PXGE 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
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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
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Fertilize! Department
1 SO IB "
(ft
LANDPLASTER
$12 per ton
Itcasnnnhle delivery rntes In
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AIRFLOW
SUPERPHOSPHATE
Free flowing.
Dues not set up
SULPHATE OF
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MURATE of POTASH
n A I ANTED FERTILIZERS
fnr all purpose I.awii,
rieneral Harden. Kerry, .spe
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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
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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
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Get Those Lice Do It Now
Louse Powder
Black Leaf "40"
Sodium Fluride
Acme Dc-louser
VISIT WITH US LET US HELP YOU
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If our hens are not laying as well as they should,
examine them for lice. Lice pull the vitality of a
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Y-rtA tea i
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TRIANGLE POULTRY FEEDS
X-tra Egg T7T
Producer $2.25 fC-
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