Title: Florida clearing house news ..
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Permanent Link: http://ufdc.ufl.edu/UF00086639/00094
 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 15, 1932
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: VID00094
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

Library p' TA r U. S. Postage
Di ivi LtI 1. Paid
SFO R ID A E 1 Winter Haven, Fla.
AUG c ,' Permit No. 1


<>3 9


.HSOU SE


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


NEWS


Official
FLORIDA
CLEARING


Publication of the
CITRUS GROWERS
HOUSE ASSOCIATION


$2.00 a Year
10 Cents a Copy


Published Semi-monthly by the Florida Cit-
rus Growers Clearing House Association,
DeWitt Taylor Bldg.. Winter Haven. Fla.


AUGUST 15, 1932


Entered as second-class matter August 81,
1928, at the postoffice at Winter Haven,
Florida. under the Act of March q. 1879.


Reasons Why You Should Vote For Advertising

SHIPPED IN THIS 10 WEEKS SHIPPED IN THIS 10 WEEKS
2__550_0_10 BoxES 2~481 612 BoxES
WEEK JANUARY FEBRUARY MARCH APRIL MAY JUNE
ENDING 8 15 2 2 1q 2 4 I 8 25 5 22 6 13 20 7 3 10 lo 4

o $ 3.90 IJ __ -
$.90-----------------------------__-------- - --- ---
3 .8 0 1 N I err
3.80
3.60
3.50
3 .10 ________
330
3.20
3.10
3.00
~-----------------~------ ---.---------------___
2.90

2.70
2.0 o /
---------^-- - - - -- ---t l-----------
2.50 ___ SHoWING EFFECT OF ADVER ISIN-
2.40 iON AYEVAGE W-EEKL1
2j30 GRAPE'uR I PRICES 19 2.
2.20 /
2.10
2.00 -
2.9o K /
1.90 \ __ ___
$I-so ___________ -=


SAdvertising is the power that creates con-
Ssumer demand for whatever of worth-while
commodities that are for sale, including cit-
Srus fruit, of course, and especially that grown
in Florida, because of its demonstrated su-
,perior excellence and health-giving qualities.
i Market-creating and business-bringing re-
'sults of efficient and continuous advertising of
meritorious commodities and products, as of
whatever else that is worth-while, have been
,proved over and over again wherever the right
Sort of advertising has been done and that is
Being done at this time.
y.


Millions of dollars are being expended an-
nually for advertising by the most alert and
prosperous of merchants, manufacturers, deal-
ers and producers. The millions so expended
come back to the advertisers many-fold be-
cause the money expended for proper and ef-
fective advertising creates consumer demand
in new markets as well as in old. Surely, these
advertisers are not business fools; neither are
they wasters of money. They know what they
are doing. They see their sales increase and,
also, their financial incomes, as the result of
advertising properly done, in volume and with-


out interruption.
In view of all this, and in the light of reason
and common sense, why should there be any
hesitation whatever about the matter of ju-
dicious and liberal investment of money in ad-
vertising by Florida citrus fruit growers and
marketers, who year after year produce abun-
dantly of oranges, grapefruit and tangerines
of superior quality-at the same time com-
plaining that prices received are not what they
should be and that markets do not absorb as
(Continued on Page Six)


CLEARING


Volume IV
Number 22








Committee of Fifty Department
(Articles under this heading are prepared and published in the News by the thousands of other grower-members of the Clearing House and to report their
Educational Committee of the Committee of Fifty. Through this department efforts and activities to them. The Clearing House Directors and Manage-
members of the Committee of Fifty hope to maintain closer relations with the ment accept no responsibility for what appears in this department)


Committee of Fifty Says "Advertise"


Your Committee of Fifty from the beginning of the
Clearing House movement has earnestly and persist-
ently continued to insist upon an all-state advertising
program to advertise the citrus crop of this state as
Florida fruit; Florida oranges, Florida grapefruit,
and Florida tangerines. We believe that ripe citrus
fruits are superior in palatability and health-giving
qualities to any other variety of fruit, and we further
believe that the citrus fruits grown in Florida, with
their greater juice content and their longer exposure
to the health-giving rays of the sun, are superior and
more valuable in building and maintaining health
than citrus grown in any other section of the country.


The Committee is very anxious
who receives the questionnaire,
that will be mailed from the
Clearing House office within the
next few days, will answer it.
We urge every grower to an-
swer yes; expressing himself as
being willing to invest in the
proposed advertising program.
But whether the answer is yes
or no, send it in. This is your
business and we want it to be
conducted in accord with your
wishes.
The assessment that has been
fixed by the Advertising Com-
mittee of the Clearing House as
being adequate to give us a rea-
sonably satisfactory advertising
program is two cents per box on
oranges, two cents per box on


that every grower


grapefruit, and five cents per box on tangerines. There
might be some confusion on the tangerine assessment
inasmuch as tangerines are shipped in special crates
two of which are required to make a standard box.
These tangerine crates are known as half straps, and
two of them are a strap, and the assessment on tange-
rines is five cents per strap, in other words, two and
one-half cents on each of the small tangerine crates.
Since the advertising campaign began the Commit-
tee has heard a number of criticisms of the claims
made on the success of the grapefruit advertising
done this spring. Some growers have claimed that the
advance in price of grapefruit was largely due to the
stopping of shipments from Texas occasioned by the
quarantine in that state against the Mexican fruit fly.


