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About Medford mail tribune. (Medford, Or.) 1909-1989 | View Entire Issue (July 11, 1938)
PAGE EIGHT MEDEORP MAIL TRIBUNE. ftfEDFORD. OT?EGOT, MONDAY. JULY 11. 1938. Low Grade Fruit Removal From Markets Is Advised In Federal Subsidy Plan During the 1037 sesson the Oregon- Washington-California Pear league carried on a diversion program repre senting growen and shippers of Ore gon, Washington and California. The program was successful In developing new outlets for winter pears In both domestic and export markets. A sub sidy of 60 cents per box was collected from the government on winter pears shipped to out-of -channel markets. Plana are now being developed to carry on a similar program for the coming season. Porter Taylor, chief general crops section. U. S. depart ment of agriculture, has outlined his views for the coming season In a let ter, written In response to a request from the president of the league ask ing for a clarification of the govern ment's position In view of the con fused condition existing the past sea son, due to large quantities of low grade winter pears being shipped to the eastern markets. Mr. Taylor's letter follows: "Mr. Raymond Reter, "President, Oregon-Washington-tCallfornla Pear League, Inc., "Medford, Oregon. "Dear Bay: "I have your letter of June 30, en closing letters which you have re celved from various shippers Inter ested In continuance of . the winter pear program. These letters have been read with considerable Interest because they Indicate that the fun damental purpose of the program has been lost sight of by some of those Interested. It also appears that there may be a feeling on the part of some that we are unreasonable In our Insistence that effective action be taken by the industry to prevent a repetition of the low prices of the 1037 eesson. "In accordance with your sugges tion, I shall be very glad to eummar lEe our views with regard to the purpose, accomplishments, mistakes, snd possibilities of the program with the hope that it may prove of some service In reselling a common ground of understanding. "The Initial winter pear diversion program was prepared In 1936 as a method for developing new markets In portions of the United States and foreign countries where winter pears had not been sold at all or In only very small quantities. It was con tended that such new markets at home and abroad were needed to utilize the steadily Increasing supply of pears which was anticipated from new acreage. The program would further assure a larger American out let In order to protect the Industry from the danger of sudden loss of .the European market which was utilized extensively for the 'major viirlotlcs except Bosc. "As the program was developed In 1037 benefit payments were made through the pear league to its mem bers on shipments of the major varl ties of late pears sold Into elghtoen state and a considerable number of foreign countries. Such payments on fruits which meets the required grade were made to assist the Industry ss a unit in developing these markets which no individual shipper was able to do because of competitive condi tions. During the past season nearly 80,000 boxes of fruit have qualified under the program of which approxi mately one-half were sold In domes tic markets and the other half In 13 foreign countries. "The program during the paat sea son has been quite successful In cer tain respects. Substantial volumes of fruit have been moved Into several middle western cities, such as St. Louis and the Twin Cities, and to a number of foreign countries such as Brazil, Mexico, Panama,, and the Dutch East Indies, The volume placed In these areas should be large enough to develop a real knowledge of this fruit by consumers. "However, the splendid start made during the early part of the market ing season tn domestic markets was largely lost during the winter months. Prices In the important markets, such as New York and Chicago, drop ped to levels which did not pay the cost of harvesting, packing, storage and transportation, even on the best quality of fruit. Levels which would permit some return to growers for production costs were only restored after the purchase of 103.000 boxes of pears at terminal markets and shipping points by the Federal Sur plus Commodities corporation. "There appears to be general agree ment that these low prices were due to the large volume of fruit offered and especially the high percentage of unclassified Anjous' In the larger markets. As a result of the disturbed situs tlon In ths normal markets, especially the auctions, sales In the diversion markets practically ceaseo. The de mand which had been created by the oarller sales and the promotional work carried on by the pear bureau was largely lost because the distrib uting trade was unwilling to handle fruit for which the market value was so uncertain. Thus the whole pro gram of development of the diversion markets for which only good quality fruit was eligible, was largely nulli fied by the failure of the Industry to properly protect values In the normal markets. For this reason, the funds made available through the program were not ut Hired effectively and only partially achieved the development of new markets, "Analyses of auction sales records at New York are believed to be In dicative of the situation In the nor mal markets. The average returns to Oregon and Washington growers have been determined after maarng deduy- tlons for packing, storage, transporta tion, and marketing but not for pro duction, harvesting, and hauling. Certain result of this analysis are given bolow. D Anjous Returns to Orowers Percentage by Grades Orower Orades Boxes Total Per Box Boxes Sold Returns Extra Fancy 340.831 $117.41647 9.47 44 03 Fancy 184,408 66.330.90 .37 83 86 .Unclassified 130,160 4,p64.80 JO 34 3 Total 669,880 0189,701.68 . 0.88 100 100 "The average return to growers from all grades was 33 cents per box. The average return from the extra fancy and fancy grades was 43 cents per box. Through the shipment of J 33. 