anaheim-gazette 1930-07-17
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AGRICULTURE AND THE TARIFF
Address by Secretary of Agriculture Hyde Broadcasted Throughout Nation
For agriculture, the tariff act of 1930 will be a distinct gain. Actually and potentially it increases tariff protection for American farmers. Many of its rates, such as those on wool, eggs, long staple cotton and dairy products, will be generally beneficial. Others will be of maximum assistance in border markets and under favorable market conditions. All will serve to hold the home market for the American producer, and add to the economic urge to agriculture to balance its production against the market demand.
The new tariff act provides increased duties upon agricultural products of which we imported in 1928, $257,000,000 in their raw state. Of the same products, we imported $333,800,000 in their first processed form. For practical purposes therefore, the new tariff act is applicable to imports having a value of more than $620,000,000. The increased rates will encourage the production of crops, such as soybeans and sugar beets; will add to the value of such by-products as saseln and vegetable oils and offer many opportunities for diversification through crops which are now offered a stronger market.
The new bill reduces, even though it may not entirely eliminate the disap-ity in tariff protection which has herefore existed between agricultural products and industrial products. The statisticians of the American Farm Bureau estimate that if raw agricultural products alone be considered against industrial products there is an advantage in favor of industry, but that if first processed forms of agricultural products (such as butter and meats) be considered there is an advantage in favor of agriculture. It can safely be said that the new act takes a long step toward parity in tariff protection for cream, casein, eggs and egg products, a large variety of fresh fruits and fresh vegetables and sugar.
The duty on wheat was not increased above the rate established by the President under the flexible provision of the act of 1922. Establishing this rate of 42c in the 1930 act, however, makes possible such changes in rates as later investigation may show to be required. Despite the surplus in production, the duty on wheat is partially effective. It is most effective in protecting the hard spring wheat growers in seasons of short crops, but it benefits other classes of wheat by creating a stronger market.
Visualize the condition which would exist if no tariff whatever existed. Absent any tariff, our markets in the Northwest and on our seaboards would be open to both North and South American competition at a lower freight rate than is enjoyed by our own growers, and at a smaller cost for hauling than the present charge from the producing country to Liverpool. This competition would soon operate to pile up our surplus wheat at inland points, and to lower prices. Despite the fact that the surplus American wheat prevents full protection from the tariff, it is none the less true that such tariff does hold the American market for the American farmer. The degree of its effectiveness varies with market conditions.
Increases in duties on livestock and poultry will be effective particularly in border markets and at some phases of the production cycles. The increase in duty on live cattle, weighing less than 700 pounds, from 1½ to 2½ cents per pound, and upon the heavier animals from 2 to 3 cents will tend to strengthen the market for stocker and feeder cattle. Likewise the increase in duty on hogs from ½ to 2 cents per pound will tend to strengthen the hog market, particularly when our own supplies are relatively small. The increase in the duty on live poultry from 3 to 8 cents will be effective in some markets. Increasing the duty on eggs in the shell from 8 cents to 10 cents will afford protection in border markets which should reflect back to the interior. The increase in the duty on frozen eggs from 6 to 11 cents will be effective to meet competition from China.
40 to 65 cents per bushel, oil from 3.3 to 4.5 cents. Since flaxseed production in States is not equal to domestic demands this increase is greatly effective.
Sheep raisers will profit crease in the duties of wool on scoured wool, not finer increased from 31 to 32 cents and the duty on wool finer 37 cents per pound.
An increase in the duty from 1 to 2.5 cents per pound beans from 1¼ to 3 cents peanuts from 4 to 5 cents, other vegetables and nuts fective to a large extent. Of imports of these product over $88,000,000 annually.
The duty on sugar will aid the beet sugar gro-国.
It has been claimed that which the bill extends to are nullified by increased nonagricultural products farmer must buy. While it might be selected upon written argument might be being low facts will show its.
The average farm farm budget amounts to $1,159. Test the effect of the tariff budget, the new rates have to it. The rate on each item weighted by the expenditure item to get a weighted rate. We find then, that average tariff rate on com- chased by farmers was 16 for the tariff act of 1922 and is by the tariff act of 1930. Possible increase in the tariff appears, therefore, to be cent or about $48 per year.
