model extractor will be received early in
the fall.
A total of 25,000 Seald-Sweet Health booklets were distributed
to interested consumers on request throughout the country during the
past season.

In developing a profitable market for the off sizes of its members'
fresh fruit, many affiliated Associations have built or leased and oper-
ate canning plants. The Florida Citrus Exchange acts as sales agent
for these production groups in the same capacity as it functions on
fresh fruit.
During the past season the Florida Citrus Exchange Canning
Division operated through four units-Lake Wales, Arcadia, Bra-
denton and Tampa-and packed a total of 133,377 cases of canned
grapefruit hearts and juice. The Lake Wales unit operated steadily
through the season, but the other three units accepted fruit just as
the growers saw fit to place it at the plants. This lack of consistency
of fruit delivery brought the operations in the last three units down
to approximately a three weeks total for the season.
These canning plants are owned and operated by local Associa-
tions in line with the canning operations policy established by the Board
of Directors some 12 months ago. The canned goods sales depart-
ment operated by the Florida Citrus Exchange functions on canned
goods on a retain basis in the same manner and with the same rela-
tionships as the fresh fruit sales department handles the distribution
and sale of the fresh fruit for Associations.
Wide distribution of Seald-Sweet canned grapefruit and grape-
fruit juice has been effected during the 12 month's sale operation on
the product. An effective brokerage organization actively working on
sales under the Exchange Seald-Sweet label has been constructed
throughout the United States and Canada. In the development of this
sales organization on canned fruit, the Exchange has found it possible
to obtain the best brokers in each market because of its nationally
advertised label and the potential volume of the product under this
The extent of this canned goods sales organization is illustrated
in the map on the following page.


The juice plant at Florence Villa has been re-arranged and is
being operated by the Florida Juices, Inc. A new process for the
canning of orange and grapefruit juice is being used at this plant in
a commercial experiment which will amount to a small volume during
the present season. If the new process proves its merit, its use un-
doubtedly will be extended throughout all canning operations.
The quality of the pack put up under the Seald-Sweet label was
exceptionally good this year. When sold, it should net the growers
fair returns.
In any consideration of canning operations it should be remembered
that the grower himself controls the price of the fruit. The canners
will pay just as little as is necessary to get the fruit for their operations.
If growers are willing to let that fruit go for 10 to 15 cents a box, no
canner is going to pay 40 or 50 cents, even though his operations
justify that price.
This situation is another which can be controlled only through
grower organization. The growers control their source of supply, can
place it in their own canneries and can build up a profitable domina-
tion of the canned goods market. Without organization in this direc-
tion, however, the canners will more and more dominate the producer.

During the 1931-32 season the Traffic Department, in addition
to handling the routine diversion and claim work of the organization,
has been actively engaged in handling various specialized matters, all
of which affect the Florida citrus movement. Chief among these are
the following:

Rate Cases
During the summer of 1931 the railroads made application to
the Inter-State Commerce Commission for authority to increase all
freight and refrigeration charges 15%. The railroads submitted their
case to the Inter-State Commerce Commission at Washington, D. C.
commencing July 15th. The Commission thereafter held hearings
throughout the country to enable shippers and receivers to introduce
testimony. The hearing affecting rates from the Southeast was held
in Atlanta August 17th to 20th. The Exchange Chairman of the
Board and Traffic Manager attended this meeting. Also present were
members of the Florida Railroad Commission and other fruit and
vegetable shippers.
Voluminous testimony was introduced to show the effect of the
proposed rates on the citrus industry of Florida. The Commission in
rendering its decision after a careful consideration of all angles of the
situation, allowed an emergency increase of I c per hundred pounds
on Florida citrus, or an aggregate total increase of $3.24 per car.
This is to be compared with the proposed increase of approximately
$50 per car. This successful fight against the 15% increase made
by the Florida interests is conservatively estimated to have saved the
state a total of around $4,500,000 annually.
Proposed Charge for Use of Refrigerator Cars
The railroads further proposed to assess a charge ranging from
$5.00 to $12.50 per car on all precooled shipments moving without
ice in the bunkers. This proposition was defeated. The total saving
to Florida citrus producers thus accomplished is inestimable, inasmuch
as this proposed charge may be considered as an opening wedge for
the assessment of a car rental charge on all shipments in refrigerator
Reduced Rates to Eastern Markets
During the hearing of the proposed 15% increase rate case it
was shown by the evidence of Florida representatives that during the
season of 1930-31 there were shipped either by trucks, or not picked
or shipped at all because of high freight rates, a total citrus fruit
volume approximating 11,000 cars. At the opening of the season
1931-32 every indication pointed to an even heavier movement of
citrus by truck. In addition, many shippers were contemplating the
use of steamship lines extensively on shipments to Eastern markets.
With the hope of stemming the tide of truck and water competi-
tion, the rail carriers asked for a conference during January, 1932
with the leading fruit shippers. They proposed a reduction of all
freight rates to Southern destinations of 25%, with an increase in the
car load minimum from 360 to 384 boxes, together with a reduction
of 18% to Eastern destinations with an increase of the car load min-
imum from 360 to 444 boxes.
The original proposal called for a rate to Boston of 82% of
the rate then in effect to be applied as a maximum to intermediate

