Title: Florida clearing house news ..
Full Citation
Permanent Link: http://ufdc.ufl.edu/UF00086639/00064
 Material Information
Title: Florida clearing house news ..
Physical Description: v. : ill. ; 31 cm.
Language: English
Creator: Florida Citrus Growers' Clearing House Association
Publisher: s.n.
Place of Publication: Winter Haven Fla
Publication Date: May 25, 1931
Frequency: semimonthly (irregular)
Subject: Citrus fruits -- Periodicals   ( lcsh )
Genre: periodical   ( marcgt )
Dates or Sequential Designation: v. 1- Sept. 1928-
General Note: "Official publication of the Florida citrus growers clearing house association."
 Record Information
Bibliographic ID: UF00086639
Volume ID: VID00064
Source Institution: University of Florida
Holding Location: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: oclc - 01306261
lccn - 30006589

Full Text

b ComP**
Library co.. coFLn
Bureau of Arig. EconL.
U. S. Depth. o' ArIg* F L
U Dept C.
Washington. C


Representing more than 10,000
Growers of Oranges and Grapefruit

U. S. Postage
1c. Paid
Winter Haven, Fla.
Permit No. 1


Official Publication of the

$2.00 a Year Published Semi-monthly by the Florida Cit- Entered as second-class matter August $1, Volume III
$. rue Growers Clearing House Association, MAY 25 1931 1928, at the postoffice at Winter Haven,
10 Cents a Copy DeWitt Taylor Bdg., Winter Haven, Fla. Florida, under the Act of March 1879. Number 16

Industry Effort To Be Continued By Clearing House

Legal Status Of

Exchange Growers

Is Not Endangered

Withdrawal From Associa-
tions Not Imperative, Coun-
sel Says in Opinion

No legal difficulty will stand in
the way of grower-members of the
Florida Citrus Exchange and the
Clearing House who may desire to
remain with the Clearing House.
This is the opinion prepared by
'S. L. Holland, legal counsel for the
Clearing House, and presented to
the Board of Directors of the Clear-
,.ing House at the Board's meeting,
Friday, May 22.
Since announcement was made
that the Florida Citrus Exchange
plans to withdraw from the Clear-
ing House during June, many Ex-
.,change growers who took part in
the organization of the Clearing
s House and have worked loyally for
it, have feared that their individual
a agreement with the Exchange would
make it impossible for them to re-
main with the Clearing House. This
situation has resulted because many
,of the Exchange Associations have
already held their annual meetings
Sand under ordinary circumstances
an Exchange grower desiring to
'withdraw from the Exchange must
do so within ten days prior to the
annual meeting of his Association.
Hence it is that Exchange grow-
4ers whose Associations have held
their annual meetings were not ad-
vised until too late that the Ex-
change planned to withdraw from
'the Clearing House. In Judge Hol-
land's opinion the failure of the
Exchange to so advise its growers
prior to Association annual meet-
ings gives the Exchange grower the
right to withdraw from the Ex-
change, if he so desires, so that he
,may continue with the Clearing
House. Judge Holland's opinion is
based on the assumption that the
Exchange grower may have con-
tinued with the Exchange because
S (Continued on Page Seven)

The following is the full text
of the resolution passed by the
Board of Directors of the Flor-
ida Citrus Exchange May 1, set-
ting forth certain changes in the
fundamentals of Clearing House
operations. The resolution was
presented to the Clearing House
Directors May 8.

WHEREAS, the shipper member
contract between the.Florida Citrus
Exchange and the Florida Citrus
Growers Clearing House Associa-
tion provides for withdrawal only by
giving notice of such withdrawal
during the month of June of each
year, and since that period is not
far distant it becomes necessary for
the Florida Citrus Exchange to give
consideration to its continued mem-
bership in the Clearing House, and
WHEREAS, the membership of
the Florida Citrus Exchange recog-
nizes that much has been accom-
plished by the Clearing House that
has been beneficial to the citrus in-
dustry as a whole and recognizes
the sincere efforts of the Board of
Directors of the Clearing House
and the Committee of 50 to bring
about better conditions in the citrus
industry, and
WHEREAS, the marketing activi-
ties of the Clearing House Associa-
tion which have been controlled
largelyy by the Operating Committee
have failed to accomplish the pur-
poses for which the Clearing House
was primarily organized, as evi-
denced by the reports of our dis-
:rict and division managers, who
unanimously report that the efforts
of the Clearing House prorating
committees in the terminal markets
have been impotent and of no avail;
and as further indicated by the
numerous resolutions from associa-
tions and sub-exchanges who com-
(Continued on Page Three)

The following is the full text
of the resolution passed by the
Board of Directors of the Clear-
ing House in reply to the pro-
posal of the Exchange that
changes be made in the purposes
of the Clearing House. The
Clearing House reply was pre-
sented to the Exchange on May

WHEREAS, this Board has this
day been presented with a resolu-
tion from the Board of Directors
of its largest shipper member, the
Florida Citrus Exchange, outlining
conditions under which it would be
willing to continue its membership
in the Florida Citrus Growers
Clearing House Association, and
WHEREAS, these conditions are
so revolutionary that if accepted
they would eliminate from the pur-
poses and activities of the Clearing
House all three of the funda-
mentals for which the Clearing
House was created, namely, stand-
ardization of grade and pack, ad-
vertising and better distribution of
the Florida citrus crop, and
WHEREAS, to put in effect such
revolutionary changes would involve
the amendment of the Charter of
the Clearing House by its grower
members so as to in effect make,
it an entirely different organiza-
tion with Entirely different pur-
poses, and so as to necessitate the
cancellation of all shipper member
and grower member contracts of
the Clearing House and Clearing
House set-up, including Charter,
By-laws and contracts, and
WHEREAS, this Board feels that
it would be false to the trust which
has been committed to it by the
seven thousand grower and shipper
members of the Clearing House, as
well as by the six thousand addi-
(Continued on Page Seven)



Withdrawal of Its

Biggest Member Is

Regretted By Board

Growers Legally Entitled to
Stay With the Clearing
House If They Desire

Withdrawal of the Florida Citrus
Exchange as a shipper member from
the Clearing House, as publicly an-
nounced May 15, will not stop the
Clearing House from continuing its
work to help the growers solve their
industry problems. Assurances
that the Clearing House would con-
tinue to function have been given
publicly by the Board of Directors
of the Clearing House, by shipper
members who have stood staunchly
by the Clearing House and by many
growers. Keen regret has been ex-
pressed by the Clearing House Di-
rectors at the announced state-
ment that the Exchange would re-
sign as a shipper member for it is
felt generally that withdrawal of
the cooperative will mean a back-
ward step as far as industry im-
provement is concerned.
Hope for Reconsideration
Despite the formal action taken
by the Exchange Board of Directors
May 15, at which time the general
manager of the Exchange. was in-
structed to serve withdrawal notice
from the Clearing House during
June, every effort is being made
by supporters of the Clearing House
to have the Exchange reconsider
this action. As a matter of fact,
Directors of the Clearing House ap-
peared before the Exchange Board
at the meeting May 15, presenting
formally the inability of the Clear-
ing House to accede to the Ex-
change demands that the funda-
mental operations of the Clearing
House be abandoned. The Clearing
House Directors at the same time
expressed the hope that the Ex-
change would--reconsider its own
proposals and endeavor to harmon-
ize its interests with those of the
industry by continuing with the
(Continued on Page Seven)


Weekly Citrus Summary

(By A. M. Pratt, Manager, Florida Citrus Growers Clearing
House Association)
(Week Ending May 9, 1931)
Week Week Week Week
Ending Ending Ending Ending
May 23 May 16 May 23'30 May 23, '29
Florida Oranges Shipped ------ 736 648 -- 807
Total---- ----- 29306 28570 16442 30977
Florida Grapefruit Shipped 358 756 8 539
Total --- ----------24727 24369 13827 21333
Florida Mixed Shipped ---_-- 99 156 117
Total __- ____ ____ 14332 14233 8223 8837
California Oranges Shipped 1512 1826 1240 1156
Florida Oranges Auctioned -- 506 533 36 460
Average ----------- $3.85 $3.75 $7.80 $2.77
Florida Grapefruit Auctioned 313 431 144 252
Average.._ ----------. $2.25 $2.30 $4.25 $3.44
California Oranges Auctoined 513 400 467 560
Average ___ ----_- $3.40 $3.95 $7.71 $3.11

Oranees No. 1 Oranses No. 2
Week Ending Shipped Sold Avg. Shipped Sold Avg.
May 16 ------ 186 71 $2.85 181 61 $2.69
28% 34%
May 23 -- 250 62 $3.03 245 66 $2.71
25% 27%
Difference --- ----+64 -9 +.18 +64 +5 +.02
Grapefruit No. 1 Grapefruit No. 2
Week Ending Shipped Sold Avg. Shipped Sold Avg.
May 16 ----- 38 7 $1.69 85 26 $1.45
18% 31%
May 23 --------- 11 4 $1.45 17 9 $1.43
36% 53% c
Difference ---___ -27 -3 -.24 -68 -15 -.02
Grapefruit No. 1 Grapefruit No. 2
Week Ending Shipped Sold Avg. Shipped Sold Avg.
May 16 ------------ 139 35 $2.21 197 75 $1.84
25% 38%
May 23--....- ---- 52 22 $1.88 111 35 $1.60
35% 32%0
Difference........ -77 -13 -.33 -86 -40 -.24

Florida Oranges
Week Last 1928- 1927- 1926- 1925- 1924- 1923-
Ending Year 29 28 27 26 25 24
May 16........... .. 820 92 172 119 156 484
May 23 -.----... -_ 807 50 141 62 126 351
May 30 --------- 4 678 29 79 45 75 273
California Oranges
Week Last 1928- 1927- 1926- 1925- 1924- 1923-
Ending Year 29 28 27 26 25 24
May 16............. 1264 1703 1159 1448 1281 1032 993
May 23 --....- 1240 1156 1192 1437 1189 900 1040
May 30 -......- 1022 1344 1005 1162 1108 756 1030
Florida Grapefruit
Week Last 1928- 1927- 1926- 1925- 1924- 1923-
Ending Year 29 28 27 26 25 24
May 16........... 9 774 195 365 192 199 600
May 23 --.... 8 539 190 205 107 240 508
May 30 .._--.. 2 308 169 154 73 145 384
Florida Mixed
Week Last 1928- 1927- 1926- 1925- 1924- 1923-
Ending Year 29 28 27 26 25 24
May 16.......... .... 133 54 55 28 24 No Rcrd.
May 23----------117 44 35 17 17 No Rcrd.
May 30------- 89 18 32 10 12 No Rcrd.

