The Hood River glacier. (Hood River, Or.) 1889-1933, March 31, 1921, Image 7

Below is the OCR text representation for this newspapers page. It is also available as plain text as well as XML.

    0
liUUD K1VJSK UL.AU1UK, lflUlvolA I , MAKIH 31, 1921
Appl
REPORT OF A. W. STONE
GENERAL MANAGER
e Growers Association
AT
Primaries Held March 12, 1921
At Hood River, Oregon
To Our Members :
This is the seventh Annual 1'rimary
at which we have gathered for the
purpose of nominating Directors fur
the ensuing year. The Primary is one
of the most important meetings of the
year and in order that you may act in
telligently it is important that we re
turn to you a complete statement of
the business for the past season. It
has always been the policy of the As
sociation to submit to our Members at
the Annual Primary all the details of
the past season's business so far as it
is consistent with the time at which
the Primary is held, as a guidance for
your future actions.
In all cases this report is definite
from June 1st, 1920, the beginning of
our fiscal year, up to March 1st, 1921.
and from March 1st, 1921, up to and
including May 31st, 1921, being in all
cases estimated.
j lie pasu ncaeuii is one in wniCl) prac
tically every one engaged in the grow
ing of food products has met with seri
ous loses, from the fact that the cost
of producing all food products reached
the highest cost point last season, and
when the time arrived for selling the
products for which excessive prices
had been paid for growing and har
vesting, the financial conditions follow
ing the war, together with other condi
tions combined to reduce the price in
most cases below the cost of produc
tion. This, however, did not apply to
the earlier fruits such as strawberries
and cherries, and was felt to a less de
gree on pears than on apples. When,
however, we consider the market for
apples as compared with other food
products, we are to be congratulated
on the fact that the market conditions
were more favorable for apples than
for most other food products.
Percentages of 1920 Apple Crop
The percentage of Extra Fancy,
Fancy and C-Grades for the 1920
season's crop is as follows, viz:
Extra Fancy 44 per cent
Fancy lit! per cent
C-Grade 20 per cent
The percentage of tiers is as follows
4 tier 40 per cent
4 J tier 35 per cent
5 tier -.25 per cent
if n a CountV Court has employed
M. U. Armstrong aa County Fruit In
spector, who is well equipped for this
service and who will cooperate with
the Experiment Station and jointly
should give us a greatly added service,
uuring the reconstruction period the
apple industry will be confronted bv
conditions that necessitate the use of
scientific methods if our orchards are
to continue financially successful.
Systematic and diligent endeavor com
bined with thorough cooperation be
tween our growers, the Experiment
Mat;on and the County Fruit Inspec
tion Department will insure these de
sired results.
Revenues
Handling Charges $105,000 00
Storage 67.000.00
Advertising 2P.800.00
Ice Income 16.000.00
Stores 25,000.00
Discounts 4,000.00
Interest 200.00
Water Power Income 4,000.00
Percentages for Six Years
We give below a table showing the
percentage of Extra Fancy and ('
Grade; also the percentages of tiers
handled by the
years last past.
Association for six (6)
tirades and Sizes for Six Years
ma
Ex. Fancy 36
Fancy 37
C-Grade . . .33
4 tier 64
44 tier 23
5 tier 13
38
37
25
42
37
21
1917
52
32
16
40
36
24
51
32
17
61
27
12
53
32
15
60
27
13
l')20
44
36
20
40
35
25
These tables
formation and
are very valuable m-
should be carefully
studied by every Member and each
Member should compare these aver
ages with his own crop so as to see
whether or not he is above or below
the general average. If above the av
erage he should strive to do still bet
ter and if below he should make an ex
traordinary effort to at least equal the
general average of the valley. As
will be hereafter noted, by the prices
realized, not only do the larger sizes
and better grades of apples bring back
more money to the grower, but it is a
fact that they can be harvested much
cheaper. In other words, the cleaner
the crop the less labor is required in
sorting, andl in the larger fruit the
cost of picking and packing is also
less.
In comparing the grades of fruit for
1920 we find that the average for the
previous three years was 52 per cent
Extra Fancy against 44 per cent Extra
Fancy for 1920; of the Fancy it was
32 per cent for the previous three year
period as against 36 per cent Fancy
for 1920 ; of the C-Grade 16 per cent
for the said three years against 20 per
cent for 1920.
