Title: Florida clearing house news ..
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Permanent Link: http://ufdc.ufl.edu/UF00086639/00070
 Material Information
Title: Florida clearing house news ..
Physical Description: v. : ill. ; 31 cm.
Language: English
Creator: Florida Citrus Growers' Clearing House Association
Publisher: s.n.
Place of Publication: Winter Haven Fla
Publication Date: August 25, 1931
Frequency: semimonthly (irregular)
 Subjects
Subject: Citrus fruits -- Periodicals   ( lcsh )
Genre: periodical   ( marcgt )
 Notes
Dates or Sequential Designation: v. 1- Sept. 1928-
General Note: "Official publication of the Florida citrus growers clearing house association."
 Record Information
Bibliographic ID: UF00086639
Volume ID: VID00070
Source Institution: University of Florida
Holding Location: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: oclc - 01306261
lccn - 30006589

Full Text
Bureau of Arig. Econ.,
U. S. Dept. of Artg.
Washington, D. C.


CLEA


FLORIDA




RING HOUSE


Representing more than 10,000
Growers of Oranges and Grapefruit
Headquarters: WINTER HAVEN, FLORIDA


NEWS


Official Publication of the
FLORIDA CITRUS GROWERS
CLEARING HOUSE ASSOCIATION


2 Year Published Semi-monthly by the Florida Cit- Entered as second-class matter August 81, Volume III
2.00 a Year rus Growers Clearing House Association, AUGUST 25 1931 1928, at the postoffice at Winter Haven,
10 Cents a Copy DeWitt Taylor Bldg., Winter Haven, Fla.* Florida, under the Act of March 8, 1879. Number 22



Uncle Sam Gets Protest From Clearing House


Clearing House Elects New

Directors to Fill Vacancies


Four Men Known Throughout
Citrus Florida, Letton, How-
ey, Williams and Overstreet
ill Serve On Board During
1931-32 Season.
Clearing House grower-members
in Districts Two, Three, Four and'
Five cast their ballots on August 17,
voting for four new directors to fill
the vacancies on the Board caused by
the resignation of the directors from
(.-hose four districts because of their
affiliation with the Florida Citrus Ex-
change. No replacements were nec-
essary for directors in Districts One,
Five and Six and for this reason
grower-members in those three dis-
tricts were not called upon to vote.
The new directors elected were J. H.
Letton, Valrico, District Two, suc-
ceeding James T. Swann; W. J. How-
Sey, Howey in the Hills, District
Xlhree, replacing E. E. Truskett; E.
i. Williams, Crescent City, and for-
mer State Senator M. O. Overstreet,
Orlando, Districts Four and Five, fill-
ing the vacancies of W. F. Glynn and
Phil C. Peters, respectively. The new
directors, who will serve during the
1931-32 season, will take office im-
mediately, sitting in at the next
board meeting to be held the latter
part of the month. The directors
from the State-at-Large are: J. C.
Chase, Winter Park; R. B. Woolfolk,
Orlando; O. F. Gardner, Lake Placid,
and L. P. Kirkland, Auburndale.
Aside from the four new district
directors, are three district directors,
Dr. E. C. Aurin, Ft. Ogden; A. M.
STilden, Winter Haven, and A. R.
Trafford, Cocoa.
The ballots were cast by mail in
keeping with the By-Laws of the
e.. Clearing House and the votes count-
ed by members of the Committee of
Fifty the evening of August 17.
James C. Morton, former chairman
Sof the committee, was in charge of
the election.


All four of the new directors are
well known throughout the citrus
belt of Florida and with the excep-
tion of Mr. Howey have been active
in Clearing House affairs since its
organization three years ago. Mr.
Williams and Mr. Overstreet have
been members of the Committee of
Fifty, the latter having been appoint-
ed chairman in April, succeeding
James C. Morton. His election to the
Board will necessitate the appoint-
ment of a new Committee of Fifty
chairman, which appointment will be
made at the next committee meeting.
Mr. Letton has been a citrus
grower for many years and is a
recognized authority on citrus cul-
ture in Hillsborough County. He has
been active in the Clearing House
for the past three years.
Mr. Howey is perhaps the most
widely known of the four men, part-
ly because of the state-wide atten-
tion his personal interests have gain-
ed and also because he has been ac-
tive in the industry problems along
with other leaders. His development,
"Howey-in-the-Hills," in Lake Coun-
ty, is one of the most noted grove de-
velopments in the state. His election
to the Clearing House Board of Di-
rectors is regarded as being of tre-
mendous help to the organization.
Vast citrus holdings in Putnam
County, which have been in the Wil-
liams family for more than half a
century, are under the care of E. H.
Williams, who is perhaps the pioneer
grower of the new directors elected.
During his service on the Committee
of Fifty, Mr. Williams has been of
considerable help to that body and
his election to the Board brings an-
other prominent leader in citrus cir-
cles to the aid of the growers in the
Association.
Senator Overstreet, like Mr. Wil-
liams, has long been engaged in cit-
rus growing and is likewise regarded


Manager Pratt Tells Interstate Commerce Commission of
Plight of Growers Should Proposed 15% Freight Increase
Go Into Effect; Amount of Fruit Which Left State
By Truck and Amount Never Moved Shows
Rates Already Too High


Florida citrus growers and Florida
as a state are facing serious conse-
quences as the result of the united
and determined effort upon the part
of all railroad companies to secure
permission from the Interstate Com-
merce Commission to advance their
freight and refrigeration rates 15%.
If this additional expense of several
million dollars could be passed on to
the consumer and spread evenly over
the United States, it would not need
to concern Florida growers and citi-
zens, but such is not the case. The de-
mand for any perishable article is
based upon that article delivered to
the destination where the article is
consumed. The grower only gets
what is left after taking out freight
and all other expenses.
Manager A. M. Pratt was asked to
testify before the Interstate Com-
merce Commission in Atlanta, Aug.
18 and 19. Speaking as to the plight
of the growers of Florida, he said:
"With the citrus grower having
spent many years in bringing his
trees into bearing, he is not going to
abandon his grove the first year that
it fails to bring returns over cost of
production, nor the second or third
year. The tendency is to hang on and
hang on, spending so far as he is
able additional money in fertilizer
and upkeep in hopes that the high-
price year will finally come which
will pay for past losses and again
bring in a nice income. The volume
of citrus fruits obviously cannot be
controlled like vegetables that are
planted annually. An increase in
freight rates, bringing about an ad-
ditional cost to the industry must be
borne by the grower because the

as an ideal man to add his experi-
ences to those of the other board
members for the good of the citrus
industry.


grower never gets anything more
than what is left after taking out
freight and refrigeration as the big-
gest item, then packing, marketing,
hauling and picking.
"Economically, the grower cannot
decline to ship his fruit, even though
he knows that the most he could hope
for would be a half or one-third of
what it cost him to produce it. He has
already gone to that expense, there-
fore, if he sees a chance of getting
back even picking, hauling, pack-
ing, marketing and transportation
charges, he will take that chance in
hopes he might get something above
those costs. With citrus fruit being
perishable, he is compelled to move
it while it is in good condition and
he frequently takes a chance and
pays red ink on top of absorbing his
entire cost of production. This again
because he was hoping for more than
he could realize after every other
factor connected with transportation
and marketing had been paid, though
he as the producer was the man who
created the income from which
everybody else profited only at se-
vere loss to himself. The railroads
will for a while continue to get the
income resulting from transporting
citrus fruit that a grower has raised
even though that grower is economi-
cally slowly but surely dying and
hopes against fate that some how he
may survive.
"There is no question but what an
increase of 15% in freight rates on
citrus fruits from Florida would
slowly put out of business many
growers that otherwise could survive
financially. There is no question but
what every possible means will be
used by grower and shipper to avoid
the additional expense of rail trans-
portation as proposed, by resorting
to shipment by water instead of by
(Continued on Page Two)


