Annual report of the Florida Citrus Exchange
Full Citation
Permanent Link: http://ufdc.ufl.edu/UF00075941/00006
 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: 1932
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: UF00075941:00006
 Related Items
Preceded by: Annual report of the business manager of the Florida Citrus Exchange

Full Text

Annual Report

of the




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SEASON 1932-33 Page
Local Causes of Distress ........................ 3
Chart-Volume and Prices ...................... 4
Eighty-five Percent Control Fails .................. 4
Legislative Relief Sought ......................... 5
Organization Perfected ......................... 5
W ater Shipments Increase ....................... 6
Exchange Brands Bring Premium ................ 8
Poor Quality ........................... .... 8
W ater Transportation Affects Distribution ........... 9
Exports. ................................ 10
Volume Data .............................. I 1
Auction Sales Distribution ................... .... 1 1
Private Sales Distribution ....................... 12
Distribution by Divisions ........................ 13
The Commodity Campaign ...................... 14
Brand Advertising ............................ 14
Sales Promotion .............................. 15
Juice Extractors .............................. 15
Shipments via W ater ........................... 16
Rate Cases ............................... 1 7
FIELD DEPARTMENT ........................ 18
D district M ap ................................ 19
Growers Loan *'uaity C'. ..*......... 20
Exchange Supply Co. ...........::...' ......... 20

.* .** .' .'

Sc *


SEASON 1932-33

The Season 1932-33 has presented a most pathetic picture from
a marketing standpoint. For the first time in history, food sales per
capital dropped heavily. A decrease of approximately 17 per cent was
experienced during the year,
The general features of the depression-unemployment, business
stagnation, paralysis of credit facilities-are altogether too well known
to require discussion. Suffice it to say that these conditions affected
the marketing of Florida citrus during the 1932-33 season more than
ever before in the history of the state. Sales were not decreased as
occurred in the case of staple food products, but these causes made
themselves evident with increased effectiveness in the returns realized.
Disastrous competition with other food products loaded onto markets
of starving buying power at sacrifice prices added a final touch to the
already difficult situation.

Local Causes of Distress
Added to this difficulty, however, were causes of distress inherent
within the industry itself. The average quality of the entire crop was
definitely subnormal. The increased activity in this buyer's market on
the part of speculative interests, particularly chain stores, practically
brought the work of standard shipping interests to checkmate. Truck
shipments of unregulated, unstandardized quality continued.
The chief difficulty with which the industry is handicapped, how-
ever, remains its utter inability to regulate its volume of shipments from
day'to day or week to week in line with what the market can take at
a price representing a fair return to the producer. The law of supply
and demand cannot be violated without penalty. If the supply of
Florida citrus exceeds any given demand, an adverse price reaction
immediately is experienced.
This economic law was completely disregarded in the movement
of the 1932-33 citrus crop. Heavier supplies were shipped to markets
from the state, regardless of the fact that the price trend was consistent-
ly downward. The relation of this increasing volume and its effect in
lowering prices is graphically illustrated on next page.
1108 74

As the Volume of Shipments Increased
the Price Went Down


-A--- -

K-1- -4-



-$- --- --











400 000


5 3.50

S 3.30

S 3.10

5 2.90

S 2.70

S 2.50

S 2.30

S 2.10

S 2.90

S 1.70

Nature produces on Florida citrus groves a greatly variable supply.
The demand for this supply fluctuates with economic conditions and
the effort put behind its stimulation.

Some outside force, therefore, must be exercised to coordinate the
factors of supply and demand before the economics of the situation
do so at a tremendous cost to the producers.

Eighty-five Per Cent Control Fails

In recognition of this situation, the responsible leaders in the in-
dustry attempted in a most sincere and whole-hearted manner to apply
profitable control in regulating grapefruit shipments, the prices of which
were well in the red. This effort was honestly supported by shippers
representing 85 per cent of the grapefruit tonnage in the state. All
control was turned over to a representative committee of five individuals



who were given full authority to act. Texas and Porto Rican crops
were off the market. Florida had a monopoly on the commodity.
America had to buy her grapefruit from this state.
Although all circumstances seemed to favor this attempt at reg-
ulation for the benefit of the producers, it failed. The 15 per cent
minority which refused to cooperate with the 85 per cent finally suc-
ceeded in shipping approximately 50 per cent of the tonnage leaving
the state before the markets were broken from the substantial rise at
first obtained.