Our advertising campaign began on March 3rd and
the last of the Texas shipments left that state on
March 25th, and if the period of transportation and
selling is taken into consideration Texas fruit was
scarcely off the market in the ten-week period on
which we judged the success of our grapefruit adver-
tising program. However, a further study of the east-
ern markets, which receive a very small quantity of
Texas fruit, and therefore were not affected by the
ending of the Texas shipments, showed greater gains
in price during the advertising period than did our
markets in the west, clearly indicating that the gain
made in the price for Florida grapefruit was not at
all due to the ending of the Texas shipments but must
be credited almost entirely to
the advertising done.


It has been very interesting to
this Committee to receive from
a number of growers through-
out the state statements show-
ing how their own individual re-
turns were affected by the
grapefruit advertising, growers
claiming that they had received
from fifty cents to eighty cents
per box more for grapefruit sold
or shipped after the beginning
of the advertising than they had
been offered or had received for
fruit shipped prior to the adver-
tising period, and some of them
expressing their regrets that
there had not been similar ad-
vertising on all citrus fruit ship-


ped from Florida throughout the entire season.
This led us to an analysis of what the citrus grow-
ers would have done with this additional money, and
providing that the average increase in price for all
of the fruit shipped from Florida had been twenty-
five cents per box (and it is reasonable to suppose
that it might have been that much), this sum would
have paid the entire fertilizer bill of the Florida cit-
rus industry. Rather an interesting thought, leading
to the question which has been expressed in some of
the recent talks on advertising, "Are you willing to
invest two cents per box in advertising and have the
northern consumer pay your fertilizer bill, or would
you rather save the two cents and pay the fertilizer
bill yourself?"


Ilif Conger Says Grapefruit
Advertising Paid Him
At the close of the 1932 season, when
finest quality grapefruit could not be
given away, a ten weeks' advertising cam-
paign was inaugurated, with the result
that 62c a box more was received than
the prevailing price. Ilif Conger, of Ta-
vares, a member of the directorate of the
Lake County Chamber of Commerce, is
one grower who knows from actual ex-
perience. Before the advertising cam-
paign no one would make an offer on his
grapefruit crop. He sold at the prevail-
ing price plus 62c a box more.-Umatilla
Tribune and Exponent.


FLORIDA CLEARING ( HOUSE NEWS


Page 2


August 15, 1932





August 15, 1932 FLORIDA CLEARING W HOUSE NEWS


Producing Florida Citrus Fruit

At a Cost of Two Cents Per Box
(Broadcast Over WRUF During Farmers' Week By James C. Morton)


Presuming that all of those who are listen-
ing in on this broadcast are citrus growers, let
me tell a true story, omitting only name and
place, but suggesting that each one of you sup-
ply name and place for himself, because simi-
lar incidents have happened in all sections of
citrus Florida and perhaps the story of this
grower of mine may have been duplicated in
your own experience.
THIS GROWER FOUND
It was February, 1932, and this grower had
a large and exceptionally fine crop of grape-
fruit on his trees, a crop on which he had ex-
pended considerable money and effort and
which was now ready to be marketed. He call-
ed his shipper and offered it for sale on the
tree, but to his dismay found that the highest
price the shipper would pay was 40c per box,
and that being less than the cost of production
'he refused to sell it and began to make a study
of the daily market reports and noted with in-
creasing dismay that the price of grapefruit
continued downward.
THE JOINT ADVERTISING
About this time the Florida Citrus Growers
Clearing House Association and the Florida
Citrus Exchange each put $20,000 into an
eleventh hour joint advertising effort to in-
crease the demand for grapefruit. This adver-
tising began on March 3 and a steadily rising
market followed, with the result that a few
weeks later the same shipper who had refused
to pay the grower more than 40c per box paid
him 90c per box, which meant the gain of 50c
per box to the grower and also resulted in
greater profit to the shipper. This gain was al-
most entirely due to the advertising begun on
March 3. Fifty cents per box more in the
pocket of the grower for the small amount
spent in advertising is a splendid investment;
but stop to think for a moment of the many
millions of boxes shipped prior to March 3
upon which an additional 50c might have been
received by the growers had the advertising
begun as it should have done early in the fall.
PRODUCED RESULTS
This grapefruit advertising began on March
3 and in the ten weeks immediately preceding
the advertising the average delivered price at
auction for Florida grapefruit was $2.05 per
box. In the ten weeks immediately following
the advertising the average delivered price at
auction for Florida grapefruit was $2.67 per
box, or a gain of 62c per box, which must be
credited almost entirely to the advertising. But
some one says: "I believe that this gain in
price was largely due to lessened shipments in
the second ten weeks period." Well, let's look
at that for a moment. In the ten weeks imme-
diately preceding the advertising, Florida ship-
ped 2,550,000 boxes of grapefruit and in the
ten weeks immediately following the advertis-
ing 2,481,000 boxes of grapefruit, an almost
equal amount in the two ten-week periods. So
it cannot be said that this gain in price of 62c
per box was due to lightened shipments inas-
much as the shipments were practically the
same.