,FIGHT AGAINST RAILROAD RATE INCREASE






Pare 2


U. S. GETS PROTEST
FROM CLEARING HOUSE

(Continued from Page One)
rail and especially using the trucks
much more freely for transportation.
"Should the railroads be success-
ful in getting an advance in freight
rates on Florida citrus fruit, it will
be at the cost of the growers who al-
ready are carrying a biger burden
than they can financially live under.
There is no way of shifting this ad-
ditional expense from their shoul-
ders The grower gets what is left and
what is left is so small on an average
that he is already resentful of what
he considers a higher freight rate
than should be paid. Should he be
compelled to accept still further
losses for the purpose of increasing
the average gain of the transporta-
tion companies, most certainly he
and the shippers will resort to any
means possible to use other forms
of transportation than the railroads.
And, after a long struggle, the ad-
vance in freight rate will have killed
off enough investors in citrus prop-
erty to reduce the volume to a point
where the railroads will in the end,
gain nothing so far as the Florida
citrus industry goes by having ad-
vanced their freight rate.
"The whole issue appeals to the
grower as capital against labor, as
high finance against the farmer, of
an inconsistent attitude where Uncle
Sam, through the Farm Board and
otherwise, is attempting to bring re-
lief to farmers over the United
States and is now asked by the rail-
roads to increase freight rates so
that a claimed small earning that has
been shown by the railroads in re-
cent years may be increased suffi-
ciently that those who have money to
invest in railroad securities may con-
tinue to earn a satisfactory return
on their investments at the cost of
the producer of the very articles that
are feeding the railroads and making
possible the earnings they already
have."
Conclusive proof was given the In-
terstate Commerce Commission that
a 15 % rate increase applied to Flor-
ida citrus would not actually increase
the railroad's earnings because even
under our present freight structure,
Mr. Pratt showed that the railroads
failed to handle this year an equiva-
lent of 11,748 cars, of which 4,398
cars of grapefruit and tangerines
Fever left the state, and the equiva-
lent of 7,350 cars of citrus were
moved from the state by truck. This
amount of 11,748 cars which the
railroads failed to handle figures a
little over 15% of the actual total
carlot movement shipped by the rail-
roads and amount to 4,229,000 boxes
which would have amounted to addi-
tional gross revenue to the railroads
of about $4,000,000 that the rail-
roads failed to secure because the
buying capacity of the public has
been so low and the expense of de-
livering to the market so high.
Before the Commission Mr. Pratt
was asked the question: "Have you


Page 2


FLORIDA CLEARING

any information as to the unmarket-
ed production or quantity of fruit
left on the trees the past season?"
In answer to this Mr. Pratt testified:
"I have prepared a statement made
by 94 packing house managers cover-
ing the number of boxes of citrus
fruit left unpicked during the citrus
season 1930-31, because market con-
ditions were too low to warrant risk-
ing the expense of picking, hauling,
packing, marketing and transporta-
tion to the markets. This signed
statement from each packing house
manager reads as follows:
"From first hand knowledge I
know that there were left unpicked,
because market conditions were too
low to risk the expense of picking,
hauling, packing, marketing and
transporting to the markets a mini-
mum of --. boxes of citrus which
represents excusively crops for
which this packing house was respon-
sible for picking, packing and mar-
'keting.
"M-ny of the shippers and their
local managers are away at this time
of the year, with the result that we
have not heard from 93 packing
house managers, though this infor-
mation was asked from 187 man-
agers. This represents only those
packing houses outside of the Florida
Citrus Exchange, who we understand
are endeavoring to gather similar
data.
"Including all answers received as
to whether or not they had any fruit
left unpicked among their groves, we
arrived at an average of 5,419 boxes
to each report. This figured on 187
reports would indicate an estimated
volume left unpicked among those
houses that we contacted of 1,013,-
291 boxes, or 2,815 carloads.
"The packing house units from
which these reports were asked were
those outside of the Florida Citrus
Exchange, who agreed to get similar
data from their members. According
to Clearing House records the Ex-
change shipped 36% of the citrus
movement out of Florida. Our fig-
ures, therefore, of 1,013,291 boxes
should be 64% of the total amount
of fruit that was left unpicked, on
account of unfavorable conditions,
in the state. From this we would ar-
rive at a total of 1,583,260 boxes of
citrus fruit, or 4,398 cars that never
left the state, which would normally
have been picked and shipped if the
expenses of getting the fruit to mar-
ket, including transportation, had
permitted."
Taking up the subject then of
truck shipments, the Manager of the
Clearing House testified as follows:
"As another evidence of the diffi-
culty that our citrus industry was
meeting, a vast amount of citrus
fruit left Florida this year by truck.
These truck shipments avoided most
of the expenses connected with pack-
ing, because the fruit was not wrap-
ped or packed in boxes. In addition
to this, the truck driver was usually
a peddler, thereby saving the ex-
pense of handling on the part of the
carlot receiver and the wholesaler.


FIGHT AGAINST RAILROAD RATE INCREASE


HOUSE NEWS

He also saved the expense of freight,
less whatever expense of operating
his truck could be put against trans-
portation. We sent out a bulletin to
each of 187 packing houses asking
that they furnish us with the number
of boxes that left their packing house
by truck for out of state consump-
tion. Again it was difficult to compile
this data because of so many people
being absent from the state and the
short time left in which to compile it.
We have only received 69 answers,
showing a total of 498,924 boxes, or
an average truck movement from
each of the packing houses who have
reported, of 7,231 boxes, which, ap-
plied to the 187 houses, would make
a total estimated truck movement
from these houses of 1,352,197
boxes.
"We assumed that the Exchange
were drawing up similar data on
truck movement from their houses.
The movement from the houses we
estimated should be 64% of the
whole, which would indicate a truck
movement from the state direct from
packing houses amounting to 2,112,-
800 boxes, or 5,869 cars, including
an estimated truck movement from
Exchange houses of 760,603 boxes.
"Aside from the truck movement
from these houses, some of the pack-
ing houses kept track of fruit that
was moving direct from growers who
customarily shipped through them,
the total estimated truck movement
direct from groves being 125,850
boxes from a total of 69 shippers
who have so far reported, which, ap-
plying the average of 1,824 boxes to
187 houses, would make an estimated
truck movement direct from the
grove from the shippers we circu-
lated of 341,120 boxes. Again assum-
ing that this estimate covers 64% of
the industry, it would indicate that
the out-of-state truck movement
direct from groves that the Exchange
customarily handle would be 191,880
boxes, or a total from the state of
533,000 boxes, or 1,481 cars.
"Therefore, by carefully compiled
figures and estimates, we reach the
conclusion that approximately 2,-
645,800 boxes, or 7,350 cars of cit-
rus fruit left the state this year by
trucks."
Summarizing what the railroads
failed to handle, he made this state-
ment:
"Adding together the estimated
amount of fruit that was left in the
state unpicked and the estimated
amount of fruit that left the state by
trucks, we reach the astounding
figure of 4,229,060 boxes, or 11,748
cars. The carlot state movement of
citrus was 74,366 cars. The 11,748
cars which were not handled by the
railroads figures a little over 15%
of the total movement shipped by the
railroads, from which a gross reve-
nue to the railroads would have been
possible of about $4,000,000, had the
buying capacity of the public not
been so low and the expense of deliv-
cring to the market not been so
high. This all would seem to indicate
an over-abundance of potential sup-


August 25, 1931

plies for transportation companies.
This additional 4,000,000 boxes
could have been readily consumed, in
fact, that part that moved by truck
was consumed. But the abnormal
amount of fruit that moved out of
the state by truck was purely a salv-
aging effort; the balance that was
left in the state was that which could
not be moved under the salvage ef-
fort represented by trucks nor by
regular distribution of the crop. Red
ink returns on thousands of cars
would indicate the desirability of
having left still a greater amount of
fruit in the state and possibly having
moved a greater amount by truck."
At this point he was asked whether
Florida had not anticipated early in
its season the emergency that it'
would be running into and whether
Florida growers and shippers had not
petitioned'the railroads for an emer-
gency rate. Mr. Pratt stated before
the Commission that the growers and
shippers of Florida the early part of
January had met with railroad rep-
resentatives, particularly the initial
line railroads of Florida and stated
to the railroads at that time that
there would be a vast amount of fruit
never picked and a vast amount of
fruit that would be moved by truck
that the railroads would fail to get
any revenue on unless they put in an
emergency rate of at least 25 % less
than the present freight structure;
and that the facts just covered show-
ed conclusively that those represent- '
ing Florida's citrus industry in Jan-
uary had predicted what actually
happened and that the railroads
would have been money ahead had
they granted the emergency rate
asked for.
The Commission's attention was
then called to the heavy carlot move-
ment in bulk this year, Mr. Pratt tes-
tifying as follows:
"Also showing as another evidence
of our citrus industry's struggle
against unusually severe obstacles, we
find that our shippers this season
shipped in bulk, (that is, loaded the
cars with loose fruit without going
to the expense of wrapping and plac-
ing it in boxes), 12.6% of our total
orange movement, 9.9% of our
grapefruit and 6.7% of our tange-
rines. Two years ago when we had
our previously heaviest citrus crop
our records show only 6.6% of the
oranges were moved in bulk against
12.6% this year; 1.3% grapefruit.
against 9.9% this year; 1.1% tange-
rines against 6.7% this year. It is
fair to assume that the percentage
that our members shipped in bulk
this season would be representative
of the entire industry. Therefore, ap-
plying the percentage of 12.*% on
oranges, 9.9% on grapefruit and
6.7% on tangerines to the total ship-
ments from the state of those varie-
ties, we estimate that Florida ship-
ped in bulk 4,904 cars of oranges,
3,001 cars of grapefruit and 351 cars
of tangerines, or a total of 8,256
cars in bulk, or 11.1% of the total
carlot movement this season. From a-
standpoint of salvage, therefore,