Legislative Relief Sought
This failure proved that not less than 100 per cent control of the
commodity could effect the necessary economic co-relation of product
and buying power. The industry then turned to the state legislature
for relief. It presented two bills for enactment by that body. The first
of these proposed the creation of an Agricultural Commission, which
would act upon petition of 75 per cent of any commodity enforcing
100 per cent cooperation in its, regulation. A second proposed definite
regulation and control of standards. These bills, because of general
legislative difficulties, failed of enactment.
Florida citrus growers, however, need not abandon hope for the
effective application of these principles. The Federal government has
considered the grant of similar control measures in other industries
operating nationally and in similar difficulties. With the failure of
this state legislation, the industry should seek the cooperation of the
Texas and California citrus industries in contacting with the Federal
government for the enactment of these principles into national legislation.
Success in this endeavor will assure the possibility of stability and se-
curity of investments in the Florida citrus industry.

Organization Perfected
This definite proof of the fact that anything substantially less than
100 per cent control of a commodity has created the basis of one of
the most radical and effective improvements in the operating policies
of the Florida Citrus Exchange ever experienced in the history of the
organization. All effort to obtain additional tonnage by grower
suasion or purchase has been abandoned. Activities not relating directly
with efficient sale of its grower-members' fruit have been eliminated.
This cooperative organization is being operated on a basis strictly
competitive with other operators in the state.. The natural advantages

of superior volume and at-cost operations make possible a far more
favorable future development in tonnage than was ever possible with
the now exploded theories of "dominant control." If other operators
charge 15 cents per box to sell fruit, Florida Citrus Exchange grower-
members can break even, at 10 cents-and that is the total retain as-
sessed by the organization for the coming season for sales, brand ad-
vertising and sales promotion. It is the lowest ever offered by a re-
sponsible operator.
This low retain has been made possible by the elimination of all
activities not directly connected with sales work, by sharp reductions
in salaries and by the consolidation of certain departments and activities
with a subsequent release of personnel.

In addition to these economies which have been reflected imme-
diately in the lowered sales retain, the organization has been substan-
tially improved in its field operations. Sub-Exchange operations, which
previously have largely duplicated work done in the Tampa office,
have been absorbed in the parent organization, which now deals directly
with the association in securing fruit on order. Time and expense are
saved in a more efficient expedition of this most important phase of
the sales work.
The difficulties experienced in marketing and organization this
season have crystallized an appreciation of the necessity for certain
additional changes in policy which have been under consideration and
study for some time. The recent adoption of these revisions in oper-
ating principles brings the organization into a condition of operating
efficiency which merits the close inspection and approval of every
grower in the state who is interested solely in the best possible returns
from his investment.

Water Shipments Increase
The depression experienced by the industry this season has pro-
duced another favorable reaction which will benefit Florida producers
during coming seasons. The insistent demand for a substantial reduc-
tion of the spread between the delivered price and the grower's return
on the trees has fostered the development of a tremendous increase in
the use of water transportation in the movement of citrus. In return,
this increasing volume made possible the supply by water transportation
companies of dependable facilities and more satisfactory schedules.
Water transportation was little used up to three and four years
ago. Up to the season of 1931-32 these facilities carried only 7.5

per cent of the total citrus crop. During the past season; however,, this
water transportation volume jumped over 15 per cent to 2;. per cent
of the total leaving the state. The comparative data of rail, boat and
truck movements for the two seasons are detailed below.

As of May 31st, 1933 Season 1931-32
Per Per
No. Cars Cent No. Cars Cent
By Rail ....36,963 64.4 45,014 79.4
By Boat ...13,279 23.1 4,239 7.5
By Truck .. 7,170 12.5 7,428 13.1

Total ......57,412 56,681 100.0

The outlook for the beneficial development of this method of
transportation during the coming season is decidedly encouraging. One
of the largest shipping companies in the world has completed its
negotiations with the industry for the installation of definite sailing
schedules from Tampa and Jacksonville carrying citrus cargoes. The
facilities offered by this corporation are complete with the necessary
refrigeration units for handling the product. With this increase of
schedules and facilities, the advantageous water rates will become avail-
able to a far greater percentage of Florida's citrus growers.

