Front Cover
 Title Page

Title: Annual report of the Florida Citrus Exchange.
Full Citation
Permanent Link: http://ufdc.ufl.edu/UF00075941/00021
 Material Information
Title: Annual report of the Florida Citrus Exchange.
Physical Description: Serial
Creator: Florida Citrus Exchange
Publisher: The Exchange,
Publication Date: 1946-1947
 Record Information
Bibliographic ID: UF00075941
Volume ID: VID00021
Source Institution: University of Florida
Holding Location: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: ajg6778 - LTUF
46798761 - OCLC
001753794 - AlephBibNum

Table of Contents
    Front Cover
        Front Cover
    Title Page
        Page 1
        Page 2
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        Page 4
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Full Text

Annual Report


C. H. Walker, President

C. C. Commander, General Mgr. S. L. Looney, Treasurer-Comptroller

Tampa, Florida


SEASON 1946-47


C. H. Walker, President and Chairman
W. C. VanClief, First Vice-President
P. C. Peters, Second Vice-President
W. 0. Kirkhuff, Third Vice-President
H. C. Allan, Fourth Vice-President
Counts Johnson, Secretary .-.-------
James Samson, Assistant Secretary
S. L. Looney, Treasurer ---------

.---Avon Park
-Winter Haven
Winter Garden
Oak Hill
-.--- Tampa
----- Tampa


C. C. Commander, General Manager ---- -- --Tampa
F. S. Johnston, Sales Manager ------------ --. Tampa
E. E. Gaughan, Traffic Manager -----------Tampa
S. L. Looney, Comptroller -------- ---- Tampa
Counts Johnson, General Counsel -----------Tampa
C. A. Seehof, Canning Division Manager --------Tampa
Carlisle Kyle, Advertising Manager ---- -- Tampa


Avon Park-
Dundee --
Ft. Pierce-
Indian River ---
Lake County -.
Lake Region ---
No. Pinellas ---
Orange County
Plymouth ---
Polk County --
Winter Haven --

E. G. Todd -----
I. J. Pemberton
John L. Olson
-W. C. VanClief
W. M. Moseley
_H. C. Allan
- J. B. Prevatt
-A. R. Updike
-A. V. Saurman
-P. C. Peters --
W. 0. Kirkhuff
-Armer C. Johnson
_D. A. Hunt
-C. H. Walker ---
_George B. Aycrigg __

-- ---- Avon Park
Winter Haven
-----Fort Pierce
Oak Hill
-- -- Tavares
Lake Wales
-Winter Garden
------Mt. Dora
- ------ake Wales
Avon Park
--- Winter Haven



THE first drastic effects of the economic adjustment from
war to peace were felt by the Florida citrus industry in the mar-
keting of its 1946-47 crops. Prices received by growers for
fruit declined to nearly pre-war levels. But for the February
freezes, which reduced production, marketing conditions in the
months following might have been chaotic.
Many growers failed to receive the cost of production for
grapefruit and mid-season oranges. Shippers who purchased
oranges at prices prevailing at the start of the season and imme-
diately after the freezes sustained heavy losses; many of them
had to adjust their contracts with growers to stay in business.
Some canners had equally heavy losses.
The season opened with the government estimating total
Florida production at 101,700,000 boxes or 15,700,000 boxes
more than the previous record crop of 1945-46. Concurrently,
the Citrus Commission released reports showing November 1,
1946 stocks of all canned citrus juices to be about 17,000,000
cases representing an unprecedented carry-over of at least
10,000,000 cases.

Since Florida packs about 75 per cent of all canned citrus
juices, these figures indicated that this State had actually sold
to consumers but 78,500,000 boxes of its 1945-46 crop of
86,000,000 boxes, and was starting the 1946-47 season with a
new crop and a carry-over approximately 109,200,000 boxes -
or 30,700,000 boxes more than had been sold to consumers in
any previous season.

The unusually hot weather from September through Janu-
ary, and freezing temperatures in February, reduced the total
Florida crop to 88,300,000 boxes by May 1, according to govern-
ment estimates, which many believe to be high. It now appears
that the total Florida harvest of oranges, grapefruit and tan-
gerines this season will be little, if any, larger than the yield of
86,000,000 boxes last season.