FLORIDA CLEARING HOUSE NEWS


adding these 8,256 cars that moved
by bulk to the 7,350 cars that moved
by truck, we find that 15,606 cars
were compelled to be moved along
lines contrary to the customs of the
past.
"The bulk movement seriously
disturbs the operations of what is
known as the legitimate buying trade
that has been accustomed to handling
an attractively packed and properly
graded article. The bulk movement,
however, is not as demoralizing as
the truck movement, as the bulk
Movement is directed by the market-
ing and shipping organizations of
Florida, while the truck movement is
'without direction and can, so far as
Florida has yet worked out its prob-
lem, be in no way efficiently con-
trolled. Should the marketing agent
attempt to restrict the truck move-
Sment or control prices, the trucksters
in low price years at least would
tend to go direct to the grower for
supplies instead of getting their sup-
Splies from the packing house plat-
form."
Those present were then present-
Sed with an exhibit prepared by the
Clearing House showing the average
amount of Florida citrus fruit
which had been sold at auction for
,the past seven years. Commenting
on this, Mr. Pratt made the following
4 statement, showing that regardless
of how the crop is marketed the bur-
den of additional freight rates or
other expenses always comes back on
Sthe grower:
"We have seen that about 42%
Sof Florida citrus fruit sold at public
auction. With the exception of about
S8% or 10% of the crop which is sold
on consignment privately by some
carlot receiver who sells the fruit
for the shipper's account, the bal-
ance is sold either f.o.b. for ship-
ment, or f.o.b. price while rolling, or
sold at a delivered price, including
freight. The f.o.b. price does not in-
'clude the freight or other transpor-
tation charges and on every f.o.b.
sale the buyer pays the freight and
*of course figures it in his total cost.
Therefore, whether the cars are sold
,at auction, f.o.b., or while rolling, or
sold delivered, or sold on consign-
ment, the cost of freight is always
'taken into consideration by the
Buyer at destination. The same is
equally true of a buyer who might
Come to Florida and buy fruit on the
tree as he again transposes his tree
Price into a final delivered value, in-
cluding freight as well as packing,
zp marketing, picking and hauling. So
that regardless of method or basis
of sale, the transportation costs are
always taken into consideration and
r are reflected in the net returns to the
grower."
To counteract some previous criti-
cism on the part of the railroad, that
to faulty distribution, the Manager
Sof the Clearing House made the fol-
Lowing statement:
"As an indication of the effort the
Florida citrus industry is making to


seek out every available market and
to more efficiently meet its problem
of widest possible distribution, I
have prepared from the Bureau of
Agricultural Economics Bulletin of
May 29, 1931, a comparison of desti-
nations of Florida citrus fruit for the
season 1930-31 in contrast with the
season 1928-29, when we had our
previously heaviest crop. This state-
ment shows a decided increase in the
volume of fruit which moved into
the Central-Western states. In these
19 Central-Western states, as shown
on the Exhibit, we show that 18,515
cars of citrus fruits were marketed
this past season as compared with
11,004 cars two seasons ago, or a
gain this season of 7,511 cars in 19
states.
"This decided increase of sales in
the Central-Western states reflected
dhe constant urging on the part of
*he Clearing House that its shippers
make special effort to dispose of their
cars in these markets where it was
felt we had not heretofore been dis-
tributing as many as we should.
Recognition of the general business
depression existing and the biggest
volume of citrus fruit ever produced
in the state and the resulting in-
crease of distribution as shown above
is again evidence of Florida having
more efficiently than usual met its
competitive problem against other
competitors seeking these same mar-
kets.
"Your attention is called to the
fact that an increase in freight and
refrigeration rates of 15% would
tend to unduly disturb distribution.
The more distant points because of
the higher freight rate would be
especially affected and the tendency
would be to crowd the fruit into the
shorter haul markets which would
lead to congestion in the nearby
markets and a shortage of fruit in
the distant markets. Thus, the pro-
posed advance would not only seri-
ously disturb distribution from a
geographical standpoint but would
add 15% to the cost of distribution
in all directions."
Commenting on a Clearing House
exhibit showing bearing and non-
bearing citrus trees, attention was
called to the fact that even in this
big production year, so-called, after
applying the 14,205,800 boxes of
oranges shipped to the 13,232,295
bearing orange trees in Florida, it
shows an average of less than 1 1/10
boxes per tree, the exact figure be-
ing 1.074. In contrast with this, Mr.
Pratt called attention to the fact that
in California, due to the trees being
generally older, the average produc-
tion per bearing tree for the 1928-29
crop was 1.81 boxes and that it was
thought this season's crop would be
slightly heavier than the 1928-29
crop. He therefore pointed out the
fact that Florida with her more na-
tural climate for producing citrus
should be recognized by the Commis-
sion and by the railroads as the logi-
cal source for increasing citrus sup-
plies, particularly as California was
developed from artificial irrigation


Rail Association Issues

Booklet Proposed to Show

Need for Freight Increase


Data Compiled Is Argument
For Passing Increased
Wage to Consumer

The Security Owners Association,
a national association of owners of
railroad and public utility securities,
headquarters, 21 East Fortieth St.,
New York, has issued a booklet, "The
Truth About the Rails," which
strongly supports the railroads in
their contention for the necessity of
15 % advance in rates.
From this booklet as well as from
other evidence which has been drawn
into this issue of great national im-
portance, it is evident that the own-
ers of railroad bonds and securities,
insurance companies, banks, etc.,
took the initiative even more than
any of the leading railroad lines did
in asking for this increase. Capital
is very eager to have some continued
safe place to invest and is asking our
government to make one of the safe
places railroad securities.
In their arguments they make the
statement:
"Since 1921 Class I railroads have
earned the following rates of return
on their property investment:
Year Return
1921-2.87 per cent.
1922-3.59 per cent.
1923-4.33 per cent.
1924-4.23 per cent.
1925-4.74 per cent.
1926-4.98 per cent.
1927-4.29 per cent.
1928-4.72 per cent.
1929-4.95 per cent.
1930-3.36 per cent.
First 4 months 1931-2.11%.
They also show in the following
figures that the number of men em-

and that the subterranean water lev-
els of California had been constant-
ly dropping to the point where it was
dangerous to all California citrus in-
terests to develop further citrus
acreage. Florida, on the other Hand,
could develop and would continue to
develop just as much volume in cit-
rus fruit as the economic survival
laws would permit. Therefore, he
stated the most natural and logical
source of continually increasing
freight revenue should not be killed
by penalizing Florida with an addi-
tional freight rate.

"Thanking you for the good work
you have done and wishing you good
luck"-J. W. Burling, San Mateo,
Florida.

"We have not lost faith in the
Clearing House and what it stands
for"-C. L. Bundy & Son, Winter
Haven, Florida.


played is the lowest it has been since
1920 and that about 40 % of the men
now employed are working half time,
their statement reading as follows:
"Railroad forces are now at a min-
imum and further reductions would
be reflected in the service rendered.
Railroads at present employ fewer
men than at any time during the last
twenty years. Almost forty percent
of the men now employed are work-
ing part time, in order that a larger
number may find employment. The
following table shows the number of
employees on the payrolls of Class I
railroads since 1920:
Year Number
1920-2,022,832 (gov't. control)
1921-1,659,513.
1922-1,626,834.
1923-1,857,674.
1924-1,751,362.
1925-1,744,311.
1926-1,779,275.
1927-1,735,105.
1928-1,656,411.
1929-1,660,920.
1930-1,488,353.
1931 (Jan.)-1,313,453."
Their argument in this booklet is
all to the effect of passing on this in-
creased wage to consumer and they
figure that the consumer would pay
so little more than it would not be
felt.
Unfortunately, it is impossible for
Florida to pass on any increased ex-
pense of delivering her crop to the
consumer. Always, from every an-
alysis possible, any additional ex-
pense comes out of the grower in
competing for our proportion of the
national food dollar. All values are
figured on what it costs to deliver
our citrus fruit at destination. Cost
of production has no bearing what-
ever, and with the grower having to
absorb the additional burden of in-
creased freight rates, and with the
industry already to the point where
over 11,000 cars were not shipped by
the railroads because the present
rate was too high, there is no ques-
tion but what an increased freight
tax on Florida's citrus industry
would mean decreased revenue for
the railroads because of the much
smaller volume that such a policy
would bring about.

"Wishing you a continued success"
-F. A. Beaty, Plant City, Fla.

"I believe the Clearing House is
the. solution of the citrus industry in
Florida" E. L. Aubuchon, Lake-
land, Florida.

". I am in accord with what
you are doing"-Dr. W. H. Ander-
son, Winter Haven, Florida.