The average of 4 tier apples for the
said three year period was 54 per cent
and for 1920, 40 per cent; the average
of 4J tier apples for the said three
year period was 30 per cent and for
1920, 35 per cent, and the average of 5
tier apples for the said three year per-;
iod was 16 per cent and a fraction and
for 1920. 25 per cent. It will thus be
seen that the decreased quantity of
Extra Fancy apples and the largely in
creased quantity of C-Grade apples, j
together with the substantial decrease
in large apples and the marked in-1
crease in small apples, must of neces
iity show a marked decrease in the
prices received for our fruit.
An analysis of the foregoing per- j
centages ot grade and tier for 1920 as !
compared with former years, shows
conlusively that we have not been as j
diligent in spraying and caring for our
orchards as in former years. While j
climatic conditions have no doubt in
fluenced this result, it has also no
doubt been influenced by the high cost
of labor and the laptops amount of
thinning done by reason of the scarcity
of labor.
More Thorough Work
During the war period on account of
the shortage of help there has been
some neglect nob',1 jn the care of our
orenarus and some diseased conditions
have been permitted to spread in some
cases on account of inability to secure
help; In other cases on account of neg
lect. Among the many diseases and
pests which affect our orchards there is
probably at the present time none
more serious than .nthraenose. This
uisease can be controlled by diliuent
effort, it being a disease which spreads
rapidly from orchard to orchard. It
behooves every grower not only as a
protection to himself, but as a protec
tion to his neighbor to see that this
disease is kept under control. To do
this Bluestone is largely used and if
ordered at once wt can secure this ma
terial at a much lest nrice than it has
been sold for since pre-war times, and
with this cheapened snray we feel that
every grower should arrange for his
spray material in advance so as to ap
ply this spray whenever and as often
as is recommended by the Experiment
Station.
Inspection Department
The problem of properly grading our
fruit is always with us. Last year
was no exception and we find that in
some cases growers were careless,
with the result that notwithstanding
the fact that the number of inspectors
was largely increased during the last
season we find fruit in some cases not
up to the required standard. This is a
matter which will be given more thor
ough attention in the future, but sat
isfactory results are out of the ques
tion without the ((operation of the
growers, sorters and packers. Neg
lect in grading of a few boxes may
cause an allowance to be made on a
whole car. It is, therefore, impera
tive that every grower use every effort
possible to see that his fruit is up to
standard.
In connection with this matter I
wish to express my appreciation of the
Committee appointed bv the Growers
Welfare Club for the purpose of exam
ining fruit in our warehouses. This
Committee spent a large amount of
time and made exhaustive reports on
the condition of the fruit in our ware
houses and on examining these reports
1 find they have been very carefully
and intelligently made and 1 feel that
they are of marked assistance in secur
ing a more uniform pack, and I wish
to compliment these gentlemen on this
work and assure them that any work
along this line, carefully and intelli
gently done.will at all times be greatly
appreciated, and I feel that every
Member if he knows his Iruit is sub
ject to inspection by a Committee of
growers will be more careful and pains
taking in his grade and pack and that
a continuance of this work will be very
beneficial in securing the desired results.
J242.000.0O
Expenses
General Expense $ 15,00.00
Sales Expense 20,000.00
Accounting 7,000.00
Warehouse Expense 55,000.00
Cold Storage Expense 60.000.00
Advertising Expense 16,000 00
Field & Inspect 8.500.00
Ice Expense 15.000.00
Store Expense 11,000.00
Water Power Expense 4,500.00
$212,000.00
Purchasing Fund
In 1916 we created a Purchasing
rund of lc per package which was de
ducted from the 1916 crop. In 1917
we continued the said Purchasing Fund
of lc per package for five (5) years
In 1918 we created a Special Purchas
ing Fund of $100,000.00 to be raised by
a per package charge from nothing to
5c per package, depending on the price
the fruit brought, lhe amount raised
by the said Purchasing Fund up to the
present time is as follows, viz:
1916 Crop Season $ 11,023.00
1917 Crop Season 7,212.00
1918 Crop Season 51.566.00
1919 Crop Season 83,897.00
1920 Crop Season 10,400.00
$164,098.00
Building Fund
Last year we created a Building
Fund and the amount contributed to
this Fund up to, including and pre
vious to May 31st, 1920, the end of the
last fiscal year, was $111,392.00. For
1920's season we have added to this
Fund $52,000.00. This amount, how
ever, is tentative and is subject to be
reduced by the Board of Directors on
or before the end of the fiscal year.