Trend of Prices During Season

Florida citrus prices declined shortly after the opening of
the season under heavy shipments and the highly damaging
publicity about over-production and surplus stocks of canned
citrus juices. By early December most orange sales were return-
ing less than production costs, and by the middle of January
grapefruit and tangerine sales were at comparable low levels.
Indicative of the trend of Florida citrus prices during the
1946-47 season are the following estimates of the U. S. Depart-
ment of Agriculture of the returns per box received by growers
"on tree" for fresh and processed fruit on the 15th of each

Oranges Grapefruit Tangerines
Fresh Canned Fresh Canned Fresh Canned
Sept. 15 ----- 2.21 -
Oct. 15 .... .. 2.54 .83 1.35 .76 -
Nov. 15. ----- 1.39 .68 1.33 .95 3.00 .95
Dec. 15 .92 .18 1.35 .79 1.63 .45
Jan. 15 ------ -- .61 .14 .78 .47 1.02 .05
Feb. 15 f....- ---- .80 .03 .90 .24 .99 .05
Mar. 15--- ----- 1.02 .15 .60 .30 .81 .20
April 15 ---------- 2.00 .62 .55 .29 -
NOTE: Fresh "on tree" returns of oranges and grapefruit are averages of all sales,
including Indian River fruit, so actual "on tree" returns for most interior fruit would
be lower. Cannery "on tree" returns for grapefruit are averages of prices paid by
canners for both seeded and seedless varieties; sectionizing grapefruit returned sub-
stantially more in the first half of the season, and juice grapefruit less.

Prices reached the lowest levels of the season just before the
February freezes, when canners paid scarcely enough for or-
anges and tangerines to cover the cost of harvesting and haul-
ing, and but little more for juice grapefruit. It looked at that
time as if from three to four million boxes of mid-season or-
anges might be left on the trees, for lack of a market.
The freezing temperatures in early February substantially
reduced remaining crops. However, losses were not as large
as first expected due to a long period of cool, wet weather which
greatly lessened the damage and even made possible the utiliza-
tion of some crops from defoliated trees. Merchantable mid-
season oranges which lacked a market before the freezes were
promptly utilized.
A 7-day shipping embargo imposed by the Florida Citrus
Commission after the freezes restored fresh orange and grape-
fruit prices to profitable levels, and the psychological effect of
the freeze losses helped to maintain market values for a while.
But as shipments continued in heavy volume, fresh fruit prices
gradually declined again. By the last half of May they were
below levels returning profits to growers.
Another 9-day shipping embargo was established during the
Christmas-New Year period under the Federal marketing agree-
ment, to permit'the clean-up of holiday supplies. For a few
days at the end of this embargo auction averages reached high
levels, but its price benefits were quickly lost when shipments
resumed in heavy volume. Prices afterward were just as low,
if not lower, than they would have been without the embargo.

Trend of Florida Distribution
While the harvest of Florida fruits this season will be in
about the same volume as last season (when there was produced
7,500,000 boxes more than was sold to consumers), sales to con-
sumers this season in fresh and processed form are at a higher
rate which may equal, if not exceed, this season's harvested pro-
To May 17 this season, Florida fresh fruit shipments were
about 1,500,000 boxes greater than last season, with indications
they would be at least 2,000,000 boxes greater by the end of the
season. Increases in retail sales of canned citrus juices, if main-
tained through the summer, will take an additional 6,000,000

Lower retail prices were largely responsible for the greater
volume of Florida fruit sold to consumers this season. These
higher retail sales were achieved in competition with larger sup-
plies of citrus fruits from other producing areas, larger sup-
plies of apples, bananas and other fresh fruits, and larger sup-
plies of other canned fruits and fruit juices.
The harvested production of Florida oranges this season will
be about 2,000,000 boxes greater than last season, and that of
grapefruit at least 2,000,000 boxes less, with an increase of
600,000 boxes in tangerines. Before the February freezes, Flor-
ida crops were estimated to be 12,200,000 boxes larger than last
season for oranges, 2,500,000 boxes larger for grapefruit and
1,000,000 boxes larger for tangerines.
Increases in Florida fresh fruit shipments to May 17 this
season, compared with shipments to the same date last season,
were 981,790 boxes for oranges and 701,318 boxes for grape-
fruit. To the same date this season Florida processors utilized
569,019 more boxes of oranges, but took 4,733,380 less boxes
of grapefruit, despite a heavy pack of grapefruit sections. The
sharp decline in grapefruit canning was due to the large carry-
over of grapefruit juice from last season.
Reports of current retail sales show that canned orange juice,
and to a lesser extent canned blended juice, are increasing in
popularity with consumers, with grapefruit juice barely holding
its own. The current season's record of fresh orange and fresh
grapefruit sales indicates that the volume of sales of these fruits
is approaching the maximum possible under present economic
and competitive conditions.
After the trade took its losses on old stocks of canned citrus
juices, when the new pack began to appear, retail prices of or-
ange, blended and grapefruit juices dropped to extremely low
levels. These low prices prevailed throughout most of the har-
vesting season and seriously affected fresh fruit prices.