*FIGHT AGAINST RAILROAD RATE INCREASE

i-


__


Page 3


August 25. 1931






FLORIDA CLEARING HOUSE NEWS


J. S. Crutchfield Testifies:

Railroads Must Cut Expenses

Grower Cannot Assume Costs


There was a keener interest shown
when Mr. J. S. Crutchfield testified
than at any other time during the
hearing before the Interstate Com-
merce Commission at Atlanta. In
the first place, Mr. Crutchfield is
recognized as a man of exceptional-
ly broad experience, being not only
President of the American Fruit
Growers, but Director and Chairman
of the Agricultural Committee of the
Chamber of Commerce of the United
States, President of the Union Fruit
Auction Co., Pittsburgh, and of the
William Penn Trust Co., Pittsburgh;
and what especially interested some
of the listeners was the fact that he
is one of the Directors of the Wabash
railroad.
It was natural, therefore, that Mr.
Crutchfield should speak as a man
with authority and it was no surprise
that he spoke very plainly to the
railroads and to Commission, show-
ing how the railroads had themselves
brought on their own difficulties.
Part of his statement is herewith
given verbatim as being of special
interest to every grower as well as
shipper in Florida.
"The relatively high cost of freight
transportation during depressed
times forces an undue proportion of
the tonnage to be huckstered and dis-
tributed direct from producer to con-
sumer, eliminating the unbearable
expense of railroad transportation
and the expense of the usual methods
of wholesale and retail distribution.
This in turn results in demoralization
of prices. For instance, Georgia
peaches have been sold in Florida
during the past month at 50c per
bushel delivered Florida by huck-
sters, where the freight rate was 50c
to 70c per bushel. These hucksters
go to the orchard, pick the fruit, and
drive night and day until they are
able to dispose of the product for
whatever price it will bring. This in
part is a direct result of freight rates
being considerably above the eco-
nomic level of peach and other com-
modity prices. The above illustration
is typical of the situation now pre-
vailing in practically all lines of fruit
and vegetables, poultry and dairy
products, etc. During the abnormal
times prevailing since the war and up
until the recent past, the railroads
generally had sufficient traffic and
profits to cause them to disregard or
ignore the fact that they were stead-
ily losing large volumes of traffic
and unduly stimulating motor and
other kinds of transportation by
maintaining rates not only above the
economic price level, but consider-
ably above what transportation could
be bought for my motor and other-
wise.


"Transportation is a commodity,
which like any other commodity, has
its market price or value, and in my
opinion, the railroads until recently
have not recognized the true market
value of their services. Market values
are always determined by what the
market will pay rather than what the
owner believes the product or serv-
ice to be worth, or by the cost of pro-
duction. The result has been not only
loss of traffic to the railroads but
more or less unsettlement and de-
moralization of business and the de-
velopment of unnecessary new trans-
portation facilities at the very time
when there already exists a surplus
of railroad transportation facilities.
Rate Increase Unsound
"It is a serious question as to
whether the agricultural traffic can
survive under existing freight rates;
consequently, it appears to be futile
to even think of advancing freight
rates on agricultural products. The
orderly marketing of agricultural
products even at low prices is dif-
ficult enough, but when the demoral-
ization is produced because of the
attempt of the railroads with gov-
ernment sanction, to still further ad-
vance transportation costs, a condi-
tion approaching panic results. This
panicky condition prevails not only
among the farmers but even more on
the part of railroad officials, bankers
and the general public, and that such
a proposition should be seriously
considered in this enlightened age is
most astonishing. The spirit of Adam
Smith and all ancient and modern
economists cries out in protest. In
my opinion it is just such unsound
principles emanating from high
sources that has destroyed confi-
dence and created an unnecessarily
acute general business depression.
Nothing that the Farm Board has
ever done can beat it for unsound-
ness; and yet this proposal to ad-
vance freight rates 15% on all traf-
fic, including agricultural products,
emanates from the financial leaders
of America.
Better Management Needed
"It is said, in fact proclaimed from
the house tops, that the farmer is not
a good business man. If this advance
in freight rates on agricultural pro-
ducts should be granted the rail-
roads, in my opinion, a much worse
epithet should be used and justified
in referring to the financial leaders
of this great country responsible for
this move. Surely America has had
a sufficient demonstration of the evil
consequences of attempting to defy
economic law and common sense.
There have been no reasons given
why this advance should be granted.
The only excuse mentioned has been


the need of the railroads for increas-
ed revenue. It has been repeatedly
stated that railroads have not been
allowed under the Transportation
Act to make maximum normal profits
during good times as other industries
can do. This emphatically is not the
case as it relates to the past decade.
Under no unregulated situation could
railroads have earned more than they
have earned. I refer to gross earn-
ings. On the other hand, net earnings
could have been materially increased
during the past decade, if railroad
managements and their bankers had
looked ahead to the present inevit-
able situation, as they should have
done and as most other large corpor-
ations did. Obviously, expense and
expansion should have been on a
much more conservative basis, so
that a larger percentage of the gross
earnings would now be available to
tide over the period of readjustment,
and enable lower freight charges. It
is clear that railroad managements
have clearly over-estimated the re-
quirements of the nation for railroad
transportation, and have clearly un-
der-estimated the potential competi-
tion growing up right under their
noses in the shape of motor, water
and air transportation.
"In my opinion, the worst thing
that could happen to the railroads
themselves would be to have this ad-
vance granted on agricultural pro-
ducts or raw materials suffering from
a similar long period of depression.-
Economists and business men gener-
ally have expressed a doubt as to
whether an advance in freight rates
would mean an increase in revenue
for the railroads. On the other hand,
there can be no doubt and no one un-
prejudiced has expressed a doubt
that an advance in freight rates
would further demoralize and fur-
ther brankrupt agriculture, and pos-
sibly some other industries, in a like
position.
"Adverse times such as these fur-
nish the railroads the necessary urge
and opportunity to revise their serv-
ice and ideas by making a material
reduction in expenses. Certainly the
new situation confronting the rail-
roads affords opportunity for many
improvements in method and in the
adaptation of their facilities and
service to meet the situation and the
demands of the public.
Rail Methods Should Be Improved
"In our business we have faced
identically the same situation during
the past decade. We have been com-
pelled to cut down or rebud a lot of
trees of poorer varieties of apples.
Instead of the Ben Davis we are now
furnishing the market with millions
of bushels of the Delicious variety
of apple. Except for the necessity
of hard times, this rapid improve-
ment in the varieties of apples and
other fruits would never have taken
place. These times will compel not
only the railroads but also agricul-
ture and other industries to improve
their products and their methods to
meet the new general low economic
price level.


"Railroad management will have
to be allowed to use its own judg-
ment to meet competition and retain
their business. Decrease in rates will
result in greater diversion of traffic
to the railroads, as the established
channeds and methods of distribution
are by railroad rather than by truck
or water transportation. On the
other hand, increased or arbitrary at-
tempts to maintain freight rates
higher than the same service can be
secured by truck or water, or higher
than the traffic will bear, will result
in greater diversion of traffic from
the railroads. Recently, one of the
largest Georgia crate manufacturers
entered negotiations with our com-
pany to deliver orange boxes and
vegetable crates manufactured in "
Georgia to Florida by truck, and in
return be furnished a tonnage of
fruit and vegetables so as to insure -..
a haul each way. The statement was
made that they could then transport
their crates at about one-half the
present railroad rate and would
share with us the saving.
"Great industries cannot adjust
themselves readily to radical changes
in such fundamental matters as'
transportation rates. Agriculture has
never recovered from the disaster -
which it met when in 1920 the rail-
roads received a 35% to 40%.
freight increase over night at the be-
ginning of the fall harvest in 1920.
Agriculture has had eleven years of
depression whereas the railroads,'
since 1920, have been having up
until last year a remarkable come- -
back in earnings and general pros-
perity. A comparatively brief period,
of railroad depression as compared
with agricultural depression causes--
the carriers to seek the lines of least
resistance, an increase in freight
rates, without any evidence or proof
from its traffic officials that an ad-
vance in freight rates would increase
the net revenue.
High Rates Cause Rail Losses
"The present plight of the rail-"
roads is admitted. Not, however, that
their net earnings have decreased
because of too low rates, but on the '"
contrary, their net earnings have de-
creased because of lack of. traffic. .
On the other hand, the lack of traffic
is due to a considerable extent to the
fact that existing rates are already -
too high. Large volume of traffic,
have been diverted to the motor
transportation, and other forms of"'
transportation. A considerable vol-
ume of traffic is not moving at all, y
because this particular traffic cannot
under the existing rates.
"Today, railroads as a whole are
in good physical condition; all they. i
lack is traffic. The railroads, there-
fore, cannot consistently ask agricul- -
ture nor the Commission for the kind
of relief granted in 1920. At that '
time transportation facilities had
broken down partly due to the warr
situation and the heavy traffic imme-
1920 advance was granted, business
was in the midst of a great boom,
particularly coal, agriculture, andf
(Continued on Page Six)


FIGHT AGAINST RAILROAD RATE INCREASED

'-I


August 25, 1931


Pa-e


Pae d4





August 25, 1931


FLORIDA CLEARING


Rots of Florida Citrus Fruits
The following article on "Rots of Florida Citrus Fruits" is taken from the address
on the subject made by H. E. Stevens, U.S.D.A., at the annual meeting last spring of
the State Horticultural Society at Miami. Mr. Stevens' talk will be printed in the
News, the following being the second of three installments.