.4
Then it might be thought that this gain was
a seasonal advance in price and that grapefruit
just naturally rises in price at that particular
time of the year; however, a study of last
year's grapefruit prices shows that the gain in
price in the two corresponding ten-week
periods was only 8c per box as against 62c this
year. Now, taking the total shipments for the
ten weeks immediately following the advertis-
ing and without considering the amount of
fruit that was shipped between then and the
end of the season, the shipments for the ten
weeks were 2,481,000 boxes and at 62c per box
this means a total gain in price for the ten
weeks of $1,538,000, all of which went into
the pockets of the growers who produced the
grapefruit, inasmuch as the picking, packing,
transportation and selling charges were the
same in the two ten-week periods. This means
that for every dollar spent in advertising we
received $38 return; or, if you think that is be-
ing too liberal, let's cut the increased return
of $1,538,000 into six equal parts and credit
one of the six parts to the advertising and it
means that for every dollar spent in advertis-
ing we received $6.50; and I wonder if there
is anybody listening in who does not believe
that it pays to invest one dollar to gain $6.50.
PAID HIS FERTILIZER COSTS
Now, this advertising of grapefruit shows a
gain in price of 62c per box. For the sake of
argument, let's cut that 62c in half, making a
gain of 31c per box, and, presuming that there
had been advertising all season on all varieties
of citrus fruit and that 31c per box more had
been received for every box of fruit that left
the state, this would have paid the fertilizer
bill of all the citrus growers of Florida for the
season. Stop and think about that for a minute
and realize that for 2c per box spent in adver-
tising the northern markets would pay your
fertilizer bill. In those days when it is rather
difficult to find money to pay for fertilizer it is
rather interesting to realize that it is possible
by an investment of 2c per box in advertising
to have our entire fertilizer bills paid by the
northern consumer.
ARE YOU WILLING
And so now, in view of those figures and
because of the need of increasing the market
demand for Florida citrus fruit, an effort is
being made to have every citrus grower assure
his shipper that he favors the all-state adver-
tising program and.will authorize the shipper
or marketing agency through whom he mar-
kets his fruit or to whom he sells his fruit to
deduct 2c per box on oranges and 2c per box
on grapefruit and 5c per box on tangerines,
the money to be applied specifically toward ad-
vertising Florida oranges, grapefruit and tan-
gerines. The need for this advertising program
and the benefits to be derived from it are so
very apparent that it seems needless to talk
further on the subject and I believe that every
intelligent thinking grower and shipper who
has his own best interests and the welfare of
'the industry at heart will not hesitate, when
asked to say whether he is ready and willing
to invest in an adequate advertising program


Page 3

behind Florida citrus fruit, but will promptly
answer, "I am."
TO INVEST A FEW CENTS
The opportunity to say "I will" will be yours
within a very short time. You will receive a
questionnaire asking you whether you are will-
ing to invest in this advertising program and
I am urging you, in view of the facts that I
have presented, to give the matter serious con-
sideration and answer "yes." The citrus grow-
ers of Florida have in years gone by lost mil-
lions of dollars through their failure to join
together in advertising. I know it is impossible
to correct the mistakes of yesterday, but we
cannot afford to repeat yesterday's mistakes
today and tomorrow, so, therefore, let's plan
now that we will agree to invest in this adver-
tising program that will so increase consumer
demand that profitable prices may be received
for next season's crop and every other succeed-
ing crop properly advertised.
IN NEEDED ADVERTISING
Stories innumerable might be told, if time
permitted, of the successes made by advertis-
ing, but listen for a moment to Mr. Wrigley,
maker of Wrigley chewing gum, seated in the
smoking compartment of a train between New
York and Chicago. When the statement was
made that Mr. Wrigley was spending that year
eleven million dollars in advertising his nickle
packages of chewing gum someone present
said, "Why, Mr. Wrigley, don't you think that
is rather foolish in view of the fact that every-
body already knows about your Spearmint? It
has been selling splendidly for years." Mr.
Wrigley smiled and replied, "This train has
been traveling back and forth between New
York and Chicago for years, but how far do
you think it would go if you took the engine
off?"
THAT YOU MAY ENJOY
You may think that you cannot afford to pay
for an advertising program. My friend, you
cannot afford to be without it and the very fact
that the grapefruit grower of our story be-
cause of the advertising received 50c more for
every box of his grapefruit is proof positive
that it paid him to advertise and it is very pos-
sible that this additional 50c paid the total cost
of his producing the crop, and, inasmuch as
this particular grower paid 3c per box for the
grapefruit advertising, he produced his grape-
fruit at a cost of 3c per box; and if every box
of grapefruit that left the state after the ad-
(Continued on Page Four)





Page 4 FL

FLORIDA

CLEARING HOUSE

NEWS

CLEARING HOUSE PURPOSES
Co-ordinating members' activities for orderely control
of distribution.
Controlling supplies at key markets.
Disseminating marketing information.
Standardizing grade and pack through impartial in-
spection service.
Increasing consumer demand by advertising and pub-
licity.
Securing best freight rates and transportation
services.
Developing mutual interests of, and better under-
standing among growers and shippers.
Maintaining representation of industry in all matters
of common welfare.

