anaheim-gazette 1932-12-01

Teague Warns Bankers Time Has Come When They Must Decide Whether or Not to Support Cooperative Market Groups Cites Records Established by Exchange and Walnut Group In Bettering Conditions for Growers; Says Surplus Crops Offer Greatest Problem Because “Clearing House” Fail to Work “The time has come when the bankers of California should decide whether they will actively support cooperative marketing associations of the type of the California Fruit Growers Exchange and the California Walnut Growers association.” said C. C. Teague, president of these organizations, to the California Bankers association at their Los Angeles meeting on November 26. Mr. Teague told the bankers of the need for more support if these organizations are to continue their past successful performance and thereby permit their members to weather present economic conditions. Mr. Teague stated that he had spent years as an agricultural producer, farmer, grower, orange, walnut and fruit grower owned and controlled cooperative marketing groups controlling a large percentage of these crops. Mr. Teague has been a director of the exchange for 22 years and its president for 12 years, and president of the walnut association since its organization 20 years ago. He has given a large share of his time to these organizations, has never accepted any salary, and has paid his own expenses most of the time. Cardinal Principles Mr. Teague is also a leader in banking circles. It was brought out that their cooperatives and as a result, practically 100 per cent of the citrus fruits and walnuts grown there are so marketed. “The first cardinal principle is orderly marketing, the regulation of shipments and of supply to demand in all markets and proper pricing,” said Mr. Teague, discussing the fundamentals of marketing. “The second cardinal principle is the expansion of consumer demand, and of the output from California for many years. “The Exchange has invested $16,738,000 for national advertising, and by this means the dietary and health values of citrus fruits have been taught to the public. The exchange caused scientific research to be done which developed the facts for this advertising; it developed the Sunkist juice extractor which has created a new market for 16,000 carloads of oranges and lemons, according to recent surveys; the exchange has maintained a national sales organization with salaried agents in 53 markets, which no other sales agency for similar products can compare in efficiency and low selling costs. The exchange has the most complete system of market information of any agency handling perishable products. “The average sales cost for the past three years for all its services except advertising, has been 2.38 per cent of the f.o.b. value of the fruit, or 1.71 per cent of the delivered value. These figures should be used in comparing with other shippers, as the exchange is the only sales organization engaged in national advertising. On a box basis the total cost of advertising and selling is 13.5 cents per box.” Surplus Is Problem The citrus executive stated that for President Roosevelt and he wouldn’t but we should Secretary of State Mr. Davis is a fortune in ban prices in Cuba himself to publish ginning of the student Wilson as Treasury, Acting State and as an Peace Conference. For the past has served President Hoover in Euro nations arising a member of but was called in tions to straight several European member of the League. At principal represent States in trying ment treaty arangements on for the forthcoming economic Conference. Norman Davies more intimately ican and would cessor to Secr opinion. LADIES One result of decided change feminine aspect ton. Alice Root Mrs. Dolly Gar the picture. Mr. Teague is also a leader in banking circles. It was brought out that their cooperatives and as a result, practically 100 per cent of the citrus fruits and walnuts grown there are so marketed. "The first cardinal principle is orderly marketing, the regulation of shipments and of supply to demand in all markets and proper pricing," said Mr. Teague, discussing the fundamentals of marketing. The second cardinal principle is the expansion of consumer demand, and markets to meet increasing production. Production always increases when the industry is prosperous, and unless the demand can be similarly increased, there is surplus followed by demoralization of markets." Mr. Teague listed six processes by which demand can be increased: (1) the product must be inherently good, (2) it must be properly prepared for market, (3) it must be uniformly graded and attractively packed, (4) it must be merchandised properly to secure the support of the trade, (5) increased demand can be created by finding new or attractive methods of using the product, (6) by national advertising. Given Economic Picture "Practically all of the difficulty of the fruit crops of California is due to surpluses, with resulting demoralization of markets," said Mr. Teague. "In many cases this could have been avoided if the growers had been properly organized so as to market properly and increase demand through national advertising. National advertising is expensive. It can only be done by collective effort, by means of which a large sum can