100 boxes of ths unclassified grade, total net returns to growers were Increased by 64,054.80 or 8 cents per box of unclassified, and seven tenths of one cent per box of all grades. A similar analysis of auction sales of Bosc pears at New York shows the following results. "Present estimates Indicate a crop slightly larger than lsst season. Con sumer purchasing power is lower than at the same time last year, and Is not likely to rise to a level above the average of last season. ''Thus the marketing of the 1938 crop is likely to be more difficult than in 1937. "In your letter you ask for any sug gestions which I may have to offer with regard to a possible solution of this problem. It is not our intention to fores our views on the pesr Indus try in this matter, but we ars obll- BeurreBoec Returns to Orowers Percentage by Orades Orower Orades ' Boxes Total Per Box Boxes So' Returns U. S. 1 314.863 ' 86,883.80 0.40 69 94.7 1 Extra Farfcy 43.613 6,338.44 - .13 14 0.8 ' Fancy 37,334 1,116.73 .08 .13 . 1.3 Unclassified 13.336 - 4,333.80 .10 4 . 1.3 ' U. fl. 11 3.448 7-367.30 .10 1 .4 j ToUl 810,401 000,713.36 0.39 100 100.0 j "3. 8 table market conditions can be achieved only by taking 'steps which will require all shippers, whether members of the pear bureau or not, to abide by the same uniform restrictions. Such restrictions must also apply to growers who might ship their own fruit as well as to terminal market dealers who might assume the position of shippers. The restric tions must be effectively enforced so as to fully protect those who comply and are responsible for the better marketing conditions which should result. "4. The Industry Is now required by the Export Apple and Pear Act to limit its export shipments to fruit which will be equal to or better than the U. S. No. 3 grade, regardless of the grade term applied to the box. Would It not be feasible to extend "Regulations established under such an agreement would be In ac cordance with the provisions of the agreement and order. Recommenda tions for regulations would be made by a committee of growers and ship pers who can be assumed to be qual ified to know Hie practical require ments which would need to be met as the marketing period progressed. "One provision which should be included would be a restriction of all Interstate shipments to grades which would meet the U. S. No. 3 grade now In effect on exports. A provision of this typo should be In effect in all years of abundant supplies, but might be waived during seasons of short crops. T e elimination of grades below U. S. No. 2 spcclllca: tlons would reduce losses to growers through red Ink sales. It would also tbls provision to domestic as well as I Indirectly Increase prices as the total export sales and thus establish a i volume offered for sale Is reduced. uniform minimum grade for all sales t "Additional benefits might be and packing house operations? achieved by authorizing the corn 's. The suggestion has been made mittee to recommend restrictions on portion oi tne iruii oi u. "Boso sales of all grades netted growers 090.713.36, or 0.39 per box If U. S. No. 3 and unclassified fruit had not been shipped the total re turns would have been Increased to 192,302.98, or 0.31 per box. The results of the above analyses Indicate that growers received only cents per box for all grades of Anjou pears and 39 cents per box for Boso peara sold at the New York auction. Such a return is not sufflcl ent to cover costs of production, har vesting, and delivering to the pack' Ing house. Unclassified Anjous to talcd 135.000 boxes or nearly one- fourth of the total offerings at New York throughout the season and over 43 percent up to January 1. During certain weeks when winter pear sales were large In volume, the 'unclassi fied grade" exceeded one-half of the sales of Anjous, and In one week two-thirds. "The Importance of eliminating low grade fruit Is apparent when we realize the small returns received from such grades, as well as the ef feet of such heavy offerings on the price at which the balance of the fruit Is sold. The analyses do not Include any estimate of a higher. return for the better grades which would undoubtedly have resulted from a smaller volume of fruit of fered for eale If the large proportion of lower grades had been eliminated, "In view of the seriousness of the situation outlined above and 'Its ef fect upon the entire diversion pro gram, we cannot recommend to the secretary that the program be con tinued unless the factors which have Interfered with Its successful opera tion during the past season are cor rected during the coming year. - There la general agreement that the most important cause Is the ship ment of the Unclassified grade. Next in Importance are the other lower grades which netted very small re turns or actual losses last season. The primary consideration should be the most effective method to prevent the movement of such fruit during the coming season. IS HE A PITCHER - mwmg? ' ' "no a i-nccro? Beck's Bread Should Be His Principle Energy Food! YOU CAN HELP your child strlks m out If you thit he avta hit duly quota of Bfck'a brJ. Tor Becks broad suppllra ths nergy It takra to run a strong, active body, tt maintain this energy between meala. And chil dren love It. And during the titteen years, between the agea of three and eighteen, a boy's muwlea Increase over 400 In weight. A FOURTH of this can come from bread, Beck'a bread la more nearly well-balanced la protein and carbohydrate, than ane other single food a child can eat. Ita carbohydatea provide the needed ENERGY to bring him across horns plate . , . proteins furnish the important things to OROW on . . . and In addition Beck's bread contributes to hte mineral needs. What'a more. Beck's bread Is easily digested by children. No other common food except sugar Is MORE QUICKLY digested. No part of Beck's breed remetns to upset or strain the digestive system. There Is no BETTER or CHEAPER way thsn through Beck's bread of giving growing children the things their bodies need In greatest smounta: a good aource of food energy and muscle-building protein. k TRIPLE "T" and DE LUXE BREAD gated to see that public funds made available to the pear industry achieve the purposes for which they are made available. "1. The market development pro gram can only be successful as it Is based on good quality fruit, effective merchandising and promotional work, and a stabilized market which will Induce new distributors to handle the product. "S, Such a stable market can be achieved only by offering qual.tv fruit In a volume not in excess of demand at a price which will return all marketing costs and leave at least some return from the sale for the grower to apply against his produc tion costs. ed through modifications of g grades and particularly by the addition of a new grade below fancy. In view of the low .