anaheim-gazette 1912-09-12

FRUIT GROWERS EXCHANGE REPORT PRESIDENT STORY MAKES ANNUAL STATEMENT TO MEMBERS OF ORGANIZATION MILLIONS OF DOLLARS RETURN FOR FRUIT SOLD THIS YEAR—FUTURE PROSPECTS BRIGHT President Story, of the California Fruit Growers' Exchange, has forwarded the Gazette a copy of his annual report to members of the Exchange, dealing with business transactions the past year. From it we take the following extracts: Los Angeles, Aug. 28, 1912. To the Board of Directors and Members of the California Fruit Growers' Exchange: The year just ending is the eighth year since the dissolution of the California Fruit Agency. Season 1911-1912 In a business, the success of which is largely influenced by climatic conditions at both the producing and consuming ends of the line and in which the depression of today is more than likely to be followed by advancing prices and extraordinary demand next week, or the week after, and an extremely bad season by an exceptionally good one, or vice versa, it is self-evident that the grower who has suffered in times of stress must, in order to live, have his full share of good prices, good markets, and good years, when they come. Formerly the specu- and grades, including every box shipped, is slightly more than the average of the past eight years. Some localities and some growers have been fortunate; others, through circumstances almost wholly beyond the control of anybody, unfortunate, and the distribution of returns have as a result, been unequal. But the aggregate amount of money brought to California for citrus fruits during the year, has only been exceeded once in the history of the business. The hope of those growers who have suffered lies in growing good crops of good fruit; in protecting it from damage while upon the tree; and in putting it upon the market in good condition, using the Exchange for selling, and thus putting themselves in position to obtain all there is in it when the time of better things is on. The Exchange shipped during the year 9,191,143 boxes, which were sold for $16,891,489.95 net, or $1.84 per box, f. o. b. California. There were no losses from failure to collect, or in the transmission of funds. Two employes went wrong and took some Exchange monies but both were adequately bonded and no loss was suffered by the Exchange. These cases show the necessity of carefully bonding, in sufficient amount, all employees who handle money, and of more frequent visits to, and a more careful supervision of all offices. The result will be still greater care and efficiency on the part of the Exchange, which will be the more easily accomplished through the several division managers recently appointed, who will be in closer touch with their respective territories than was possible under the old system. Expenses have been higher per box than expected, due to less fruit handled on account of losses from wind, frost, hail and small sizes. Plans of operation had been made on a basis of 30,000 cars within the Exchange, while actual shipments were only 23,500. Immediately after the loss in fruit was is largely influenced by climatic conditions at both the producing and consuming ends of the line and in which the depression of today is more than likely to be followed by advancing prices and extraordinary demand next week, or the week after, and an extremely bad season by an exceptionally good one, or vfce versa, it is self-evident that the grower who has suffered in times of stress must, in order to live, have his full share of good prices, good markets, and good years, when they come. Formerly the speculator bought the fruit and took the profits when the markets or the seasons were good, leaving the burden of low prices and bad years upon the grower, who at that time was helpless because he had no means of his own of obtaining reliable market information and controlled no packing facilities. A cardinal principle of the Exchange from the beginning has been to keep the grower so fully posted that he is in a position to get the full benefit of all desirable conditions to offset the bad, which it is now and always has been at times impossible to avoid. Of all recent seasons, the one of 1911-1912 best illustrates the necessity from the grower's standpoint of applying the above principle to his business, and always standing fast and loyal in spite of adverse conditions, with accompanying bad results,—in line for the reaction and better things which are sure to follow. In November, the outlook was for the largest crop or oranges and lemons ever grown. Prolonged dry weather followed, and with accompanying electrical conditions, either prevented or withheld in large degree that most desirable maturity as to size and condition which comes in normal years. Continuous winds, with severe hail storms in some sections, caused much low grade fruit, large quantities being wholly lost through dropping and culling. The frost of Christmas night, either totally destroyed or badly damaged the fruit in many orchards. Holiday shipments of navel oranges brought