The natural consolidation of receipts of Florida citrus at Atlantic
ports from these heavy cargoes is being relieved by the development
of regular trucking routes from these ports to the interior. The trade
in these interior markets are rapidly realizing and quickly grasping the
possibilities of better purchasing arrangements made possible in these
ports. With this trend an entirely new system of transportation, de-
sirable because of its comparatively low cost, is being perfected to serve
markets well in from the Atlantic Seaboard.

Similar arrangements are being perfected for the transportation of
citrus fruit across the Gulf of Mexico and up the Mississippi River,
thence via truck to many additional markets.

A careful examination of the possibilities accruing from the rapid
development in this field substantiates the opinion that this system will
become one of the most important factors in the favorable marketing
of Florida citrus in the future.

Florida Citrus Exchange sales during the season of 1932-33 na-
turally reflect the difficult marketing situation experienced by the
entire industry. Price averages declined throughout the season.

Exchange Brands Bring Premium
The efforts of the organization, however, reflect greater average
returns to Exchange members than those obtained by competitive or-
ganizations. Exclusive of Indian River fruit, the Exchange sold in all
auctions up to May Ist, 1933, 1,266,302 boxes of oranges at an
average box price of $2.49, 537,855 boxes of grapefruit at $2.10
and 352,483 boxes of tangerines at $2.61 average per box. These
prices represent a premium paid for Exchange fruit over competitors'
fruit averaging in all auctions 8c per box on oranges, 1 Oc per box on
grapefruit and 24c per box on tangerines.
A specific example of this preference for Exchange pack and brands
is illustrated by the tangerine situation in the New York auction. Ex-
clusive of Indian River fruit, the Exchange sold 227,522 boxes of
tangerines at an average of $2.69 per box. Competitors sold 252,814
boxes of tangerines for only $2.46 average.
A further example of the satisfactory manner in which the Sales
Organization of the Florida Citrus Exchange merchandise its products
is evidenced by the fact that the Pacific Fruit Exchange again renewed
its contract for the coming season.
This deciduous account, one of the largest on the Pacific coast, is
valuable to the Exchange from a revenue standpoint. In addition, how-
ever, it serves to keep our sales organization closely in touch with the
citrus trade during the off season of Florida citrus shipments.

Poor Quality
Unfavorable weather conditions last spring and summer caused a
late and scattered bloom' throughout the citrus belt. As a consequence,
the entire crop fell below average in quality and appearance, through-
out the season.
A definite example of this depression is illustrated by the fact that
Exchange shipments packed in standard boxes as of May 20th showed
14 per cent less Seald-Sweet, or Government No. 1, oranges and 16.4
per cent less Seald-Sweet grapefruit as compared with the preceding
season. The only exception to this decline is found in tangerines, which

reflect some improvement in quality of the pack. The detailed com-
parisons are illustrated in the table below.

1932-33 1931-32
Variety Sld.-Swt. M-Juce Plains Sld.-Swt. M-Juce Plains
Oranges .... 34.7 61.4 3.9 48.7 49.0 2.3
Grapefruit... 33.3 62.0 4.7 49.7 46.0 4.3
Tangerines .. 62.5 37.3 0.2 52.4 47.4 0.2
Totals .... 37.7 58.5 3.8 49.7 47.6 2.7

Water Transportation Affects Distribution
Auction markets received a somewhat greater percentage of the
Florida citrus volume this season as compared with last. The rapid
development of water transportation has been a large factor in this
connection, as the four ports of call delivering Florida fruit by water
are auction markets.
This trend to the large terminal centers has been gradual over
recent seasons, not only at these port auctions, but other auction centers
as well. This has been brought about by improved highways and the
development of truck distribution to interior secondary markets, which
formerly handled a greater volume of car lot f. o. b. purchases.
The advantage to the trade of buying in a large market where all
grades, varieties and sizes of fruit are available, is apparent. This fact,
together with the convenience of having store deliveries at no greater
cost than rail delivery, is bringing the trade to this method of purchase.
The result is reflected inevitably in an increase of auction sales.

There is some evidence, however, that this apparently easy solution
to distribution problems for the interior and secondary markets is not
without danger. A study of some markets where direct car lot sales
have fallen off reveals the fact that while the trade is buying largely
at auction by truck, their purchases are in some cases less in volume
than previously obtained through direct sales methods. In other words,
the dealer who does not have an investment in a car load of fruit stand-
ing on his floor is inclined not to push so hard the smaller quantities
which he buys more frequently from time to time. Necessity does not
require this action on his part.
It is important, therefore, in considering the development of water
and truck transportation that this fact be given considerable study and
the problem presented by it satisfactorily met.