We also have accumulated in Mem
bership Fees $4,855.00, including the
fiscal year ending May 31st, 1920. We
cannot give the amount at this time of
the Membership Fees for the fiscal year
ending May 31st, 1921, as it is partly
based on the amount of fruit delivered
by the Members, which has not been
compiled.
The recapitulation of the foregoing
shows that we now have the foregoing
amounts in these three funds:
Purchasing Fund $164,098.00
Building Fund 163,392.00
Membership Fund 4,855.00
Mastic flooring which has added to the
efficiency of these buildings and re
duced the cost of operation.
At Van Horn we have ceiled the red
warehouse and provided additions to
our ventiliating system in this build
ing. At Van Horn Cold Storage Plant we
have laid about 4000 sq. ft. of cement
floor in the basement ; placed a new
water tank on the house. We have in
creased the size of the coils in the
bunker rooms and changed the air sys
tem so that the air is controlled by
force rather than by suction as herto
fore. This has added to the efficiency
of the plant, but in order to operate
this whole plant as a cold storage
plant will require practically a dupli
cation of the present operating power.
We have constructed three cottages
for the employes and supplied the
same with water.
During the last season we supplied a
long felt need by placing new cast iron
pipe from our reservoir to connect
with the cast iron pipe near the foot
of the hill, thus replacing all wooden
pipe with cast iron pipe. This is a
very satisfactory improvement as it
releives dangers of .damage from flcod
ing the city by reason of the possible
bursting of the wooden pipe.
Total crop of Spitzenburgs handled,
178,413 boxes.
Tentative charges : Commission 10
cents; storage 7 cents; advertising
fund 2 cents; purchasing fund 1 cent,
and building fund 5 cents per box.
These tentative charges are subject to
reduction by the Board of Directors to
meet our needa.
Newtowns:
To recapitulate, the following
the average prices received by the
Extra
Fancy .
Tier Price
....4 $2.07
n 1.82
6 1.57
....4 1.82
4J 1.57
6 1.32
...4 1.67
4 1.32
6 1.07
sociation for the following
and grades respectively :
Extra Fancy Fancy
are
As-
varieties j ular
side
Grade
$1.37
1.80
1.20
1.40
Average: $1.59. Percentage collected
for, 37 per cent.
Total crop of Newtowns handled,
449,110 boxes.
Tentative charges: Commission 10
cents ; storage 7 cents ; advertising
fund 2 cents ; purchasing fund 1 cent,
and building fund 5 cents per box.
These tentative charges are subject to
reduction by the Board of Directors to
meet our needs.
Comparative Statement of Yield for Years 1915 to 1920 (both inclusive!
While there is a variation in the amount of fruit handled in the different
vears by the Association, the percentage handled to that grown in the Val
has not changed materially, as the years that show a small amount of tonnage
were the years in which the crop was small.
A comparative statement of the number of packages of fruit handled by the
Association lor the past six years is as follows, viz:
Cherries
Peaches
Blackberries
Raspberries
Plami and Prunes
Crab Apples
Loganberries
(JooselHjrries
Currants
Quinces
1915 1916 1917 1918 1919 1920
373,200 979.741 64(1,787 807,428 1,322,2(18 942,458
87,495 85,200 48,876 53,480 66,413 64,463
24,797 38,154 18,133 45,085 60,745 82,492
7.825 9,047 8,401 7,400 9,800 12,793
407 88 91 569
403 102 105 341 574 136
119 20 61 61 110 76"
249 76 71 16 132 21
274 205 137 309 458 265
10 9 1 38 61 269
9 4 3 3 1
17 11 4 4
29 15 2 69 24 2
Total Packages... 494,834 1,112,660 722,579 914,330 1,460,649 1,052,969
Amount of Business Done
The amount of business done by the
Association for the season of 1920, be
ginning with June 1st, 1920, and end
ing with May 31st, 1921, (from March
1st, 1921, to May 31st, being estimat
ed) is as follows, viz:
Stores
Apples
Strawberries
Pears
Cherries
Raspberries .