A large part of this increase is on commodities which t- turped from raw materials American agriculture. To comprise 50 per cent of purchases. It is this 50 per- bears the highest rates at the increases have been If we eliminate the items as a whole may be said themselves or from the m-
The new bill reduces, even though it may not entirely eliminate the disparity in tariff protection which has heretofore existed between agricultural products and industrial products. The statisticians of the American Farm Bureau estimate that if raw agricultural products alone be considered against industrial products there is an advantage in favor of industry, but that if first processed forms of agricultural products (such as butter and meats) be considered there is an advantage in favor of agriculture. It can safely be said that the new act takes a long step toward parity in tariff protection for agriculture, and that it affords to agriculture, so far as a law can do so, a high degree of protection.
On an equivalent valorum basis, the percentage of increase on agricultural products (Schedule 7) is more than twice as large as the increase upon other schedules in the bill. This increase was 54.43 per cent. Since the increase on all items covered in the bill is only 6.17 per cent, the increase of 54.43 per cent on agricultural products is significant.
The next largest increase is 22.17 per cent over the act of 1922. This is on spirits and fruits syrups. These products are almost wholly of agricultural origin.
The fourth highest percentage of increase is on schedule 11 which covers wool, and its manufactures. Here the increase is 20.77 per cent over the act of 1922. The tariff increase on the various classes of unmanufactured wool runs from 3c to 13c per pound. The duty now varies from 22c to 27c per pound.
Important agricultural products upon which the rate of duty has been raised are cattle, meats and meat products, hides, wool, long staple cotton, flaxseed, soybeans, butter and cheese, milk and
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Likewise the increase in duty on hogs from ½ to 2 cents per pound will tend to strengthen the hog market, particularly when our own supplies are relatively small. The increase in the duty on live poultry from 3 to 8 cents will be effective in some markets. Increasing the duty on eggs in the shell from 8 cents to 10 cents will afford protection in border markets which should reflect back to the interior. The increase in the duty on frozen eggs from 6 to 11 cents will be effective to meet competition from China.
The duties on all meats and meat products were raised. In some cases, especially the fresh meats and poultry, the increase in duties will have some effect in local markets, particularly when supplies in the United States are moderate. The great benefit arises from the fact that it protects the American market from the threat of gluts created by foreign producers.
Of great significance are the increases in duties on dairy products. The duty on fresh milk was raised from 2½ to 6½ cents per gallon; on cream from 20 to 56.5 cents per gallon; on condensed milk, unsweetened, from one to 1.8 cents, and sweetened from 1½ to 2¾ cents per pound; on cheese from 5 to 8 cents per pound; casein from 2½ to 5½ cents per pound; and on butter from 12 to 14 cents per pound. The increases are substantial, and since the production of many of the dairy items is not sufficient for domestic requirements, a duty on these items will be largely effective. The extent of effectiveness of the duty on butter will depend largely upon the extent to which this country holds production in check so that supplies may not exceed requirements.
The duty on flaxseed was raised from
A large part of this increase is on commodities which farmers produce, or which tured from raw materials. American agriculture. The comprise 50 per cent of purchases. It is this 50 per cent bears the highest rates at the increases have been. If we eliminate the items as a whole may be said themselves or from the men of their products, we find remaining dutiful items rates average 34 per cent at 1922 and 38 per cent by act. It may be said, there average American farm get may be as much as $6 under the new act on it the farmer is not interest ducer.
Examining further, we term "high agricultural rate only to commodities produce agriculture. Coffee, average farm family spend year, tea, on which they per year, bananas, on which $4.36, many spices and cruc农ultural products not United States and which b
There is a large free l includes many of the comm chased by farmers. Fuels, lubricating oils, of which farm buys $95.32, and ferti terials used for fertilizer ly free of duties. Over $8 the farmers' expenditures machinery is for items o n and incidentally a large remaining expenditures in such as automobiles, on w iff is clearly ineffective. cent of the farmers' exp building materials, and ove of their expenditures for e miscellaneous supplies are the free list. In all, about of the farmers' expenditures items on which there are in the tariff act of 1930.
To summarize, then, 50% the American farmer's pur commodities produced by agriculture. About 39 per expenditures is for comm have a tariff and in which interested as a producer.
Stated in round figures that the rate increases on commodities were entirely average income per farm of 1928 production and increased by about $150. expenditures per farm would about $48 by increases commodities purchased.ance in charge of duties would be about $102 per of the farmer.
Of course tariff duties ever fully effective in co raising prices. The tariff less effective than the t
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EQUALITY OF ASSESSMENTS
and REDUCTION in TAXES
MONTGOMERY FOR ASSESSOR CLUB
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Send your name to 122 S. Lemon St., Anaheim, Calif.