By H. E. STEVENS and H. R. FULTON
(Bureau of Plant Industry, United States Department of Agriculture)


Everyone knows that rot lowers
Selling price. In order to figure how
much can reasonably be spent in an
0 effort to control rot, one must have
an idea about the degree of lowering
Sas well as the amount of rot that can
be expected on the average. Several
years ago an effort was made to get
price figures to show to what extent
., various amounts of rot showing up
in shipments of oranges influenced
the auction prices for 200 size golden
grade.
The table below gives the results
for two seasons on the Philadelphia
auction and one season on the Chi-
cago auction, with an average for
Sthe three seasons in question. If we
assume that these orange price dis-
counts on account of rot would hold
for the current season and for all
c


varieties, grades and sizes of citrus,
and if we assume further that the
Cleveland inspections are a fair av-
erage for the whole Florida crop, we
can figure out that the total loss on
account of rot would amount to
about $32 on every $1,000 or 3.2%
of sales at terminal markets. This
would be about $1,600,000 on a crop
selling for $50,000,000. Rightly di-
rected and timely effort ought to
save at least one-half of this loss.
Note in table below that the average
discount per $1.00 selling price is
very close to twice the upper per-
centage of rot for each group, indi-
cating that the buyer takes off as
much for further expected rot de-
velopment as for what is already
showing up as maximum for the
group range.


Effect of Various Amounts of Rot on Selling Price
Showing for
Theoretical Oranges 1930-31 all
Amount Index Prices-Oranges Dis. Loss Citrus
Philadelphia-Chicago Average Per $1 Boxes Per Loss
of Rot 1924-5 1925-6 1926-7 3 Yrs. Sell Per $1000 Boxes Per
Price 1000 Sales Per $1000
1000 Sales


0 to 1%
1% to 2%
3 to 4%
5 to 8%
9 to 16%
17 to 32 %
S33% and up.


$1.00
1.05
.97
.84
.69
.58


$1.00
.94
.95
.86
.75
.49
.26


$1.00
.91
.83
.82
.47
.39


Total loss per $1000................
Equivalent to .---------......................
The relative frequency of stem-end
rot and blue mold rot is shown month
by month in the following table,
which has been compiled from all
Federal inspection reports of rot oc-
a curing in Florida citrus on arrival at
consuming markets, October, 1930-
April, 1931. These reports naturally
present a worse than average picture
Sof rot conditions, since many of them
were requested because the fruit
-showed excessive decay or other
trouble.


$1.00 0.
.96 .04
.92 .08
.84 .16
.64 .36
.49 .51
.26 .74


0.
6.84
7.68
8.80
3.96
4.59
2.96


............................$34.83 $31.93
........................... 3.5% 3.2%
It is seen that stem-end rot is re-
sponsible for about 98% of the rot
reports for September and October,
for 67% of those for November,
dropping to 11% in December, and
then below 4% for each of the next
three months, with a slight rise to
6% for April. It is a warm weather
trouble. Blue mold rot was respon-
sible for 90% to 98% of the report-
ed cases for the cooler months when
the heaviest shipments are made.


SPercentage Comparison of Stem-end Rot and Blue Mold Rot Reports by
Months, 1930-31. Federal Inspections of Florida Citrus on Arrival
at Consuming Markets, (S.E.R. means Stem-end Rot and
B.M.R. mean Blue Mold Rot)
Amount of Sept.-Oct. Nov. Dec.
Rot S.E.R. B.M.R. S.E.R. B.M.R. S.E.R. B.M,R,
% to 1% 33.3 2.2 26.4 17.7 5.0 37.3
1% to 2% 15.1 0. 9.4 6.5 3.3 23.0
s 3 to 4% 10.7 0. 8.8 4.1 1.1 12.1
5 to 8% 12.9 0. 10.6 2.9 1.1 11.0
9 to 16% 12.9 0. 6.5 0.6 0. 2.7
17 to 32% 10.8 0. 5.3 1.2 0.6 2.3
33% up ........ 2.2 0. 0. 0. 0. 0.6


Total ........ 97.8 2.2 67.0 33.0 11.1 88.9
Reports...... 93 170 182
Amount of Jan. Feb. Mar. April
Rot SER BMR SER BMR SER BMR SER BMR
% to 1% 2.2 38.9 2.5 26.5 0. 29.2 0.4 18.1
1 to 2% 0.7 30.9 0. 26.5 0.6 27.6 1.3 22.4
3 to 4% 0. 14.7 0. 14.0 0.6 24.2 1.7 20.2
5 to 8% 0.7 8.8 0. 20.0 0. 10.0 1.7 19.1
9 to 16% 0. 2.9 0. 8.5 0.6 5.5 0.9 11.2
17 to 32% 0. 0. 0. 1.0 0. 1.1 0. 1.7
33% up----.......... 0. 0. 0. 1.0 0. 0.6 0. 1.3
STotal .......... 3.6 96.4 2.5 97.5 1.8 98.2 6.0 94.0


Reports ......


136


200


181 218


HOUSE NEWS

Blue Mold
The Penicillium rots are too well
known and easily recognized to need
any detailed description. They pro-
duce powdery masses of blue-green
or olive-green spores on the surface
of the infected fruits. Such fruits
may be found hanging in the trees
or on the ground beneath the trees,
in the packing houses, in packed con-
tainers during shipment or while
held in storage, on the fruit stands,
or in the homes of consumers. The
tiny spores are blown about by the
wind like dust, and one fully decayed
fruit can produce enough spores to
thoroughly contaminate a soaking
tank and other packing house equip-
ment. During our picking and pack-
ing season there are frequently
periods when oranges and grapefruit
are exposed to clouds of Penicillium
spores in the open groves. They are
further exposed to contact with
spores in passing through the pack-
ing house, and in all stages of mar-
keting. So long as there is no break
in the rind of the fruit there will be
no decay from the spores.
Healthy Fruit Is Proof
The Penicillium fungi are unable
to penetrate the unbroken rind of
healthy citrus fruits. It is through
relatively fresh thorn pricks, insect
punctures, clipper cuts, scratches,
bruises and mechanical injuries due
to rough handling that they gain en-
trance to mature citrus fruits and set
up decay.
The Penicillium rots are less dif-
ficult to control than other citrus de-
cays if a few proper precautions are
observed. They are greatly influ-
enced by temperature and moisture.
During warm, dry weather these
molds give very little trouble and no
unusual precautions may be neces-
sary.
For this reason we have very little
of the Penicillium rots during the
first part of the shipping season. As
the weather becomes cooler and
especially under moist conditions
these rots increase very rapidly and
a spore menace is soon produced.
Control Measures
(1) Careful Handling. This is the
first requirement in blue mold con-
trol and the one that is most often
violated. The fruit should be careful-
ly handled from the time it is picked
until it reaches the packed container
for it is during this period that it is
most exposed and most liable to in-
fection.
Clipper cuts, rough handling and
mechanical injuries that may be
caused by the packing machinery
should be strictly avoided. This is
particularly true when Penicillium
rots are numerous in the groves or
when weather conditions are favor-
able for their development. There is
little of practical application that
can be advised for freeing the groves
of these rots, other than the control
of pumpkin bugs or other puncturing
insects that sometimes infest the
groves and aid materially in the in-
crease of these rots. Packing houses,
trucks, cull bins and containers in
which fruit is handled should be kept
as free as possible from Penicillium