SUnfavorable rates of Exchange, tariff barriers and preferential
tariffs within the British Empire hampered export shipments consider-
ably. In addition to these direct causes, foreign markets were experi-
encing the same depression which so disastrously reduced the buying
power in American markets.
South Africa, South America, Jaffa, Spain, the West Indies, Pal-
estine, California and Texas compete in these foreign markets, which
are not fully developed as yet for grapefruit.
Canada has been only a moderate buyer of Florida citrus this
season. Here again tariffs and high freight rates proved a handicap.
Until April, the rate of Exchange also added to the difficulties of
sales in Canada.

Florida citrus shipments this season, as of May 31st, represent a
slight increase over the total volume shipped last season. The detailed
data of these comparative movements are given in the table below. It
should be remembered in this connection that the estimated volume now
on the trees which will be moved before the close of the season is
1,100,000 boxes.

This should be added to the total for the season.

By Ra
By Bo
By Tr

As of May 31st, 1933 S
No. Boxes No. Cars No
il ... 13,676,310 36,963 17,3
at ... 4,913,230 13,279 1,5
uck 2,652,900 7,170 2,7
.... 21,242,440 57,412 21,6

eason 1931-32
. Boxes No. Cars
30,885 45,014
68,430 4,239
48,360 7,428
47,675 56,681

The comparative distribution to auctions by divisions and varieties
for the two seasons are detailed below.

Auction Sales Distribution by Divisions as of May Ist
Seasons 1932-33 and 1931-32

New England ........
% ............
Eastern .. ..........
% ............

% ... ....... .
Mid-Western .......
% ............
Southern .. .........
% ...........
Totals . . .

New England ........
% . . .
Eastern .. . . .
% ............
Cincinnati .. . .
% ............
Mid-Western .......
% ............
Southern .. . . .
Tota . . ...
Totals .........





Mix. Total
42 359
4.0 5.1
661 4712
63.8 67.2
125 651
12.1 9.3
207 1292
20.0 18.4
1 2
0.1 .0

3432 1755 793 1036 7016
Season 1931-32-Carloads
171 184 64 69 488
6.2 8.6 7.5 6.4 7.2
1877 1051 602 659 4189
68.3 49.3 70.2 60.8 61.4
227 321 68 120 736
8.3 15.0 7.9 11.1 10.8
473 577 123 229 1402
17.2 27.1 14.4 21.1 20.5
0 0 0 6 6
.0 .0 .0 0.6 0.1
2748 2133 857 1083 6821

Similar data on all divisions for private sales distribution maintained
is cited below.


Private Sales Distribution by Divisions as of May 1st
Seasons 1932-33 and 1931-32

New England ........
% ...........
Eastern .. ..........
% . . .
South Eastern ........
% ............
Southern .. .........
% ............
Cincinnati. .......
% .e ...........
Mid-South Western ........
S % ............
South Western .......
% . ... .

North Western .......
% ........... .
Totals . . .

New England .. .. ...
% ............
Eastern .. .........
% ............
South Eastern .... .
% . . .
Southern . . .
% ............
Cincinnati . . .
% ............
Mid-Western .. ...
% ............
South Western .......
% . . .
North Western ......
% . . .
Totals . . .







1900 1558 191 602 4251

Season 1931-32-Carloads
457 314 54 100 925
17.8 12.5 12.5 11.8 14.5
672 702 126 .152 1652
26.1 27.9 29.1 17.8 25.9
280 117 15 170 582
10.9 4.6 3.5 20.0 9.1
359 175 14 163 711
14.0 6.9 3.2 19.2 11.2
456 520 58 121 1155
17.7 20.7 13.4 14.2 18.1
312 472 151 128 1063
12.1 18.7 34.8 15.0 16.7
12 15 0 2 29
0.5 0.6 .0 0.2 0.5
25 203 15 15 258
1.0 8.1 3.5 1.8 4.0
2573 2518 433 851 6375