be created at low cost per package. It has never been found feasible to collect a large advertising fund from a large number of commercial shippers, as they are so competitive that they will not agree as to how the fund should be used. Industry advertising can only be done by a cooperative." The bankers were given a picture of the economic importance of walnuts and citrus fruits to California, and especially Southern California, when they were told that the average annual net return for the past five years has been $11,154,091 for walnuts and $112,253,750 for citrus. Adding the $43,109,026 bill for freight and refrigeration brings a total annual sales income from these two crops of $166,617,467. Why Better Conditions? Mr. Teague reviewed the fact that the cooperatives now representing these crops were born because of unsatisfactory marketing conditions, the result of what was then overproduction of walnuts, oranges and lemons. Yet California walnut production at the time the association was formed was 10,000 tons and the average price 12.5 cents per pound. The average production for the past five years was 81,000 carloads average during 1931 and 1932, and to 45,000 acres of oranges and grapefruit still to reach bearing age in California and Arizona, Mr. Teague told the bankers that the orange industry faces a continued surplus condition. Cites Pro Rata Plan "The orange industry has received very little above costs for the past two seasons," said Mr. Teague, "and unless something can be done to regulate supply to demand and to create a higher level of prices, there will be no margins from which growers can live and pay interest on borrowed money, to say nothing of repaying indebtedness. "In my opinion, the only way that this can be done is to build up the membership of the California Fruit Growers exchange until it controls 90 per cent or better of the citrus fruit production of California and Arizona. With such isable products. "The average sales cost for the past three years for all its services except advertising, has been 2.38 per cent of the f.o.b. value of the fruit, or 1.71 per cent of the delivered value. These figures should be used in comparing with other shippers, as the exchange is the only sales organization engaged in national advertising. On a box basis the total cost of advertising and selling is 13.5 cents per box." Surplus Is Problem The citrus executive stated that for many years past the exchange has been able to maintain a reasonably stable market condition for citrus fruits, though it had only 70 to 75 per cent of the fruit, and that this regulation by the exchange has brought increased returns to California of hundreds of millions of dollars. "Now let us look at the condition that has upset this program which was worked so well for so many years," said Mr. Teague. "The exchange is no longer in position to regulate the shipments to meet the demand for the reason that production has increased to a point where there has been a surplus for the past two years, which means that a satisfactory market cannot result unless the off sizes and off grades are left at home. "With a surplus, the exchange with not to exceed a 75 per cent control of oranges cannot take the surplus of the entire industry out of only 75 per cent of the industry." "The exchange cannot maintain its membership against others who are continually soliciting those members on the basis of representation that shipments made through them do not have to be pro-rated and that, therefore, all of the growers' fruit can be shipped. Growers are also solicited on the basis that if their fruit is shipped by other agencies it will not have to bear its share of the cost of national advertising." Pointing to crops reaching over 81,000 carloads average during 1931 and 1932, and to 45,000 acres of oranges and grapefruit still to reach bearing age in California and Arizona, Mr. Teague told the bankers that the orange industry faces a continued surplus condition. DEBTS Europe only wean elections ward with a general vision of interim further suspensions; the whole subject I think there opposition in the cellation of the but I think they growing sentiments readjustment or be mutually advancing We should not something for way can be work by Senator Borra and many other could, as many debts for prosper solution would everybody in this It is entirely p pro work out some situation which ward the immediate international trade tinue to be of industry and bu solution ought to If I am any k is going to be de deal that end this wi SUN... Why Better Conditions? Mr. Teague reviewed the fact that the cooperatives now representing these crops were born because of unsatisfactory marketing conditions, the result of what was then overproduction of walnuts, oranges and lemons. Yet California walnut production at the time the association was formed was 10,000 tons and the average price 12.5 cents per pound. The average production for the past five years has been 28,000 tons and the average price for No. 1 soft shells, 20.32 cents per pound. The production of walnuts has increased 5.5 times the rate of population increase of the United States and yet a satisfactory market has been maintained. "The reason for the difference between this