Light Shipments Grapefruit week, (ending May 23) indicating
Finally, because of the continued that growers and shippers realize
depressed market existing on grape- the futility of forcing the market
fruit, shipments have dropped this with a volume of fruit which it can-


not accept and return the growers
an amount worth bothering about.
The auction market, as you will
notice, has averaged about the same
as last week, namely $2.25 delivered
at all auctions this week on 313 cars
as compared with $2.30 last week
on 431 cars. The f. o. b. market
has shown much more of a drop
than the auction market. This in a
sense is a healthy indication as the
f. o. b. markets have not been get-
ing the proportion of supplies re-
cently that should have been forced
in the private sale markets. On
mid-season grapefruit the f. o. b.
sales show a drop of 24c on No. 1's
and 2c on No. 2's. On Marsh Seed-
less grapefruit the f. o. b. sales in-
dicate a drop of 33c on No: 1's and
24c on No. 2's. Even then the f. o.
b. price continues to show a con-
siderably higher general average
than the auction prices.
Possibility Higher Price Grapefruit
Hope has been deferred so long
that many have finally given up
hope for recovery of the grapefruit
market even on the last two or
three weeks, but let's look at this
again-820 cars were shipped last
week, (ending May 16) 1052 the
week previous, 990 before that, end-
ing with 1024 cars on the week end-
ing April 26, or an average of 971
cars (including proper proportion
of mixed.) This week only 390 cars
will have gone forward. This is
only 39 percent of what has been
moving into the markets on an aver-
age the last four weeks. If the
state had a crop of 30,000 cars of
grapefruit, there are 1078 cars of
grapefruit left to be shipped, as
Florida has shipped to date, includ-
ing proper -proportion of mixed,
28,922 carloads of grapefruit. Let's
assume that Florida will get through
shipping on Saturday, June 13. Let's
assume that next week, because of
the light shipments this week, there
will be a temptation to ship pretty
heavy again. Let's credit next week
with 478 cars of grapefruit, the
week following 350 cars, and the
week ending June 13th, 250 cars,
These figures would not change thd
estimated amount left and with 390
cars this week would make an aver-;
age movement for this week and the
next three weeks of 367 cars instead
of 971 cars average movement dur-
ing the past four weeks. RegardJ
less of cantaloupes, strawberries
and the supplies of grapefruit in
storage, I still believe that the
grapefruit market will show a grad-
ual recovery from this time on be1
cause the inside quality, the eating
quality is there even though the
outside appearance "is not what she
used to be."
Valencia Market Good Shape
Florida again made a wonderful
record compared with California oi4
valencias this week. Florida'4
average on 506 cars is $3.85 de.
livered, compared with California'4
average of $3.20 delivered on 310
cars of valencias. California's 203
cars of navels averaged' $3.70, maki
ing a combined average on Cali4
fornias of $3.40. Next week's of-
ferings from California probably

May 25, 1931

will be mostly valencias. Your at-
tention also is called to the fact that
our average on valencias this week
is $1.10 a box higher than two years,,
ago when we sold 460 cars at auc-
tion; whereas, California shows an"
average, including her navels, of
only 30c a box higher than two"
years ago for the corresponding
What's Left in Valencias
Assuming that there may be ship-
ped 39,000 cars of oranges, we have,!
shipped to date, including proper
proportion of mixed, 37,150 cars,
leaving 1850 cars to be shipped as
of Sunday, May 24. There is a,
serious question in the minds of
many whether there will be shipped
1800 cars from this time on, but
assuming that there might be that,
many, if we do not hold back our
valencias this coming week as I1
think we should, let's assume this
coming week showed 850 cars, in-
cluding mixed, the next week 600
cars, ending on June 13 with 409
cars and we have marketed the
maximum crop that anyone esti-.
Lighter Shipments from California
This week's movement from-
California will be 1550 cars in con-
trast with 1826 the week before and
2081 the week before that. The
markets have not yet felt the bene,
fit of the lighter movement from
California as it takes from ten to'
fourteen days, generally speaking to
reach the Eastern markets. Cali-
fornia wires us that they anticipate
only 1300 cars being shipped from
the state next week, this curtail-
ment coming on account of the gen-
eral market situation on valencias
and not because of any unusual-
damage from wind. This week's
lighter movement and next week's
still lighter movement from Cali-
fornia will give Florida a chance to
move her crop very advantageously
and at the same time permit Cali-
fornia valencias becoming sweeter
and marketing practically all of here
valencias after Florida's have got-
ten out of the way. However, to&
get the benefit of the situation
from both states, instead of 850 cars
moving next week, it would be far
better if 600 cars, including mixed,
moved this coming week, then the
week of June 6th 850 cars, finish-
ing out the crop on the 13th with
400 cars, if there are that many
left. A letter received May 23rd
from Dana King of the California
Fruit Growers Exchange states that
they now believe the valencia esti-
mate for California is 10 to 20 per-
cent higher than the actual out-turn
of the crop will finally develop oil
account of such small sizes.
Rolling Unsold Increasing
The rolling unsold in oranges has
been increasing each day this week,
from 101 cars on Monday to 144
cars on Friday. This can easily'
change this coming week for a
stronger statistical position if we
will just hold back on our shipments
a little bit and take advantage of
the situation which California- in
(Continued on Page Three)


,Statement Given Members

Of Committee of Fifty on

Withdrawal of Exchange

Following the decision, May 15, of the Board of Directors of the
Florida Citrus Exchange to withdraw from the Clearing House, a
call was issued by Chairman Jim Morton for a meeting of the Com-
mittee of Fifty-all former and next season's members included.
With the call for the meeting, the following explanation of the
Exchange withdrawal situation was sent to the Committee mem-
bers. The statement is given herewith as follows:

Winter Haven, Florida,
May 18, 1931.
To All Members of the Committee
*of Fifty and Those Who Have Pre-
viously Served on This Committee,
Doubtless each one of you is
aware that the Board of Directors
of the Florida Citrus Exchange on
May 15 instructed its proper of-
ficers to withdraw the Florida Cit-
rus Exchange from membership in
,the Clearing House during the
Clearing House withdrawal period
in the month of June.
I am sure this is a matter of
Seep regret to every member of
the Committee and in order that
,you may be fully posted on the
events leading up to this decision
Aon the part of the Florida Citrus
Exchange, I am enclosing a copy of
the Exchange resolution presented
to the Clearing House on Friday,
,May 8. Please read this carefully
and note the demands that the
.Florida Citrus Exchange makes as
a prerequisite to its continued mem-
-bership in the Clearing House.
There is also enclosed a copy of
the Clearing House reply to the
resolution of the Florida Citrus Ex-
change, which was presented to the
Exchange Board on May 15. Please
'read this carefully and note that
in paragraph four of the Clearing
t House resolution the Board of Di-
rectors expressed hope that the Ex-
*change might see fit to reconsider
its decision and offered to enter into
conference with the Directors of
the Florida Citrus Exchange in an
effort to reach a workable under-
standing. Unfortunately the Ex-
'change saw fit to ignore this offer
of conference and made immediate
"decision to withdraw its member-
ship from the Clearing House.
Board in Authority
The Exchange has for some time
given public expression to its be-
lief that it was receiving unfair
treatment in the Clearing House.
Consider this statement for a min-
ute. The Board of Directors is
the final authority in all Clearing
House matters. This Board con-
\.sts of eleven members, nine of
whom are large Exchange growers.
*The chairman of the Board, Mr.
Tilden, who is also President of
the Clearing House, is President of
one of the largest associations ship-
ping through the Florida Citrus Ex-
change. Mr. J. C. Chase, Presi-
dent of the Florida Citrus Ex-
change, is a member of the Board
tof Directors of the Clearing House.

Other Exchange members of the
Board are Messrs. E. C. Aurin, O. F.
Gardner, J. A. Griffin, F. G. Moor-
head, Phil C. Peters, James T.
Swann, and E. E. Truskett. If the
Exchange has been given unfair
treatment in the Clearing House,
then it must be that those men have
discriminated against the organiza-
tion through which they market
their own fruit. Knowing those
men as we all do, as men of high
'standing, intelligence and integrity,
it is unreasonable to suppose that
they would be unfair to the Florida
Citrus Exchange, of which they are
Allotment Increased
The Exchange has further pub-
licly claimed that it has during this
past season been unfairly dealt with
in the matter of weekly allotments.
As each one of you knows, the
Clearing House Operating Commit-
tee throughout the season may in
its judgment decide the volume of
fruit, oranges and grapefruit, that
Clearing House members shall ship
during the following week, and the
amount decided upon is prorated
among the various shipper mem-
bers of the Clearing House in pro-
portion to their estimated tonnage
for the season. During December
the Exchange, claiming control of
50 percent of the fruit of the state,
made appeal to the Board of Di-
'rectors of the Clearing House for
an increased proportion of the
weekly allotment, and our Board,
in order that the allotments might
be fairly made, called upon all
shippers for a revised estimate as of
January 1. Exchange estimates as
'of January 1 were greatly increased
over previous estimates and on the
,strength of this their proportion of
allotments was increased. Their
.estimate on oranges other than Va-
lencias as of January 1, after de-
:ducting culls, drops, and cannery
:fruit and giving us an estimate of
what they would actually expect to
ship, was 7767 cars. They shipped
oranges other than Valencias from
January 1 to May 9, 4904 cars.
'The season is over on mid-season
oranges. This leaves an over-esti-
mate on mid-season oranges of 2863
cars. Their estimate on Valencias
as of January 1, of what would
:actually be shipped, was 6141 cars.
:Through May 9, 3527 cars have
been shipped. Their revised esti-
[mate of April 24 would indicate
that they had on May 9, 1756 cars,
leaving 858 cars over-estimate on
(Continued on Page Six)