-eturns to expect that a new grade fancy will result in Improved grower returns. In addition the wide variation In grade terms, specifica tions, and Interpretations In the three ststes would make it difficult to harmonize on a uniform basis. However, we will be glad to receive any specific suggestions as to the de tails of such a plan, providing It will bo certain to control the shipment of low grade pears. "6. We are at a loss to understand the unfavorable attitude expressed In some Instances toward the use of a marketing agreement for winter pears. Existing agreements contain ing similar provisions are In opera tion for other commodities and have operated successfully over a period of years. all or S. No. 3 quality. If deemed ad vis able the agreement might specifically state that there should be no reg ulation of fruit of U. 8. No; 1 quality except as to certain undesirable sizes. Experience (,as shown 'that flexible regulation is most desirable and effective as It Is difficult to predict in advance the exact situa tion which may need to be met un der all circumstances. "We In the administration are not interested In the provision of any particular grades or their individual specifications. However, we are vit ally Interested in whether O.e pear producer receives a reasonable return for his fruit, and whether wldr markets ore being developed to ab sorb the steadily Increasing volume of production. "On tht other hand we cannot recommend the expenditure of pub lic funds fcr the contlnuanco of the diversion program unless there is a. reasonable assurance that ti:e pro gram will achieve sufficient results to Justify this expenditure. We that this was not true last season and that It Is not likely to be the case this season unless steps are taken to correct the errors of last season. "We hope that the entire pear in dustry, and especially the growers. will recognize the fundamental steps wiilch must be taken if grower re turns are to be Increased and the risk of low prices and losses actually reduced or eliminated. If proper plans are made to achieve this pur pose, then we believe that the diver sion program can be of material as sistance in broadening both domestic and foreign outlets and will result In- a lasting benefit to the whole industry. "As you Indicate In your letter, the time to develop a program Is getting short. We are ready tg move promptly as soon as the industry reaches a decision In this matter. "Yours very truly. ' "(Signed) P. R. TAYLOR, "CVief. General Crops Section. "Washington, D. C. "July 3, 1938." EAGLES GOING 10 G.P. Members of Crater Lake aerie, Fra ternal Order of EagJcs will Journey to Grants Pass Wednesday evening to j deliver to the aerie there the silver eagle that was put up as a trophy I at the recent state convention in Klamath Falls. The trophy if to be ; parsed from one aerie of the state to another until all the units haw received It. Medford aerie received It last week from Ashland. j The trophy will become the per- 1 mancut possession of the aerie cover ing the most man-miles in transfer ring it from one aerie to another. For this renson A. H. Banwell,, aerie pres ident here, requested as many mem bers as possible to make the trip t Q rants Pass. Members are to assem ble at the armory at 7 P. m. for th drive to Grants Pass. The local aerie will hold anothei of Its summer series of public dancei at Dreamland Thursday evening from 9 to 1 following the regular weekly lodge meeting at 8 In the armory. Oynge's Eagle orchestra will play tot dancing. John Hyde is dance chair man. 4 Sentence After Sentence WOODSTOCK, N. B. (UP) 'Thir ty days," sighed the Judge, when Harry Thornton, a local character, appeared in court for the fourth time in four months. Thornton has spent only four doys freedom between Jail sentences for drunkenness. Oysters Get Care MIAMI, Fla. (UP) Fifty thousand dollars will be spent this year In re habilitating the oyster Industry la Blscayne bay and along the keys near by. Employment will be given to 100 men for a 12-month period. Great Grandfather at 76 BULAWAYO (UP) W. P. Valen tine, of Gatooma, 1s believed to be the youngest great-grandfather in South Africa. He Is only 76, but his granddaughter Is the mother of a son. Special for This Week FREE Hot Oil Shampoo with each paid Finger Wave mii.dri:d ihrrell Is now taking appointments here Wineland Beauty Shop In Jackson Hotel Barber Shop IMtone 1018 ODD BUT TRUE l -viavk- ww j:; wv 1 In STOP and GO, a mile S-T-R-ET-C-H-E-S In low and second, your engine makes up to 3 times as many revolutions as in high uses 3 times as much gasoline STOP-AND GO driving fools your speedometer while your car is going a mile, your engine may go the equivalent of two. The number of extra revolutions your engine makes depends on how many times you stop and start how much of your driving is in low and second gears. You can't avoid stop-and-go driving, but you can do something about its high cost. Shell engineers found that getting away from a traffic stop can waste enough "undigested" gasoline to carry you H of a mile. To cut this costly waste, they rearranged the chemical structure of gasoline. 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