Loganberries
Prunes and PI
Blackberries.
Crab Apples .
Quinces
Ice
.$ 425,000.00
. 1,600.000.00
. 296,967.86
91.031.79
46.031.68
273.37
761.53
29.04
397.84
339.76
3.25
16,000.00
nrice received for the fruit for the sea
son of 1920 is also less than that re
ceived in 1919. It is a fact however,
that there was no decrease in the pro
portion of the fruit of the Valley han
dled by the Association for the season
Experiment Station
An additional amount has been voted
by the State for the benefit of the
Hood River Experiment Station and
will enable this valuable asset of the
Valley to do more efficient work in the
future than thev have done in the
past. We urge upon our Mt mU rs to f pj i or in the business done
avau inemseives ot the use oi me ex
periment Station not only in the mat
ter of the time for spraying which has
liecome very unviersal, but also in the
matter of irrigation and fertiliztion.
The value of the Experiment Station
to the Valley will depend largely upon
the regularity with which the growers
avail themselves of its privileges.
In addition to the Experiment Sta-
$2,476,S-39.12
The amount of business done by the
Association for the six years last past
is as follows, viz:
1915 Crop Season $ 721 , 245. 50
1916 Crop Season 1,609,259.50
1917 Crop Season 1.352,515.57
1918 Crop Season 2.136,383.37
1919 Crop Season 3.738,788.08
1920 Crop Season (est.).. 2,476,839.12
These figures show that for the six
years last past there has been a steady
increase in the business done by the
Association uu until the season of
1919. at which time the peak was
reached. There has been a marked re- Department This is a substantial
duction in the business of the Associa-1 and permanent structure with the sur
tion for the season of 1920. This is fH(.e f the first floor of concrete and
largely acounted for by the fact that concrete retaining walls ; with track,
the fruit handled in 1920 was much team an(j truck privileges for the low-
1, ss than that handled in 1919 and me er floor amj team and truck privileges
for the second floor. This building
has been equipped with a machine for
mixing fertilizer and with floor scalea
for general use.
Making a total of $332,345.00
This amount represents the present
invested capital of the Association.
Object of Capital and Equipment
The object of a cooperative organiza
tion is to serve its Membe s. This can
only be done successfully through
series of years by providing a sufficient
amount or capita! either in money or in
equipment so as to reduce the general
operating expenses. It should be borne
in mind by the Members of the Associ
ation that in addition to the benefits
accruing from cooperation by shipping
our fruit under one organization we
have accumulated $332,345.00 in capital
and equipment which said funds and
equipment are for the free use of the
Members of the Association. With the
free use of this invested capital it is
absolutely impossible for any private
concern to furnish the growers the
same service that is furnished by the
Association at anywhere near the same
cost. It is a matter of fact that the
average cost for every box of apples
we cold store outside of Hood River
costs us more than for all the service
we furnish and charge for at Hood
River, viz : The handling, shipping.
common storage, cold storage, inspect
ing, marketing, advertising, taxes, in
terest, insurance, general operating
and all other expenses incidental
thereto.
As stated above, last year we passed
the peak of our requirements for in
vested capital. This year sees us
make the last payment to the National
Apple Company on the National Ware
house, there being unpaid on this prop
erty only the sum of $15,000.00 which
amount consists of a mortgage indebt
edess which we assumed when we
bought the property. We paid for the
National property $65,000.00. This year
also closes the payment of the purchase
price of the Union Warehouses with
the exception of bonds to the extent of
$15,000.00 which the property was
taken subject to. For this Union Pro
perty we paid approximately $105.
000.00. not including, however, the wa
ter plant.
In proportion as we continue to re
duce the purchase price of property
bought, will our requirements for this
purKse decrease, and also the cost to
our members of doing business de
crease. New Properties
During the past year we have added
to our proerties and equipment the
following, viz:
One lot near our warehouse at Park
dale to be used for buildings for hous
ing our help.