record prices. Then followed during January and February, the coldest weather that the consuming country had known in 20 years, the quality of the fruit being injured by cold in transit, as well as in California. The result was restricted distribution and consumption, and a bad reputation for California oranges. Prices remained fair for a time, but supplies accumulated and markets broke on heavy shipments, much of which was of questionable quality. With June came unseasonable, cold weather in the East, which delayed maturity of competing fruits and vegetables; also of the Exchange, which will be the more easily accomplished through the several division managers recently appointed, who will be in closer touch with their respective territories than was possible under the old system. Expenses have been higher per box than expected, due to less fruit handled on account of losses from wind, frost, hail and small sizes. Plans of operation had been made on a basis of 30,000 cars within the Exchange, while actual shipments were only 23,500. Immediately after the loss in fruit was apparent, expenses were cut to the lowest point consistent with good service, beyond which neither your management nor your board of directors thought it wise to go. Under normal conditions, the expense rate of the past season would have been around 6 cents per box, the average of the three years next preceding. The traffic department has collected $125,705.51 from the carriers through payment of claims during the year. In the aggregate this is a large sum, but in reality a very small proportion—less than 1% per cent—of freight and refrigeration charges paid. The carriers have been compelled to recognize on more favorable terms, claims for damage by freezing in transit. The blanket rate and the diversion privilege have had some noteworthy extensions during the year into hitherto closed territory and further extension may soon be expected through the efforts of your traffic manager. The business of this department is on a clean-cut and up-to-date basis; not only as to claims, but as to all other questions it handles. The legal department has, as herefore, been ably conducted by Mr. Call. The lemon rate case ought soon to be finally and, we hope, favorably decided, and the pre-cooling case determined, so that growers and shippers, where they desire to do so, can safely go ahead with their plans for pre-cooling and ice-making. It is worthy of note that as a result of these suits, the $1 rate on lemons has been the legal and only rate since February and the $7.50 charge on pre-cooled shipments, for more than a year. The effect in both cases, whatever the final decision is, has been a large saving to the growers in transportation cost, which has already been received and which cannot be brought into controversy. The advertising department has again demonstrated its ability under extremely adverse circumstances, to make consumers for Exchange oranges and lemons, and notwithstanding the unusual difficulties that confronted shipners in properly sorting the fruit. change crop estimate uniformly close with have been ascertified growers, reporting from every producer State, surely can nearer the truth tor, receiver, spend with only a limited information. Thus the past year when to the crop, then that the output was 000 cars, and was cised for naming know enough now total for the State the 40,000 cars you may. In one year 1908-9, was the much out of the associations and estimated the orange third, and the certain circumstances inevitably slump in prices for possible to recovery being left for every standpoint near the truth as ing the size of a crop after which a coef of the facts as your best policy. The ers and other cities can plan according expect from California ange producer of but not least, you the most correct plan their operation can move their proper volume to Change in Handling. While the movethe sale of the fruit has been handled coldest weather that the consuming country had known in 20 years, the quality of the fruit being injured by cold in transit, as well as in California. The result was restricted distribution and consumption, and a bad reputation for California oranges. Prices remained fair for a time, but supplies accumulated and markets broke on heavy shipments, much of which was of questionable quality. With June came unseasonable, cold weather in the East, which delayed maturity of competing fruits and vegetables; also delay in the opening of the Valencia shipping season and cool weather in California; so that late navels went forward in good condition and brought fine prices for such growers as had good fruit. Sweets and seedlings of desirable quality, also did well in the markets at that time. Under these conditions, Valencias opened 25 cents higher than a year ago, but with increased supplies after the Fourth of July, and large quantities of summer fruits everywhere, a reaction to much lower prices followed, except on the limited quantity of the higher grades of desirable size. Lemons also suffered