Medford mail tribune. (Medford, Or.) 1909-1989, February 12, 1936, Image 8

Medford mail tribune., February 12, 1936, Page 8, Image 8

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Newspaper Page TextPXGE EIGHT MEDFORD IQJL TRIBUNE. MEDFORD. OREGON, TTEDXESDAY, FEBRUART-12,-1935. FRUIT PRODUCERS IE Orchardists Study Factual Report Before Reaching Conclusion On Coopera tive Valley Enterprise. Fruit growers of th Ilogue Talley this week rtudylng ft oomprchen Jve report to determine the fenAlblllty of launching a cooperatlTe pear oan nery here. Cople of the report may he obtained at the Jackson County Chamber of Commerce. They are to give their decision at a meeting to be held at 1:30 Satur day afternon In the basement din ing room of tflie Hotel Medford un der auspices of the fruit Grower League, Jnc. It la to be determined then whether or not the cannery project Is to be carried out. Aa thla la considered a atep of paramount Importance, all orchard!! of the val ley have been Invited to attend. Grower niwHtlflNed. The question of a cooperative c&n nery came up last fall when It was charged by growers that commercial Interests withheld the quotation of prices until It was to late for the orchardists to do anything but ac cept the proffered price. Dies atlaf action has arisen because of other tactics aaaertedly Indulged In by commercial cannery Interests. It was charged, for example, at laM JV turd ay's meeting of orchardists, by Edward W. Carlton, that the methods employed in grading fruit was Inim ical to producer' interests. Relnms Left In Dark. Mr. Carlton sftld the buyers reaerte the right to do the grading, thua leav ing the grower completely In the dark as to what returns lie will receive, it any. Because of the growing dissatisfac tion, the Rrult Orowers league ap pointed a committee to study the co operative canning project and a long factual report was the result. The report followa: The Fruit Orowers league, desiring to Investigate the possibility of a co operative cannery, apolnted a com mittee of Leonard Carpenter, H. Van Hoevenberg and I. W. Carlton for this purpose. A progress report was made to the Traffic association which added David Rosenberg, Raymond Reter and Msrtln Luther to the com mittee by common consent. It is apparent that one of the most vital necessities for growers protec tion la the assurance of a cannery outlet for Bartletta each year through which he 'can realise the fair market value of his product. A local cooper ative cannery, even though It were able at first to process only a small proportion of the crop, might have a very stabilising Influence on the general cannery market throughout thla district. In other words, the committee wishes to emphasise that the primary object la to Insure grow ers the fair market value of their product, rather than to attempt to enhance that value. Outlet Important. The great Importance of a satis factory sales outlet for canned pears ! was realized early In the lnveatlga- I tion. H. Van Hoevenberg and B. W. Carlton had previously discussed the j subject with J. W. Mayo, seoretary manager of the North Pacific Canners and Packers, Inc. This concern Is a n on -profit corporation, capltaUwd at a, ooo. the stock of which is owned I by five cooperative canneries grouped about Portland, all using the concern ! for selling. The volume of sales In 1034 from the five plants was 3,- 00 ,000. Robert Arneson. who heads the organization, with Mr. Mnyo, and : one salesman, constantly on the road. constitute the selling force. While each co-operative operates a separate unit, the sales organization In a seme co-ordlnatfe their activities. The plants re located ftt Vancouver. ' Wash.; Orerhtm. ftalem. Stayton and Sprtngbrook, Ore. j Mr. Myo, with the consent of these organisations, conferred with the or- I iBtnal committee for a day and half, eince then the full committee has i conferred with Mr. Koorer ol the Bag lry Canning company, Mr. Wlegand, who is In ciiarge of food processing at Oregon State college, the Salem Cooperative, tesn Schoanfold, and Mr. Mayo. Argument Annnrrcd. Mr. Mayo contributed Information which disproved the long. held asump tion: 1. That a cannery here Is at s disadvantage because of freight In and freight out; a That a cannery oould not be auccoaafuUy operated on a single production; 9. That a lary volume is necessary for economical operation. I rrlght In and Out: Analysing this subject, we find that a ton of pears canned here as compared with that ton of pears shipped for canning based upon 60-50 shipment south and north which averages the freight rates to W cents per hundred pounds, shows as follows: Credit-: freight on fruit and empty can. nery boxes M 19 Freight on tare weight 1 .0 Watgf due to shipment 'a ma terial factor) ...... Nat valued 0 H Debits: Freight on sugar Freight on cans. ....... 