Talk across the miles/
Constant improvements are being made in inter-city telephone service.
You can get your connection quickly. 97% of such calls are handled while the calling person remains at the telephone. Transmission is clearer. Storm-resisting cables are being installed.
You can get more business into the business day, with inter-city telephone service.
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ANAHEIM GAZETTE
FIGHTING AGAINST BEE FOULBROOD
Unfavorable Decision by Court Will Be Appealed By Bureau
California's campaign against American Foulbrood, a disease of bees, will can Foulbrood, a disease of bees, court decision against the eradication law, recently rendered in San Joaquin county.
This assurance was given by W. C. Jacobsen, head of the bureau of plant quarantine and pest control in the state department of agriculture who said the case would probably be appealed, and if found necessary, an amendment to the law submitted to the next legislature.
"Here we have an industry in this state worth a million and a half dollars, which is threatened with destruction unless means are taken to stop spread of foulbrood," said Jacobsen.
"The state law provides that eradication and destruction of infested hives is permissable. John Gray, owner of apiaries in several counties, was ordered to eradicate the disease. Later the state and county agricultural officials deemed it necessary to destroy his hives by burning—the only known method of eradication.
"Gray protested and filed suit against us, claiming damages because the state law did not specifically provide for burning to eradicate foulbrood is concerned."
Jacobsen declared that it was absurd to think the legislature should write into every law regarding destruction of infested property just how that property should be destroyed. Knowledge of such subjects changes from year to year, he said, and where method is accepted, another system more efficacious may be found later.
"Let those who see in the smoke of burning hives only the fumes of heartless destruction take full cognizance of the situation and stop to think the
The Georgia Court of Appeals, according to the newspapers, has rendered a decision that it is woman's duty to drive from the back seat. Wonder if the court didn't mean to add the word "only."
NOTICE INVITING SEALED PROPOSALS FOR FURNISHING COPPER WIRE AND CABLE
Notice is hereby given that sealed proposals will be received by the City Council of the City of Anaheim, at the office of the City Clerk of said City, up to the hour of eight o'clock P.M. of Tuesday, the 12th day of August, 1930, for furnishing to said City the following approximate quantities of copper wire and cable in accordance with Specifications No. 50:
ITEM 1.—WEATHERPROOF WIRE.
Section 1 of Specifications No. 50:—
1200 lbs. No. 2-0, 7 strand
800 lbs. No. 4-0, 7 strand
2000 lbs. No. 2, solid
4000 lbs. No. 4, Solid
3000 lbs. No. 6, solid
2000 lbs. No. 8, solid
2000 lbs. No. 10, solid
ITEM 2.—RUBBER COVERED WIRE.
Section 2 of Specifications No. 50:—
1000 ft. No. 10, solid black
1000 ft. No. 10, solid white
ITEM 3.—LEAD COVERED CABLE.
Section 4 of Specifications No. 50:—
2500 ft. No. 8, solid, single conductor, for 2500 volts.
Separate proposals will be received and separate awards may be made for the three items. Each proposal for each item must be accompanied by a certified or cashier's check, payable to City of Anaheim, in an amount not less than ten per cent (10%) of the amount of such proposal, and the check of the successful bidder for each item will be held by the City until the delivery and acceptance of the wire in such item, as a guarantee of faithful performance.
Specifications and further information may be obtained at the office of the City
A large part of this increase, however, is on commodities which the American farmer produces, or which are manufactured from raw materials produced by American agriculture. These articles comprise 50 per cent of the farmers' purchases. It is this 50 per cent which bears the highest rates and on which the increases have been the greatest. If we eliminate the items which farmers as a whole may be said to buy from themselves or from the manufacturers of their products, we find that, for the remaining dutiful items, the tariff rates average 34 per cent by the act of 1922 and 38 per cent by the present act. It may be said, therefore, that the average American farm family's budget may be as much as $6 a year greater under the new act on items in which the farmer is not interested as a producer.
Examining further, we find that the term "high agricultural rates" applies only to commodities produced by American agriculture. Coffee, on which the average farm family spends $16.54 per year, tea, on which they spend $4.96 per year, bananas, on which they spend $4.36, many spices and crude rubber are agricultural products not grown in the United States and which bear no duties. There is a large free list which includes many of the commodities purchased by farmers. Fuels, gasoline and lubricating oils, of which the average farm buys $95.32, and fertilizer and materials used for fertilizers are entirely free of duties. Over 87 per cent of the farmers' expenditures for tools and machinery is for items on the free list, and incidentally a large part of the remaining expenditures is for items such as automobiles, on which the tariff is clearly ineffective. Over 60 per cent of the farmers' expenditures for building materials, and over 22 per cent of their expenditures for equipment and miscellaneous supplies are for items on the free list. In all, about 39 per cent of the farmers' expenditures goes for items on which there are no tariff rates on the tariff act of 1930.