Factors Affecting Fruit Prices
A combination of unfavorable circumstances were respon-
sible for the lower prices received by Florida growers this sea-
son. They were the first signs of some of the problems faced
by the industry in its economic adjustment under post-war
Supplies increased, not only of citrus fruits but of competing
fruits. The production of winter oranges in all states reached

53,460,000 boxes, compared with 46,860,000 boxes last season.
Apple production, while normal, was the highest in three years.
Bananas were far more plentiful.
Demand continued at a high rate, but within price limita-
tions, because increasing living costs left consumers with less
money for foodstuffs. Consumer resistance to high prices be-
came more pronounced. The housewife became more selective,
in quality as well as price.
Government purchases, which took 20 per cent of all United
States citrus crops in the war years, dropped precipitously. In
Florida the government bought but small amounts of citrus
juices for its armed forces and of orange juice concentrate for
the school lunch program.
Quality also was an important factor. The unusually hot
weather in fall and early winter months affected the flavor,
appearance and condition of Florida crops. California com-
manded much higher prices principally because our fruit did
not meet good trade acceptance.
The quality of much of the carry-over stocks of canned cit-
rus juices, packed from late-bloom 1945-46 crops, was unsatis-
factory. It was the quality of these old stocks, as much as the
quantity carried over, that caused price declines at the opening
of the 1946-47 season.
High prices charged by many retailers for fresh Florida
fruit, months after early f.o.b. prices declined, slowed consumer
sales and added to marketing problems. The large retail groups
which keep their prices in line with costs were of great help in
this situation.
The price competition of Texas was a serious problem in
marketing Florida grapefruit. Throughout the season, Texas
sold grapefruit at prices much lower than Florida's. It sold
fresh grapefruit to the British for 2 5 cents a box less than Flor-
ida shippers would quote.
The decline in crop values after the opening of the season
was hastened by the trade's refusal to buy more than its current
needs of new pack citrus juices, in the expectation that prices
would go still lower. Because of the large carry-over, its cur-
rent needs were small.
It was not until after the first of the year, when wholesale
and retail canned juice prices reached ridiculously low levels, that
trade purchases increased. But even then, and throughout the
season, trade factors were reluctant to buy juices extensively for
future sale.

Blended grapefruit and orange juice sold for 10 cents in large, 12-ounce cups
from this handsome, new juice dispenser of radical design, tested by Florida Citrus
Exchange at the state fair in Tampa. An agitator within the five-gallon glass con-
tainer stirs the juice, kept at 40 degrees by automatic, electric refrigerator sealed
within the dispenser.

The efforts of the government to bring about a reduction of
all prices was particularly harmful to the marketing of late
Valencia oranges. The psychological situation which it created
among consumers and retailers tended to force Florida fruit
prices, already low, to even lower levels.

Future Marketing Opportunities
Little of immediate benefit was accomplished during the
season in the development of new markets and new uses for
Florida fruit, though some progress was made with beverage and
foreign trade problems.
The Florida Citrus Exchange is making a thorough investi-
gation of the beverage field. It is supporting research in new
beverage bases made with citrus fruits, and it is conducting
extensive tests with various types of fountain dispensers and
juice vending machines.

If citrus beverages are developed in ways that will benefit
the producers of the fruit used in them, the development pro-
gram will have to be supported by an industry organization. No
one organization in the Florida industry is large enough to do
this job alone.
In the foreign trade field, the Citrus Commission is making
a comprehensive study of world market opportunities for both
fresh and processed citrus fruits, which is needed in planning
the development of these markets. The Florida Citrus Producers
Trade Association, of which the Exchange is a member, obtained
a British offer to purchase 1,000,000 boxes of fresh Valencia
oranges during the season, which was not accepted due to ad-
vancing domestic prices after the February freezes.