Page 5


Letters From Our

New Directors

Editor,
Florida Clearing House News,
Winter Haven, Florida.
Dear Sir:
I wish to acknowledge with appre-
ciation the vote of those who have
placed me on the Board of Directors.
I live a long distance from the
home office, and attending the meet-
ings means a full day and evening
for me away from other business
rather frequently I expect. How-
ever, I have allowed my name to be
used and am accepting the office with
a full determination to give to the
job all the time it calls for. To do
less, when called upon in this cause,
would be impossible for me, feeling
as I do about the need of the con-
tinuation of the Clearing House as
the only industry co-ordiiiting"fac-
tor at this time.
After three years of constructive
work for the industry it is unthink-
able that it should be thrown into the
discard just because it is forsaken by
the Exchange, its largest shipper
(Continued on Page Six)

rots and the spores of these fungi.
Under certain conditions during pe-
riods of considerable decay, thor-
ough disinfection of the premises
may be necessary at frequent inter-
vals. Rotten fruit should be kept out
of soaking tanks and washers. All
equipment should be thoroughly ex-
amined for any possible cause of me-
chanical injury to the fruit.
(2) Chemical Treatments. In pe-
riods of blue mold rots the fruit is
often treated with some chemical to
kill any surface sports. Various chem-
icals and solutions have been used
and they have their disadvantages
as well as their advantages. Such
treatments may be applied in the
soaking tank or just as the fruit
comes from the washers. If the rind
of the fruit is sound and unbroken it
will not need any chemical treatment
to protect it from the blue mold rots.
If the fruits have been roughly han-
dled and the conditions for rot de-
velopment are favorable, the use of
a chemical treatment may prevent a
considerable proportion of the rot.
A mixture of borax and boric acid,
in 5 % strength is quite effective.
(3) Drying. The fruit should be
quickly and thoroughly dried after
it comes from the washer. Moisture
is necessary for the germination and
growth of the Penicillium spores, and
even small amounts left on the sur-
face of fruits may be sufficient to
start activity. If the fruit is packed
while moist, ideal conditions are pro-
vided for spore germination, and in-
jured fruit will be more or less likely
to develop decay. Sweating of the
fruit on sudden removal from cold to
warm conditions favors germination
of spores and infection.
(4) Refrigeration. Lowering the
temperature below 50 degrees F. re-
tards but does not prevent the de-
velopment of blue mold rot.


I






FLORIDA CLEARING


PACKING HOUSES OF SHIPPER MEMBERS
For the convenience of our grower-members we are listing below,
alphabetically by cities, packing houses of our present shipper members.


Alturas
American Fruit Growers, Inc.
Alva
American Fruit Growers, Inc.
Arcadia
American Fruit Growers, Inc.
R. W. Burch, Inc.
Browder-Fowler Packing Co.
Welles Fruit Co.
Avon Park
American Fruit Growers, Inc.
L. Maxcy, Inc.
G. & J. Maxcy.
Auburndale
Chase & Co.
Adams Packing Co.
Babson Park
Babson Park C. G. A.
(W. H. Mouser & Co.)
Richardson-Marsh Corp.
Beresford
Alexander & Baird Co.
Citra
American Fruit Growers, Inc.
Clermont
Richardson-Marsh Corp.
Cocoa
American Fruit Growers, Inc.
Crescent City
American Fruit Growers, Inc.
Chase & Company.
W. H. Mouser & Co.
Davenport
Holly Hill Fruit Products Co.
DeLand
American Fruit Growers, Inc.
Alexander & Baird Co.
DeLeon Springs
American Fruit Growers, Inc.
Dunedin
Chase & Company.
Eustis
R. D. Keene & Co.
Fellsmere
American Fruit Growers, Inc.
Frostproof
J. W. Keen.
L. Maxcy, Inc.
Ft. Myers
Lee County Packing Co.
Ft. Pierce
American Fruit Growers, Inc.
Goulds
American Fruit Growers, Inc.
Haines City
American Fruit Growers, Inc.
Highland City
American Fruit Growers, Inc.
Florida Mixed Car Co.
Island Grove
L. Maxcy, Inc.
Isleworth (Windermere)
Chase & Company.
Kendal
American Fruit Growers, Inc.
Lady Lake
S. A. Fields & Co.
Lake Jem
American Fruit Growers, Inc.
Lake Placid
Lake Placid C. G. Assn.
Lakeland
American Fruit Growers, Inc.
W. H. Mouser & Co.


Lake Wales
American Fruit Growers, Inc.
Hills Bros. Co. of Florida.
J. W. Keen.
Leesburg
American Fruit Growers, Inc.
Maitland
American Fruit Growers, Inc.
Manatee
Chase & Company.
Mims
American Fruit Growers, Inc.
Montverde
R. D. Keene & Co.
Mascotte
American Fruit Growers, Inc.
New Smyrna
American Fruit Growers, Inc.
Nocatee
American Fruit Growers, Inc.
Chase & Company.
Ocoee
American Fruit Growers, Inc.
Richardson-Marsh Corp.
Odessa
American Fruit Growers, Inc.
Orlando
W. H. Mouser & Co.
Ozona
American Fruit Growers, Inc.
W. H. Mouser & Co.
Palmetto
American Fruit Growers, Inc.
Richardson-Marsh Corp.
Pierson
Alexander & Baird Co.
Plant City
R. W. Burch, Inc.
Sanford
Chase & Company.
Sebring
Gregg Maxcy.
Sulphur Springs
Florida Mixed Car Co.
Tampa
Dixie Fruit & Produce Co.
Terra Ceia
R. D. Keene & Co.
Valrico
American Fruit Growers, Inc.
Wabasso
American Fruit Growers, Inc.
Walsingham
American Fruit Growers, Inc.
Wauchula
American Fruit Growers, Inc.
Chase & Company.
Alexander & Baird Co.,
L. Maxcy, Inc.
Waverly
Waverly C. G. Assn.
Weirsdale
American Fruit Growers, Inc.
L. Maxcy, Inc.
West Frostproof
American Fruit Growers, Inc.
Winter Garden
B. H. Roper & Co.
Winter Haven
American Fruit Growers, Inc.
Chase & Company.

"I am very much in favor of the
Clearing House"-R. G. Brewster,
Montverde, Florida.


Pare 6


Pafre 6


FIGHT AGAINST RAILROAD RATE INCREASE


HOUSE NEWS

LETTERS FROM OUR
NEW DIRECTORS
(Continued from Page Five)
member, which has made the decision
to go it absolutely alone, and has re-
fused to meet with the Clearing
House in an endeavor to work out
any program mutually satisfactory.
In spite of all the claims to the
contrary, I believe that the Exchange
can not secure a predominating
amount of state tonnage under exist-
ing circumstances. W i t h o u t the
Clearing House, therefore, there
would be one non-predominating co-
operative and a number of indepen-
dents all working against one an-
other with no co-ordination. With
the Clearing House, even without the
Exchange, most of the shipper agen-
cies, exclusive of the Exchange, can
and will work together and try to
accomplish something for the indus-
try as a whole and for the growers.
I believe the Clearing House can
and will show it can continue to do
worth-while things. It can and will
show real co-operation by competi-
tive interests. That, in itself, is some-
thing worth saving and fostering. In
my opinion it would be a calamity to
abandon that principle.
I am a thorough believer in the
Clearing House and will do every-
thing I can to help hold it and have it
function.
Very truly,
(Signed) E. H. WILLIAMS,
Crescent City.

Editor,
Clearing House News.
Dear Sir:
"I accepted the nomination to
your Board of Directors due to the
request of friends, particularly the
personal request of Mr. J. C. Chase.
Naturally, my interest in the welfare
of the citrus industry being obvious,
I consented and largely because an
impasse between the Florida Citrus
Exchange and the Clearing House
seems evident and perhaps a friend
to each one may bring about a re-
approachment in the common inter-
est of the industry.
"Certainly much is yet to be done.
We must know all the-secrets-now
wrapped up in the fruit jackets there-
by extracting further profits in the
form of by-products. We must learn
to sell fruit, not just ship, and by all
odds a grower's conscience must be
manifested to a greater extent.
"If I may contribute anything
worth while for the time I will serve
I shall feel fully repaid for the ef-
fort."
(Signed) W. J. HOWEY,
Howey-in-the-Hills.

Editor,
Clearing House News.
Dear Sir:
"I am grateful to the growers of
my district for electing me a Direc-
tor of the Florida Citrus Growers
Clearing House Association. I fully
realize the grave responsibility rest-
ing upon me as a director and it will
be my endeavor to carry out the


August 25, 1931

work as a director to the very best of
my ability.
"There is considerable work to be
done in re-organizing and possibly
applying new methods, etc. But with
the splendid work of the Committee
of Fifty, whose aims are of the in-
terest of the growers and the indus-
try generally, I am sure we can carry
on the work of the Association in a
way that will be satisfactory to the
growers and within a few years build
it up so that it will be functioning as
was expected when the organization
was created."
(Signed) M. 0. OVERSTREET.
Orlando.