(ine lot on the O.-W. R. & N. between
the Spray plant and the slaughter
house with a railroad frontage of 100
feet on which we have erected a two
story building 40x100 with a porch 8
ft. wide the entire length of the rail
road frontage, for the use of the Stores
Prices
The following is a list of prices re
ceived to date on the principal varie
ties of apples. Prices quoted are the
average per box prices which have
been received to date on the different
varieties, grades and sizes specified.
Where pools have been closed it will
be so noted under each variety.
Gravensteins:
Fancy C-Grade
4 tier $2.00 $1.75
4J tier 1 80 1.65
5 tier 1.65 1.30
Average: $1.73. Pool Closed.
The total crop of Gravensteins han
dled, 7,949 boxes. Tentative charges:
Commission, 10 cents ; advertising 2
cents; purchasing fund 1 cent; and
building fund 5 cents per box. These
tentative charges are subject to reduc
tion by the Board of Directors to meet
our needs.
Kings:
4 tier. . .
4i tier. .
5 tier. . .
Fancy C-
$1.86
1.60
1.36
Pool closed.
Kings bandied
Grade
$1.46
1.27
1.08
Average : $1.66
Total crop of Kings bandied 6.671
boxes.
Tentative charges : Commission, ten
cents; cold storage 2 cents ; advertis
ing 2 cents; purchasing fund 1 cent.
and building fund 6 cents per box.
These tentative charges are subject to
reduction by the Board of Directors to
meet our needs.
Winter Bananas:
Extra Fancy Fancy C-Grade
tier $2.40 $2.05 $1.75
4J tier 2.05 1.70 1.40
tier 1.65 1.30 1.00
Average: $1.90. Percentage collected
for. 95 per cent.
Total crop of Winter Bananas han
died, 23.808 boxes.
Tentative charges: Commission 10
cents; cold storage, 4.8 cents ; adver
tising 2 cents; purchasing fund 1 cent
and building fund 5 cents per box
These tentative charges are subject to
reauction by the Hoard of Directors to
meet our needs.
Jonathans:
Extra Fancy Fancy C-Grade
4 tier $1.88 $1.63 $1.38
4 tier 1.58 1.33 1.08
5 tier 1.28 1.03 .78
Average: $1.22. Percentage collect
ed for, per cent.
Total crop of Jonathan- handled, 25,
366 boxes.
Tentative charges: Commission 10
cents ; cold storage 6 cents; advertis
ing fund 2 cents; purchasing fund 1
cent, and building fund 6 cents per
box. These tentative charges are sub
ject to reduction by the Board of Di
rectors to meet our needs.
Delicious:
4 tier.
4 tier
6 tier .
Average :
Extra Fancy Fancy C-Grade
$2 36 $2.00 $1.70
2.00 1.65 1.36
1.60 1.26 .96
$1.81. Percentage collect-
Revenues and Expenses
Herewith is given a statement of j
the Revenues ard Expenses of the As
sociation for the year endirg May 31 st.
1921 being actual and definite from
June 1st, 120. to March lit, 1921. and j
estimated from March 1st, 1921, to
and including May 31st. 1921.
Betterments and Reconstruction
The Odell Warehouse No. 1 haa been
ceiled. A spiral chute has been in
stalled at the National house which
has proved very satisfactory in the
loading of cars and in reliev ir.g the
congestion of the single elevator in
this building.
During the season we have covered
about 12.000 sq. ft. of floors at the Un
ion and the National warehouses with
ed for, 80 per cent.
Total crop of Delienus.bandled 12,
468 boxes.
Tentative charges : Commiaaion 10
cents; storage 6.8 cents; advertising
fund 2 cents; building fund 6 cents ;
purchasing fund 1 rent per box. These
tentative charges are subject to reduc
tion by the Board of Directors to meet
our needs.
Spitzenburgs:
Tier Price
Extra Fancy 4 $2.08
4f 1.78
6 1.48
Fancy 4 1.83
4 1.63
5 1.23
C-Grade 4 1.58
4( 1.28
6 .98
Average $1.67. Percentage collected
for, 94 per cent-
Arkansas Blacks:
Tier Price
Extra Fancy 4 $2.44
4ft 2.19
5 1.94
Fancy 4 2.19
41 1.94
6 1.69
C-Grade 4 1.94
41 1.69
5
Average: $2.17. Percentage collect
ed for, 57 per cent.