To summarize then, 50 per cent of the American farmer's purchases is for commodities produced by American agriculture. About 39 per cent of his expenditures is for commodities which have a tariff and in which he is not interested as a producer.
Stated in round figures and assuming that the rate increases on agricultural commodities were entirely effective, the average income per farm on the basis of 1928 production and prices would be increased by about $150. The average expenditures per farm would be increased about $48 by increases in duties on commodities purchased. The net balance in charge of duties, therefore, would be about $102 per farm in favor of the farmer.
Of course tariff duties are seldom if ever fully effective in correspondingly raising prices. The tariff on steel is less effective than the tariff on hogs burning to eradicate foulbrood is concerned."
Jacobsen declared that it was absurd to think the legislature should write into every law regarding destruction of infested property just how that property should be destroyed. Knowledge of such subjects changes from year to year, he said, and where method is accepted, another system more efficacious may be found later.
"Let those who see in the smoke of burning hives only the fumes of heartless destruction take full cognizance of the situation and stop to think the burning of a thousand colonies of infected bees this year may prevent the unnoticed but nevertheless real loss of a million colonies from the ravages of the disease during the next few summers," Jacobsen asserted.
"If anyone still feels that this burning is not for the best interests of the industry as a whole, let them suggest a practical method of eradication which has not already proved itself ineffective."
CROP REPORTS ARE OPTIMISTIC
Favorable Weather Conditions For Fruits and Vegetables
California weather got back to normalcy during the past two weeks and vegetable crops profited.
The Federal-State Crop Reporting Service is optimistic over conditions in the fields, according to their latest bulletin.
Melons and tomatoes are the principal vegetables at this time in production and practically all sections have crops in good condition, the report said. The warm weather was a bit too general, however, and its presence on the coast was reflected in retarded growth of lettuce.
Imperial Valley cantaloupes are about completed, but Honeydews and Honeyballs will continue for the rest of the month. Yields in the Valley have been only about two-thirds as heavy as last year.
Melons in the San Joaquin Valley have taken a new lease on life and loadings started in the Delano-Earll-mart sections show good quality. Yields will be heavy from this region, with steady production for another month. Turlock district growers report a light set, but melons are large and of quality.
Quality is lacking in lettuce from the coastal districts. Some fields are producing fair quality, but tipburn is general and probably cannot be eliminated for another month. Solldity has been good, however, to date. Colma has been shipping a few cars of Summer lettuce, which has lacked solidity. July 15 to 20 should see lettuce start moving from
What the rate increases on agricultural commodities were entirely effective, the average income per farm on the basis of 1928 production and prices would be increased by about $150. The average expenditures per farm would be increased about $48 by increases in duties on commodities purchased. The net balance in charge of duties, therefore, would be about $102 per farm in favor of the farmer.
Of course tariff duties are seldom if ever fully effective in correspondingly raising prices. The tariff on steel is less effective than the tariff on hogs and lard. The tariff on automobiles is less effective than the tariff on wheat or on corn. Neither the increases on the commodities the farmer buys nor on those he sells will be fully effective. But, the foregoing analysis is sufficient to demonstrate that so far as tariff protection can go, the farmer is in a stronger position by virtue of the 1930 act.
One great source of potential benefit to agriculture lies in the possibilities which the bill opens up for better balanced production. Undoubtedly the act offers a larger market for many products. Our net imports for the years 1926-28 of commodities upon which duties were raised, and which can be produced in this country, give a rough measure of the possibilities of shifting production so as to achieve a better balance. For instance, we import vegetables which require 388,000 acres to produce. Our imports of soybean oil require 160,000 acres; of corn, 84,000 acres; of peanuts, 67,000 acres; of figs, 62,000 acres; of meats and meat products, 341,000 acres; of dairy products and by-products, 450,000 acres; of cattle, hogs and sheep, 818,000 acres; etc.
On the basis of recent volume of domestic flax consumption and production the increased rates of flax, flaxseed and linseed oil, make possible a substitution of 2,300,000 acres of flax for hard seed spring wheat. The total shift in increase from crops of which we now produce too great a surplus to crops to which increased tariff protection now offers a better market could run as high as 10,000,000 acres.