severely by cold weather, and while there was a reasonably steady demand at most times for good fruit at fair prices, the absence of lemon weather in the markets in May and June, while beneficial to oranges, caused a glut and lower prices for lemons, especially in the lower grades, which was only relieved by the hot weather following July 4th. Grape fruit, owing to increased demand for this popular breakfast fruit, and shortage of supplies from other sources, has done better than for many years. Notwithstanding the numerous difficulties noted above, the average price received for all varieties, sizes cooled shipments, for more than a year. The effect in both cases, whatever the final decision is, has been a large saving to the growers in transportation cost, which has already been received and which cannot be brought into controversy. The advertising department has again demonstrated its ability under extremely adverse circumstances, to make consumers for Exchange oranges and lemons, and notwithstanding the unusual difficulties that confronted shippers in properly sorting the fruit, it is the opinion of your agents in the field that the Sunkist brand is an exceedingly valuable asset, with a generally excellent reputation among dealers and consumers. The Red Ball brand appears also to be preferred in most markets over unadvertised brands of the same grade. As before suggested in these reports, any method of supervision that will result in more uniformity in the quality of the fruit put out under these advertised bands, will greatly increase the advantage you now have in the markets through advertising. It is surely true that the Exchange advertising campaign has made millions of dollars for California citrus fruit growers since it was inaugurated. One of the most practical means of taking care of the increasing crops that are bound to come will be through an extension from time to time of the advertising program, which is still in its infancy in comparison with what can be done. It is well to bear in mind that more than 10 years ago advertising was the "hobby" of your president, Mr. Story, as a practical method of increasing the consumption of Exchange oranges and lemons, and that he continually urged the adoption of a liberal advertising policy, until finally successful. It is an important fact that the Ex- ANAHEIM GAZETTE DIRECTORS Samuel Kraemer...President Max Nebelung...Vice Pres't Geo. W. Terry...Secretary F. A. Backs, Jr....Ass't Sec'y Dr. J. L. Beebe Chas Otto Rust Wm. J. W. Orr...Superintendent First National Bank...Treasurer Buy Stock Now American Orr Concrete (INCORPORATED) OF ANAHEIM, CALIF. Which has been placed on the market general public in one of the greatest neof the Electrical World for many a day. at 105 East Center Street, of Evans & C SAMUEL KRAE SAMUEL KRAE GEO. W. TERRY, SECRET change crop estimates have proved uniformly close when final shipments have been ascertained. Six thousand growers, reporting to the Exchange from every producing locality in the State, surely can and do come much nearer the truth than any local operator, receiver, speculator or broker, with only a limited means of obtaining information. This was clearly shown the past year when, after the damage to the crop, the Exchange estimated that the output would be around 40,000 cars, and was very widely criticised for naming so high a figure. You know enough now to be sure that the total for the State will be very close to the 40,000 cars you estimated in January. In one year only, the season of 1908-9, was the Exchange estimate much out of the way. Then, growers, associations and shippers all underestimated the orange crop about one-third, and the season under those circumstances inevitably wound up in a slump in prices from which it was impossible to recover, too great a quantity being left for late shipment. From every standpoint, it pays to come as near the truth as possible in estimating the size of a crop yet unharvested; after which a conservative statement of the facts as you know them is the best policy. Then the trade, consumers and other citrus growing sections can plan accordingly, knowing what to expect from California, the greatest orange producer of them all. And last but not least, your own growers have the most correct basis upon which to plan their operations intelligently and can move their fruit steadily and in proper volume to obtain best results. Change in Handling of the Markets While the movement of the crop and the sale of the fruit is now and always has been handled from California, the Exchange has heretofore depended on this problem, the board of directors has virtually abolished the general office at Chicago, by separating the markets into several grand divisions, with a strong man in charge of each, who will report directly to the general manager and the board in Los Angeles. These division managers will visit all agencies under them periodically and keep in touch with each by phone daily. They will be ready on a moment's notice to go to any market in case of