points on reasonably direct routes to Boston. This would have had
the effect of reducing rates to a large number of points in Eastern
Pennsylvania, New York State and throughout New England between
the Hudson River and Boston. The proposal was opposed by Texas
fruit interests, Texas railroads, steamship lines and the Inter-State
Commerce Commission on the contention that any reductions made
should be confined to seaports, where water competition actually pre-
vailed. The petition of the carriers for these reductions, therefore, was
The rail carriers later filed a tariff providing for reduced rates
effective on regular statutory notice to coast points only. This tariff
was allowed to become effective. It was estimated at the time that
approximately $500,000 would be saved by this reduction on the
citrus crop remaining in the state at that time and which would be
distributed in the markets affected by the reduction.
When the reductions in rail rates were made, coast wise water
carriers reduced their rates correspondingly, thus maintaining the pre-
viously existing differential between all rail and rail and water rates.

Refrigeration Case
The last reduction in refrigeration rates applied only to points in
Eastern Trunk Line territory. The Commission, however, indicated in
its decision that they would expect carriers to use the basis of re-
frigeration rates prescribed in that case in re-adjusting rates to other
The carriers, however, refused to make such reductions and it
became necessary to file a new complaint attacking the reasonableness
of the present rates, rules and regulations in charges for refrigeration
and assessorial services to Central Freight Association and Western
Trunk Line territories. The complaint has been in the hands of the
Commission for some time, but as yet no dates have been set for
the hearing which will probably be held during the summer of 1932.

Packing in Transit Rates in Atlanta
The Holloway Fruit Company of Atlanta filed a complaint with
the Inter-State Commerce Commission to force the establishment of
packing in transit rates on citrus fruit at Atlanta. Their proposal con-
templated the movement of fruit in bulk to Atlanta and, after re-
packing, re-shipment of this fruit in standard boxes on the through
rate applicable from the original shipping point in Florida to the final
destination, plus a small charge for the privilege of re-packing.
The carriers opposed the proposition and called upon the Exchange
to appear at the hearing and assist them in defeating the issue.
Since it was considered dangerous to inaugurate the practice of
shipping fruit in bulk and re-packing at Atlanta, and possibly other

points throughout the Southeast, the organization, through its Traffic
Manager, introduced considerable testimony against the proposition.
The Commission has not yet rendered its decision on this case, but
it is believed that the application of the Holloway Fruit Company will
be denied.