CRUTCHFIELD SAYS
RAILROADS MUST CUT
OPERATING EXPENSES
(Continued from Page Four)
diately following. At the time the
many other lines, whereas railroads
were languishing.
"Obviously the United'States has
arrived at the end of its joy-riding
period. It is necessary for all lines of
industry, including railroads and ag-
riculture, to again become self-re-
liant, each working out its own sal-
vation, and the responsibility for so
doing should be promptly restored to
the railroads and to agriculture. Any
attempt at paternalism on the part of
the Government or Governmental
agencies must inevitably result in
just the situation that confronts us
today. The railroads find themselves
unprepared to meet the conse-
quences of the folly of too much and
too rapid prosperity during the past
decade. Agriculture finds itself un-
able to cope with the attempted gov-
ernmental relief measures. Any at-
tempt of the Commission to extend
the railroads relief, as now request-
ed, in the shape of advance in freight
rates, in my opinion would lead to
the same kind of demoralization as
now exists in the wheat, cotton and
rubber markets.
"American business genius is am-
ply capable of getting things in bal-
ance, and slowly but surely working
out a solution of the present eco-
nomic chaos. No man or group of
men in this country is justified in
stating that there is going to be any
serious trouble, financial or other-
wise, because of business and indus-
try, including railroads and agricul-
ture, taking the necessary steps,
whatever they may be, to conform to
the existing economic price level
until we can build a higher economic
level on which to do business. Sus-
cessful retreats have always been
hard to negotiate, especially when
the retreat turns into a riot as in the
present instance. All industries, in-
cluding railroads and agriculture,
are supposed to be able to stand a
year or two of depression. In fact, it
requires a year or two of depression
occasionally to make possible the dis-
cipline of hard times which is needed
to correct fundamental faults of or-
ganization, management, operating
policies, excessive costs, public poli-
cies, and laws."





FLORIDA CLEARING HOUSE NEWS


East Coast Grower Urges


Co-operation of Shippers


To the Citrus Growers:
I am a loyal member of the Fort
Pierce Growers Association, and find
no fault with its management. I
also believe the Clearing House As-
Ssociation was a benefit to the Florida
citrus industry the past two years.
I have not heard or read of any
Faults it had that cannot easily be
overcome. I believe it is generally
understood that its benefits did not
justify its expense. It does look like
a large sum, when taken as a whole,
but when its cost to me was only 2
cents per box I cannot agree with
that statement.
The Exchange directors have found
it impractical to co-operate with the
Clearing House and I am willing to
stand by their decision because they
"have made a close study of the situa-
tion, and I believe acted on their best
knowledge.
My past experience of 20 years in
buying produce on northern mar-
kets leads me to think that if the
Shippers outside of the Exchange
were organized to say 30 percent or
40 percent of the crop and the Ex-
Schange has an equal or greater vol-
ume it will mean a lot more money
a for every grower in Florida, whether
they co-operate with each other or
compete. In the latter case it will be
orderly competition.
It is the competition of the ship-
pers outside of the Exchange, with
Each other, that has always done the
damage, and will continue for some
4 time if the Clearing House is not
made efficient. When the Exchange
has 75 percent of production there
will be no need for the Clearing
iHouse, and there is no reason to be-
lieve that if the Exchange continues
tto carry out its new program it will
undoubtedly succeed in controlling
Sthe crop. I cannot see why the Clear-
ing House will deter the Exchange
"program. My personal opinion is it
will hasten the Exchange control.
My principal reason for the above
remarks is my own pocketbook. I am
convinced that with the Clearing
House in operation until the Ex-
change has control, will be worth 50
cents per box or more to me and
every other Florida grove owner.
My position is that I would like to
support both organizations until the
time comes when the Exchange gains
control, and I am wondering if there
are not other Exchange members
who feel the same way as long as the
:,cost is not more than two cents per
box.
It is generally known in modern
industry, that a part of a given in-
dustry cannot remain prosperous un-
*less that industry as a whole is pros-
perous. So it will be in Florida citrus
production. Exchange members can-
.onot expect to prosper while those
outside carry on cut-throat competi-
tion among themselves. If a majority
of the packers outside the Exchange
can be held together so that they can
receive reliable information as to
r
a


what other members are shipping,
where and at what price, they will
know that a northern commission
merchant lies when he says some
other packer has offered him a much
cheaper price. No packer cuts his
price until he is satisfied his competi-
tion is trying to under-sell him. I
cannot subscribe to the idea that the
independent packer is in business
solely for his own profit. I believe
that they try to get all that is possi-
ble for the grower, but as they have
to sell the grower's fruit before they
can collect their charges and profit,
they naturally would sell under pres-
sure more quickly than the owner of
the fruit.
I don't believe Florida growers
want to go through what California
did before the California Exchange
succeeded to control, when 60 per-
cent of the growers lost their groves
and everything else they had that
could be levied upon. Neither do I
believe the Exchange can buy up a
majority of the independent packing
plants or put them out of business in
a short terms of years. I do feel that
the Exchange will eventually gain
control and I know our groves will
be worth double and treble their
present value when that time comes.
I am convinced that the Clearing
House will be worth many dollars to
us in price returns for our fruit, if
continued until it becomes unneces-
sary, and am willing to help support
it.
I hope no one will suspect me of
disloyalty to- the Exchange. Ex-
change right or wrong, I am for the
Exchange.
E. C. TEMPLETON.
(From Ft. Pierce News-Tribune)

JULY RAINFALL HELPS
STATE CITRUS CROP

The average condition of Florida
crops improved somewhat during
July as a result of the rainfall dur-
ing the month, according to the re-
port issued Aug. 12 by the United
States Department of Agriculture.
For some of the crops, however, the
Department says the rains came too
late to help materially, and due to
the uneven distribution of the mois-
ture, some sections were still in need
of rain at the close of the month
while a few areas had received too
much rainfall. For the State as a
whole, the reported condition of cit-
rus was above that of July 1 and there
was a material improvement in pas-
tures and hay crops.
The average reported condition
of citrus is above that of a month ago
due to the increased rainfall during
July, but remains considerably be-
low that of a year ago. Oranges are
reported 74 percent of normal com-
pared with 71 percent on July 1 and
83 percent on Aug. 1, 1930. Grape-
fruit condition is reported at 66 per-
cent compared 'with 62 percent on
July 1 and 79 percent on Aug. 1 of


Chemists Studying

Growing of Poisonous

Plants as Insecticides

When the boll weevil invaded the
South the planters thought they were
ruined. Then they learned to live
with the pest. Now there is a chance
that some of them will be able to
help wage war against all the insect
pests. This country uses an enormous
quantity of insect poisons, some of
which are imported.
Chemists of the United States De-
partment of Agriculture are study-
ing possibilities of utilizing poison-
ous domestic plants, or of introduc-
ing foreign poisonous plants, as
sources of insecticides. Pyrethrum
and tobacco, two of our most effec-
tive insecticides, are expensive, and
this country is dependent almost
wholly on Japan and Europe for py-
rethrum. The chemists have found
that three tropical plants-Derris,
cube, and haiari-are promising
sources of a new and highly effective
poison, rotenone.
Experiments indicate that rote-
none is a double-acting poison more
poisonous than pure nicotine as a
contact insecticide, rivaling pyreth-
rum in toxicity to many insects, and
showing some promise of replacing
arsenic as a stomach insecticide non-
poisonous to men or animals.
The 60,000,000 pounds of arse-
nates this country uses annually re-
tail for about $7,000,000. If farmers
can cultivate these tropical plants in
the warm regions of the United
States and in the Territories, it may
reduce the cost of fighting the insect
pests and also provide profitable
crops in areas where cotton has
ceased to be profitable. The chemists
are also studying other poisonous
plants with the hope of finding some
that can be grown as field crops in
the temperate regions.


Pink Lemons Exhibited
At National Orange Show
From Freak Lemon Trees

Pink lemons have been found
growing on a tree in California.
However, the tree is a rare speci-
men and the United States Depart-
ment of Agriculture warns that there
is little chance of the pink lemonade
industry switching to the new lemons
for raw material.
Pink lemons were first exhibited at
the National Orange show this year.
They came from a tree in Burbank

last year. Tangerines are reported'
at 69 percent compared with 64 per-
cent on July 1 and 77 percent on
Aug. 1 a year ago. While the citrus
crop as a whole improved during
July, some sections still lack suffi-
cient moisture and some dropping of
fruit is still reported. Satsumas in
Northwest Florida have improved
but will not turn out as well as was
anticipated early in the season.


