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HEARING

BEFORE THE

JOINT COMMISSION OF AGRICULTURAL INQUIRY

SIXTY-SEVENTH CONGRESS

FIRST SESSION

UNDER

Senate Concurrent Resolution 4

IN THREE VOLUMES

Volume 3

AUGUST 4, 10, 11, 12, 15, 16, 17, 18, 19,

22, 24, AND NOTEMBER 1a, 1921

WASHINGTON
GOVERNMENT PRINTING OFFICE

1922

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HOUSE MEMBERS.

SENATE MEMBERS. OGDEN L. MILLS, New York.

IRVINE L. LENROOT, Wisconsin. FRANK H. FUNK, Illinois.

ARTHUR CAPPER, Kansas. HATTON W. SUMNERS, Texas.

CHARLES L. McNARY, Oregon. PETER G. TEN EYCK, New York.

JOSEPH T. ROBINSON, Arkansas..

PAT HARRISON, Mississippi.
CLYDE L. KING, Economist.

IRVING S. PAULL, Secretary.
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CONGRESS OF THE UNITED STATES,
JOINT COMMISSION OF AGRICULTURAL INQUIRY,

Washington, D.C. The joint commission met, pursuant to recess, in room 70, Capitol Building, Hon. Sydney Anderson (chairman) presiding.

The CHAIRMAN. We will now hear Mr. Powell. I should like to say that Mr. Powell did not come here with the expectation of appearing before the committee. He appears now at my suggestion, and without having ample opportunity to get the material which I think he would like to present at this time. I make this statement in justice to him.

STATEMENT OF MR. G. HAROLD POWELL, GENERAL MANAGER OF THE CALIFORNIA FRUIT GROWERS' EXCHANGE, LOS ANGELES, CALIF.

Mr. POWELL. Mr. Chairman, I take it that I was asked to come before the committee because of the fact that I represent a cooperative organization of producers, the California Fruit Growers' Exchange, that has had 25 years of experience, which has gone through all the stages of childbirth, learning to creep, and then to walk: also because of the fact that the exchange handles a business which runs into very large figures, probably $100,000,000 in all branches of its business, and that it may have had some experience that may be useful to the committee.

The California citrus industry has grown to very large proportions. It now represents an investment of about $250,000,000. Years ago it tried to sell its products just as most agricultural products are sold, either to speculative buyers at the point of production, or it would consign them east on commission, or in other ways common to the sale of agricultural produce generally.

That system broke down. The fruit was a semiluxury. The markets were a long distance away.

Facilities for transportation were not very well developed, and for several years the industry did not receive the cost of handling the business. It was faced either with giving up the investment or improving its marketing system. Twenty-five years ago the growers in California began to get together and form local units through which they would assemble the products of quite a number of growers in order that they might standardize the product and ship it in carlot quantities. They formed quite a large number of these local units and attempted

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