emergency at a minimum of expense. With this closer supervision, the efficiency of all agencies should be greatly improved. The creation of these divisions now is only an extension of the plan the board had in mind when it established a second general agency in Omaha seven years ago. OIL LANDS WITHDRAWN California Tract Reserved For Furnishing U. S. Navy With Fuel Oil President Taft has withdrawn for the exclusive use of the navy 37,000 acres of rich oil lands in the Elk Hills, California. The order was issued this week. The tract withdrawn adjoins the Midway and McKittrick oil fields. Tests already made by experts from the geological survey indicate a 250,000,000 barrels, or twenty-five years' supply, based on liberal estimates of the probable consumption by the navy. All of the new battleships of the navy, including craft of all sizes and kinds, are equipped with oil-burning engines. Those ships now building will be equipped with oil burners. The decision of the president to provide the fuel for the ships of the navy from government oil tanks followed an investigation of the oil lands in the public domain by Secretary of the Interior Ballinger two years ago. IRRIGATORS IN NATIONAL CONGRESS TWENTIETH ANNUAL SESSION TO BE HELD AT SALT LAKE ONE OF GREAT IMPORTANCE CALIFORNIA WILL BE WELL REPRESENTED—FRESNO CANDIDATE FOR NEXT SESSION Questions of vast import to the agricultural development of the West are scheduled for discussions to be led by men of national prominence at the Twentieth National Irrigation Congress at Salt Lake City, September 30 to October 3. Senator Francis G. Newlands, president of the Twentieth Congress; Major R. W. Young, chairman of the board of governors and George A. Snow, chairman of the board of control, announce that the general arrangement of the program will be as follows: First session at 10 o'clock Monday morning, September 30; presentation of the Queen of Irrigation and her attendants and formal opening of the Congress. This meeting will be held in the famous Mormon Tabernacle which has a seating capacity of nearly 10,000 and will include addresses of welcome by Governor William Spry and Mayor S. C. Park and responses by officers of the Congress. Change in Handling of the Markets While the movement of the crop and the sale of the fruit is now and always has been handled from California, the Exchange has heretofore depended largely on its general Eastern office at Chicago for maintaining the working efficiency of its various agencies. This policy was adopted at the beginning when your agents were few in number and the volume of business small. For a short time a second general office was maintained at Omaha, which, although successfully conducted, was for what then seemed good business reasons, abandoned. As it appears today, the closing of that office was a mistake and a step backward. The volume of business is now so large, and so many new agencies have been established from time to time, that it is impractical longer to maintain that most desirable close relation from Chicago, or any other one point, with markets so widely separated as St. John, N. B., Regina, Sach., Vancouver, B. C., San Antonio, Texas, and Richmond, Va. Then, too, your New York office alone now handles more fruit yearly than the Exchange sold in all markets in several of the early years in its history. (That office sold 3,022 cars of citrus fruits in 1910-11. In 1895-6 the Exchange sold 2,487 cars in all markets; in 1896-7,-1,820 cars; in 1898-9,3,000 cars.) Some agencies have never been visited by a representative of the general Eastern office and others not as often as once a year. As a solution supply, based on liberal estimates of the probable consumption by the navy. All of the new battleships of the navy, including craft of all sizes and kinds, are equipped with oil-burning engines. Those ships now building will be equipped with oil burners. The decision of the president to provide the fuel for the ships of the navy from government oil tanks followed an investigation of the oil lands in the public domain by Secretary of the Interior Ballinger two years ago. The investigation disclosed that 50 per cent of the land set aside is undisputed public land. Thirty per cent, however, has been patented by the Southern Pacific railroad and others. The Department of Justice is now working to invalidate the sections patented by the railroad. Suits will be filed against the other patentees. Twenty per cent is covered by claims of oil operators which will be wiped out if the government wins its suit against the railroad. PROVED THEIR SMARTNESS "I had a dozen proposals before yours," scornfully said the wife during the quarrel, "and all from smarter men than you too." "I don't doubt they were," said the indignant husband; "they all managed to get out of it." ONE MEMBER WOULD DO "If I should kiss you," asked the bashful young man, "would you call your parents?" "Well," said the girl, "it wouldn't be necessary for you to kiss the whole family." YOUR VACATION Come in and have us send you the Gazette