During the past season there have been more new style containers
proposed for the shipment of citrus fruit than during the entire preceding
history of the Florida Citrus Exchange. Many of the new containers
were proposed by crate manufacturers who were anxious to break into
the container business for fruits and vegetables from Florida. Others
resulted from the demands of the dealers for certain types and kinds
of crates which were believed might stimulate retail sales.
A meeting was held in Sanford on October 30, 1931 by the
growers and shippers of fruits and vegetables, railroad representatives
and representatives of the American Railway Association Freight
Container Bureau. A committee was appointed from this group and
the entire container tariff was examined with the view of eliminating
obsolete containers and making such other change and additions to
the tariff as appeared desirable.
The carriers also proposed to assess a penalty of 20% of the
freight charges on all shipments not packed in standard containers and
loaded in accordance with standard loading rules. The Florida Citrus
Exchange expressed no opposition to the proposed 20% penalty on
non-standard containers, but vigorously opposed the 20% penalty for
failure to load in accordance with the instructions written in the tariff.
It is understood at subsequent meetings that the proposal to assess the
20% penalty on loading has been abandoned, although it is to be
maintained and applied on non-standard containers.
Among the new containers adopted is the new size cylindrical
steelbound crate, the bushel box and half bushel box for tangerine
There is also the James crate which has been used to some extent
during the past season for the shipment of bulk grade fruit. This is
a very cheap container and is packed by opening and pouring the
fruit into the end of the crate without wrapping, and loading the
crates in the car on end. Experimental shipments so far have been
very satisfactory insofar as breakage in transit is concerned. The ap-
plication has been made to the carriers to include this type of containers
in the new tariff and also make a tariff provision in the freight tariffs
covering it. Evidently, however, the carriers' experiments have not
reached the point where they are satisfied as to the suitability of the
package, as it has not yet been adopted as a standard container.

Car Loading
A few years ago auction companies entered into an agreement with
the Florida Citrus Exchange on broken boxes. They agreed to remit
in full and file claims themselves against the carriers for reimburse-
ment. Consequently, during the past two or three years the Exchange
traffic department has had no actual contact with the number of
broken boxes arriving in the markets and the idea. became prevalent
that car loading was being properly performed.

During the latter part of last season, however, the Fruit Auction
Sales Company of Chicago brought to the attention of the Exchange
the large number of broken boxes arriving at that market and fur-
nished the detailed report of an inspector of the Standard Inspection
Service who had made a careful investigation and reported a con-
siderable room for improvement in car loading in Florida. This report
showed that the breakage was considerably heavier than it should be
and that some of the oldest and largest packing houses in the state
were showing the heaviest percentage of broken boxes.

The Exchange, through its Traffic Manager, suggested that at
the opening of the ensuing season an inspector of the Standard Inspec-
tion Service come to Florida and work with Exchange packing house
managers, giving them the benefit of his views as to the best methods
of loading to insure safe carriage to market. The inspector reached
Florida during November of 1931 and spent about six weeks visiting
all packing houses in the state. An immediate improvement was shown
in the condition of cars arriving at Chicago and elsewhere.

This question of properly loaded cars is of vital importance to
growers. Regardless of whether a damaged car arrives at auction or
in a private sales market, it is subject to discount, no matter how well
or how carefully the boxes have been re-coopered before being placed
on sale.

During the past season the Florida Citrus Exchange filed 670
claims amounting to $21,680.88. The total collections from May 1,
1931 to May 1, 1932 totalled $24,439.56.
Since the organization of the Florida Citrus Exchange a total of
62,809 claims amounting to $1,585,599.60 have been filed. 60,230
claims totalling $1,186,894.65 have been collected.

Because of the light tonnage now being handled by the railroads
there were no terminal congestion or interference with train opera-

tions. Consequently, claims are not as heavy at this particular time
as when the railroads are handling a normal business.
An adequate supply of refrigerator equipment has been available
throughout the season. Schedules generally have been maintained.

Clyde Line Strike
On April 15th the longshoremen on the Clyde Line piers in New
York City went on strike and were followed by a sympathetic strike
of truck drivers. The Clyde Line employed additional labor and were
able to discharge the cargo onto the pier, but due to the drivers' strike,
it was impossible for receivers to remove the fruit from the pier. The
Exchange finally arranged to re-load on barges and float to storage
about one-half of the fruit it had involved. The balance was re-shipped
via steamer to Boston.
An investigation is now being conducted by the Traffic Depart-
ment to determine whether the Clyde Steamship Company can be held
liable for the damages sustained. Sufficient facts have not yet been
uncovered to permit a decision on this point.