Citrus Legislative Situation
The Florida Legislature, in its recent session, enacted measures
requested by industry groups which made only a few minor
changes in State citrus laws. Its House and Senate Citrus Com-
mittees cooperated fully with the industry in what it wanted.
The industry groups reached no agreement on any funda-
mental changes in the present State Citrus program. Consider-
ation of changes in maturity laws, and of increases in State citrus
advertising taxes, was delayed another two years, to permit
further studies.
At Washington, however, the Florida Citrus Producers Trade
Association joined the American Farm Bureau Federation in ad-
vocating an amendment to the Federal Marketing Agreement
Act to include citrus processors in marketing agreement pro-
grams, to provide a method for handling any future surplus
The indecision of the Republican Congress on this measure,
as well as other farm legislation, has delayed the development of
any program that would make possible the regulation of both
fresh and processed fruit. Until regulation of the canning in-
dustry is possible, there can be no program that would help
Florida growers in years of surplus production.
The Federal government is supporting the prices of some
farm crops, including potatoes on which it lost $80,000,000
last year, but it has not spent one cent to support the prices of
citrus fruits, which are at much lower levels. The citrus industry
has not asked the Federal government for a price support pro-
gram; it prefers a regulatory program that would maintain its
prices without expense to the government.


THE BLOOM for Florida's 1947-48 citrus crops was delayed
at least a month by cold weather in February and March.
But when it appeared it was heavy. Good moisture conditions
prevailed at the time and in most sections good crops of fruit
were set. Growing conditions, since the bloom, have been favor-
The recovery of trees damaged in the February freezes has
been remarkable. Even defoliated trees put out a heavy new
growth shortly afterward, with some bloom. Condition re-
ports on the new crop are not much different from those of
a year ago.
Eastern apple and peach crops were seriously damaged in late
May freezes, but the supply of other summer and fall fruits is
expected to be plentiful. Imports of bananas probably will be
larger next season, and the competition of tomato, pineapple
and other juices will be fully as great, if not greater, than this
The summer California orange crop is estimated to be about
24,000 cars greater than that of last year. California expects
to ship these oranges in volume until November 15 or later, and
they will compete with early Florida oranges until the end of
that month. This late supply of summer oranges may affect
the opening of the Florida season.

National Economic Conditions
National economic conditions will influence 1947-48 mar-
keting conditions more than anything else. If consumer pur-
chasing power continues at a reasonably satisfactory level it will
be helpful in marketing next season's crops. But a substantial
decline in consumer purchasing power will be reflected imme-
diately in citrus sales.
The parallel between Florida citrus production and con-
sumer income is shown in the accompanying chart; both have
increased at a somewhat similar rate since 1932-33. When the
two chart lines almost touched in 1938-39, citrus prices were
lowest; when they were farthest apart in 1944-45, prices were
The industry faces the prospect of further increases in pro-
duction and a decline in consumer purchasing power. If either
occurs next season, marketing problems will multiply. A de-


InEX oF nDon-AoRICULTURAL income

Oro.rt AdMnUirtniM Committ e.
Aure of dofa: Bwure of A.dultumrl Ecoomic,.
M19-47 R.rutfion tfaln-o6. e bruor I5t, 1947.

cline in consumer purchasing power may be the more imminent
of the two. Florida no longer can sell its citrus crops unless the
great mass of consumers have enough money to buy fruits.

Industry Organization Prospects
During the first half of the 1946-47 season, while prices
were very low, there was talk among some industry people about
forming organizations to better control the sale of Florida fruit.
Significantly, the discussions were started by persons who have
not been marketing their fruit cooperatively.
The two fresh fruit trade associations appointed committees
to consider proposals for bringing about a better marketing pro-
gram. These proposals involved coordinating the sales of estab-
lished shipping agencies, through several central offices. No
conclusions were reached.
Just when it appeared that progress might be made in devel-
oping some kind of a marketing program, the freezes of Feb-
ruary changed the immediate price outlook and these organiza-
tion efforts came to an abrupt end. However, there is still much
interest among many leading shippers and canners in a program
to control Florida fruit sales.