(Continued from Page One)
plain of inequitable shipments by
shipper members, and
WHEREAS, there has been an
increasing dissatisfaction among
the grower members of the Ex-
change with the operations of the
Clearing House, .which has been in-
dicated to the Exchange through
resolutions from associations evi-
dencing a belief in the impossibility
of reconciling the opposing views
and interests of cooperative asso-
ciations and independent shippers,
WHEREAS, although the value to
the industry of those activities of
the Clearing House which have re-
sulted from the mutuality of in-
terest between all members of the
Clearing House is fully realized and
appreciated, and we recognize the
!desirability of maintaining some or-
ganization that will continue to
carry on those activities in which
there is mutual agreement. Yet it
is uncertain if it is possible to carry
on under the present charter and
by-laws of the Clearing House these
same activities, or similar ones,
where the interests of all are mu-
tual, without at the same time carry-
.ing on the activities of the Clear-
ing House specifically provided for
in the charter and by-laws as well
as in the shipper and grower con-
tracts, which have not been satis-
factory to the Exchange member-
ship, now, therefore,
SBE IT RESOLVED, that this
committee believes that if such
activities as can be mutually agreed
upon by all shipper members as of
common interest, such as forma-
tion of legislative policies, joint
action in matters affecting the in-
dustry as in the Brogdex patent suit
and the Med Fruit Fly fight, and
.support of the Growers and Ship-
pers League, can be continued under
the present charter and by-laws oi
the Clearing House Association
with such retain as is needed for
same (not in excess of % of 1 c per
box), and with the elimination of
advertising, inspection, allotments
of shipments and other marketing
!activities not mutually agreed upon,
then the Florida Citrus Exchange
'should continue its membership in
'the Clearing House, and recom-
mends to the Board of Directors
:of the Florida Citrus Exchange that
the Board name as a condition of
the continued membership of the
'Florida Citrus Exchange in the Flor-
ida Citrus Growers Clearing House
iAssociation such changes in the
.present charter and by-laws of the
Clearing House and in its present
membership contracts as to confine
its activities in the future to those
things that may be mutually agreed
.to be of general good to the whole
industry and that except by unani-
mous consent of shipper members,
:activities having to do with market-
ing, distribution, inspection and ad-
vertising be discontinued.
The Committee further recom-
mends that unless satisfactory assur-

ance that such changes will be
acceptable to all shipper members
can be had at once, that the proper
officers of the Exchange be author-
ized to file notice of withdrawal
of the Florida Citrus Exchange
from the Florida Citrus Growers
Clearing House Association and
cancellation of its shipper member
contract, and that growler mem-
bers of associations and special
shippers be requested to file notice
of withdrawal and cancellation of
their grower contracts during the
month of June.
It was further recommended that
in such event the Exchange shall
express to the Clearing House a fur-
ther desire and willingness to work
out with the Board of the Clear-
ing House and its shipper members
such plans as may be mutually satis-
factory and as are necessary to
accomplish the purposes above set
'forth, (either under an amended
charter and by-lavis or in an entirely
new organization as may seem best
'to all concerned.)
The committee reiterates its be-
'lief in the good accomplished by
some of the activities of the Clear-
ing House, but is unable to recon-
cile the differences between the
!cooperative group and the so-called
independent group of shippers that
;have developed in the operating
committee. It firmly believes that
such work as has been carried on
with mutual satisfaction and to mu-
tual advantage should be continued
and that such matters as have
caused friction and that could not
be adjusted in conference should
be removed rather than jeopardize
the potential influence of the organ-
ization for good to the industry.

(Continued from Page Two)
:her light shipments of this week
and next will give us.
Season's Average to Date
Do you realize the season's aver-
age to date on Florida oranges is
,$3.34 delivered on 15,547 cars
:which have been sold at auction?
Commencing with the week- ending
January 2 our average is $3.40 de-
livered. California's average from
he same week to the present time
is $3.36 delivered and this elim-
inates the week of December 19
,when California sold 527 cars at
$3.15 and the week of December 26
When she averaged $3.10 on 324
Cars. Bear in mind that California
Must deduct from her auction aver-
age at least 50c a box to make it
,comparable to ours in reducing it to
,what her growers are getting over
:cost of production.
Porto Rico Estimate May 8
Advice from our New York office
'is that the Porto Rico estimate of
'May 8 as to grapefruit on the trees
:is 465,000 boxes.

Apology Pending
The ladies of the Helping Hand
Society enjoyed a swap social on
Friday evening. Everybody brought
something they didn't need. Many
of the ladies were accompanied by
their husbands.

May 25, 1931

~L U6' V

P.o. _

May 25, 1931


Clearing House Directors Feel Industry

Still Needs United Effort of All Interests

By Director
(Third District)

Before a Director is elected to
the Board of the Clearing House,
the growers in his district are noti-
fied what his marketing affiliations
are, as it is thought they may be
guided somewhat in their balloting
by this information.
The growers in the third district
have known that my marketing con-
nection was the Florida Citrus Ex-
change,_ so it is natural to suppose
that when they vgted for me to be
their representative on the Board
of Directors, they supposed that I
would try to look after the interests
of that organization in the Clear-
ing.House affairs.
When the Florida Citrus Ex-
change formally took action notify-
ing its officers to withdraw from
the Clearing House, I felt that such
action demanded my resignation
from the Board of the Clearing
House, and this resignation was
tendered to the Clearing House
Board on May 16th, the day fol-
lowing the action ordering with-
drawal by the Exchange Board of
In taking such action I feel I am
following the wishes of the majority
of the growers who supported me
when they elected me to the Board,
for if we assume that the majority
of this support came from Exchange
growers and assume that the Ex-
change Directors at Tampa knew
the will of the majority of their
own members when they voted to
withdraw from the Clearing House,
then it is fair to assume that a
majority of the growers who sup-
'ported me for the Clearing House
wished-to have the Exchange with-
draw from the Clearing House
activities, and if these assumptions
were correct, it was necessary for
meto resign in order to be entirely
fair to those growers and shipping
agencies who wished to continue
with the -Clearing House work.
-..I wish to take this opportunity
to .thank those growers who have
supported me for the three different
years-that I have been elected to
the Board of the Clearing House,
and to assure those growers that I
have done my best to look after
their interests and the interests of
the citrus industry of Florida, have
worked many long hours and
traveled thousands of miles, trying
:to. further these interests .and have
no apologies to make, for, having
done my best, and the other Direc-
tors .on the Board having done the
:same thing, if the institution has
failed .in -.accomplishing all the
'things that we had hoped it could
-do;'tihedfault lies in the inability of
the Directors of the Clearing House,

not in their lack of faithfulness to
the job intrusted to them.
If the Clearing House has failed,
it is more likely that the fault lies
with those growers and shippers
who have not supported the Clear-
ing House whole-heartedly, for the
principle of the Florida Citrus
Growers Clearing House is right,
and with 100 percent support from
all the growers and shippers in the
state, our marketing conditions
could be made perfect almost over
It is not likely that any grower in
the state of Florida expected the
organization to become perfect in
the short while that it has been
operating; but it is possible that the
growers had hoped that it might
accomplish more than has been ac-
It is quite likely that the ac-
complishments of the Clearing
House are about in proportion to
the fruit that is shipped through
the Clearing House, for if 77 per-
cent of the fruit of the state goes
through the Clearing House, it is
fair to assume that the Clearing
House would be about 77 percent
effective in controlling the distri-
bution problems that the industry
must face.
The thing that we are afraid is
being overlooked in this present rift
between the Florida Citrus Ex-
change and the Clearing House, is
the fact that a 75 per cent to 80
per cent control of the fruit handled
by the various shipping agencies
in the state is of more value than
we at present realize, and it is our
humble opinion that, while the
growers are not entirely satisfied
with the work of the Clearing
House and with the results ob-
tained during this past marketing
season, if the Clearing House had
'not been operating, conditions
would have been so much worse that
every grower in the state of Flor-
ida would be wondering whether
the citrus industry could possibly
If we will think back to the con-
ditions that prevailed before the
organization of the Clearing House
and remember that the crop which
was marketed this past season from
Florida was more than twice as
large as the crop marketed the year
before, and that California, at the
same time, had the biggest crop in
her history, and will also remem-
ber that the buying power of the
consuming public is-lower than it
has been for many years, then we
are likely to marvel that our mar-
keting conditions have been as good
as they have been this past year
rather than to complain because
they have not been better.
We hope that the shipping
agencies that are remaining in the
Clearing House will be able to carry
the organization forward, for it will

By Director

The Florida Citrus Growers
Clearing House Association has, in
my opinion, been a most important
factor for good in the citrus in-
dustry. Doubtless it has not been
perfect, but institutions of this na-
ture do not spring into existence
with complete perfection, and are
perfected throu g h considerable
periods of experience and effort in
reconciling differences in views and
interests that may be involved.
Regardless of shortcomings that
may have been manifested, the
Clearing House has undoubtedly
been a powerful force in.coordinat-
ing along many desirable lines the
efforts of a very large proportion

be of great good to the citrus in-
dustry if it can be maintained. For
unless other shipping members than
the Exchange withdraw from the
Clearing House and if these ship-
pers do not lose any of their grower
members, then they will control at
least 40 per cent of the crop of the
state, and any agency controlling
that large a volume is a big factor
in helping our marketing conditions.
If the balance of the Independ-
ent growers and shippers of the
state become frightened at the dis-
organization that may follow the
withdrawal of the Exchange from
the Clearing House and join one of
the two organizations, and if it is
possible for the Clearing House and
the Exchange to work together on
distribution and industry problems,
then the withdrawal of the Ex-
change from the Clearing House
may result in ultimate good to the
If the tonnage of the Clearing
House, exclusive of the Exchange,
can be increased to 50 per cent
or 60 per cent of the crop of the
state, and we believe that this is
possible, then the Clearing House
can be a very effective agency in
solving the distribution and industry
problems, and we sincerely hope
that these shipping agencies which
are now in the Clearing House will
hold that organization together and
will work for the gathering of all
the other shipping agencies of the
state into either the Clearing House
or the Exchange, so that the in-
dustry may present a more or less
united front, for without this organ-
ized effort in furthering distribu-
tion and working out our industry
problems, the citrus industry cannot
possibly rise to the heights that it
was certain to attain if it had kept
all its tonnage and all the interests
in the Clearing House had been
willing to work together for their
common good.