industry and the condition prevailing in most agricultural industries is the California Walnut Growers association, which has for some years controlled 85 to 90 per cent of the crop," said Mr. Teague. "Today, when all farm products are selling on a basis of approximately 50 per cent of pre-war levels, walnuts are selling at 106.4 per cent of pre-war levels, and notwithstanding this splendid record, from 10 to 15 per cent of the walnut production is still outside the association. "The California Fruit Growers exchange was organized 39 years ago to remedy what was considered a surplus. The average production of California citrus fruits was then 4,815 carloads. For the last three years the average annual production has been 73,337 carloads, an increase of 1,420 per cent. Few agricultural industries have grown so rapidly. Develops Market "Why is it that an industry that was in trouble 39 years ago, yet has increased in production 15.8 times the rate of population increase, has not suffered to the same degree as most agricultural industries during recent years?" asked Mr. Teague of his banker listeners. "The answer," he stated, "is the California Fruit Growers exchange, which has controlled 65 to 75 per cent of the orange industry has received very little above costs for the past two seasons," said Mr. Teague, "and unless something can be done to regulate supply to demand and to create a higher level of prices, there will be no margins from which growers can live and pay interest on borrowed money, to say nothing of repaying indebtedness. "In my opinion, the only way that this can be done is to build up the membership of the California Fruit Growers exchange until it controls 90 per cent or better of the citrus fruit production of California and Arizona. With such control I am satisfied that an increased return of $1.00 a box can be obtained." Mr. Teague explained that "clearing house" organizations of shippers do not work. It failed years ago in California. It was tried in Florida and in other perishable fruit industries and has failed. It failed in California last summer when after two weeks the Mutual Orange Distributors and other shippers withdrew. The plan was in operation one month, during which the exchange lived up to the rules 100 per cent, and during which the market advanced 40 cents a box. After the plan was abandoned the market declined to a low of 60 cents below that maintained during the prorate period. "Our competitors argue that competition among sellers is necessary and a good thing for a seller, but we think such competition much better for the buyer than for the grower who has fruit to sell." said Mr. Teague. "Their theory of more competition for the sake of efficiency does not appear to be well founded when we consider lemons of which the exchange has over 90 per cent control and by reason of this control has been able to maintain a stable market for the past seven years." Mahoney—I hear Jake is in the hospital. Baloney—Yes, he got caught in the rain and tried to economize by not taking a taxi. Now he's got pneumonia. Mahoney—and Joe is in the hospital, too. Baloney—Yes, he took a taxi. It is entirely clear that work out soon situation which war ward the immediate international trade tinue to be of industry and bus solution ought to be if I am any kind is going to be de that end this wi SUN The more I learn the part which life on earth, they understand the religious sect which The latest science effect of the sun announced by Pre U.S. Bureau ofor the ability of around the earth It has long been space, not very surface, there is trifled air particle waves are reflected If it was not for shoot off in strait but being reflected roof they come back zag their way are Observations made eclipse on August that this "radio powerful invisible from the sun whance from the ear into ionized electr did not occur, sci invisible rays wo and probably dest The sun is not but a potential so Mrs. Newedd—I save anything. Mr. Newedd—T ways doing sometime "It must be awa lector. You must ever you go." "On the contran body asks me to c ANAHEIM GAZETTE TODAY and TOMORROW FRANK PARKER STOCKBRIDGE DAVIS ... a nomination The writer is not trying to pick President Roosevelt's Cabinet for him, and he wouldn't let us if we wanted to, but we should like to nominate for Secretary of State Norman H. Davis. Mr. Davis is a Democrat who made a fortune in banking and other enterprises in Cuba and has been devoting himself to public service since the beginning of the war. He served President Wilson as Undersecretary of the Treasury, Acting and Undersecretary of State and as an expert member of the Peace Conference. For the past few years Mr. Davis has served Presidents College and Hoover in Europe in the difficult negotiations arising out of the war. He was a member of the Dawes Commission, but was called in by the League of Nations to straighten out the finances of several European countries, and is a member of the Finance Committee of the League. At present he is the principal representative of the United States in trying to negotiate a disarmament treaty and is in charge of arrangements on behalf of this country for the forthcoming International Economic Conference. Norman Davis knows foreign affairs more