Other Needs of Citrus Industry
Growers and shippers should not think that just because it
was possible to market this season's crops that the industry has
nothing to worry about next season or in later years. We can-
not depend upon crop losses to relieve our marketing problems.
The old law of supply and demand still must be reckoned with.
It is absolutely necessary that the Florida citrus industry
coordinate all of its efforts to increase consumer demand, to
provide markets for present and future production, and develop
methods to withhold from markets any surplus of production
in the future.
The industry should give serious consideration to-
1) The development of the beverage field, which involves
the perfection of products, dispensing machines and distribu-
tion methods, which will take a lot of time and money and can
be handled properly only by an industry organization;
2) The establishment of industry export pools for both
fresh fruit and canned products, supported by large groups of
shippers and canners, which is the only way in which Florida
will be able to get its proper share of whatever foreign business
is available;
3) The inclusion of citrus canners in both State and Federal
government regulatory programs, because, with 50 per cent of
the Florida citrus production being processed, it is impossible
to have effective regulatory programs for fresh fruit without
similar controls for the canning industry.
Much more work remains to be done by the industry in the
field of research-research in new products and new uses for
citrus fruits, research in the nutritional values of our fruits, and
research in marketing and distribution methods.
Florida citrus production has increased at a rate of about
6,000,000 boxes a year for the last 10 years. Crop increases
in the next five years may be at an even higher rate, due to
extensive new grove plantings in the war years. The industry
must expand its crop distribution in a period when national
economic conditions and greater competition from other fruits
may make it difficult to maintain all of its present distribution.


THE Florida Citrus Exchange maintained its record for effi-
cient marketing service during the 1946-47 season. The
volume of fruit handled for affiliated associations and shippers
compared most favorably with other years, though dollar volume
sales was smaller than last season due to lower fruit prices.
As in the war years, the Exchange made no effort to increase
its membership, and declined several offers of substantial ton-
nage so present members would continue to enjoy the fullest
benefit of the demand for its brands. Many Exchange affiliates,
however, accepted new grower-members and substantially in-
creased their tonnage.
A department for the sale of canned citrus products was
established at the opening of the season, and the Exchange mar-
keted these products in substantial volume for several of its
canning members. Trade acceptance of canned citrus juices
under the new "Seald-Sweet" labels designed for them was most
The Exchange maintained its strong financial position, with
reserves adequate to fully protect its operations and service to
members in the future period of post-war adjustment. Affil-
iated associations also reported sound financial records at the
close of the season. Most of its associations were in the strongest
position ever attained.
The Exchange has continued to work with others in the
industry in programs for the benefit of all Florida growers. Its
policy is to cooperate with others in all matters that will help
the industry and its growers.


The Sales Department has marketed fruit of affiliates of the
Florida Citrus Exchange this season in 43 states and eight Cana-
dian provinces. As of May 3, it has entered 347 markets and
has developed new markets in 79 cities. Out of a total of 705
customers sold, 229 of them have been new customers this

With an eye on foreign market de-
velopments, the Exchange has taken
advantage of a few export oppor-
tunities and has shipped abroad
179,415 boxes or approximately 358
cars. Most of these were oranges sent
to Belgium. Although shipping con-
ditions as well as the financial status
of foreign countries have been un-
favorable to foreign trade, the Ex-
change expects to take a leading role
in the development of overseas mar-
kets when conditions permit.
FRED S. JOHNSTON As of May 3, the Exchange has
Gneneal Sals Manrger ssold 54 per cent at private sale and
46 per cent at auction.
Until the shipping season ends, in July, accurate compari-
sons cannot be made of the prices received by Exchange and
other growers during the 1946-47 season. But the preliminary
reports of affiliated associations show returns to Exchange grow-
ers which in nearly every instance are substantially higher than
the returns received by most other growers.
The Exchange reduced its sales retain 121/2 per cent this
season, despite higher communication charges and other costs,
and spent larger sums in advertising and promoting the sale of
its members' fruit.
Under the more highly competitive conditions prevailing
this season, selling has been much more difficult. The advant-
ages of the Exchange's marketing organization have become
more recognized under these conditions. The Exchange is fully
equipped to render its growers the most efficient marketing
service at the lowest possible cost.