By Director
(Fourth District)

I am not prepared to accept the
statement made that the Clearing
House has not been of valuable
service to the industry. I would
like to call attention to the fact"
that in 1929 when quarantine regu-
lations so drastic and far-reach-'
ing made things look gloomy for all,
growers of fruit and vegetables, it
was stated that we might not be
permitted to make any more ship-
ments for four or five years. These
regulations were taken as a signal
to all Clearing House officials to
get ready for action. Strong dele-
gations were at once sent to Wash-,
ington to work for relief of the
growers, and by the end of the
clean-up period some twenty-four
modifications of the quarantine

of the industry in Florida and mak-'
ing possible the accomplishment of,
many things for the general good
that probably could not have been
effectively accomplished through
other means.
While one may regret he should
nevertheless not needlessly criticize,
the action of any member or factor
in withdrawing from the Clearing'
House. The right of withdrawal
is clearly recognized in the funda-
mental law of the organization. On
'the other hand, one should remem-
ber that the withdrawal of any
factor does not destroy the oppor-'
tunities for continued development
and successful and beneficial opera-
tion of the organization, although
for the time being some modifica-'
tions in program might be neces-
sitated. -
Harsh criticism, hasty conclusions
and precipitate actions of any kind'
should be avoided. Generous and
reasonable attitudes, deliberate and'
constructive thinking and calm and,
unprejudiced judgments should be
the order of the day.
There is always danger that at-
tention may be so focused upon
some particular phase, such for in-
stance as the matter of marketing,,
that too narrow a view may be
taken of the functions and possi-
bilities of an organization such as
the Clearing House. Numerous
matters, such as questions of trans-
portation relationships, legislation,
Pnd other problems of extreme gen-
eral importance to the industry,i
aside from mere marketing prob-
lems, constantly present themselves,
'for solution, and all these possi-
bilities for usefulness, as well as
the matter of marketing, should'be
kept in mind in considering theh
present situation and formulating
'plans for the future.

May 25, 19:1.

By Director
(Seventh District)

SThe only criterion by which the
success or failure of the Clearing
House can be judged is net returns
Sto the growers. As the growers
received more money for their fruit
This year than in former big crop
years, then it is only fair to give
the Clearing House a fair portion
of the credit for what improvements
have been made in standardization
and more orderly marketing in the
industry as a whole, and any such
improvements are certainly due to
Sthe work of the Association.
S.Generalities mean little, but facts

regulations had been secured. On
Oct. 15, 1930, the whole system
was abolished and the country made,
'free to all shippers. Most of this
was nothing more nor less than
the. faithful and efficient work of
the Florida Citrus Growers Clear-
ing House Association.
.There was another time when
the growers were threatened with
another pest, larger, meaner, and
more important than any bug that
-. had made its appearance up to that
time. That was the Brogdex patent
Suit. Those people had patented
everything we used about the pack-
ing houses in the preparation of
fruit for market except two things,
Sone being the air we breathed and
the other being the water we
pumped from our own well. It was
estimated that in view of the fact
' that the growers could not respond
to high pressure demands for cash,
that possibly ten cents per box
would be a fair and a reasonable
assessment to make for the use of
these patents. Or on a crop like
r the- season just passed of say 25,-
000,000 boxes at ten cents per box,
$2,500,000, which sum would not
hurt growers at all and would be
of some help in paying the grocery
bills of the people owning the
What happened? Did the Clear-
ing House Association lay down on
the job or stand up and fight? The
records show that they made a
.fight and won a great victory. When
this matter was first placed before
the Board of Directors, decision was
made at once to send Judge S. L.
Holland, attorney for the Board, to
'Washington to confer with other
attorneys as to the proper course
to pursue in the matter. This re-
A sulted in the selection of a legal
firm thoroughly equipped to handle
such matters and to work with
Jiidge Holland. After due course
of time and the spending of
$5,991.14 the case was won due to
the work of the Clearing House
Association alone. Yet after the
job was completed the fellows who
were half-hearted or suffering with
cold feet came in and said, "Just
look what we have done."
f-There was no "we" in the fight
fob the growers of the state, the
SClearing House Association did it
and the growers know it.

May 22, 1931
To the Grower-members of
the Florida Citrus Growers'
Clearing House Association.
Because several members of the
Clearing House Board, who are also
Exchange members, have received
communications from the Florida
Citrus Exchange announcing its
withdrawal from the Clearing
IHRouse, although in fact the actual
withdrawal has not yet occurred, I
:was this afternoon instructed by
ithe Directors of the Clearing House
ito make to all grower-members a
written statement covering certain
:phases of the situation which will
:arise in the event the Exchange car-
ries out its announced intention of
withdrawing as a shipper member.
1. Under the grower-member
contracts of the Clearing House
,every member has a right to with-
idraw at any time during the month
'of June if he so elects.
2. It is the unqualified position
of our attorney that since every Ex-
'change member who signed the
Clearing House contract did so with
the full knowledge and consent of
the Exchange and since the two
contracts will become wholly incom-
patible if the Exchange withdraws,
that said member is now a free
agent and may choose which con-
tract he shall operate under, regard-
less of the fact that the ten days
cancellation period allowed by the

based on actual figures are hard to
refuse. One house in my territory
shows an average for mid-season
ranges of over 73c at the house
this year as against 35c in 1928 and
1929. Deduct 15c from each of
these figures for pick and haul and
it is evident that the growers this
year secured almost three times as
much per box as they did in 1928.
and 1929. This, in spite of the fact
that the crop this year was at least
eight million boxes larger; had to be
marketed at a time when millions
of our consumers were out of em-
ployment and the Florida fruit still
had a black-eye as a result of the
Med Fly publicity and the inferior
quality of the fruit of last year
in the eradication area.
Something happened to make
people, consume the biggest crop
tre ever produced and pay us a
price that netted the growers more
than they had ever received in a
comparable year. Yes, and for
weeks at a stretch more than our
California friends were getting.
If anyone could suggest any
change in the Florida marketing
methods other than such as have
been brought about by Clearing
House activities, then and not until
then will I be willing to admit that
the Clearing House did not return
to the grower a dollar more for
every dime it cost.

Exchange contracts may have in
many instances expired.
3. The Charter and By-laws of
the Clearing House require that
whenever any member withdraws
the Board of Directors shall ap-
praise his property interests in the
Association and shall fix the value
thereof in money which shall be
:paid to him within one year after
his withdrawal. This procedure will
be strictly followed in all cases of
legal withdrawal and the withdraw-
ing member need present no peti-
'tion or claim and need make no
assignment of his claim to the Ex-
4. It is not true asrumored that
there is a large unexpended bal-
ance now in the hands of the Clear-
ing House. The fact is that the
Clearing House has endeavored to
so operate as to expend virtually
all of its income each year for the
benefit of its growers and the citrus
industry of Florida, holding back in
each year only a modest reserve to
carry the organization over until
the next shipping season. Because
of the short season and the Medi-
terranean Fruit Fly quarantine
there was carried over a substantial
sum a year ago which was ex-
pended this season in advertising,
leaving in our option only a sum
sufficient to carry the organization
through the next shipping season.
5. The Directors of the Clearing
House advise that they were unable
and unwilling to accede to the de-
mands of the Exchange because that
to have done so would have required
the violation of your contract and
the contract of every other grower-
member and would have necessi-
tated the abandonment of the three
fundamental objectives of the Clear-
ing House, namely, standardization
of grade and pack, advertising and
better distribution of the Florida
citrus crop.
6. The Directors accept full re-
sponsibility for the actions of the
Clearing House-they believe its
work has been carried on impar-
tially, diligently and with great
benefit to the industry. They be-
lieve that it has an important place
in the industry and should continue
to fill it.
Florida Citrus Growers
Clearing House Association.
A. M. Tilden, President.

Avenarius carbolineum has been
found more satisfactory than carbo-
lineum for treating gummosis and
psorosis of citrus by workers of the
Florida Experiment Station.

Statistics we saw recently said
that 50 years ago there was only one
bath tub in Boston for every 40 per-
sons, and now there is one for every
4.1 persons. Our own reaction is
that 4.1 persons is still quite a crowd
for one tub.



To Clearing House Growers

By Director

The Florida citrus industry was
confronted at the opening of the
season with the largest estimated
crop ever produced. This was to
be marketed in competition with a
bumper crop from California. The
final shipments of the Florida citrus
*crop of 1928-1929 and the entire
crop of 1929-1930 were moved
under Federal and State restrictions
due to the alleged existence of the
Mediterranean Fruit Fly. The pros-
pects were further hampered by a
!.publicity campaign on the part of
other citr u s producing states,.
*backed by the Plant Quarantine and
Control Administration, that created
a prejudice in the minds of the
:trade and consumers against Flor-
ida citrus fruits. The Clearing
,House, in behalf of the Florida
;citrus industry, cooperated with the
'Federal Government not only
'through its Florida representatives,
but through the Washington office
of the Plant Quarantine and Con-
trol Administration, responding to
every call made upon it, and had
the satisfaction of seeing the restric-,
!tions litfed and markets and: ter-,
ritories opened up that had been
:closed to our products. 'In my
opinion, the successful accomplish-
'ment of this undertaking was worth
as much to the Industry as the
entire membership cost paid by the
The aims and objects of the
organization have been efficiently
carried out, and are of value to
every grower, as follows:
First: Standardization of grade'
pnd pack we have found most use-:
ful in all of our packing houses.and.
instrumental in enabling us to more
intelligently market the crop.
Second: The money spent for ad-
vertising at a time when prices'
were depressed was instrumental in
assisting in raising price levels in
the face of a very heavy move-
nent. No one can question. the:
great benefit done by the limited
amount of money so spent; .
Third: The records of the organ-
ization will show that its members,
as a rule, kept their shipments
within their allotments. In the
event of an excess movement from
one member, there was a lighter
inovement from another member, so-
that the aggregate allotments were
very seldom exceeded.
Fourth: The Operators' Commit-
tee, Iorking in connection with.
the General Manager, had difficult
marketing problems to handle. :At
its weekly meetings, information
was exchanged as to market condi-
tions and prices, and joint action
taken to avoid disastrous gluts, ex-
perienced in seasons when the citrus
supplies from the State were not
over half of what they have been
at times during the past season.
Fifth: The Clearing House has
provided funds for the mainten-
(Continued on Page Six)

Pare 5

Page 6


Page- 6

By Director

"The excuse for existence of any
organization depends upon the
service which it renders to the in-
dustry which it represents.
As one of its Board of Directors,
I have been in close touch with the
Clearing House for only a short
time. During that time I have be-
come convinced that the organiza-
tion, while as yet far from perfect,
rendered to the Florida Citrus In-
dustry a service far in excess of
its cost. Even this partial organ-
ization of the Industry has probably
resulted in a crop movement and
market returns considerably in ex-
cess of what otherwise could or
would have been obtained. It has
brought together in weekly confer-
ence the Industry's most able mar-
keting minds. It has disseminated
full and accurate reports as to car
movements and market conditions.
It has made a remarkable advance
in the standardization of grade and
pack. It has helped to develop a
grower interest and recognition of
responsibility upon which the ulti-
mate success of the industry will
very largely depend.
During the time I have been in
the Clearing House, I have seen no
indication of partiality toward any
of its members. In every meeting
which I have attended there has
been a spirit of fair play and an
earnest desire to do the right and
best thing, which have commanded
my entire respect and confidence.
One hundred per cent co-opera-
tive marketing under able and
honest leadership may be an ulti-
mate ideal, but under existing con-
ditions the value of and necessity
for bringing the various marketing
agencies together regularly in the
conferences made possible by the
Clearing House cannot be over-em-
phasized. The idea of returning to
the utter chaos which preceded the
organization of the Clearing House
is unthinkable.