1.740 Freight oti csos 530 m ight on 'Wr of output, ship. jH-d by water .. 2 ftM Nrt credit per ton of creen pears .. to 40 oprrattnt on ft "Ingle lriMtm-t of Small Volume: Messrs. Konrer and VYiegand confirmed Mr. Mayo's state ment that a onlln plant handling a minimum of a.rwo tons ou!d op. rrste rcuiKMiu. Iiy. In estimating the succeas of a plant here from results obtained bi four ol the plant In th group -which can pears, we have used the choice grade for comparison because all the plants operate on local grown fruit which does not provide enough fancy grade to warrant attention. The Vancouver plant, however, buys from White Sal mon and Yakima to aupplement the output from the four plants. This purchased tonnage Is sbout what a 3,000-ton plant here would produce. In 1934 the Salem plant, which was the least efficient, showed manufac turing costs of $0.0468 and salaries, selling, depreciation and reserves, $0.2887, a total of 1.2 3 50 per dozen No. 2 choice grade. The average selling price was 11.03, which gave a return of $32-30 per ton of fruit. The above manufacturing costa check within a fraction of a cent with Mr. Kooer'a plant In 1034. Mr. Wiegand accepted these figures as a reasonably correct basis for estimates. Variable Factors Cited. On the other hand, a co-operative plant at Puyallup, Wash., which was then associated with the selling com pany, showed a cost of $1.04, and Paulu Bros, showed $1.70. The Van couver plant In 1034 returned $23.00 a ton for local grown fruit. In 1035 this figure reached $28.00 plus $10.00 a ton for culls which represented 13 to 14 percent of the tonnage. The Yakima fruit canned by the Van couver plant In 1936 returned $33.80 per ton. These figures are all for No. 1 and No. 3 grades. This plant In 1935 packed 02,000 pounds for the California Packing corporation and returned $23.09 to the group for the fruit, orchard run. Certain intangible and variable fac tors which would accrue to a local cannery are not being Included in considering probable profits. These factors are: 1. Savings In wastage and degrad ing of canned products due to trans portation. 2. Returns from culls and saving of freight thereon. 3. Buyer's commissi on. Mixed Csra: ..The Importance of mixed cars for shipment, an increas ing factor In selling, has been dis cussed and If the necessity should arise, a storage In transit rate could be utilized In completing mixed cars at one of the northern co-operative plant. In which case, however, a large part of the freight saving would be lost. Mr. Mayo's belief I that the high grade product from the Rogue River valley would sell In straight cars without difficulty. I,.ttior: The supply of labor to sup port s cannery has been discussed and hss been deemed satisfactory. Pre-Coollng; and Ht'trage: As It Is necessary to pre -cool Bartletta before canning, the facilities for this and for storage to permit a lengthy sea son hss been considered Inasmuch as a cannery here would not increase production and as commercial canners j have made a practice of storing here.! one heavy buyer Is now Installing hlsj own cold storage, the local cold stor- ' age facilities seem adequate, This would avoid the necessity of a can nery having Us own cold storage. Growers Participation: A grower should be permitted to commit only a part of bis tonnage, thus compelling him to seek other outlets for the bal ance of his tonnage. As the output of Bartletta In the valley t normally 18 KM tons, a 3 .000 -ton cannery would take only one ton out of six pro duced. Payments to a rowers: Payments to growers. Judging from the practice in the co-operative plants, would vary with circumstances. Some make a part payment on delivery and some do not, depending on financial re sources. In any event, a grower would be paid on Instalment and should expect a year to be consumed before final accounting. After the first year this would produce an Income throughout the year. In contrast to