Total crop of Arkansas Blacks hand
led 32,342 boxes.
Tentative charges: Commission 10
cents ; storage 7 cents ; advertising
fund i cents; purchasing fund 1 cent,
and building fund 5 cents per box.
These tentative charges are subject to
reduction by the Board of Directors to
meet our needs.
Ortleys:
Tier Price
Extra Fancy 4 $1.94
41 1.69
5 1.34
Fancy 4 1.64
41 1.39
5 1.04
C-Grade 4 1.29
41 1.04
5
Average: $1.65. Percentage collected
for, 73 per cent.
Total crop of Ortleys handled 75,755
boxes.
Tentative charges : Commission 10
centB; storage 7 cents; advertising
fund 2 cents purchasing fund 1 cent,
and building fund 6 cents per box
These tentative charges are subject to
reduction by the Board of Directors to
meet our needs.
Red Cheeks:
i ler rnee
Extra Fancy 4 $2.03
41 1.83
5
Fancy 4
1.78
1.58
1.33
1.48
1.28
1.03
col-
C-Grade 4
41
5
Average: $1.54. Percentage
lected for, 25 per cent.
Total crop of Red Cheeks handled,
2,512 boxes.
Tentative charges: Commission 10
cents; storage 7 cents; adverising fund
2 cents ; purchasing fund 1 cent, and
building fund 5 cents per box. These
tentative charges are subject to reduc
tion by the Board of Directors to meet
our needa.
Oregon Reds:
Tier Price
Extra Fancy 4 $1.84
41 1.69
5 1.29
Average: $1.58. Percentage collect
ed for, 72 per cent.
Total crop of Oregon Reds handled,
687 boxes.
Tentative charges : Commission 10
cents; storage 7 cents; advertising
fund 2 cents; purchasing fund 1 cent,
and building fund 5 cents per box.
These tentative charges are subject to
reduction by the Board of Directors to
meet our needs.
Baldwins :
Tier Price
Fancy 4 $1.60
41 1.34
6 1.04
C Grade 4 1.34
41 1.09
5 .79
Average: $1.32. Percentage collect
ed for. 89 per cent.
Total crop of Baldwins handled, 7,-
92 boxes.
Tentative charges: Commission 10
cents; storage 7 cents; advertising
fund 2 cents ; purchasing fund 1 cent.
and building fund 5 cents per box.
These tentative chsrges sre subject to
reduction by the Board of Directors to
meet our nee's.
Miscellaneous Varieties:
The average price received on the
miscellaneous varieties not listed
above, for the three standard grades
consisting of 66,065 boxes is $1.0 per
box. Paid 70 per cent.
Spitzenburgs.. $1.87 $1.62
Ark. Blacks ...2.28 2.07
Ortleys 1.86 1.57
Red Cheeks.... 1.99 1.77
Oregon Reds. . .1.58
Newtowns 1.86 1.58 1.35
Returns to March 1, 1920, have been
received on 57 per cent of the crop.
viz , $871,591.38 in settlement of 544,702
boxes of apples., or an average on all
varieties grades, and sizes on which
the Association has received payment
of $1.60 per box against a like average
of a year ago of $1.98, with 57 per cent
of the crop paid for this year against
all pools closed with the exception of
the Newtowns at the same time last
year.
Other Fruits
The following is the average price
received by the Association for.Straw
berries, Pears and Cherries for the
season of 1919. viz :
Strawberries, per crate $4.38
Pears, per box .... 2.80
Cherries, per pound 165
Past Averages C.iven
The average prices received by the
Association for the three standard
grades und sizes of apples of all varie
ties for the past six years was as fol
lows, viz: (For the year 1920 this ap
plies to only 57 per cent of the crop as
this is the only part of the crop on
which returns have been made com
plete up to the present time).
1915 $1.27
1916 1.13
1917.
1918.
1919.
1920.
1.34
1.84
l.tt
1.60
With 43 per cent of the crop yet t(
be paid for we cannot make any defin
ite estimate as to the amount which
will be received for the fruit yet un
paid, with the exception that we are
reasonably sure that the tinal returns
will be about the same as on the fruit
paid for up to the present time, unless
there is a serious break in the market.