Distribution by Divisions as of May 1st
Season 1932-33 and 1931-32
Season 1932-33-Carloads
Division Orgs. Grft. Tang. Mix. Total
New England ........ 458 281 74 110 923
% ............ 7.2 6.5 6.6 6.4 6.8
Eastern ........... 2872 1474 594 750 5690
% ............ 45.1 33.8 53.0 43.4 41.9
South Eastern ........ 259 64 13 129 465
% ............ 4.1 1.5 1.2 7.4 3.4
Southern .......... 370 107 4 132 613
% ......... .. 5.8 2.5 0.4 7.6 4.5
Cincinnati .. ........ 590 531 98 215 1434
% ............ 9.3 12.2 8.8 12.4 10.6
Midwestern .. ....... 748 738 196 291 1973
% ............ 11.7 17.0 17.5 16.8 14.5
Northwestern .. ..... 8 109 5 9 131
% ......... 0.1 2.5 0.4 0.5 1.0
Southwestern .. ..... 27 9 0 2 38
% ............ 0.4 0.2 .0 0.1 0.3
Truck-Local and
*Cannery, Misc. ...... 1042 1037 136 94 2309
% ............ 16.3 23.8 12.1 5.4 17.0
Totals ......... 6374 4350 1120 1732 13576

Season 1931-32-Carloads
New England ........ 628 498 118 169 1413
% ............ 9.0 8.1 8.1 8.0 8.5
Eastern ............. 2549 1753 728 811 5841
% ............ 36.6 28.4 49.9 38.7 34.9
Southeastern ........ 280 117 15 170 582
% ......... 4.0 1.9 1.0 8.1 3.5
Southern .. ......... 359 175 14 169 717
% ......... 5.2 2.8 1.0 8.0 4.3
Cincinnati .. ........ 683 841 126 241 1891
% ............ 9.8 13.6 8.6 11.5 11.3
Midwestern .. ....... 785 1049 274 357 2465
% ............ 11.3 17.0 18.9 17.0 14.8
Northwestern .. ..... 25 203 15 15 258
% ......... 0.4 3.3 1.0 0.7 1.5
Southwestern .. ..... 12 15 0 2 29
% ............ 0.2 0.2 .0 0.1 0.2
Truck-Local and
*Cannery, Misc. ...... 1639 1528 168 167 3502
% ............ 23.5 24.7 11.5 7.9 21.0
Totals ......... 6960 6179 1458 2101 16698

"Includes cars on track, rolling and unsold. ,

Florida Citrus Exchange advertising during the past season was
divided into three lines of activities: commodity advertising, brand ad-
vertising and sales promotion. Revenues were curtailed by increasing
bulk and truck shipments, which cut in on the regular package volume
from which advertising revenue was derived. A special assessment on
tangerines, however, provided an additional campaign on that item.

The Commodity Campaign
The Exchange .participated on a 50 per cent basis with other
shippers in the state in the support of a commodity campaign to pro-
mote the sale of Florida citrus against other citrus producing sections
and deciduous competition.
The campaign was extensive in nature. Newspapers in 11 primary
markets, were used extensively. The radio broadcasts supplemented the
newspaper advertising in 30 of the largest marketing centers.
Florida oranges, grapefruit and tangerines were included in each
advertisement and radio talk. Only one item, however, was featured
in the illustration and layout of each advertisement.
The tangerine advertising began on December 10th. The main
campaign was started November 22nd.
The uncertainty of shipments which provided revenue for the sup-
port of this campaign caused its cancellation during the middle of
February. It is interesting to note in this connection that upon the can-
cellation of both the brand and commodity advertising campaigns,
Florida citrus prices dropped sharply and continued at a low level
throughout the remainder of the season.

Brand Advertising
Because of limited funds, the majority of the brand advertising
was placed in posters in the principal markets. In both New York and
Chicago two-sheet posters on the subway and elevated platforms were
used. 24-sheet posters appeared in representative showings in twenty
secondary marketing points.
In support of these campaigns, the Exchange secured extra values
in the form of merchandising effort and supplementary radio broadcasts
at no cost to the organization.
The special advertising on tangerines over and above the investment
in the commodity campaign was placed in Midwestern markets, de-

termined by a study of distribution and consumption possibilities. News-
papers, radio and intensive dealer service effort were the backbone of
this campaign.