DIRECTORS
E. C. AURIN Ft. Ogden
J. C. CHASE Winter Park
JOHN D. CLARK Waverly
L. P. KIRKLAND Auburndale
X. H. LETTON Valrico
JAMES C. MORTON Auburndale
M. O. OVERSTREET Orlando
E. W. VICKERS Sebastian
GEORGE F. WESTBROOK. Clermont
E. H. WILLIAMS Crescent City
R. B. WOOLFOLK Orlando
OFFICERS
E. C. AURIN President
JAMES C MORTON Vice-President
M. O. OVERSTREET Treasurer
L. P. KIRKLAND Secretary
A. M. PRATT Manager

Following In

Florida's Footsteps
The citrus growers of Florida may
rightfully boast of their leadership in
cooperative effort, because if it be true
that imitation is the sincerest form of
flattery, then the Citrus Growers Clear-
ing House Association is being flatter-
ed by the imitative efforts of the Cali-
fornia and Texas citrus groups.
California, recently finding herself
almost bogged in the mire of undirect-
ed marketing, sought to create a pro-
rating program similar to that which
had been developed in the Florida
Clearing House three years ago. A
united effort of the whole California
citrus industry, both cooperative and
independent, was made to so jointly
prorate their shipments that they
would have a uniform daily flow of
fruit leave the state of California con-
sistent with the size of the crop and
consumer demand. True, this prora-
tion program only lasted for a few
weeks, and while we cannot enter into
a discussion of the reasons for its fail-
ure nevertheless we are deeply inter-
ested in this fact: that the whole Cali-
fornia citrus industry still believes that
proration of shipments is one of the
necessities for the orderly marketing
of their crop and is still busy seeking a
common ground of understanding,
whereby a united prorating program
may be made acceptable to all ship-


4ORIDA CLEARING HOUSE NEWS

ping interests and profitable to the in-
dustry as a whole. It is very gratifying
to us, who generally have been urged
to follow the lead of our California
friends, to find them at last following
the lead of Florida.
Within the last few days the Clear-
ing House has received a wire from the
Lower Rio Grande Valley Shippers'
Association of Texas, further supple-
mented by wires from the Texas Com-
missioner of Agriculture to Nathan
Mayo, our State Commissioner of Agri-
culture, asking for complete informa-
tion and detail on the formation and
operation of a citrus growers' clearing
house, in order that the Texas inter-
ests, both cooperative and independent
may find a common ground of opera-
tion for mutual advancement in a clear-
ing house similar to ours. Thus further
showing that in the State of Texas, as
well as in the State of California, in
spite of their boasted cooperative su-
periority, there is need for a larger and
broader organization in the form of a
clearing house to so co-ordinate and
unify all the groups, that conflicting
and competitive injury may be elimi-
nated, and that unified effort on mat-
ters of mutual interest may bring con-
sistent success.
Again we say that Florida may
proudly throw out its chest and take
the bows as having been the leader in
the citrus clearing house plan; not for-
getting our defects, we are the out-
standing success in agricultural clear-
ing house effort. Every citrus grower
and shipper in the State of Florida
should recognize in this last California
effort, and in the Texas proposal to fol-
low our Florida clearing house pro-
gram, endorsement of the value of the
Clearing House to the citrus industry
of Florida, and seriously consider af-
filiating with the Clearing House move-
ment in order that the greater part of
the citrus volume of the State of Flor-
ida, united in the Clearing House, may
be able to accomplish those things for
the Florida citrus industry which shall
make it more stable and profitable to
every producer of citrus in the state.
Please give this matter your serious
consideration, and if you are not al-
ready a member of the Clearing House,
decide to join with and support this
movement which has proved itself so
satisfactory and practical that the
states of Texas and California are find-
ing it advisable and expedient to follow
our example.


August 15, 1932

Producing Florida Citrus

At Two Cents Per Box
(Continued from Page Three)
vertising program began had borne its proper
share of the cost this grower instead of paying
3c per box would have paid 1%c per box,
which makes the figure still more interesting,
for, due to the 1%c spent in advertising, it
may be said that this grower produced his
grapefruit for 1 c per box.
SIMILAR PROFIT
In view of those figures, and they are rea-
sonable and logical, don't you think it would
pay you and every other citrus grower to invest
the small amount asked in this advertising pro-
gram for next season's crop? Why not invest
2c per box in advertising and make the con-
sumer pay your fertilizer bills?