Mulching Citrus Trees
Proving Profitable On
The Ridge, DeVane Says

The advantages of mulching citrus
trees overshadow the disadvantages
ten to one, Albert DeVane, manager
of the Lake Placid Land Company
groves, stated in a radio address here
during Farmers' Week. Speaking
from his own experience (as well as
that of other leading growers, he ex-
plained that mulching is proving a
profitable practice in the ridge sec-
tion.
During the recent unusually dry
spring and early summer, Mr. De-
Vane says, groves or parts of groves
that have been mulched are holding
up much better, and a better flush of
summer growth is quite noticeable.
A large number of growers in High-
lands County have visited many of
the mulched groves with County
Agent Louis H. Alsmeyer. It seemed
easy for them to see the better con-
dition of the trees.
Among the advantages of mulch-
ing, Mr. DeVane listed: conservation
of moisture, added organic matter,
cooler soil condition that is more
favorable to the trees as well as giv-
ing a better medium for the growth
of soil organisms, added minerals
and particularly nitrogen if the
mulch is a legume, increased water
holding capacity, lower cultivation
costs, and a condition more nearly
approaching nature.
Fire he considered one of the
greatest disadvantages, but explain-
ed that this was easily prevented by
leaving unmulched strips in the field
and having a fire guard around the
field. The other main disadvantage
is wood lice, but damages from them
can be prevented by leaving a small
opening around the trunk of each
tree.
Most any of our cover crops,
grasses, or such material can be used
for a mulch. Mr. DeVane's experi-
ence has been that some of the
heavier material will last longer and
be more effective.

and so far as known, the tree is a bud
sport (or freak) of the Variegated
Eureka lemon, which was developed
from a limb variation of the Eureka
lemon, discovered in 1911. The Va-
riegated Eureka lemon trees are not
as productive as the normal Eureka
lemon trees and they are grown
chiefly for ornamental purposes.
The pink fruited lemon tree is
identical in appearance to the Varie-
gated Eureka tree, but as the fruit
approaches ripeness it develops a de-
cidedly pink color in the rind, flesh
and juice.
Budwood from the pink lemon tree
has been inserted in sour orange
seedlings and the resulting trees will
be studied to see if the pink lemon
can be further propagated. Depart-
ment specialists declare the pink
lemon is another illustration of the
occurrence of striking bud variations
in this variety of citrus fruit.


August 25, 1931


Page 7






FLORIDA CLEARING~BBUE NW


FLORIDA

CLEARING HOUSE

NEWS

CLEARING HOUSE PURPOSES
Co-ordinating members' activities for orderly control of distri-
bution.
Controlling supplies at key markets.
Disseminating marketing information.
Standardizing grade and pack through impartial inspection
service.
Increasing consumer demand by advertising and publicity.
Securing best freight rates and transportation services.
Developing mutual interests of, and better understanding among
growers and shippers.
Maintaining representation of industry in all matters of com-
mon welfare.
DIRECTORS
E. C. AURIN Ft. Ogden
J. C. CHASE Winter Park
O. F. GARDNER Lake Placid
W. J. HOWEY Howey in the Hills
J. H. LETTON Valrico
M. O. OVERSTREET Orlando
A. M. TILDEN Winter Haven
A. R. TRAFFORD Cocoa
E. H. WILLIAMS Crescent City
R. B. WOOLFOLK Orlando

Clearing House
Explained
(Mr. Pratt, before the Interstate Commerce Commission,
was asked to explain in some detail the character of the
organization he represented, and made the following
statement) :
"The Florida Citrus Growers Clearing
House Association is a co-operative organiza-
tion organized under the Capper-Volstead
Act, representing from 71.7% to 76.8% of the
total citrus volume the past three years, and
having during the past three years about 7,000
grower members under contract, citrus grow-
ers being the only actual members of the or-
ganization. We have also had from 35 to 50
shippers affiliated with us by contract, these
shippers being responsible for handling the
marketing of our grower-members and such
other fruit as these shippers control outside of
our grower-members. The Clearing House
was created a little over three years ago be-
cause the growers of Florida, the public at
large and most of its leading shippers realized
the need of a better organized effort to control
as near as possible the marketing efforts of
the various shippers and marketing organiza-
tions in the state. The Clearing House does
not directly handle the details of any of the
marketing of the fruit. Each of the shipping
organizations under contract with the Clear-
ing House is directly responsible to its growers
for the marketing.
"The Clearing House is responsible for see-
ing that everything practical is done to permit
an intelligent marketing on the part of its ship-
pers. Because of this responsibility it gathers
all kinds of statistics bearing on the market-
ing problem. It receives daily from each of
its shippers in confidence wired information
showing the number of cars shipped by varie-
ties and grade, the number of cars sold, the
prices realized, the number of cars rolling un-
sold, the number of cars rolling to auction and
the destinations thereon. This information is
compiled at night in composite form and is on
the desk of its shipper members early the next
morning, thereby giving each shipper the com-


bined experiences of all shippers of the pre-
vious day's marketing efforts. All shippers
are also furnished daily by wire within a few
hours after each of the auction markets have
closed the average prices realized on each va-
riety and the number of cars sold, together
with a representative brand of each grade and
variety showing the differential between sizes,
the average prices realized on California or-
anges, Porto Rico grapefruit, etc. A weekly
citrus summary is furnished every week giving
an interpretation of the past and so far as pos-
sible of the future.
"Through our shippers and otherwise we at-
tempt to make as accurate an estimate of the
crop as possible, revising that estimate in the
light of further information, then scheduling
the movement of the crop by varieties as an
ideal to work towards. For the purpose of
controlling shipments from week to week, the
Operating Committee, nominated by the ship-
pers and approved by the Board, determine
the total amount that should be shipped by our
shippers; and the Manager, under the ap-
proval of the Board, has allotted to each ship-
per where individual allotments were deemed
necessary the maximum amount that each
shipper should ship for the coming week. The
Manager has made it his duty to talk with any
shipper that seemed to be out of line on prices
or otherwise help any or all of the shippers
connected with the Clearing House in any way
possible without, of course, disclosing any
competitive confidences. As the name indi-
cates, the Clearing House is a clearing house
for market information and has been of great
assistance because of reducing to a minimum
the "unknown" in marketing which otherwise
tends to create timidity and lack of confidence
on the part of the Sales Managers directing
the marketing for our various shippers.
"Also, under our Inspection Department, all
the packing houses connected with our ship-
pers have been systematically inspected to in-
sure all fruit going out under No. 1 labels be-
ing up to U. S. Standard, the same on No. 2,
thereby bringing up to a common agreed-upon
standard as to pack and grade the product
from all of our houses, the purpose being that
of creating general confidence in Florida or-
anges, grapefruit and tangerines.
"The first year of the Clearing House 74.3%
of the total shipments were under our general
direction; the second year 76.8% and this past
year 71.7%. The Clearing House has been the
mouth-piece for the industry in handling any
emergency problems like the Mediterranean
fly situation and has endeavored through its
publicity and contacts in general, to fulfill its
duty to the industry as a whole, it being the
only organization impartial in attitude and
generally representative of the industry that
could so far as it was permitted act for the in-
dustry as a whole. For the first time in the
history of the Florida citrus industry, Florida
during the last three years has had one co-
operative organization generally representing
over 70% of the industry in directing an intel-
ligent and co-ordinated distribution in market-
ing, with each shipper having the benefit of
the combined marketing experiences of all
and being no longer in the dark as to the pros-


pective movement from week to
week, and knowing that all shippers
were required to live up to minimum
U. S. Standards. It has resulted in
a tendency towards more uniform
prices, confidence on the part of
those directing sales in Florida, as
well as the buying trade, and in gen-
cral is as intelligent and scientific a
marketing effort as may be possible
where many competitors are united
in such a general program.
Aside from the constructive bene-
ficial efforts resulting from the co-
ordination of shippers and growers
in the Clearing House, your atten-
tion is further called to the fact that
11 members under contract with the
Clearing House this past year ship-
ped 85% of the total Clearing House
tonnage, or 61% of the total state
volume. These 11 shippers shipped
44,719 cars, making a total of 61%
of the state movement. This fact is
mentioned because an erroneous
opinion seems to exist that the indus-
try is so split up as to be inefficient.
The balance of the shippers who have
worked with us have received this
same information and intelligent ad-
vice that these larger shippers have.
received. More than that, the Clear-
ing House has been more or less of
a public body furnishing to any of
the public at large through its official
organ, the Clearing House News, as
well as through releases to the press,
articles on timely marketing prob-
lems that would tend to bring about:
with the entire industry a more gen-
eral appreciation of marketing prob-
lems. The Clearing House has never
failed to lend itself wherever it seem-
ed it could be helpful to the industry
problem as a whole, regardless of
having benefitted those that were
not supporting the Clearing House as
well as those that were within its
ranks."



Citrus Exports

Week Ending July 18
GRAPEFRUIT Boxes
New York-London ............. 3,591
New York-Liverpool .............. 2,915
New York-Glasgow ........... 531
Los Angeles-London .............. 6,200r
Los Angeles-Southampton .... 5,100.
Los Angeles-Glasgow ............ 1,000
Tampa-London* .................. 1,660,
Tampa-Havre, France* ......... 50
Tampa-Antwerp, Belgium*.... 50
Tampa-Amsterdam, Holland* 50
Tampa-Toronto, Canada** .... 75
Tampa-London, England** .... 10'
Tampa-Antwerp, Belgium**.. 6

Total.....................................21,238
ORANGES Boxes
Los Angeles-London ..............37,700
Los Angeles-Southampton ....14,500
Los Angeles-Liverpool ........ 500
Los Angeles-Glasgow ............ 500

Total................................... 53,200
Canned grapefruit.
** Caned grapefruit juice.


FIGHT AGAINST RAILROAD RATE INCREASE.


Page 8


August 25, 1931




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