(Continued from Page Five)
ance of the Growers and Shippers
League of Florida, which organiza-
tion has been instrumental in ef-
fecting a saving in freight rates
and securing better transportation
conditions; the Clearing House has
handled many matters of import-
ance to the Industry. The results
secured are today accruing to the
benefit of the growers.
The writer feels that the Clearing
House should be maintained, as he
does not believe in scrapping one
piece of machinery that has cost
money and time to build unless
there is a better machine to sub-
stitute. He feels that if all of the
citrus interests will work together
for the Industry, the benefits that
will accrue will be participated in
by all of the growers and market-


STATEMENT GIVEN either made or seconded by an Ex-
COMMITTEE OF FIFTY ON change representative; and that 15
of the 22 weeks when allotments
EXCHANGE WITHDRAWAL were made on grapefruit, the
motion was made or seconded by an
(Continued from Page Three) Exchange representative, clearly
Valencias. Their estimate on Jan- indicating that the Exchange rep-
uary 1 on common grapefruit that resentatives had a major part in the
would be actually shipped exclusive decision of the weekly allotment.
of culls, cannery fruit, drops, etc., F. O. B. Shipping Privilege
was 9812 cars. The Exchange ship- Some of you will remember that
ped through May 9, 5605 cars. Committee of
Their estimate of April 24 indi- yF the o Directors and th
cated they would have left as of Fifty, the old Directors and the
cated they would have left as of new, together with the shippers, in-
.May 9, 640 cars, leaving an over- eluding the Exchange, held a caucus
estimate of 3567 cars. This makes m g o o he beginning
total of 7288 cars over-estimated, meeting prior to the beginning of
a total of 7288 cars over-estima the season's movement and decision
On Marsh Seedless apparently they was made on what has since been
,under-estimated to the extent of known as the F. B. privilege
704 cars, granting that their April clause. This clause permitted ship-
l24 estimate is correct. meant in excess of allotment pro-
leave a net over-estimate on this vided it could be shown that the
year's business since January 1, vided it could be shown that the
gear's business since January 1i allotment was unduly restrictive
granting that their April 24 esti- when the shipper had F. 0. B.
mate is correct, of 6584 cars, or orders in excess of his allotment
f2,403,000 boxes. Upon this in- Four shipper members during this
flawed estimate the Exchange was season have availed themselves of
given an increased percentage of season have availed themselves of
ivallotmen an incrased perctageinly the privilege accorded under this
allotment, which was certainly un- clause and at the request of the Ex-
*:fair to the other shipper members clause and at the request of the Ex-
:of the Clearing House. change their books were given a
f the Clearing House. most thorough auditing to deter-
Claim has also been made that mine whether those shippers were
the Florida Citrus Exchange was violating this privilege by subter-
not fairly represented on the Oper- fuge. In order that this audit might
eating Committee and that at Operat- be decisive, certified public ac-
:ing Committee meetings decision on countants were called in and their
weekly allotments was made by in- report, presented to and accepted by
dependent shippers. the Board, clearly indicated that
Two on Operating Body the spirit of the privilege had been
The Exchange has two members lived up to. Whether this question
on an operating committee of of F. O. B. privilege should be con-
eleven. This is not in proportion tinued another year is something
*to the Excihange tonnage. When that could well have been discussed
the first Operating Committee was and decision for or against made
formed Mr. Commander requested upon the study of past experience.
only one Exchange representative. The Clearing House was created
The second year Mr. Pratt volun- by the growers and business inter-
tarily recommended that the Ex- ests of the state three years ago
change representation be doubled, to fill a need that existed for the
and without request from the Ex- coordination of all the shipping in-
change this additional representa- terests of the state in order that
tion was granted. Since then sug- Florida's citrus crop might be
gestion and recommendation has standardized as to grade and pack,
been made by Mr. Pratt and others distributed evenly as to both time
that the Exchange should and could and place and advertised adequately
have increased representation but to increase consumer demand. The
the Exchange gave no indication of need for the Clearing House existed
wanting more, inasmuch as Mr. then because no organization in the
Commander, as chairman of the state controlled sufficient tonnage
nominating committee, failed to act to do those things for which the
favorably in this connection. In Clearing House was brought into
fact, the Exchange has never made being. This need still exists be-
demand for increased representa- cause up until May 1 of this year no
tion on the Operating Committee. organization in the state has shown
However, the Exchange volume has control in excess of 35 percent of
been given full consideration at all the state tonnage, and this control
Operating Committee meetings as vested in one organization is abso-
the following will show. A check lutely inadequate to do those things
of the meetings of the Operating for which the Clearing House
committee shows that on 10 of the exists.
.4 weeks when allotments were Clearing House Still Needed
made on oranges the motion was Therefore, the reasonable con-
clusion is that the need for the
ing organizations in proportion to Clearing House is just as great to-
the interests they represent. The day as it was in 1928. Therefore,
writer believes that there are prob- to abandon the Clearing House
lems now confronting the Industry movement or in any way destroy its
that will have to be handled co- effectiveness would be stepping
operatively through some organiza- backwards and would necessarily do
tion, and he does not know of a bet- serious injury to the industry.
ter set-up for that purpose than that Whether the Clearing House in its
embodied in the Constitution and three years of operation has justi-
By-laws of the Florida Citrus Grow- fied its existence and the monies
ers Clearing House Association. expended seems to be a question in

May 25, 1931

the minds of some growers. Yoi
who have been closely associated-
with the movement and watching i
carefully really know that the Clear!
ing House has been of inestimable
value during three of the most diffi- J
cult years experienced in citrus
Toward the end of the first year
of operating came the Mediter-
ranean Fruit Fly and the Clearing
House has a very proud record in
its protection of the industry from
the continuance of unfair quaran-
tine restrictions and in its exten-
sive cooperation in the eradication
work which proved so successful.
The work in standardizing grade
and pack has meant more than we
realize to the industry as a whole,
and while this has not reached per-
fection, many of the leading citrus
authorities of the state claim that
the standardization of grade and
pack has reached a level now higher
than ever expected could have been
done within five years. This stand-
ardization of grade and pack has
given confidence to the buyers of 4
Florida fruit that did not exist prior
to the existence of the Clearing
Prorating Was Effective
That the weekly allotments have
been of tremendous advantage no
one can deny. The Operating Com- 4
mittee has throughout the season
decided upon the volume of fruit
that should be shipped each week.
This weekly volume has then been
allotted to the shipper members in
proportion to their estimated total
tonnage for the season. True it is
that without exception every ship-
per has at some time exceeded his
weekly allotment, but this has gen-
erally been balanced by someone
under-shipping, and the total volume
going forward has been in close ac-
cord with the amount agreed upon.,
These allotments have maintained
,an even flow of fruit from the
State; adjusted from week to week
to market demand, frequently a "
falling market has been steadied by
a sharp reduction in the weekly
volume. Benefits resulting from
this practice have been inestimably
great and can only be maintained
by the growers' keeping the ton-
hage of the state in the Clearing.
House. Those familiar with past
performances in previous large crop
years can readily figure what would
pave occurred had this present crop
pf over thirty million boxes been
ient into the market in the dis-
Orderly fashion existing prior to
Clearing House control. Florida
is year, largely because of the
existence of the Clearing House, has
jnade her most successful marketing
Effort. Returns certainly have not
been high, but when the handicaps
of the damage done during the
Mediterranean Fruit Fly period, the
unequaled depression throughout
the country, the large crop in Cali-.
fornia and the largest crop ever
produced in Florida are considered,
this season's returns compared with
the returns received in other large '
crop years clearly show the tre-
mendous service that has been rend-


ered to every grower in the state
by the Clearing House.
.Advertising Has Helped
The accumulated benefits of the
first two :years' advertising pro-
* grams, together with this year's
limited advertising expenditure,
show clearly in the preference for
Florida fruit that has made the
SFlorida orange the price lead of this
season. This again can only be
Maintained by continuing the Clear-
ing House and having every box of
fruit pay its share in creating con-
tinued consumer preference.
Those of you, who are members
of the Florida Citrus Exchange,
have reached the crossroads and
must speedily decide whether you
wish to continue through the Clear-
iing House a service to the whole
industry, or forgetting the industry,
withdraw from the Clearing House
in support of an organization. You
believed in the Clearing House plan
Sand purposes when you accepted
office on the Committee of Fifty.
The growers who elected you to this
Position of trust believed in the
Clearing House. The need for the
Clearing House still exists and the
Clearing House must be continued
until such time as some other organ-
ization gains tonnage enough to
take over its duties.
Therefore, you still owe a debt
Sand a service to the industry and
have a responsibility to the growers
who elected you to office.
S Chairman, Committee of Fifty.