The Growers' Voice
PROTECTING OUR INVESTMENT
Orlando, Florida
Florida Citrus Growers
Clearing House Association,
Winter Haven, Florida.
We might just as well make up our minds
that we are compelled to pay for protection by
way of advertising, just as we should guard
our homes by insurance.
The Florida Citrus Exchange and the Clear-
ing House officials have made you no rash
promises or false, misleading statements as to
big profits to be derived from advertising at
this time in our very critical career, and are
to be commended. They have wisely pointed
out the fact that if you even maintain a fairly
good average price for your fruit due to proper
advertising and keep it from any further de-
cline you have saved money. However, there
is every indication that Florida citrus will
bring a good return on the money this year
for many reasons which I could point out, and,
personally, I am very enthusiastic about the
prospects-especially so on account of the tre-
mendous interest shown in the present plan of-
fered and which is being widely accepted by
progressive growers and packers.
You growers have the nerve to buy judici-
ous, generous amounts of good fertilizer, spend
adequate sums.for spraying and dusting, prun-
ing, cultivating, etc. to raise a fine marketable
crop of fruit and you probably think you have
done your share and all that you should. Pos-
sibly you have, but this is your business and
no business man has ever let his hired help at-
tend to all the business and made a success of
it. It is YOUR business and it is you and no-
body else that must attend to it until the
money is banked. You surely don't expect
your packer to take the same great interest
in your business that he takes in his and vice
versa. So it's up to you to put out some more-
if you expect to reap the high dollar and protect
that big investment. Why not maintain your
splendid nerve and business acumen shown in
producing that fine crop by further wise pre-
cautions and safeguard your returns by chip-
ping in liberally?
My stranger-critic and friend, Mr. Wight,
(from whom I have just received a letter) it
is quite obvious, misunderstood my meaning in
my article entitled, "Let's Advertise Right," in
(Continued on Page Seven)





FLORIDA CLEARING 0 HOUSE NEWS


Computing Production and Development

Costs For Grove Coming Into Bearing


By J. E. TURLINGTON
State College of Agriculture
(Broadcast over Station WRUF, Gainesville)
It is very desirable that we have a satisfac-
tory method o prorating the costs incident to
young bearing groves between fruit produc-
tion and grove development. All costs are
directly chargeable to development until the
trees reach bearing age. With normal develop-
ment of the trees and fairly stable grove prices,
there are several years in which each year
added to the age of trees is accompanied by
an-increase in the size of trees and in selling
value of the grove. As long as there is an in-
crease in the value of the bearing grove due
to the increase in growth or age of trees, some
part of the costs properly belongs to develop-
ment. After the trees reach the age of max-
imum purchasing or selling value, it is obvious
that all costs should then be charged to fruit
production.
At what age do groves reach their maximum
value? This question has been put to a large
number of growers by the writer, thus: As-
sume that the groves are on similar soils in
the same locality and that they have received
the same kind of care since planting; if the
price per acre were the same regardless of
age, give the age you would choose if buying
a grove for each kind and variety of fruit you
are familiar with. The answers ranged from
six to 20 years of age, but there were very
few answers below 10 or above 18 years of
age. For grapefruit, the age most frequently
mentioned was 12, closely followed by 15. For
Valencia oranges, the most frequent age men-
tioned was 15, closely followed by 12.
NEWLY-BEARING TREES
It is with the ages from five to six, when
the trees begin bearing, to ages 12 to 15, when
they reach their maximum sale or purchase
value, that we are chiefly concerned in arriv-
ing at a method of prorating the costs between
fruit production and grove development. Up
to five or six years of age, all costs should be
charged to development. After the grove is
five or six years old, some fruit is to be ex-
pected, and a part of the costs should be borne
by the fruit and a part should be charged to
development.
During the first few years of bearing, the
average yield of groves is very small compared
to the yield at maturity, if they continue to
have proper care. The annual costs to main-
tain and develop the young grove, although
less than that for the mature grove, is propor-
tionately much greater than the yield when
compared to the mature grove. It follows from
this and the fact that the groves are con-
tinuing to increase in size and selling value,
therefore, that the fruit from the young grove
should not be expected to bear the full costs
for care of the grove. Just what proportion
of the costs, including interest, should be
charged against fruit production and what
proportion allowed for grove development is
not easy to determine. It would seem fair to
allow an amount equal to the percent of pro-
duction the young grove bears to the mature
grove as 100; divided by the percent the young
,grove costs are of the mature grove costs;


multiplied by the costs and interest chargeable
to the young grove for that part of the costs
to be charged against fruit production. The
balance of this cost to be charged to the de-
velopment of young grove.
HOW TO COMPUTE COST
Two formulae suggest themselves:
First: To figure fruit cost on an immature
grove of any one age. Percent immature grove
yield should represent of mature grove yield,
divided by percent immature grove cost should
represent of mature grove cost, times total
cost of the immature grove equals cost charge-
able to production of fruit. The balance of
the costs to be charged to development.
Second: To figure fruit cost on groves of
mixed ages. Cost equivalent acres times total
grove cost equals cost chargeable to produc-
tion of fruit. The balance of the costs to be
charged to development.
DEFINITIONS
"Production Equivalent Acres" equals the
products of the acres of each immature age
times percent their yield should represent of
that of a mature grove, plus acres of mature
grove, including older ages.
"Cost Equivalent Acres" equals the products
of the acres of each immature age times per-
cent their cost should represent of a mature
grove, plus acres of mature grove, including
older ages.
"Mature Grove" equals the age at which the
grove reaches its maximum selling value.
Applying Formulae One to a hypothetical
case where the expenses for a seven year old
grove is $65.00 per acre; interest $42.00; and
cost representing 54 percent of the cost of a
mature grove similarly located and cared for;
yield is 36 boxes and represents 20 percent of
the yield if the grove were mature, we would
have the following calculation:
Twenty 54ths times $107.00 equals $39.63 or
the charge made against fruit production. The
balance, or $67.37, should be charged against
grove development. If interest were not in-
cluded, then the calculation would be: twenty
54ths times $65.00 equals $24.07, chargeable
to fruit production, and $40.93 to growth or
development of grove.
With lower or higher costs, the same pro-
cedure would be followed. There is no claim
that the grove will necessarily increase in value
by the difference between total costs and costs
chargeable to production, but it may be either
more or less. The grove should be worth more
at the end of the year, due to added growth of
trees, which means increased bearing surface.
But how much more will depend on a number
of factors.
If groves are to return profits they may be
expected to enhance in value up to their max-
imum selling age, at a rate sufficient to take
care of all development costs, including inter-
est. In comparing groves of mixed ages and
groves of different ages, the comparison will
be much more equitable if proper adjustments
be made for development of the young grove.
What records we have indicate that the above
method gives approximately the same results
where the development costs are added to