this, It should be noted that the Increasing tendency of commercial canners Is to defer pay ment for 30, 00 and 90 days after the fruit 1 delivered. Timeliness of the Venture: The availability of funds from the Bank for Co-opera tlves, possible WPA assist ance, and moderate construction costs are deemed favorable for the venture at this time. Cost of Plant: Rough estimate of cost for a plant to handle from 2.000 to 3,000 tons Is as follows: Equipment 130,000 Buildings nd land - 20,000 Contingencies 6,000 Total '. $80,000 The Vancouver plant, built In 1930 31, cost, without land, $80,000, but included $28,000 for cold storage. This plant ha a capacity greater than 2.000 ton of pears. Financing Construction Cost: 00 'o from Bank for Co operatives $48,000 From growers' first pay ment on stock, $6 a ton.. 12,000 Shortage 19,000 $80,000 It has been suggested that WPA funds could be obtained If a com munity unit would sponsor the move ment. In that case the funds would originate thus: 00 cost of buildings, be ing labor, from WPA $13,000 Community sponsors 12,000 60 cost of equipment from Bank for Co-operatives 33.000 Growers as above 12.000 Shortage fl.000 $80,000 If some interested party would erect the buildings on his land and lease them for a suitable term of years, the WPA and community sponsors' funds would be replaced In plan two. It Is very possible that the construction cost could be considerably reduced by the purchase of second-hand equipment in part. Fixed Charges: Overhead charges at Salem In 1934 war .2887c per dot en cans, or $07,740 for 100.000 cases for choice grade. Charging against this smount the several Items com prised, shows the following: With Without WPA WPA Selling. 7H - $20,700 $20,700 10 to Bank for Co-operative 3,300 4.800 10 Depreciation on equipment 3,000 8,500 2.4 Depreciation of building ...... 000 500 Interest 4 'A , Bank for Co-operative.. 1,400 3,050 1 25 Payment on community Invest ment 3,000 Interest 5 com munity Investment 600 Salaries 9.000 8.000 Balance 8,090 9,040 $57,740 $07,740 The depreciation of 10 on the equipment Is deemed very conserva tive a much of It would return a large part of Its value after 10 year's use. If growers pay $10 a share for stock, each share equalling one ton of contribution, the $10 balance could be made due, one-half each at the end of the second and third years. The sum realized from these deferred payments would reduce the amount needed for fixed charges unless they were used to meet construction cap ital costs obtained by advances against growers' note given to secure de ferred stock payment. Operating Funds Needed. Operating capital would be needed the first yesr until such funds would come from loans on warehouse re ceipt. , The support from miscellaneous fruit and from vegetables is disre garded because it 1 an unknown fac tor. Of course it would be possible for producers who are willing to fi nance an operation to build up some substantial side lines. A co-operative cannery would also permit of experi mental work with other varieties of pears, which cannot be done today through commercial canneries It Is appreciated that plan for ft cannery must be approved by the Intermediate Credit bank in order to obtain a loan from the Bank for Co operative and to meet the require ment of the Production Credit cor poration. This preliminary report 1 present ed because we believe enough data 1 presented to enable growers to say whether they wlah to support ft co-operative cannery for Bartlett pears, and because to complete the investi gation further expense and much ef fort will be involved which Is Justi fied only if there is assurance of sup- j port by the growers. ' - - Respectfully submitted to Board of j Directors of Fruit Growers League. By E. W. CARLTON. Chairman for the committee. Japanese Crappler Subdues Canadian SALEM. Feb. 12 (AP) Don Sug;ii, Salem Japanese wrestler, recently re turned from a tour of Mexico and Hawaii, subdued Jean La bell, Canada, In the featured match of a wrestling card here lsst night. Sugal dropped the first fall, but a liberal application of drop kick gars him the final two fall. Otis Cling man took a one-fall de. cision from Ernie Plluso In a cleanly, wrestled semt-windup match. Jack Curt las defeated Herb Bergeson la the opener. 