Sales Promotion
Sales promotion work was carried on all the way from Boston to
Omaha by crews of dealer service men working under trained managers.
Many of these men were influential salesmen and coordinated the set
up of displays with sales demonstrations. This work resulted in an
increase of good will and sales volume.
Dealer service men worked in 15,891 stores. They put up 76,076
pieces of display material and staged numerous sales demonstrations.
In one of these in a single store' over 16 tons of Exchange citrus were
sold during one week.
These men assisted in the organization of advertising campaigns
which brought out the cooperation, of newspapers, radio stations and
several prominent store groups, as well as, brokers, jobbers and whole-
20,000 Exchange booklets, "The Seald-Sweet Way to Health,"
were distributed to interested consumers on request.

Juice Extractors

1,000 Seald-Sweet juice extractors were sold through this office
during the year. This old stock is being liquidated as rapidly as
In the meantime, arrangements have been made with the Magnavox
Company of Ft. Wayne, Indiana, to produce and sell under the trade
name "Seald-Sweet" three models of hand extractors and two models
of the power type. All of these machines bear the endorsement of the
Good Housekeeping Institute and are rated as probably the most effi-
cient juice extractors on the market today.

A special sales organization is pushing these extractors in all types
of stores, while specialty salesmen are selling them directly to the house-
wife. One of the company's officers is now abroad arranging a world
wide sales campaign on these items.
Records show that juice extractors in the home, making it convenient
to supply orange and grapefruit juice to the family and guests, increase
per family sales many times over.

Since the Exchange was organized nearly 24 years ago, the Traffic
Department has filed a total of 64,584 claims amounting to $1,631,-
460.63. It has collected a total of 61,411 claims, amounting to
$1,207,971.97. From June 1st, 1932 to June 1st, .1933, 1444
claims amounting to $36,117.84 have been filed and 888 claims
amounting to $16,009.32 have been collected.
Many of these claims are of large amount and of recent filing,
and sufficient time has not elapsed.for their adjustment. The railroads
are investigating claims perhaps more carefully than ever before, and
are insisting on payments at minimum amounts. This is due to the
financial condition of all carriers, and the desire to safeguard what
money they have.
Shipments Via Water
The movement via water, particularly to Eastern markets, has been
very heavy during the past season, because of the desire of shippers to
take advantage of the lower freight rates obtained by using truck to
Tampa or Jacksonville, steamer beyond, and also the rail lines to Jack-
sonville in connection with steamer lines beyond.
Up to May 20th, 1933, the Exchange has billed 1,216,001 boxes,
or approximately 3331 cars, via steamers from Tampa and Jacksonville
to Eastern markets.
The rail and water rate prior to April I st, 1933, was approxi-
mately 30 cents per box lower than the all-rail rate, and the Exchange
handled by steamer up to April 1st, a total of 692,779 boxes, or a
saving in transportation charges via steamer as against the all-rail rate,
of $207,833.70.
The all-rail rate to Eastern markets was reduced on April 1st to
basis of 16.2 cents per box higher than the rate via rail-Jacksonville-
steamer, and since that time the Exchanged has shipped via steamer a
total of 523,221 boxes, which figures a saving of $84,761.80 since
April Ist, or a total saving of $292,595.50 by using the water lines
the past season.
The' rates to Southeastern points were reduced to all Southern ter-
ritory in an effort to meet truck competition. A check of records shows
that the movement by rail this season, however, was about the same as
in former years, but it must be taken into consideration that the move-
ment by rail might have been considerably' less, and by truck consider-
ably heavier, had the rail rates not been reduced.

One thing that perhaps interfered with a heavier rail movement
was the requirement that ventilated box cars be used when shipping
at 250 box minimum, and when using refrigerator cars, at a minimum
of 384 boxes. The former minimum to some markets was too low,
and the latter minimum to some markets was too high.

Rate Cases

There are several cases before the Interstate Commerce Commis-
sion in which Florida is vitally interested. One is the case covered by
Docket No. 25206, involving rates to New England points, in which
it was alleged that the present rates were not published in accordance
with the decision of the Commission in Docket' No. 16939.

There is also pending the case in which the Frisco Lines filed
supplement with the Interstate Commerce Commission, effective Janu-
ary 22nd, 1933, carrying rates via Pensacola to destinations on the
Frisco, of approximately 20 cents per hundred pounds lower than the
present all-rail rates. This case has been submitted to the Commission,
but it has not yet rendered a decision.