grove value, as was found for increased pur-
chase price for something over 200 grove
purchases made over a number of years of
groves above four years of age. This would
also seem to be what one might expect under
conditions favorable enough to induce the
planting of groves. Under less favorable con-
ditions, fewer new plantings would be
expected.
In other words, the conditions under which
the proposed adjustments might be too favor-
able to the mature grove would be where
groves fail to pay for the costs of development.
Charges for development of a grove should
include: All costs and interest incident to
bringing the grove up to bearing age (about
5 years).
The proportion of the annual costs charge-
able to development after the trees reach
bearing age will decrease year by year until
it becomes zero at about 12 to 15 years.
In general, the greater the interim between
the time the grove comes into bearing and the
time it reaches maturity,' te smniallbr tHef'r -*
portion of the total costs for this period that
may be charged to development. But the total
charges allowed for development will likely
increase.
Calculations indicate that approximately 1-3
of the total costs of the grove from the time
it reaches bearing age (about 5 years) until
it reaches maturity (12 to 15 years) may
usually be charged to development.




Results Count

The money you spend on your grove is
an investment made tQ produce a good
crop. The next important step is to get
that crop into the market in the best
possible condition to realize the most out
of it. Over a period of years the records
show that






carries fruit into the market in splendid
condition and holds it that way in the
hands of the dealer. Here is what -Brog--
dex will do for you-
Grade out more No. 1 fruit
Save a large portion of the custom-
ary refrigeration expense
Deliver the fruit in sound condition
Hold it that way in the hands of the
dealer
Give it better appearance
Control decay and shrinkage
Meet the market demand
Bring you more money
Before contracting this year's crop dis-
cuss these things with a Brogdex packer
or with any of the growers he serves.
There is a Brogdex house near you.

Florida Brogdex

Distributors, Inc.
B. C. SKINNER, Pres.
Dunedin, Florida.


August 15, 1932


I"-


Pare 5






FLORIDA CLEARING 1S HOUSE NEWS


Total Citrus Fruit Exported From Florida During 1931-32 Season


JACKSONVILLE-
United Kingdom............................
Oslo, Norway....................................
Gothenberg, Sweden...........................-
Copenhagen, Denmark ......................
Dunkirk, France........---.......................
Antwerp, Belgium ............................
Jacksonville Total........................
TAMPA-
United Kingdom..-..........................

Havre, France ...................................
Antwerp, Belgium -...-...-.................
Amsterdam, Holland.........................
Toronto, Canada...........................
Montreal, Canada......--.......................
Genoa, Italy ....................................
Hamburg, Germany............................
Aruba, D. W. I.....- ...................--
Winnipeg, Canada ............................
Rotterdam, Holland .........................
Bremen, Holland ........---....................
St. Johns, Newfoundland...............
Tampa Total.................................


Fresh
Grapefruit
(boxes)
165,349
1,020
930
819
309

168,427

67,748

300







78

68,126


Canned
Grapefruit
(cases)
25,444



10
25,454

111,971

50
100
100

17

1,000
50
25

113,313


Grapefruit
Juice
(cases)








465
70 bbls
750 gallons
25
6
185
25
10 bbls





706 cases
80 bbls
750 gallons


Oranges
(boxes)


Reasons Why You Should

Vote For Citrus Advertising
(Continued from Page One)
much of their fruit as they should in order to
make citrus fruit growing profitable.
Would these same complainers expect a lo-
comotive engine, having no steam in its boiler,
to draw to markets the train of cars, filled with
citrus fruit, to which it is attached? Of course
not. Then why expect to move citrus fruits
from groves to millions of would-be consumers
without the power that is in advertising? Such
expectation isn't reasonable. Provide the steam
for the locomotive engine and the train moves.
Likewise, provide the advertising power and
markets will be created-profitable markets--
for all the citrus fruits that Florida can pro-
duce.
All this is not mere theory; it is demon-
strated fact which considered as it should be
at this time, by Florida citrus fruit growers
and marketers, would induce them to act
quickly in the matter of providing the funds
that now are being sought by those having the
advertising matter in hand, the Florida Citrus
Exchange, the Florida Clearing House Associa-
tion and the independent growers and mar-
keters. Why prolonged and ruinous discussion,
when decision to do more and better advertis-
ing can and should be made without further
delay?
Undoubtedly, and as abundantly proved,
proper and extended advertising is the remedy
that will cure one of the most serious afflic-
tions by which the citrus industry of Florida is
suffering. Production of quality fruit practi-
cally has been solved. Marketing is well on the
way to solution. Creation and permanent
establishment of consumer-demand is the great
need of the time.
Advertising, liberal in amount and continu-
ous, the best that can be brought to bear, will
supply the present need-and give profits to
citrus fruit growers instead of losses and re-
grets and worries, all of which they have in