Canadian New New Total Number
Provinces Customers Customers Towns Towns States
Entered Sold Sold Entered Entered Entered
SEASON 1946-47-AS OF MAY 3, 1947
8 705 229 79 347 43
SEASON 1945-46-AS OF MAY 3, 1946
11 873 292 83 425 42
11 911 318 90 445 42






State Oranges

Florida 54.0
Texas 9.4
*California 36.6
*Season Begins November 1





Private Sales




Auction Sales
1946-47 1945-46
46.0 36.6


State Totals

Oranges --

Total --

Exchange Totals

Oranges .-

Total .--.--









Parenthesis indicate decrease; shipments do not




include cannery

Per cent





The Exchange has exported 179,415 boxes, approximately 358 cars to date. Most
of this was oranges to Belgium.

Having decided to enter the canning field, the services of
C. A. Seehof were obtained to become sales manager of the Can-
ning Division. Seehof's wide experience in every phase of can-
ning and selling fully equips him for the task ahead.
Starting from "scratch," the Can-
ning Division has been successful in ob-
taining 83 brokers or representatives,
which will account for representation
in every state in the Union and most
Canadian provinces.
Sales and distribution to date dis-
l close distribution in 17 states, 3 Cana-
dian provinces and one South American
Markets where deliveries have been
made are as follows: Boston, New
York, Baltimore, Chicago, Memphis,
c. A. SEEHOF Seattle, Portland, Chattanooga, Char-
lotte, Winston-Salem, Wheeling,
W. Va., Charleston, Columbia, Spartanburg, Bristol and John-
son City, Tenn., Des Moines, Winchester, Ky., Montgomery,
Sterling, Colo., and other points too numerous to enumerate.
It is highly encouraging in checking present distribution to
note that considerable repeat business has been entered, clearly
indicating consumer acceptance of all SEALD-SWEET canned
citrus items.
Factory label distribution is highly desirable, but many sales
outlets and distributors have developed a private label; however,
sales through this office on private labels have been held to a
minimum, our records indicating 75 per cent of all sales having
been made under the SEALD-SWEET label, 25 per cent under
private label.
It is well to bear in mind that actual production on canned
citrus at Florence Villa did not begin until February 3-on that
day there being a trial run-full line production not getting
under way until February 7.
Production at Florence Villa has stepped up at the present
time to approximately 800 cases per hour, basis No. 2's, and with
the installation of additional extracting equipment the produc-
tion of 1000 cases per hour, basis No. 2's, can be anticipated.


-rr i-r ^ BJ

The new, ultra-modern canning plant of Florence Citrus Growers Association at
Florence Villa began operation early in February with an immediate capacity of half
a million cases per season and a potential capacity of twice that much with additional

Further, additional storage space is also anticipated at Flor-
ence Villa for the coming season.
Prices at the beginning of the canning season were most dis-
couraging and it was noted that the majority of sales outlets
throughout the country were carrying over heavy stocks of all
items of canned citrus.
This condition, however, corrected itself and prices today
are more favorable, especially on orange juice and blended juices.
Anticipating a much shorter canning season as compared to
last year, with greatly reduced carry-overs by all handlers, can-
ning for the 1947-48 pack should start with a bare market.


Rail transportation service has shown very little improve-
ment during the past season and due to the nation-wide shortage
of refrigerator cars all war-time controls over heavier loading,
diversion restrictions and penalty demurrage charges on perish-
able products have continued in effect.

Refrigerated steamer service from
Jacksonville to New York City was
resumed during January, 1947, and
from Fort Pierce in February with
three sailings weekly from both
5- The 3 per cent increase originally
authorized by the Interstate Com-
merce Commission March 1942 but
b m suspended May 1943 was reinstated
July 1, 1946, and remained in effect
until January 1, 1947, when the rate
on both fresh citrus fruit and canned
F. E. GAUGHAN citrus fruit was increased 20 per cent
Traffic Managr subject to a maximum increase of 13
cents per 100 pounds. Refrigeration charges were increased 15
per cent and diversion, reconsigning and other accessorial charges
25 per cent.
The all rail truck-boat competitive rates on fresh citrus fruit
to North Atlantic ports and some intermediate points that have
been maintained by the railroads for several years were attacked
by the War Shipping Administration and Steamship Lines by
petition filed March 8, 1946, with the Interstate Commerce
Commission (Fourth Section Application 16028) requesting
that the Fourth Section relief be withdrawn or so modified as
to require the rail lines to maintain rates to port cities and inter-
mediate points approximately 7 cents per box higher than the
truck-water rates. The Commission decided against the railroads
and ordered the Fourth Section authority vacated effective Feb-
ruary 1, 1947; however, carriers met the situation by publishing
rates to conform with the Fourth Section requirements. The
Boston rate is now applicable to all intermediate destinations
between Boston and New York and the New York rate observed
as the maximum to all destinations south thereof.
The railroads have docketed a proposal seeking to make a
charge of $1.50 per ton for unloading all perishable freight on
the piers in New York City and at the Produce Terminal in
Philadelphia. The reason advanced for the proposed charge is
that the costs of handling increased so sharply they can no longer
be absorbed in the line haul revenue. If this charge is finally
approved it will mean an increase of approximately 7 cents a
box for handling through the Auctions at these points.