4 . Ose Mall Tribune want ads. si 'X ' . v; HiiOI.ItALl II urnu ' seeds-feeds"' Fi.wrii.irEH u ocmmo iuppui. v SAMSON'S Southern Oregon's Fastest Growing Seed and Feed Store Through onr policy of featuring only flic HIGH EST QUALITY seeds and feeds at LOWEST POSSIBLE PRICES plus consistently FINE SER VICE, this concern has steadily grown during the, past seven years . . . Extensive Improvements have been made In our plant: our facllltlan havf.JUcen substantially expanded to RETTER SERfii our patrons . . . added storks and lines, too. firovldlnc; service that's COMPLETE In every detail. We Invite YOU to visit our retail store and plant . . . compare our prices and service . . . SAMSON'S SPRING OPENING affords this opportunity to YOU! Fertilize! Department 1 SO IB " (ft LANDPLASTER $12 per ton Itcasnnnhle delivery rntes In your ranch. AIRFLOW SUPERPHOSPHATE Free flowing. Dues not set up SULPHATE OF AMMONIA MURATE of POTASH n A I ANTED FERTILIZERS fnr all purpose I.awii, rieneral Harden. Kerry, .spe cial preparations (or Field Crops. special 7l jfl))jf ) fln rffl SPRING OFFERINGS SAT. FEB. 15 MODERN SOIL ANALYSIS Free test made of your soil. It is wise to feed your soil for the crop you wish to grow. GARDEN DEPT. Complete Family Garden Assortm't 12 VARIETIES OF GARDEN SEEDS Poultry Department (Q)3 We have a lawn roller and fertilizer spreader for your con venience. A complote line of Lawn Seeds and Fertilizers! Trucks for Hire Complete Line of FLOWER SEEDS and Fertilizers ... s iwimn 2 1W .1 VJ 4 Trucks 3 to 7 Tons Capacity Each SPECIAL EQUIPMENT FOR FURNITURE M0VIN0 LOCAL OR L0N0 DISTANCE HAULING Insured Carriers Phone 833 Now for Rates Special Livestock Equipment! See Us For That Cattle Haul! FUEL OLD GROWTH FIR 12" and 16", nlso 2 foot black oak, laurel and apple COAL - FUEL OIL Any kind you want. Prompt, clean tervice LOWEST PRICES! Full Showing of GARDEN TOOLS At Real Money Saving Prices! All of our seeds are FRESH Old seeds not mixed with new. This feature has materially increased the popularity of our stock. All varieties Peas, per lb 25f? Detroit Dark Red Beets, lb. 85? Carrots, per lb - 00; Spinach, per lb S5 Lettuce, per lb SI. 15 Turnips, per lb 70 Radishes, per lb 70 Seed Spuds . . . ask for prices Onion Sets, regular ... 3 lbs. for 25c Onions ask for prices Riverside Sweet Spanish Danvers Prizetaker Burmuda Southport White Globe Mangle Beets, per lb 50 Danish Slupstrip Golden Tankard Dairy Feeds Samson's Spec. Dairy Feod $1.40 ANALYSIS: lntrln 17T Klhrr 8 Fat 4 ,h N lliir Nnnf 21 Pnilrln Calf Meal Samson's Special Calf Meal 25 lbs ..85c rroMn fat AN m.i: ..Ii)" llhrr 5 Ah . Triangle Calf Meal, 25 lbs. $1.00 Rnl.r Uie llrlfrr Cnhrft. fomrrt jr.ur milk ami rrriint Inln irnji, ntir calf meal. Ilrlp ,Murrtf lo rxlra proMI. Field Seeds Federation Wheat H.Rrt per cut. Micrewi Heard less Barlr.v....$1.0 per cwt, lliimiien Hurley $i.;o per rut. C ommon Hurley. .....$ 1.6ft prr rwl. Iirurillefts Wye ,M) pir cwt. Kir Id Pes , $ .08 per lb. AMke rioier -., ,, .?t per In. Timothy .. .12 per lb. AHalfs .18 per lb. Orchard Dept. Liquid Lime Sulphur Bordo Arsenate of Lead Blue Stone Copper Carbonate 18", and 52 Briquets for Smudging, Smudge Oil. See us now for prices! F. E. SAM Field Extension Expert Urlng your poultry ralslltf problems to this store where Ted Harmon, field expert for the Triangle Milling Co.. Tortland, will give you free advice. Mr. Harmon will tell you about feeding to produce maximum eitp production. Samson's Special Mash, without milk ...$1.90 Samson's Special Mash, with milk .$2.10 Analysis guaranteed NOT UNDER NOT OVER Protein .20"l Fibre 5. Fat . .. 45 Ash . ....8 Samson's Special Scratch . . . $2.00 Worm your Hens with McClellan's '999' This ii a complete worm treatment that will not disturb the layers. Get Those Lice Do It Now Louse Powder Black Leaf "40" Sodium Fluride Acme Dc-louser VISIT WITH US LET US HELP YOU WITH YOUR POULTRY PROBLEMS If our hens are not laying as well as they should, examine them for lice. Lice pull the vitality of a hen to the point where she Is not profitable when egg prices are at the current level. Y-rtA tea i Mooecii ; TRIANGLE POULTRY FEEDS X-tra Egg T7T Producer $2.25 fC- X-tra Egg Producer eucis .ou Triangle Breeders 'ti Mash $2.25 See Us For Poults BABY CHICKS ALL KINDS FOR SALE BOOK NOW I m n't"- . ....... SI'TvxJ COMPANY 4 71 Let us help locate your Chicks or Pullets 5(n r.n Petaltima Electric Incubator. Tlnwure, Drink ing Founts, Remedies, BtiHMlers, tlroodrr Coal. Triangle Thick starter Ma.h ;.