In the old days the farmers seemed to think that the money out in the West all went to Wall Street. Now Wall Street is wondering where it is going.
Washington in summer is said to be one of the hottest cities in the country regardless of whether or not Congress is in session.
McCormac School
of Business and Secretarial Training
Open its summer term this week in the McCormac Building, 706 North Main Street, Santa Ana, California. Phone 3610.
Students are received any school day or school evening. Tuition only $3 a week, day school, $2 a week, night school.
Here high school students may continue their study at small expense and beginners may gain two months' time over those who wait until fall to enter.
Call to visit our school in session, inspect our modern equipment and let us help you select your course.
Ask to see
Well the tariff has been passed and signed for some time now and Europe hasn't broken off diplomatic relations with us yet.
Did you ever go back home after spending a few years in the city and notice how much smaller the old swimmin' hole is than it used to be?
Flaming Color!
Magical Forms!
Grandeur Sublime!
ZION CANYON, bordered for miles with gigantic battlements that seem to flame with scarlet glory. BRYCE CANYON, a fairyland of fantastic shapes, cut by erosion — spires, towers, cathedrals, and even statues of famous personages! GRAND CANYON, Nature's masterpiece of limitless grandeur!
Combined in one tour, these wonder places of the West provide a travel experience unmatched in any land. Make them part of your visit to 'the East at Bargain Summer Fares.
PERSONALLY ESCORTED TOURS
to ZION-BRYCE-GRAND CANYON NATIONAL PARKS
—July 26...Aug. 9, 23...Sept. 6 and 13.
NATIONAL PARKS
PERSONALLY ESCORTED TOURS
to ZION-BRYCE-GRAND CANYON
NATIONAL PARKS
—July 26...Aug. 9, 23...Sept. 6 and 13.
UNION PACIFIC
R. A. PARKER. Agent
Union Pacific Station, Anaheim
Telephone 629
Florida Tribute to the California Fruit Growers Exchange
A striking testimonial to the efficiency and effectiveness of the California Fruit Growers Exchange in a year of bumper production by both states! Yet not surprising when we stop to realize the tremen-
California Fruit Growers Exchange
A growing statement was made recently by the California Citrus Exchange in the "Floridaouthpiece of the Florida citrus industry: has unified marketing in that the grower organization controls approximately 50% of the citrus output...Florida has lacked marketing, her growers cooperative about 33 per cent of the citrus crop, and outside concerns competing with selling the other 67 per cent.
The 1928-29 season, California ship-carloads of citrus, sold f. o. b. for $22. Florida shipped 62,877 cars, sold $844,805. FORTY PER CENT MORE BURNED CALIFORNIA GROWERS 116 MORE MONEY.
Citrus marketing will do relatively as Florida as it has for California. That is why Farm Board recommends it, why leading groups have merged into the Florida change to help bring it about and why doctors, lawyers, manufacturers, merchants are asked to assist growers in arranging so they may join the Exchange."
A striking testimonial to the efficiency and effectiveness of the California Fruit Growers Exchange in a year of bumper production by both states! Yet not surprising when we stop to realize the tremendous difference between orderly, systematic marketing, conducted by one capable agency having every vital piece of market information in hand...and the comparatively less well organized Florida industry.
The facts are to be expected...that Exchange members consistently average higher returns and operate at lower selling cost than any other citrus sales agency. And these benefits can be still more greatly increased as more California growers come into the Exchange.
Florida growers are coming to the same conclusion that the 12,000 California Fruit Growers Exchange members have already reached, and as more California growers are doing every year. For complete information about the California Fruit Growers Exchange, talk to the manager of your nearest District Exchange or Exchange Association. Or for further information, write now to Growers Service Bureau, California Fruit Growers Exchange, Box 530, Station "C", Los Angeles.
Oranges Sunkist Lemons Grapefruit
THE EXCHANGE IS: The California Fruit Change is a non-profit organization of more than 75% of California citrus fruit growers, producing over 75% of citrus crop, operated by and for them on a basis. Its object is to develop the national and market for California Oranges, Lemons and Grapefruit, and to provide a marketing organization that will sell the fruit of its members most advantageously and at least expense. Receipts from sales, less only actual cost of operation, are returned to growers. Applications are received through all the Exchange's 210 local packing associations, 23 District Exchanges, or at the central office in Los Angeles.