American Fruit & Vegetable Shippers Convention
The Exchange Traffic Manager attended the annual business
meeting of the American Fruit and Vegetable Shippers Association
held in Chicago during January, 1932. He was re-elected for the
third year as General Chairman of Transportation committees. The
meeting was well attended by committee chairmen and members. Con-
siderable constructive work was accomplished.
The Traffic Manager also represented the Exchange in all meet-
ings of the Board of Directors and the Executive Committee of the
Growers and Shippers League of Florida and has also worked very
closely with the Executive Vice President of the League in all matters
affecting the industry.
During the present season the Florida Citrus Exchange handled
the fruit of 12 operating Sub-Exchanges. In these Sub-Exchanges
were 100 Associations and 9 special shippers, operating 100 packing
The following map illustrates the distribution of Exchange pack-
ing facilities throughout the state's citrus belt. It is interesting to
observe that these 100 houses have a capacity of 21,000,000 boxes
per season-adequate to handle 75% of the entire state's crop with-
out impairing the efficiency of the organization.


During the past 12 months the cooperation of special shippers and
new Associations has been obtained as follows: E. P. Porcher, Cocoa;
Theodore Strawn, Inc., DeLeon Springs; Palm Beach-Loxahatchee
Company, West Palm Beach; Oslo Packing Company, Oslo; Indian
River Growers, Inc., Vero Beach; Holly Hill Citrus Growers Asso-
ciation, Davenport; Broward Citrus Growers Association, Ft. Lauder-

dale; Lake Jovita Citrus Growers Association, San Antonio; and
Producers Citrus Corporation, Babson Park-all representing a total
estimated tonnage of approximately 500,000 boxes.
Withdrawals from the organization during the period allotted by
contract for that purpose have not been appreciably heavy. One Asso-
ciation notified the organization of its intention to withdraw, as well
as several growers. The reasons for these actions have been determined
as closely as possible and may be summarized as dissatisfaction be-
cause of the refusal of the Florida Citrus Exchange to re-join the
Clearing House and because of the activity of cash buyers, particularly
during the latter part of the season.
It is believed that these withdrawals have been more than off-set
by new tonnage which has been signed up. In obtaining tonnage, how-
ever, finances are playing an important part.
Inspection work of the Florida Citrus Exchange was handled by
the Manager of the Field Department together with the Sub-Exchange
Considerable work has been done by the organization through this
personnel, on improving methods of coloring fruit and in the elimina-
tion of decay. Ways and means to handle coloring to prevent shrink-
age during the process have been investigated. Cooperation of the
Association managers was received fully and definite results which
should prove to be of value during the coming season were obtained.

The Florida Citrus Exchange this season will show a small operating
deficit at the close of the fiscal year. This is caused primarily by the
fact that a number of items have been charged against the operating
expense of the organization which were not included or provided for
in the original budget for the season. Chief among these are the sal-
aries and expenses of the President and Comptroller, the support of the
Growers and Shippers League, the donations to the Experiment Station
at Gainesville, the Federal Laboratory at Winter Haven, and the
Florida Growers Reimbursement Committee.
An additional factor of this deficit not provided for in the original
budget is the $20,000 spent on grapefruit advertising in conjunction
with the Clearing House during the latter part of the season. All of
these expense factors were acted upon by the Board of Directors.
A contributing cause of this deficit is the unprecedented loss of
volume through drops, small sizes, the drought and cash sales on the
tree. Much of this latter, however, was covered by the contingency
item in the original budget.
The detailed data as of May 10th, 1932, is arranged in the table
below. It should be understood ip. examining these figures that the
fiscal year of the org.aqrizatiohn lse% A.igusf 31st:
.. *. .
S ** S e 5


Number of Boxes Shipped to May 10th..6,636,477


Expense of Northern Offices.........
General Sales Department Expense.....

Per Box
........ $ .0381
........ ..0136


Less Brokerage Revenues Earned.......

Total Direct Selling Expense .................
Advertising Department ....................
Auditing Department ......................
Cashier's Department .............. .... ....
Exchange Packing Company ........ ........
Filing Department ........................

Mailing Department ....
Organization Department .
Statistical Department ..
Traffic Department ...
Inspection Department ..
General Manager's Office
Secretary's Office .....
Comptroller's Office .
Sub-Exchange Managers
Legal Expense ........
President's Expense ....
Board of Directors .....




............. .. .00 14

Florida Growers Reimbursement Committee......
Experiment Station, Gainesville ...............
Adjustment of Sales .......................
Insurance, Interest, Taxes, Depreciation and
M miscellaneous .......................