(Continued from Page One)
Clearing House in the latter body's
efforts along industry lines. The
Clearing House Board formally re-
r quested an "earnest desire to enter
into conference with the Exchange
in an effort to reach a mutually
workable understanding."
Manager A. M. Pratt of the
Clearing House, prior to the Ex-
change meeting May 15, had met
with the Sub-Exchange managers
and with the Exchange Board of
Directors and had presented to both
groups statements showing what
the Clearing House is doing and is
endeavoring to do for the industry.
He pointed out on those two occa-
sions the accomplishments of the
Clearing House during the past
three years and concluded by ex-
pressing the hope that the Ex-
change would be able to continue
doing its part toward helping the
Clearing House in its industry ef-
forts and by so doing, become the
leading exponent of this objective
and benefit itself as well as the
S Asked for Conference
Other efforts toward dissuading
the Exchange from withdrawing
from the Clearing House were made
by fellow-shipper members of the
Clearing House and the Committee
of Fifty, most of whom are Ex-
change growers. Clearing House
shippers, at a meeting May 19, for-

mally requested the Exchange to
reconsider its intentions of with-
drawing from the Clearing House
as a shipper member. The Com-
mittee of Fifty, at a special meeting
held May 21, likewise made an
effort to have the Exchange re-
main in the Clearing House. The
Committee of Fifty at this meet-
ing formally requested the Ex-
change Directors to meet with the
Committee of Fifty as soon as pos-
sible to discuss the situation and
endeavor to harmonize the interests
of the two organizations.
Officials of the Clearing House,
as well as many prominent grower
members feel that the situation is
quite serious in that it is well known
that many Exchange growers do
not approve the action of the Ex-
change Board. Withdrawal of the
Exchange from the Clearing House,
is not representative of the many
Exchange growers who feel that
the Clearing House under existing
conditions in the industry is needed
as greatly today as it was three
years ago. The Exchange, by with-
drawing from the Clearing House,
will, of course, deprive some of the
growers of the privilege of belong-
ing to the Clearing House and of
giving the support necessary to
comprehensive efforts toward in-
dustry betterment.
May Withdraw Legally
Clearing House officials, as well
as some Exchange officials, recog-
nizing the seriousness of such a
situation, are still in hopes that the
Exchange will not file its with-
drawal notice next month for there
is no doubt but that such action
may result in the withdrawal of
many growers from the Exchange.
Legally, growers will have the right
to withdraw from the Exchange
even though many were not advised
by their body of the action which
has just been taken, in time to per-
mit them to cancel their contracts
with their respective Associations.
Judge S. L. Holland, attorney for
the Clearing House, has presented
an opinion on the above question
for the benefit of Exchange grow-
ers, which is printed elsewhere in
The News.
Tentative plans for next season's
operations are now being consid-
ered. Some of the Directors of
the Clearing House who are Ex-
change growers and who may re-
sign from the Clearing House will
have to be replaced by the growers
in their districts. The machinery
for special elections already has
teen set in motion and vacancies on
the Clearing House Board and
Committee of Fifty will be filled
as soon as possible so as to main-
tain these two bodies in their pres-
ent strength. Under provision of
the Charter and By-laws the period
Lf withdrawal from the Clearing
House is during June. It is ex-
pected, however, that members of
the Board, as well as the Commit-
tee of Fifty, who may be compelled
to resign will announce their resig-
nation at an early date so as to
enable these two bodies to reorgan-
ize with a minimum of delay.

(Continued from Page One)
tiopal contributing grower mem-
bers, for it. to approve of such a
radical procedure, and
WHEREAS, this Board is firmly
convinced that the activities of the
Clearing House have accomplished
much for the citrus industry of the
State of Florida and have actively
served the industry in connection
with all three of the fundamental
objectives hereinabove referred to,
WHEREAS, this Board is unwill-
ing to subscribe to the assertions
contained in the resolution of the
Board of Directors of the Florida
Citrus Exchange to the effect that
it is. impossible to reconcile the
opposing views and interests of co-
operative associations and inde-
pendent shippers, and
WHEREAS, this Board is con-
vinced that the operations of the
Clearing House have clearly shown
that it is possible and indeed neces-
:sary to the welfare of the citrus
industry of Florida that the oppos-
ing views and interests found within
the citrus industry be continuously
brought together for the purpose of
reconciling apparent differences and
of negotiating agreements of mu-
tual benefit, and
WHEREAS, this Board is of the
opinion that the resolution of the
Board of Directors of the Florida
Citrus Exchange wholly fails to con-
sider the interests and the welfare
of the citrus industry as a whole
and particularly the interests of the
growers and producers of citrus
fruit in that said resolution seeks to
make participation of the Clearing
House in any of its fundamental
activities contingent solely upon the
unanimous consent of shipper mem-
bers, and in that it specifically au-
thorizes its officers to withdraw
from the Clearing House unless the
conditions proposed in said resolu-
tion be accepted by the shipper
members of the Clearing House
without reference to the rights, in-
terests and privileges of the thou-
sands of grower members thereof,
WHEREAS, this Board feels that
the course of action requested of
it by the aforesaid resolutions would
be an utter perversion of the pur-
poses of this Clearing House,
1. That this Board does hereby
assert its inability to act upon and
its refusal to consent to the condi-
tions proposed by the Florida Citrus
Exchange as a prerequisite to its
continuing its membership.
2. That this Board with all sin-
cerity and depth of conviction calls
to the attention of the Florida
Citrus Exchange that its withdrawal
from this Clearing House as con-
templated under the terms of its
said. resolution would return the
citrus industry of the state to the
same condition of utter chaos and
lack of confidence in which it was
existing prior to the formation of
this Clearing House, with conse-
quent immense financial loss to

growers of citrus fruit as well as
to the shippers and to all other
affiliated business interests.
3. That the Florida Citrus Ex-
change cannot hope to control sup-
plies or solve the problems of the
industry unaided, with its present
volume, which was less than 35 per-
cent of the total movement from
the state through April 30th, and
must cooperate with the other ele-
ments of the industry which are
willing to cooperate through the
Clearing House if any measure of
control is to be attained.
4. That this Board hereby asserts
its hope that the Directors of the
Florida Citrus Exchange may-see
fit to reconsider their decision, and
expresses an earnest desire to enter
into conference with said directors
in the effort to reach a mutually
workable understanding.

(Continued from Page One)
he had taken it for granted that
the Exchange would remain with
the Clearing House. Since the Ex-
change has announced that it does
not intend to remain with the Clear-
ing House the Exchange grower
may resign in that the Exchange
has not carried out the spirit of its
contract with him'and'as a result
the law would permit the Exchange
grower to cancel his agreement with
the Exchange on this ground.
Judge Holland's opinion is given
herewith as follows:
May 22, 1931.
Board of Directors, Fla.
Citrus Growers Clearing
House Association.
Winter Haven, Fla.
Dear Sirs:
In view of the announcement pf
the Florida Citrus Exchange of its
intention to withdraw shortly as a
shipper member of the Florida Cit-
rus Growers Clearing House Asso-
ciation you have asked for :my
opinion as to the rights of a grower
member of the Clearing House, who
is likewise a member of a' T'6ai
Citrus Growers Associatiobn 'aifili
ated with the Florida Citrus Ex-.
change, and is bound to'both the
Clearing House and to his local
Association by written grower mem-
bership contracts, to elect which
of said contracts he shall desire to,
cancel and which to continue in
force. In other words since the
Citrus Exchange plans to withdraw
from the Clearing House, and since
there are many growers. wh are
under written contract with .the
Clearing House and likewise with
local Associations of the Exchapge,
and since the two contracts will. be
incompatible in the event of. the
withdrawal of the Exchange ,from
the Clearing House it has become
necessary to determine whether
such growers have any option or
right of election as to which of tbe
organizations they shall. continue
It so happens that the withdrawal
period.fixed by the Clearing House

Page 7

May, 25,'1931

Page 8

membership contracts is in June of
each and every year, which means
that all of said grower members
still have the right of withdrawal
from the Clearing House contracts
by the very terms of said contracts.
.At the same time it so happens that
the uniform marketing agreements
executed by members of an Ex-
change Association fix a period of
withdrawal of ten days prior to the
annual membership meeting of the
members of the particular Associa-
tion. Many of these annual mem-
bership meetings already have been
held and by the strict terms of the
contract the period of withdrawal
would not come again until a similar
period of ten days is reached im-
mediately prior to the annual mem-
bership meeting in the spring of
It becomes necessary, therefore,
to consider whether or not there
may be a right of cancellation of
the Exchange contracts growing out
of the facts and circumstances of
any particular case, and particularly
growing out of the attitude of the
Exchange heretofore and course of
dealing with its members and with
the Clearing House. I am advised
that the Exchange participated
actively in the actual formation of
the Clearing House, both in the pub-
licity attendant therewith, and in
the furnishing of funds to permit
of said organization. I further
understand that the Exchange first
attempted to join the Clearing
House on behalf of all of its mem-
bers, considering that it had the
right to do so, but later announced
in view of certain rulings at Wash-
ington, that its members should
join the Clearing House, if they de-
cided to do so, upon individual con-
tracts. I understand that the Ex-
change encouraged the signature of
these individual contracts both of-
ficially and by participation of its
directors and other officials in the
sign-up campaign. I understand
that the Exchange has been from
the beginning officially cognizant
of the contents and nature of the
Clearing House Grower Member-
ship contracts and of the fact that
-aid contracts would become wholly
incompatible with the grower con-
tracts of the Exchange in the event
of a withdrawal of the Exchange as
a shipper member of the Clearing
House. I further understand that
the Exchange has given no notice of
its intended withdrawal from the
Clearing House until a few days
ago; after most of the membership
meetings of the Exchange Associa-
tions have been held, and that the
Exchange has given no formal
notice of withdrawal from the
Clearing House up to this date, but
expects to give such notice during
the month of June.
Under circumstances above stated
it is my opinion that all Exchange
members who left their contracts
uncancelled because of their belief
and understanding that the Ex-
change was going to continue as a
shipper member of the Clearing
House, as well as all members who
have entered into new contracts
with the Exchange upon such under-


standing and inducement, will have
the right by prompt action and
notice of cancellation and rescission
of their contracts, to terminate
their Exchange relations and elect
to stay with the Clearing House. I
think that this follows as a matter
of law and of equity in such cases
because of the fact that the very
nature of the business carried on
by the Exchange will be materially
affected and changed from the
standpoint of attempted co-opera-
tive effort with the entire citrus
industry by the withdrawal of the
Exchange from the Clearing House,
and that it would not be equitable
to hold Exchange members under
conditions quite different from
those understood by them at the
time of the entering into or of the
continuance of their contracts.
While it is true that the Ex-
change contracts have a fixed or
liquidated damage provision to ap-
ply in the event of breach, I do not
think that this provision will apply
provided cancellations, as above set
forth, are made with due diligence
immediately after notification and
knowledge of the actual withdrawal
of the Exchange. It is difficult for
me to conceive of how any monetary
damage could be done by such with-
drawal, rather than at a period a
few days or a few weeks earlier
thereto, under the express wording
of the contract. The rule would, of
course, be otherwise if the Ex-
change member failed to act dili-
gently, allowing his organization to
proceed with the assumption that
his fruit would enter into the total
tonnage to be handled by it in the
approaching season, thus calling for
the making of marketing plans
which would embrace the handling
of his own particular fruit in com-
mon with the other tonnage of the
It seems clear to me that so com-
plete a departure and change in
policy as that which will mark the
withdrawal of the Exchange, par-
ticularly when the Exchange Uni-
form Crop Agreement with its mem-
bers so clearly sets up the desire
to effect organized and systematic
handling of the Florida citrus crop,
would necessarily be held by the
Courts to be a change in policy so
surprising and variant from the
understanding and representations
heretofore as to justify the cancel-
lation of his Exchange contract by
any member who is dissatisfied
with the new situation, and who can
set up that he has either joined the
Exchange or remained in it until
after the expiration of the with-
drawal period relying upon the con-
tinued membership of the Exchange
in the Clearing House.
I beg to remain with great
Yours faithfully,
(Signed) S. L. HOLLAND.