abundance under present conditions that large-
ly are of their own creation. Most of these
conditions citrus fruit growers and marketers
have it in their power to change. Then why
continue to go along in the same old way-and
suffer, financially and otherwise?-Florida
Times-Union.


Maturity Research Work

Asked by Committee of 50
Requesting in a resolution "necessary steps"
to bring about "a more equitable maturity
standard and test for citrus fruit," the Com-
mittee of Fifty of the Florida Citrus Growers
Clearing House Association held its regular
monthly meeting in Ocala August 10th.
The committee likewise approved a proposed
advertising campaign to spread the name of
Florida citrus throughout the nation and urged
all outside growers and shippers to join the
Clearing House and Citrus Exchange in put-
ting on the program.
A. F. Pickard, of Lakeland, was elected
chairman of the committee to succeed Norman
H. Vissering, who resigned.
A message of welcome from Horace L. Smith
of the Marion County Chamber of Commerce,
was replied to by Benjamin F. Haines, Alta-
monte Springs.
Dr. Wilmon Newell, of the State Plant
Board, was asked in a resolution to take up
with the California authorities the question of
raising their embargo against Florida fruit, as
the committee feels there is no longer any
reason for this embargo. A letter had first
been read from Dr. Newell advising that Cali-
fornia will continue the embargo until stem-
end rot is eliminated.
The citrus maturity resolution, introduced
by Dr. James Harris, Lakeland, which was
adopted, follows:
"Inasmuch as it has been called to the atten-
tion of the Committee of Fifty that the De-
partment of Agriculture, through its fertilizer


MR. A. F. PICKARD
Large citrus grower and prominent business
man of the City of Lakeland, new Chairman of
the Committee of Fifty.

inspection and citrus inspection, acquires a sur-
plus annually; and whereas it is felt by the
Committee of Fifty that there is great need for
research work in establishing a more equitable
maturity standard and test for citrus fruit and
also research work in investigating any meth-
ods of advancing maturity without injuring the
quality of the fruit; we therefore respectfully
request that the board of directors of the
Clearing House take such necessary steps as
will call Commissioner Nathan Mayo's atten-
tion to this necessity and thereby institute
promptly methods whereby this resolution can
be carried out."
Approving the proposed advertising program
of the Citrus Exchange and the Clearing House,
on a motion of H. M. Papworth, Sanford, the
committee sent a request to the directors that
they proceed to make the necessary assessment
to insure the campaign.
A vote of thanks was given to a number. of
newspapers throughout the state that have,
without cost, carried large advertisements
backing up the need of industry advertising on
citrus fruits.

TEXAS CITRUS NOT DAMAGED
BY STORM
In reply to a telegram from the Clearing
House inquiring about possible storm damage,
the Texas Fruit Growers' Exchange at Mission,
Texas, wired as follows: "Storm did not reach
citrus section. No damage."


Page 6


August 15, 1932





FLORIDA CLEARING I P HOUSE NEWS


Developing Our Established Markets

Is a Sound Distribution Practice
D. E. TIMMONS, Extension Marketing Specialist


It makes no difference to the Florida citrus
producer where his product is consumed. He
produces citrus for money and desires that
those persons who are willing to pay a price
which will yield him the greatest net return
have his crop. It matters not to him whether
the negro cotton farmer eats the oranges, the
European tourist the grapefruit, and the New
Yorker the tangerines or whether the whole
crop goes to Washington, D. C., just so he gets
the highest possible net price.
We hear quite a bit about the desirability of
having our citrus distributed over a larger and
larger territory. We also hear the theory pro-
pounded that if we hold citrus off the auctions
it will cause auction prices to be higher, there-
by setting a higher price for the country as a
whole.
Under our present competitive arrangement,
it does not seem logical to attempt the starving
of the auctions. Buyers in these markets know
the total potential supply and car-lot shipments
in transit. And, too, if one of our shippers
practices a system of holding off one certain
market, it affords better opportunity for his
competitors to ship to that market. This would
also apply if all Florida's production were
handled by one distributing agency, since ship-
ping agencies in California and other states
could supply any markets Florida attempted
to starve.
MUST WATCH COMPETITION
In so far as we can obtain higher net prices
for our citrus to distant markets, all well and
good; but if this broader distribution results
in lower net prices and causes us to neglect our
more favorable markets to the extent of allow-
ing our competitors to supply these more fav-
orable markets, the result will be a lower net
return to our producers. Of course, we would
not say this would be desirable.
A much higher percentage of our grapefruit
goes to the west and central western markets
than of our oranges. This is due primarily to
the fact that Florida produces a much larger
percentage of the U. S. supply of grapefruit
than of oranges.
Only about 20 percent of our car-lot grape-
fruit are unloaded in New York, while about 25
percent of our oranges are unloaded in New
York.
Chicago receives about one-half as much of
our grapefruit as New York or about 10 per-
cent of our total car-lot shipments. Philadel-
phia ranks second to New York in total receipts
of Florida oranges. Approximately 10 percent
of our oranges go to Philadelphia.
:The four largest receivers of Florida citrus
iare New York, Philadelphia, Boston, and Chi-
cago. Approximately 48 percent of our oranges
go to these markets, while 42 percent of Flor-
Sida grapefruit are unloaded in these markets.
Sixty-six cities from which we have car-lot
unload figures received about 90 percent of our
grapefruit and 87 percent of our oranges. This
Does not mean that.all these citrus fruits were
consumed within the city in which the car was
unloaded, but gives us a relative idea as to the