The average price received for fruit
for the 1919 season's crop was $1.98;
for 1920, $1.60. based on the 57 per
cent collected for. There are three
factors which fairly offset the differ
ence in the price of these two years,
viz: The proportion of the batter
grades of 1919 over 1920, together with
the proportion of small sizes in 1920
over 1919, plus the extra amount paid
for transportation, would in mv judg
ment easily overcome the difference in
prices. In other words, if the grids
and size of the fruit had been as desir
able in 1920 as in 1919 and the railroad
transportation had remained the same,
we would have received practically as
much for our fruit in 1920 as we did in
1919. In fairly considering this mat
ter and the prices obtained this season,
we must bear in mind the fact that the
average price received by the Associa
tion last year for its fruit was higher
than we had ever received before in
the history of the Association and for
at least nine years last past.
The foregoing, however, were not
all of the conditions which handicapped
the selling of the 1920 season's crop. A
few of the other serious conditions we
wish to call your attention to are as
follows, viz :
Large Crop in the East
While the box apple crop was not as
large in 1919, in that year the barrel
apple crop was very small, while In
1920 the barrel apple crop was the
largest m the history of the country
and had a depressing effect not only
from the quantity of fruit grown, but
also from the depressing effect it had
on the minds of the buyers who were
not willing to buy in the face of a
large barrel apple crop, only at ex
tremely low prices.
The excessive freight rateH which
were from 22c per box for heater service
to 25c per box for icing service higher
than in 1919, had their depressing ef
feet.
The European prices this year have
been unsatisfactory on practically ev
ery varietv except possibly Newtowns,
from the fact that the shipment of
barreled stock has been at ieast four
times larger than last year and ship
ment of boxed apples at least half
larger.
The cotton producing districts which
have heretofore given us a satisfactory
outlet for our small apples and off va-
leties, on account of the low price of
cotton for the past season, have taken
practically no apples.
One striking illustration ot the lack
of outlet in the manufacturing dis-
ricts throughout the country is the
City of Detroit. When the automobile
factoriea in this city were operating at
full capacity this city used about five
(6) cars of 5 tier apples per day, and
practically all for lunch boxes. This
season it has been authoritatively
tated that Detroit, largely on account
of the closing down of the automobile
ndustry, has not consumed to exceed
one car oi o tier apples every two
weeks.
While these conditions go to show
the serious conditions with which our
Sales Department was confronted in
the Belling of our fruit, the result and
the prices obtained were so satisfac
tory under these adverse conditions, it
mphasizes conclusively that we owe
to the Sales Department a debt of
gratitude, and I take this opportunity
of the grower at heart and .ave ad
very valuable experience in the pai tie-
department over which they pre
They will have the wise counsel
and guidance of men of wide experi
ence and business ability who are sub
stantially interested in the growing of
fruit.
The particular function ot this or
ganization is to promote a closer co
operation between the grower and the
consumer and we feel that in the apple
industry there is no organization that
is better equipped to succeed in this
very difficult undertaking, and we be
lieve the future will demonstrate that
this organization will prove of sub
stantial benefit :n securing better
prices for the growers and be a prom
inent factor in promoting the coopera
tive spirit which is developing in this
country at the present time more sub
stantally than ever before in its his
tory. Z The Association has availed itself of
the facilities of the Consolidated Fruit
Company. Inc., during the past season
and the use of this service has contrib
uted to the very satisfactory prices re
ceived for our fruit when all of the ad
verse conditions with which we have
been confronted have been fully con
sidered. We feel warranted in stating
that it has not only assisted us in se
curing Letter prices, but that we have
secured the benefits of its service at a
less cost.
While it gives us pleasure to report
the results obtained in the sale of our
fruit, it is with regret that I announce
the fact that Mr. C. W. McCullagh has
tendered his resignation as Sales Man
ager, and that from and after the first
day of April next, we will be deprived
of his services, and I am sure the
Members of the Association will join
with me in wishing Mr. McCullagh
complete and permanent success in his
new field of endeavor.