There is also still under investigation the matter of general re-
frigeration investigation involving refrigeration rates from the West to
all destinations throughout the country, in which it is attempted by the
carriers to increase the cost of certain factors going into the makeup of
refrigeration charges, which if approved by the Interstate Commerce
Commission, will have the effect of increasing present refrigeration
charges on Florida fruits and vegetables.

The Interstate Commerce Commission also conducted hearings in
Docket No. 26000, commencing at Washington, D. C. on April 24th,
1933. Testimony concerning Florida rates was introduced by Messrs.
J. Curtis Robinson, Executive Vice President of the Growers & Ship-
pers League of Florida, J. C. Hutchison, representing the Sanford-
Oviedo Vegetable interests, A. M. Pratt, representing the Clearing
House, and the Exchange Traffic Manager. Shippers' testimony was
taken first, and was followed by testimony of carriers, which will be
concluded in the near future. It is understood the briefs must be sub-
mitted on June 20th, and oral argument is scheduled for June 26th,
after which the Commission will render a prompt decision. This case
involves rates on various commodities throughout the country. A reduc-
tion of at least 35 per cent on Florida fruits and vegetables has been


The schedules this season have been fast and dependable, in fact,
have been maintained on a very satisfactory basis.
The car supply has been entirely adequate because market condi-
tions this year were such as to make it out of the question to ship any
unusual daily quantities.

The past season has presented many problems in inspection work
because of the various blooms and maturities of fruit throughout the
state. This fruit condition also presented a very serious problem occas-
ioned by the appearance of weak fruit in the markets.
In spite of close inspection and careful grading, a large percentage
of decay was reported through the season. This necessitated the de-
velopment of new methods of treatment to insure the carrying quality
of the Exchange pack in the hands of both the wholesaler and retailer.
The progress met in the development of these newer processes to prevent
decay of fruit en route and in the hands of the trade has proven very
satisfactory. It is probable that most houses will use these decay pre-
vention systems next season. With careful handling, they will elimin-
ate decay to a market degree.
The Field and Organization Department was recently eliminated
from the activities of the Florida Citrus Exchange. The duties of in-
spection will be handled directly from the office of the General Man-
ager. Organization work will be left entirely in the hands of local
Upon the absorption of Sub-Exchange operations by the Tampa
office, the state was divided into four districts which will be handled
by district managers in the employ of the Tampa office. The terri-
torial coverage of each of these districts is illustrated in the map on the
opposite page.


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BASIC MAP W -- .'.:- .

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KEY- =1-- ----.,|
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This map outlines the four Exchange Districts and shows the loca-
tion of district headquarters, packing house associations and associations
without packing houses.

Organized in 1919 to make crop loans to grower-members and to
make loans to Associations on packing houses, the Growers Loan and
Guaranty Company, financial subsidiary of the Florida Citrus Ex-
change, has constantly labored to make credit possible and to uphold
the individual and cooperative phases of the citrus industry.
Conservative short-term production loans are required because it is
upon that basis that Federal monies were made available to the Growers
Loan and Guaranty Company.
Loans to grower members during the season 1932-1933 amounted
to $2,256,026.86; and loans to Associations amounted to
It is during strenuous times like these that credit machinery is ap-
preciated most. Certainly the Growers Loan and Guaranty Company
has earned the support of both grower-members and Associations of the
Florida Citrus Exchange.

As a purchasing department for Associations, the Exchange Sup-
ply Company has, for, the fiscal year ended April 30th, the following
record of transactions:
Sales to Customers ....... $299,429.98 100%
Gross Retain ........... 42,773.78 14.33
Discounts Allowed ....... 25,796.78 9.56

Net Retain ........... 16,977.00 4.77
Brokerage Expense ....... 15,214.52 4.39

Net Brokerage Income .... 1,762.48 .38
Discounts Earned Cash ... 1,841.99 1.23
Other Income (Net) ..... 2,103.86 .26

Total Net Operating Income 5,708.33 1.87
Against the Net Operating Income for the Current year, there was
charged $7,150.99 which reduces the surplus in the amount of
In a year of continually falling prices purchases were difficult at
times and losses were inevitable. The present situation of rising prices in
supplies' markets means more profitable operations to the Associations
who purchase their packing supplies through their Exchange Supply