on your vacation trip. You can't afford to be without it. First session at 10 o'clock Monday morning, September 30; presentation of the Queen of Irrigation and her attendants and formal opening of the Congress. This meeting will be held in the famous Mormon Tabernacle which has a seating capacity of nearly 10,000 and will include addresses of welcome by Governor William Spry and Mayor S. C. Park and responses by officers of the Congress. A feature of the opening meeting will be the rendition of the Ode to Irrigation, words by Mrs. Gilbert McClurg, of Colorado, and music by Prof. John J. McClellan of Utah, by a chorus of 500 voices, under the direction of Prof. McClellan. Other musical numbers will complete the morning program. Men of national and international prominence will speak on timely topics at the afternoon session. In the evening of the first day will be seen the parade and electrical pageant, participated in by the Queen of Irrigation with her maids of honor, and the Wizard of the Wasatch and attendants. This promises to be the most spectacular production of its kind ever seen in the inter-mountain West. Economic questions relative to the use of water will be discussed at the morning session Tuesday and the afternoon session will be for the discussion of laws and legislation affecting irrigation and reclamation of land. For Tuesday evening arrangements are being made for illustrated lectures and discussion will be invited through a call of the states of the Union... Colonization and drainage will be the subjects for the morning session and third day while the afternoon session Wednesday will be devoted to con- Thursday, September 12 Now in the Concrete Pole Co. (PORATED) M, CALIFORNIA market for the first time to the greatest necessities and enterprises any day. Information can be had vans & Culp and Geo. W. Wright. KRAEMER, President KRAEMER, President Secretary ANNUAL SESSION TO AT SALT LAKE ONE TIMELIFE IMPORTANCE WILL BE WELL REPRESENTED — FRESNO CANDIER NEXT SESSION fast import to the agriment of the West are discussions to be led by general prominence at the National Irrigation Conference City, September 30 Crisis G. Newlands, president of the Congress; Maing, chairman of the nomors and George A. of the board of con- that the general ar- the program will be as at 10 o'clock Monday December 30; presentation of Irrigation and her att- normal opening of the meeting will be held at Mormon Tabernacle setting capacity of nearly include addresses of Governor William Spry C. Park and responses the Congress. ferences of foreign representatives to the Congress. Committee meetings and special entertainment features are scheduled for Wednesday evening. For the last day of the Congress the plan is to make the morning session an "experiment meeting" and in the afternoon the various committees will make their reports and present resolutions for discussion and final action of the Congress. The Congress will close with a reception and ball to be given at the Hotel Utah in honor of the officers of the Congress and delegates. The rendition of the Ode to Irrigation, words by Mrs. Gilbert McClurg, of Colorado, music by Prof. John J. McClellan, of Utah, by a chorus of 500 voices, accompanied by the great organ at the Salt Lake Tabernacle will be a special feature of the National Irrigation Congress and will be directed by Prof. McClellan, who has played at free recitals attended by 5,000,000 tourists since his appointment as organist in the Mormon Tabernacle. Exhibit features of the Congress which opens at Salt Lake September 30, will include one of the best collections of irrigated farm products ever shown in the West, according to a report made to Governor William Spry by State Horticultural Inspector J. Edward Taylor, who is collecting the exhibit. The products will be shown in connection with the Utah State Fair which will be on during the Congress. Officers of the Congress expect to present the biggest parade and electrical pageant ever seen in the intermountain West. Besides the ordinary display features, the pageant will include a series of floats depicting the history of irrigation on the American continent from the days of the Spanish padres to the present time. =few Lucky Days left Santa Fe Back East Excursion tickets will be on Sale— August 14-15-16-22-23-24-29-80-31 September 4-5-6-7-8-11-12. for instance ROUND TRIP Boston $110.50 Chicago 72.50 Council Bluffs 60.00 Denver 55.00 Houston $60.00 Kansas City 60.00 Memphis 70.00 New Orleans 70.00 New York $108.50 Omaha 60.00 St. Louis 70.00 St. Paul 73.50 To many other points not named above Stop over at Grand Canyon—Yosemite Valley—Indian Pueblos— J. H. Clabaugh, Agent. PHONES: PACIFIC 217 PALACE MARKET Does the best business because it sells the best meats. It is mighty hard to get a bad bargain here. If you want the very best you will buy from us. We are sole agents for Imperial Creamery butter. the very best in Southern California. Prices always right. Prompt delivery. WILLIAM SCHUMACHER, Prop 119 E. CENTER ST. Both Phones