She: "Think I'll take up horse-
back riding; It will increase my so-
cial standing."
Her: "I don't know about the so-
cial part, but it will increase your

Independent shipper members of
the Clearing House formally re-
quested the Florida Citrus Ex-
change at a meeting held in Winter
Haven May 19, to reconsider its
announced intentions of withdraw-
ing from the Clearing House as a
shipper member. The request was
incorporated in a resolution adopted
without -a dissenting vote.
The shippers explained their re-
quest on the basis of a conviction
that the Exchange Board's action
was not "representative of the de-
sires of its grower membership."
The resolution included also an as-
surance to the Exchange that there
"can be no difference in viewpoint
on essential matters for the good of
the industry, between the so-called
independents and the Florida Citrus
Exchange unless the Florida Citrus
Exchange fails to recognize its
duties to the industry as so well
represented by the purposes, Char-
ter, and By-laws of the Clearing
The resolution in full reads as
"WHEREAS, we have this day
read the resolution from the Flor-
ida Citrus Exchange Board, which
was presented to the Board of Di-
rectors of the Clearing House on
May 8, and have likewise read the
resolution adopted by the Board
of the Clearing House, and have
given both statements our most
careful consideration,
"BE IT RESOLVED, that we
hereby express to the Board of Di-
rectors of the Clearing House our
sincere commendation of the action
taken by it in said resolution.
that we cannot believe the action
taken by the Florida Citrus Ex-
change is representative of the de-
sires of its grower-membership when
such action contemplates severance
of contractual relations with the
Clearing House unless the Clearing
House agrees by amendment of
Charter, By-laws and by entering
into new contracts, to eliminate
from its fundamental duties its
activities in standardization, control
of shipments, advertising and simi-
lar matters vitally connected with
the essentials of marketing.
"We therefore wish to ask the
Florida Citrus Exchange as a fel-
low-shipper-member to reconsider
its resolution officially passed to
our Board on May 8, as well as the
action taken by the Board of Direc-
tors of the Florida Citrus Exchange
on May 15, wherein we are in-
formed the Board of the Exchange
instructed its officers to withdraw
from membership in the Florida
Citrus Growers' Clearing House

"We wish to further assure the
Florida Citrus Exchange that there
can be no difference in viewpoint
on essential matters for the good of
the industry, between the so-called
independents and the Florida Citrus
Exchange unless the Florida Citrus
Exchange fails to recognize its
duties to the industry as so well
represented by the purposes, Char-
ter and By-laws of the Clearing
House with which we as growers
and shippers are in full accord, and
which must be upheld if necessary
by the balance of the growers and
shippers of the Clearing House if
the Florida Citrus Exchange can-
not be persuaded to reconsider its
action and remain in the Clearing
House Association co-operating
fully with the other members for
the good of the industry."

Committee of 50

Ask Exchange To

Confer With Them

Members of the Committee of
Fifty, at a special meeting in Win-.
ter Haven, May 21. formally re-
quested the Board of Directors of
the Florida Citrus Exchange to hold
a joint conference with the Com-
mittee of Fifty to work out if pos-
sible some method of harmonizing
the two organizations. iThe re-
quest was embodied in a brief reso-
lution and was passed following a
lengthy discussion from the floor
as to the effect the contemplated
withdrawal of the Exchange from
the Clearing House will have on the
Practically all of the members of
the Committee of Fifty, as well as
members who have served on all of
the Committees since the creation
of the Clearing House three years
ago, were present. A large number
of growers from various parts of
the state as well as the Winter
Haven section also attended the
J. C. Morton, Chairman of the
Committee of Fifty, opened the dis-
dussion on the Exchange with-
drawal by reading the resolution
presented by the Exchange to the
Clearing House in which the Ex-
change stipulated the terms under
which they would remain with the
Clearing House, and the reply of
the Clearing House Board of Di-
rectors rejecting the terms of the
Exchange proposal. Chairman Mor-
ton then outlined the work the
Clearing House has done during the
present season, telling briefly how
(Continued on Page Nine)


Clearing House Shippers

Ask Exchange Directors

To Reconsider Withdrawal

May 25, 1931





By W. L. THOMPSON, Lake Alfred
(Paper Read at Horticultural Society Meeting, April 14-17)

It has often been said that if the
if. human race is to prosper and live, a
continual war against insects must
be waged. Fortunately nature has
come to our aid in this matter, as
Sshe has done in many others, by sup-
plying insects that prey upon others.
According to Essig's, Insects of
Western North American, "this spe-
cies of ladybeetle was introduced
from Australia into California in
1892 by Albert Koebele and has
proven to be one of the most pro-
ficient enemies of many kinds of
mealybugs in California where it is
firmly established."
Although this species of lady-
beetle has become established in
California, millions are propagated
each year to be liberated in groves
Infested with mealybugs. Mass pro-
duction of the Cryptolaemus lady-
beetles in California was started in
1916. The successful demonstrations*
of the value of artificially propagat-
ing and distributing these beetles
has led to the establishing of four-
teen insectaries in Southern Cali-
Must Start Early
To control almost any insect pest
by means of predators or parasites,
Sone should have these agents in the
field when the infestation is in its
infancy. Once an infestation is well
under way, the introduction of par-
asites and predators is of little value
in controlling the pest during that
season. The Vedalia ladybeetle (Ro-
dolia cardinals Mulsant), predator
of the Cottony Cushion Scale, is an
exception. It must be understood
That when a parasite has destroyed
its host it often dies of starvation
which is the reason for reintroduc-
tion of some parasites each year, or
when the occasion arises.
The Cryptolaemus adults are
about one-eighth of an inch long;
the color is black with the head, pro-
thorax, and tips of the wings a red-
dish color. The eggs are very small,
oval in shape, and laid singly among
the mealybugs. The larvae are yel-.
low and covered with white waxy
filaments. One not acquainted with
the appearance of the larvae might
easily mistake them for mealybugs,
especially when they are small.
Ladybeetle Introduced
Since these beetles have been re-
ceived at the Citrus Experiment
Station at Lake Alfred, a number
have been reared and some liberated
with the idea of establishing them
Sin Florida and to become acquaint-
ed with the methods of rearing them
in insectaries, or such places that
can be made available.
.In rearing these ladybeetles the
common citrus mealybug, Pseudo-
coccus citri (Resso), was used as
the host, and potato sprouts were
Used as the host for the mealybugs.

1he potatoes were planted in trays
or flats 14" x 16" x 4". The soil
used for planting the potatoes was
obtained from a cow lot. The flats
were filled about two-thirds full of
The method of distributing the
beetles *in California is as follows:
Small standard medicinal gelatine
capsules were used, size '000' %
inch diameter and one inch long.
Ten beetles are placed in each cap-
sule, as that number has been found
sufficient for each tree. The beetles
have lived in these capsules from
five to seven days, but unless neces-
sary, 72 hours should be the limit.
The men distributing the beetles in
the grove goes to each tree and
throws the betles into the center of
the tree. It has been found that a
more even distribution can be ob-
tained in this way than by liberat-
ing them between the rows of trees.
Release Date Undetermined
The approximate date when the
beetles should be liberated in Flor-
ida has not been worked out, but it
should be just as soon as there are
enough mealybugs to support them.
The beetles should be at least two
weeks old before being liberated so
that the females will be more likely
to deposit eggs as soon as they find
a colony of mealybugs.
The Cryptolaemus ladybeetle is
best known as a predator of mealy-
bugs, but it does not appear to re-
strict its diet to them alone. In the
laboratory the larvae have been ob-
served eating citrus aphis (Aphis
spiraecola Patch), melon aphis (Ap-
his gossypii Glover), the elder aphis
sp. and Cottony cushion scale eggs
and crawlers. Young larvae placed
on aphis infested orange trees
reached maturity in twenty days.
Adult beetles lived on citrus aphis
in the laboratory twenty-seven days,
eating from four to forty-two aphis
per day; the larvae eating from zero
to forty per day. The average was
sixteen. Several hundred larvae of
all ages were fed nothing but citrus
aphis for a month, or until all the
larvae had matured.
As previously stated in this paper,
it is the desire of the Experiment
Station to establish these beetles in
the state. The rearing of large num-
bers of beetles artificially will have
to be done by individual growers, or
groups of growers, as the depart-
ment does not have the funds or
facilities to carry this work on in a
large scale. Since the mealybugs at-
tack a number of different plants in
the state and the beetles have a
rather wide range of diet, it is quite
possible that they can become estab-
lished and therefore be of economic
importance to our horticulture in-


(Continued from Page Eight)
the Clearing House has been of tre-
mendous value, among other things,
in improving what earlier in the
season looked like a hopeless
During the morning members of
the Committee of Fifty met with
the district directors, the Commit-
tee of Fifty representatives in each
district meeting with the director
from the same district. At these
meetings the general consensus of
opinion was that every effort pos-
sible should be made to persuade the
Exchange to reconsider its with-
drawal from the Clearing House.
The formal resolution presented at
the afternoon session was the out-
come of the morning conferences.
The resolution reads as follows:
"Moved that the Committee of
Fifty as a whole, representing
the citrus growers in Florida, re-
quest the Board of Directors of
the Florida Citrus Exchange to
meet with the Committee of Fifty
in joint conference with a view
to harmonizing the interests of
citrus growers as embraced in
both the Exchange and the Clear-
ing House."
Prior to the discussion of the Ex-
change withdrawal, a resolution was
passed petitioning the State Legis-
lature to pass without amendments