For the Season 1945-46 the Traffic Department filed 938
claims amounting to $112,008.99. During the period May 1,
1946, through April 30, 1947, a total of 656 claims were settled
with the collection of $61,981.53.


Many and varied have been the matters referred to the Law
Department this year, the most prevalent being the routine mat-
ters of Wage-Hour, Social Security, amendments of charters and
by-laws of affiliated associations, questions on retain certificates
and patronage refunds, and of particular importance, questions
dealing with income tax matters which required careful con-
sideration in order that the exempt income tax status of the
Exchange and its affiliates might not be adversely affected.
Claims and suits under the Perishable Agricultural Commod-
ities Act, which were conspicuous by their absence during the
war, have again had to be instituted against unscrupulous
The Law Department has worked
in close conjunction with the differ-
ent committees of the Exchange, par-
ticularly the Canning and Processing
Committee, since the entry of the Ex-
change into the cooperative market-
ing of canned and/or processed cit-
rus fruit has brought forth varied
legal problems. Also, since the close
of the war, the Seald-Sweet Sales Asso-
ciation has again become able to con-
tinue its pr o g r am with the juice
vending machine, with the attendant
COUNTS JOHNSON legal work on contracts, patents, etc.
General Counsel Working in cooperation with the
Florida Citrus Producers Trade Association and other industry
groups, the Law Department has given much time, thought, and
consideration to the preparation for submission to the 1947 Flor-
ida Legislature of the citrus industry's legislative program, which
was limited to the amending and revising of certain existing
citrus laws to meet changing circumstances and conditions.
Toward the end of the 1945-46 shipping season the Amend-
ment to the Federal Marketing Agreement and Order was voted

upon by the industry, this department handling the details for
the Exchange and its affiliates. The Law Department has con-
tinued to give careful scrutiny and consideration to those laws
and governmental rules and regulations thereunder relating to
agriculture in general, and cooperatives in particular, which
might affect the Exchange or its affiliates. One of the more
important laws recently analyzed was the new Federal Trade-
mark Act (known as the Lanham Act) with the view of de-
termining the steps to be taken by the Exchange and its affil-
iates with respect to their trade-marks for the greatest amount
of protection.

Activities of the Exchange advertising department were in-
creased substantially this season, and plans were made for a
considerably expanded program next season. On all Seald-
Sweet promotion, equal emphasis was given to the fresh and
canned products. The Exchange and its trade-marks were ad-
vertised by hard-hitting newspaper campaigns in 11 selected
cities including: Baltimore, Md.; Charlotte, N. C.; Chattanooga,
Tenn.; Chicago, Ill.; Grand Rapids, Mich.; Hartford, Conn.;
Memphis, Tenn.; St. John, New Brunswick, Canada; Spartan-
burg, South Carolina; Wheeling, W. Va.; and Winston-Salem,
N. C. The Exchange also was advertised by display posters and
price cards in the markets, large exhibits in two Florida fairs,
publication of a special Seald-Sweet booklet, frequent news re-
leases, radio and newspaper advertising by the Indian River
District and the monthly publication of Citrus Magazine.
As more Exchange associations pre-
pared to identify their fresh fruit,
additional newspaper and radio cam-
paigns were plan ned for the cities
where the stamped fruit is sold.
Carlisle Kyle, a Tampa newspaper-
man for eight years and a Navy pilot
during the war, was made advertising
manager on September 1, and he be-
came editor of Citrus Magazine upon
retirement of Ralph Boswell at the first
of the year.