intimately than any other American and would be an excellent successor to Secretary Stimson, in our opinion. LADIES ... new faces One result of the election will be a decided change after March 4th in the feminine aspects of political Washington. Alice Roosevelt Longworth and Mrs. Dolly Gann will disappear from the picture. Alice's first cousin, Mrs. Hawaii and Japan Topics for Meet Publishers To Be Guests At World Affairs Conclave On December 13 Publishers of California newspapers are to be special guests of Frank Miller, master of the Mission Inn, Riverside, and Dr. R. B. von KleinSmid, president of the University of Southern California, at a dinner given in their honor on Tuesday evening, December 13, as an outstanding event of the tenth session of the Institute of World Affairs which meets at Riverside December 11-16. Dr. von KleinSmid is Chancellor of the annual international relations conclave, Dr. Charles E. Martin of the University of Washington is director of the 1932 program, and Mr. Miller, an exponent of world harmony, is a member of the institute advisory board. Immediately following the dinner, President David L. Crawford of the University of Hawaii will speak on "Whither Hawaii?" and Senator Inazo Nitobe of the Japanese House of Peers will give an address on "Japan's Place in the Family of Nations." The Institute of World Affairs annually brings to the Pacific Southwest a group of authorities of foreign and domestic importance and influence in study phases of the interdependence civilized nations. Mexico, Australia, France, Germany, and Japan are represented by participants in the year's program. Western institutions of learning are sending speakers to round table leaders, including Stanford University, University of California Berkeley and at Los Angeles, California Institute of Technology, University of New Mexico, Occidental College, University of Oregon, Pomona College University of Denver, Scripps College Whittier College, Mills College, Pacific School of Religion, and the University of Southern California. "The Press in International Affairs 'Rival Economic Systems; Capitalism Communism, and Socialism';" "Science in International Relations;" "International Aspects of the Unemployment Crises;" "Russia's Aims in Asia and Pacific;" and "Present Day Forces European Politics," are a few of topics to be studied during the one week intensive sessions. "The Film as a Factor in International Life," "Fascism as a Social Moment," "World Economic Planning," "The Manchurian Tangle," "Political Transitions in Latin America," "Foreign Policies of the British Dominion and 'Monetary Standards of Modern Economy.'" Green Glacier Makes Past LADIES new faces One result of the election will be a decided change after March 4th in the feminine aspects of political Washington. Alice Roosevelt Longworth and Mrs. Dolly Gann will disappear from the picture. Alice's first cousin, Mrs. Franklin Roosevelt, has said that she does not intend to devote much of her time to Washington, but will continue her school teaching, her furniture factory, and her editorial magazine work. No doubt she will fill her obligations as first lady of the land in a highly satisfactory manner, however. There are always interesting women in the political background at Washington, and I look to see Eleanor Patterson, editor of the Washington Herald, brilliant, wealthy in her own right and occupying a position of commanding influence through her newspaper connection, as perhaps the most influential figure in the social-political life of the new Administration. She and her paper warmly supported President Roosevelt and she has not lost an opportunity in years to stick a pin in Alice Roosevelt Longworth. DEBTS and Europe Europe only waited until the American elections were over to come forward with a general request for a revision of international debts and the further suspension of payments until the whole subject can again be revised. I think there is an almost unanimous opposition in this country to the cancellation of the debts of Europe to us, but I think there is a very strong and growing sentiment in favor of some readjustment on a basis which would be mutually advantageous. We should not be asked to give them something for nothing, but if some way can be worked out, as suggested by Senator Borah, by Alfred E. Smith, and many other leaders, whereby we could, as many have phased it, "trade debts for prosperity." I think such a solution would be well received by everybody in this country. It is entirely possible, it seems to me, to work out some adjustment of this situation which will not only help toward the immediate improvement of international trade, but which might continue to be of benefit to American industry and business, and any such solution ought to be accepted. If I am any kind of a prophet, there is going to be definite progress made to that end this winter. SUN life and death The more I learn and reflect upon the part which the sun plays in our opinion. It is entirely possible, it seems to me, to work out some adjustment of this situation which will not only help toward the immediate improvement of international trade, but which might continue to be of benefit to American industry and business, and