Adams Packing Co., Inc__Auburndale
Alexander & Baird Co., Inc.
S_____...._ .Beresford
American Fruit Growers, Inc.
__. __._____ _....... Orlando
Bilgore, David & Co.......Clearwater
Browder-Fowler Fruit Co-...Arcadia
Burch, R. W., Inc.......__. Plant City
Dixie Fruit & Pro. Co..........-Tampa
Fields, S. A. & Co .------------.Leesburg
Florida Citrus Exchange -.-- Tampa
Florida Mixed Car Co... --Plant City
Fosgate, Chester C. Co ..- _Orlando
Gentile Bros. Co.....--...---.... Orlando
Herlong, A. S. & Co. .._--- Leesburg
Hills Bros. Co. of Florida, The

Holly Hill Fruit Products, Inc.
_____-__- ----- Davenport
Keen, J. W -..-..........-------Frostproof
Keene, R. D. & Co..-..-......----. Eustis
Lee County Packing Co.....Ft. Myers
Lee, J. C., Sr -..--...........------Leesburg
Mammoth Grove, Inc.....Lake Wales
Maxcy, G............................. Sebring
Maxcy, L., Inc..........------F.. rostproof
McKenney-Steck, Inc...........Orlando
Milne-O'Berry Packing Co.
__.......--_. ... St Petersburg
Mouser, W. H. & Co...........Orlando
Nelson & Co., Inc..---_--O Oviedo

Copies of Talks on
Cultivation Methods
Free for the Asking

So great was the interest mani-
fested by the growers attending
the Clearing House Regional
Meetings this spring in the talks
on grove cultivation made at the
meetings by citrus experts, that
the Clearing House has prepared
in condensed form typewritten
copies of the various addresses.
Copies of these talks will be
sent free of charge to any grower
requesting them. If you were un-
able to attend the Regional Meet-
ing held in your district, or if you
did and would like to have the
copies of the talks for more
Leisurely study, simply drop a line
to the Clearing House asking for
a copy of the Regional Meeting
addresses, and one will be sent to
you without charge.

the green fruit bill presented last
month by a special committee of ten
members of the Committee of Fifty.
The Committee also requested the
legislature to have enacted into law
the bill which has been prepared
providing for a maturity research
bureau so that effective maturity
standards may be evolved during
the next two years.

Orange Belt Packing Co...-._.Eustis
Richardson-Marsh Corp...- Orlando
Roe, Wm. G.............. Winter Haven
Roper, B. H.... ----- Winter Garden
Stetson, John B. Est. of__ DeLand
Sullivan, H. C .__ Frostproof
Welles Fruit & Live Stock Co.
_____ _Arcadia
Associated With Other Shipper-
Babson Park Citrus Growers Assn.
_____---Babson Park
Chase & Co.......--.-__.------- Sanford
Citrus Grove Dev. Co., The
______-__Babson Park
DeLand Packing Co..-........DeLand
Fellsmere Growers, Inc.....Fellsmere
Holly Hill Grove & Fruit Co
-_____-___ __Davenport
Indian River Fruit Growers..........
International Fruit Corp. Orlando
Johnson, W. A...._--.........- Ft. Ogden
Lakeland Co., Inc. The......Lakeland
Lake Wales Fruit Packers, Inc.
____..___ Lake Wales
Middleton, W. D ...-...-Isle of Pines
Mitchell, J. M --- -- ..Elfers
Nocatee Packing Co., Inc.....Nocatee
Ulmer, H. D. .------------Clearwater
Valrico Growers, Inc.....-....-Valrico
West Frostproof Packing &
Canning Co.- -West Frostproof

Shipper-Members of Association
The shippers named herewith are members of the Florida Citrus Growers
Clearing House Association and they are the ONLY members of this organization.
In fairness to these shippers who are supporting the Clearing House, as well as
helping to build the organization, grower-members should urge their neolhbors
to join and ship through one of these operators.

'May 25, 1931

Page 9





Co-ordinating members' activities for orderly control of dis-
Controlling supplies at key markets.
Disseminating marketing information daily.
Standardizing grade and pack through an impartial inspection
Increasing consumer demand by advertising and publicity.
Securing best freight rates and transportation services.
Developing mutual interests of, and better understanding
among growers and shippers.
Maintaining representation of industry in all matters of com-
mon welfare.




.Ft. Ogden
. Winter Park
Lake Placid
Winter Garden
Winter Haven
Mt. Dora

Corey's Message Like
A Prophecy
Grower members of the Clearing House, as the third year
of operation draws to a close, will be interested in reading
again the message delivered to them three years ago by Merton
L. Corey, formerly with the Federal Farm Loan Board and
organization director of the Clearing House when it was set
up during the Spring of 1928. Mr. Corey's message now
reads strangely like a prophecy, so accurately did he describe
the broad phases of our progress. Excerpts from his message
are given below.
Now that you have the Clearing House,
have your troubles ceased? Are the glowing
possibilities painted in the organization
assured? Will independence and prosperity
follow naturally?
The Clearing House victory has given
you nothing more than opportunity. You
have the legal machinery. The fulfilling of
promises, accomplishment of high purposes,
achievement of a great program are now pos-
sible. The Clearing House is a high powered
auto with an empty gasoline tank. It is a
blue-print for a great steel trestle to bridge
the stream. It is a plan for business organ-
ization, for social progress, for economic im-
provement. Whether the hopes of its organ-
izers shall be realized, depends upon the skill,
intelligence, fairness and loyalty of those who
operate its complex machinery.
What then are the essentials for success?
First of all, let's recognize the distinctive
character of this organization of the shippers
who own the packing and shipping facilities,
and of the growers who own and control
the fruit. This organization acknowledges
their mutuality of interests, their common de-
sire to improve marketing conditions for the
good of all. Good team work on the part of
growers and shippers is essential. Some have
said these elements will not mix, that these
interests are so naturally conflicting that they
will not merge.
I believe they will. Each class can serve
its own interests by dealing generously and

fairly with the other class. Enlightened self-
interest will serve the Clearing House well.
Competent management is a comprehen-
sive term. No one can foretell the specific
problems with which it must deal tomorrow,
or next week, or next year. The manage-
ment, however, does have certain general
responsibilities which should be basic in every
program adopted, and which should serve as
a check upon and a guide for a decision upon
each specific problem.
First and foremost, no plan or practice
should be tolerated which will weaken the
accomplishment of the charter purposes. You
are charged with the 'responsibility for the
working out of a well conceived plan, con-
sistent with the charter.
The growers' loyalty is essential to effici-
ent and permanent association operations.
There is a definite responsibility on the part
of the growers. The millennium has not
come in your industry in Florida. There will
be days of doubt; there will be mistakes,
despite the utmost of good purpose and con-
scientious effort to serve you. You should
be loyal and helpful. You should appreciate
that the Clearing House has not repealed the
economic law of supply and demand; that
certainly in the first year of operation, par-
ticularly if called upon to handle a big crop,
price returns of short crop years cannot be
You can be assured, however, that a com-
parison of grove returns under Clearing
House operations with former years of like
production will reflect credit upon the new
Let us hope that the new Clearing House
will start its operations with strong manage-
ment, and with a devoted membership.
Given these, what will the Clearing House do
for you? For the first time, the Florida
citrus growers will speak with a united voice.
You will have occasion, from time to time to
approach your state and national govern-
ments, legislative bodies, as well as admin-
istrative boards, who will hearken to you.
The recent decision of the Interstate Com-
meree Commission, on July 30, 1928, upon
the question of the readjustment in rates on
Florida citrus fruit to destinations throughout
the United States, reminds us that Florida's
rate problem is extremely important. Similar
questions will arise, or must be initiated. The
Clearing House management should be able
to procure for the growers every legislative
and administrative aid to which they are en-
I know that the Clearing House will
greatly improve your situation. It will give
you a better price level, the avoidance of
gluts, broader markets, and collective bar-
gaining power.
Florida proved to the world that it is
progressive when it organized the Clearing
House. It was the best advertisement ever
written for your state. It was the best answer
to your detractors whose only text is the col-
lapse of the boom. That the whole state
could unite upon the most promising agricul-
tural program in this generation, that you
could submerge the differences of conflicting
interests, that you could superimpose upon
your matchless soil resources the most modern

machinery for successful marketing,
is Florida's answer to those who
doubt Florida's future.
The organization of the Florida .
Citrus Growers Clearing House
Association will in future years be
looked upon as the turning point in .
Florida's economic destiny.

One Grower's Spirit

Montverde, Fla.
May 21, 1931.
Florida Citrus Growers
Clearing House Association,
Winter Haven, Fla.
This is to notify you that I sold
my grove last October. I kept the
crop and notified the Exchange
about a week ago of the sale.
Enclosed you will please find
copy of letter to the South Lake
Apopka Citrus Growers Association
at Oakland, Fla. It would seem'
that they want to make trouble for
the Clearing House. This is to
notify you that they have no right
to call on you for a refund on any
fruit I shipped through the Ex-
change. I am in favor of the Clear-
ing House and hope you will con-
tinue to do business at the old
Yours very truly,
(Signed) R. G. BREWSTER.

South Lake Apopka Citrus
Growers Association,
Oakland, Fla.
Today I received your letter to-
gether with cancellation blank for
me to sign in order to withdraw
from the Clearing House. Also
the form to assign my rights to
whatever interest I may have in
the Clearing House. Your house
had notice from me a few days ago
that I sold my grove last October.
This should cancel my contract with
the Clearing House.
Am sorry to have to disappoint
you but I don't want to assign any
interest I may have in funds or
property of the Clearing House.
If they have anything of mine and
can do the citrus business any good
by keeping it let them have it. I
am not trying to criticise the Ex-
change for pulling out of the Clear-
ing House. That's their business
and they know why they did it. I
don't know. I am very much in
favor of the Clearing House.
Yours very truly,
(Signed) R. G. BREWSTER.

Safety First
Foreman: "Pat, you know you
had no right to touch that wire.
Don't you know you might have
been killed by the shock?"
Pat: "Sure, I felt it carefully be-
fore I took hold of it."

Danger Ahead
Timid wife (to husband who has
just fallen asleep at the wheel): "I
don't mean to dictate to you,
George, but isn't that billboard com-
ing at us awfully fast?"

Page 10


May 25, 1931

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