Total Indirect Selling Expense ................ .0652

AS OF MAY 1 th...*, .'...* ....... $ .1081
.2 6." .'
S.. -. :..... '
"* "
t.. . ...
*.. . .** *,**

. . . . . .
. .. . . . .
. . . . . .

. . . .. . .
. .. . . . .
. . . . . .
. . . . .
. .. .. . .. .
. . . . . .

The financial subsidiary of the Florida Citrus Exchange, the
Growers Loan & Guaranty Company, was organized in 1919 to make
crop loans to grower-members and to make loans to Associations on
packing houses.
In spite of the conditions throughout the country during the past
season, which made it considerably more difficult to secure credit
accommodations from banks than ever before in the history of the
company, the Growers Loan & Guaranty Company, through its record
of past performance, enjoyed the confidence of its banking connections
and received commitments for its customary lines of credit. These were
sufficient to take care of the conservative production loan requirements
of the grower-members of the Florida Citrus Exchange. However, all
commitments were offered to the Growers Loan & Guaranty Company
on condition that all loans be made on the basis of conservative short-
term production loans.
During the season 1931-32 the Growers Loan & Guaranty Com-
pany has handled loans to growers amounting to $2,673,070.91 and
has handled loans to Associations in the amount of $559,742.70.
In addition, it has financed the canned grapefruit operations of the
Florida Citrus Exchange to the extent of $111,515.29.
The Federal Farm Board made loans on first mortgages on As-
sociation packing house properties during the season in the total amount
of $198,966.00. From the commitment of $2,800,000.00 given
the Florida Citrus Exchange by the Federal Farm Board, a total of
$2,739,112.00 has been loaned, against which has been repaid by
Associations the sum of $397,605.50.
During the period from 1919 through 1931 the organization has
made loans to growers totalling $13,718,608.15 and to Associations
amounting to $6,997,746-a grand total of $20,716,354.84. The
performance of the company through this entire period has been re-
markable in the low percentage of losses.
The purpose of the Exchange Supply Company is the purchase
of supplies for Associations shipping through the Florida Citrus
The price of each article used in packing fruit depends upon the
volume in which it is purchased. As the consolidated Exchange volume
is greater than that of any other shipper in the state, Associations are
entitled to the lowest prevailing prices when they combine their re-

The greater the volume handled by the Exchange Supply Com-
pany, therefore, the more advantageously it can buy. The company
thus deserves the whole-hearted support of every Association so that
its volume can be increased and in turn the cost of supplies to each
packing house lowered.
At the present time the Exchange Supply Company is selling
about 80% of the Exchange Associations all of their requirements
of those supplies which are handled by the Exchange Supply Company.
It is estimated that on these purchases Associations are saved about
2Y2c a box. If all Associations purchased all of their supplies through
the company, a further reduction of from 1 V2 to 2c per box could be
With economy the watchword throughout the entire organization,
the Exchange Supply Company forms a piece of equipment which
should be used more completely so that these additional savings may
be passed on to the growers.
The current operations of the Exchange Supply Company indicate
a total volume of business somewhat smaller than that of last year.
On the other hand, the percentage of business with Associations pro-
rated to the boxes of fruit packed increased this year over last year.
This situation is reflected in the comparative statement as submitted by
the J. E. Bigham and Company to the Directors of the organization.
The statement follows:
Fiscal Year Ended
April 30

Description 1932
Sales to Customers .............. $423,403.66

Gross Retain .................. 60,687.56
Discounts Allowed ............. 40,480.10

Net Retain .................. 20,207.46
Brokerage Expense .............. 18,581.42

Net Brokerage Income .......... 1,626.04
Discounts Earned-Cash ......... 5,207.14
Other Income-Net ........... .. 1,094.32

Total Net Income-Brokerage .... $ 7,927.50





$ 31,267.71

Comparison of the foregoing figures, expressed in percentages,
shows the following:
Fiscal Year Ended
April 30

Description 1932
Sales to Customers .................. 100.00%

Gross Retain ...................... 14.33%
Discounts Allowed .................. 9.56%

Net Retain ....................... 4.77%
Brokerage Expense .................. 4.39%

Net Brokerage Income ............... .38%
Discounts Earned-Cash ............. 1.23%
Other Income- Net ................. .26%

Total Net Income-Brokerage ......... 1.87%