CARLISLE KYLE A total of 56,000 pieces of display
Advetising Manager material was prepared and distributed

Florida Citrus Exchange exhibit attracted considerable attention and favorable
comment at the Florida Fair in Tampa and later at the Florida Citrus Exposition at
Winter Haven. One of the five lighted, animated dioramas is shown here.

in the markets to promote both fresh and canned Seald-Sweet
citrus. An additional 10,000 posters were distributed by dealer
service men in New York, Boston and Philadelphia for Florigold
and Flo of the Indian River District.
The Exchange participated in the Florida Citrus Exposition
at Winter Haven, February 17-22, with a 200-foot exhibit that
was the largest on the fairgrounds. Prepared by an exhibit
builder of national reputation, the display consisted of an ani-
mated, lighted diorama of five units, each eight feet in length
that illustrate (1) a typical grove owner's home (2) harvest
of fruit (3) kitchen scene (4) canning plant interior and (5)
office of the Florida Citrus Exchange. This exhibit also was
displayed at the Florida State Fair in Tampa, February 4-15,
where it attracted large crowds. The permanent diorama is
available for future expositions and may be seen at the home
office of the Exchange.
Ten-thousand copies of Seald-Sweet Citrus, a 60-page book-
let about the Florida citrus industry and the Florida Citrus Ex-

change in particular, were printed for use primarily by dealer
service men. They were distributed free to interested persons
who visited the Exchange exhibit at the Florida Citrus Ex-
Other favorable publicity was received by the Exchange
through frequent news releases to newspapers throughout the
Indian River District continued its aggressive advertising
campaign that has for years been instrumental in obtaining a
premium price for Florigold and Flo oranges and grapefruit.
Radio participation included the Song Weaver program in New
York, the New England Cupboard in Boston and the Anice
Ives program in Philadelphia. Dealer service men actively pro-
moted Florigold and Flo in all three cities. Florigold and Flo
were extensively advertised in newspapers in the New York
area by the Indian River District.

On April 30, 1947, Growers Loan and Guaranty Company
ended its thirtieth year as an affiliated agricultural credit cor-
poration of the Florida Citrus Exchange. Its function is to
extend seasonal operating capital credits to associations and crop
production loans to their grower members. During the preceding
12 months, it made loans to associations and grower members of
the Florida Citrus Exchange and discounted trade acceptance
covering packing house supplies in the total amount of approxi-
mately $2,300,000, a slight increase over last year.
During this post-war era of read-
justment it is more necessary than ever
that the growers and associations of the
Florida Citrus Exchange have access to
expert financial advice and assistance,
such as that being offered by the com-
pany. The company's performance
record during the many economic crises
.that happened during the period be-
tween world wars one and two demon-
strates its ability to perform such a
j service during periods of most unfav-
orable economic conditions. One in-
e stance in which the worth of this com-
s. L. LOONEY pany to the Florida Citrus Exchange
Treasurer-ComiPtroller and its members was ably demonstrated

was the early part of this season when fruit prices were abnor-
mally low and operating costs exceedingly high. This resulted
in an immediate need for additional operating loans by associa-
tions which had not been anticipated by them in their operating
budgets. The prompt extension of these additional credits mate-
rially eased the burdens of the associations by enabling them to
operate on an uninterrupted schedule. The company has also
been especially helpful to many associations in making advances
on their cannery fruit in pools of cooperative canning associ-
The splendid cooperation of the Florida banks has made it
possible for the company to reduce its interest rates and other
charges incident to the making of these loans so that now they
compare favorably with the total cost of operating capital loans
through the Bank for Cooperatives and production credit loans
through the production credit associations. Both institutions
are sponsored and controlled by the Farm Credit Administra-
tion. These banks have also been helpful in many other ways
for which the company is highly appreciative.
The company is in an excellent financial condition and has
ample resources to finance all sound loan requirements of the
associations and their members.

The Exchange Supply Company has ended its 31st year of
service to its member associations. Conditions during the past
year eased up somewhat and supplies are now more readily ob-
tained thus eliminating the necessity of the packing houses car-
rying excessive supplies of packing materials on hand.
The Exchange Supply Company has completed arrangements
with all of its suppliers for the 1947-48 season so that the asso-
ciations can depend on having their requirements promptly ser-
viced during the season.

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