Retrenchment
The belief of the wisest men of our
country and those who are best equip-
f commending them together with
each and every one connected with this
Department, in securing these final re
sults which when we take into consid
eration all of the conditions with which
they had to contend, are most gratify-
Consolidated Fruit Company, Inc.
I may state here that while I have
mentioned many of the adverse condi
tions this season over last, there is one
condition to which I wish to call vour
ttention that I feel assisted the Sales
Department this year over that of any
previous year. 1 refer to the Lonsoli-
atert fruit Compar v. Inc., which has
been organized for the purpose of as
sisting the growers in the Northwest
to get s little closer to the consumer
nd to secure for the grower nearer
that portion of the u-t fruits of his
labor than he has been able to do un
der previous existing conditions of the
New York market.
Directly in charge of this Company
are young men who have the interest
ped to form a valuable opinion, is that
we must gradually return to a pre-war
basis. This means that we must uee
every effort possible consistent with
good business judgment to retrench
and therefore endeavor at all times to
curtail expenses, and that salaries,
wages and the cost of operation must
be commensurate with the business
condition of the country and the prices
paid by other organizations for similar
services. We must not lose sight of
the fact that as times and conditions
become normal we can secure compe
tent help to supply our needs as they
arise and that we will thereby be able
to reduce our continuous help to the
maximum needed during the slacker
parts of the season, as we have been
unable to do on account of the strin
gent condition of the labor market
during the war period. The logical
conclusion is that the cost of buildings
and equipment will gradually decrease
and it therefore behooves us during
this period of declining cost of con
struction to be as conservative as our
needs will permit in new construction.
We should not only do this on account
of the cost of construction being re
duced later, but from the further and
more important fact that ojr Members
can ill altord to supply funds durinir
this reconstruction period except to
upply our pressing needs.
1 he past season has been one in
which the effect of returning to normal
conditions following the war has made
the work in every department more
difficult and satisfactory results more
uncertain of attainment. When we
consider these difficulties and unsatis
factory conditions the final results
warrant us in giving due credit and
expressing our appreciation of every
department and the loyalty with which
the several departments have coopera
ted to serve the interests of the Asso
ciation. The work of the Board of Directors
for the past year has probably been
more difficult than that with which
any former Board has been confronted
and we would fail in our duty to the
Board of Directors if we did not ex
press our appreciation of their faithful
service under the difficult and unusual
conditions which have confronted them
during the past season. The untiring
efforts of the Board of Directors and
the loyalty of the Members have all
contributed to the final result.
The loyalty of the Members is
wholly demonstrated when we consider
the fact that notwithstanding the ex
traordinary conditions that we have
been confronted with; all of which
were made known to the growers be
fore the cancellation period, the ton
nage cancelled this year was materially
less than the average of former years,
and the tonnage of new Members was
largely in excess of the average of
former years, and the further fact that
the tonnage of new Members for the
past seaso-i was many times greater
than the cancelled tonnage.
The three basic principles which
have at all times been our motto and
which we have at all times striven to
attain, are HONESTY. ABILITY and
ECONOMY. Of these three cardinal
virtues, HONESTY is the most impor
tant and the one which must be guard
ed and protected far more than any
other, for from this flows another and
more important than all others, viz:
CONFIDENCE
The Members have shown their
CONFIDENCE in the organization by
their loyaty and support at this critical
time. The past is secure and it is but
just and fitting that we hereby renew
our determination and rededicate our
selves to guard and protect each and
every one of these cardinal virtues,
and that we here highly resolve that
these cardinal virtues shall permeate
every department of this organization
and that this shall apply not omy to
the servants of the organization, but
also to the Members themselves in car
rying out their part from the inception
of the fruit, through the spraying, cul
tivating and harvesting, and that the
grade stamped on every box will re
present honestly and correctly the
character of the fruit therein, to the
end that in everv departme.it of our
work from the blotsom to the harvest
and from the harvest to the consumer.
HONESTY may always prevail and
thereby create not only in ourselves,
but in those who purchase our fruit,
that most to be desired condition of
all. viz: CONFIDENCE.
APPLE GROWERS ASSOC! TI0N,
By A. W. Stonf.
Genera! Manager.
Newtown Apples, 85c a Box, at Kaessers