any such solution ought to be accepted. If I am any kind of a prophet, there is going to be definite progress made to that end this winter. SUN life and death The more I learn and reflect upon the part which the sun plays in our life on earth, the easier it is for me to understand the Parsees, the Oriental religious sect whose God is the sun. The latest scientific discovery of the effect of the sun upon earthly affairs, announced by Professor Gilliland of the U.S. Bureau of Standards, accounts for the ability of radio waves to travel around the earth. It has long been known that in upper space, not very far from the earth's surface, there is a layer of highly electrified air particles from which radio waves are reflected back to the earth. If it was not for this layer they would shoot off in straight lines into space, but being reflected from this invisible roof they come back to earth and zigzag their way around the globe. Observations made at the time of the eclipse on August 31st seem to prove that this "radio roof" is caused by powerful invisible ultra-violet rays from the sun which, at a certain distance from the earth, split the air atoms into ionized electrical particles. If this did not occur, scientists now say, these invisible rays would strike the earth and probably destroy all life. The sun is not only the source of life, but a potential source of death. Mrs. Newedd—I wonder why we can't save anything. Mr. Newedd—The neighbors are always doing something we can't afford. "It must be awful to be a debt collector. You must be unwelcome wherever you go." "On the contrary, practically everybody asks me to call again." Anaheim, Calif., Dec. 1, 1932 Daily Agriculture Program Announced The schedule of daily radio talks given on agricultural and allied subjects, under the auspices of the agricultural extension service and KFI, is announced by Farm Advisor Harold E. Wahlberg for the week beginning December 5. The talks are presented at 12 o'clock noon each day. December 5, "The Concern of the Consumer in Avocado Thievery," Judge F. D. Halm, chairman, avocado department, Orange county farm bureau. December 6, "Quality Alfalfa Hay by Cruching," F. H. Ernst, assistant farm advisor, Los Angeles county. December 7, "Results of Poultry Cost Study in Los Angeles County," C. V. Castle, assistant farm advisor, Los Angeles county. December 8, "The Toll of Forest Fires in Southern California," Judge Harold Ide Cruzan, vice-president Los Angeles conservation association. December 9, "Value of Thallium as a Rodenticide," Lewis A. Burtch, agricultural commissioner, Kern county. December 10, "Progress in Agricultural Extension Service During October." Nations" are also among the subjects to be scrutinized toward a deeper knowledge and clearer understanding of world affairs. Award Aqueduct Bids On Dec. 12 First Money Received Will Be Spent On Preliminary Building, Lines Construction of a field headquarters building and a temporary power transmission line out of Banning for the Metropolitan Water District as the first step toward building of the $660,000,000 aqueduct from Hoover dam to Southern California cities will begin shortly after December 15, according to expectations this week. Advertising of bids for the sale of the first block of bonds is underway with the bids to be offered December 12 and award made the same date. The first block to be sold is a $2,016,-000 lot. This will finance the first 60 days of the construction. These bonds are expected to be snapped up in short order, because the reconstruction financecorporation has assured directors of the project it will buy up to $40,-000,000. When construction work actually gets under way the men employed will be taken on a pro rata basis from the communities that are members of the district. Anaheim's portion of men proficiency will be about 100. In Glasses Don't Make Green Pastures The legend of Paul Bunyan there is a story of a Winter that descended upon Paul's lumber. Winter so severe that he had no hay to feed Paul, hard-working bullock, "Babe." So Paul set off of green goggles over "Babe's" eyes, and took grazed happily for weeks on the snow. Advertisers today are emulating Paul's neat device, and are grazing industriously less in snowdrifts. Determined sales effortable advertising dollars are poured into mediums—specialty programs, untried "stunts"—the chief purpose is to make money for the instead of for the business man — and scarce and profit almost impossible to find. In this cold Winter of frozen buying there is pasture — one which some local advertisers wisely neglecting. It is the Anaheim city urban area. Signpost pointing to this green pasture is the Gazette, which for 62 years has catered to Orange county, and has developed a prestige in this cold Winter of frozen buying there is casture — one which some local advertisers owingly neglecting. It is the Anaheim city urban area. Signpost pointing to this green pasture is the Gazette, which for 62 years has catered to Orange county, and has developed a prestige or confidence which brings returns in these cases. Here advertisers can throw off their angles, abandon their scanty diet of snow, and share of their portion of sales. 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