section of the country receiving the greater
part of our crop.
The apparently large unloads on four or five
of our markets might lead one to believe that
our fruit is not being properly distributed, but
when we consider the fact that we supply only
a small percentage of the total citrus which is
received on these markets, the picture changes.
Even though New York receives 25 percent of
our car-lot oranges and 20 percent of our grape-
fruit, we supply only about 40 percent of the
oranges and 66 percent of the grapefruit re-
ceived by New York.
Philadelphia gets 55 percent of her oranges
from Florida but of the 66 cities reported, we
supply only 18 of them with more oranges than
do our competitors. All of these 18 markets
are east of the western boundary of Florida.
Within this territory there are 20 reporting
cities which receive more than 50 percent of
their oranges from our competitors.
There seems to be a reduction in car-lot un-
loads of citrus fruits in southern cities. Motor
truck transportation seems to be responsible
for this decrease. During the past season up to
January 1st almost a million boxes of citrus
fruits were shipped by motor truck, most of
which went to consumers east of the Mississippi
river and south of the Mason and Dixon line.
The percentage of our car-lot unloads of or-
anges which reach the markets in the territory
around Wisconsin seems to be on-the increase,
while those cities around New York and Boston
are practically stable, there being no definite
trend in percentage receipts. This might indi-
cate that a relative equilibrium has been reach-
ed in some of our eastern markets, and that
the demand for the type of orange which Cali-
fronia produces is greater by 20 percent in
New York than the demand for Florida or-
anges. Seasonality of Florida's supply partly
explains the difference. California supplies a
larger percentage of summer oranges than
does Florida. If Florida can economically pro-
duce more summer oranges, she may be able
to compete more favorably in the eastern
markets.
As competition for grapefruit markets be-
comes keener, due to increased production in
other states, we may be forced off some of the
markets on which we now enjoy a monopoly.
Out of the 66 reporting cities of the U. S., we
supply 57 of them with more than 50 percent
of their grapefruit. Most of the nine markets
whose grapefruit are supplied chiefly by our
competitors are in Texas and California.
We believe Florida producers have better
advantage on the southern and eastern markets
than the figures indicate; or, in other words,
we believe that natural conditions are such
that if we make certain changes in our supply,
we could command a relatively more important
place on more of these markets. Lengthening
our present shipping season by changing to
varieties which can be economically grown for
summer production might do a lot in gaining
a larger percentage of the sales on these mar-
kets.


Another subject which might deserve con-
sideration is careful study of the quality de-
mands of these markets. It may be advisable
to ship our poorer quality fruit to cities of
larger negro population and our best fruit to
other cities. Some markets may prefer one size
while its neighbor wants another size. It would
seem that it is much more important for us to
study the demands of those markets in which
we have natural advantages in our favor rather
than try to force our supply to a great number
of distant markets.


Growers' Voice
(Continued from Page Four)
the July 1st issue of the Florida Clearing
House News, when I made the statement:
"Trusting that you hammer away at the ad-
vertising proposition if the idea is for other
than 'Brand' advertising. Otherwise, we might
as well keep our money in our pockets." I did
not mean what this seemed to imply, but to-the
Florida growers my meaning I think is clear.
I most certainly believe in maintaining good,
well-known trade brands in addition to adver-
tising our fruits as "Florida Citrus." And to
receive the maximum results both forms of
advertising should be used.
For fear of being further misunderstood by
others, I will endeavor to explain what I meant
in this paragraph by not sanctioning "Brand"
advertising in the sense of making the grower
pay for it. It was not clear to me nor many
growers when the topic first came up as to
whether we were being asked to contribute to
a fund solely for advertising our fruit under
various brands of which there are possibly 300
or whether it was for the purpose of advertis-
ing fruit as a Florida product, which to me
made a vast difference. I am perfectly willing
and eager to pay my share when we are broad-
casting good advertising of our product as that
coming from Florida. I am not and never will
be in favor of contributing to a fund for the
purpose of boosting the private brands of 145
or more shipping concerns. That is their job.
In conclusion, I will go farther by saying
that the industry means business and firmly
intends to put on this campaign and you might
as well make up your mind you are going to
show enough interest in your own busindis' to
pay your share regardless. The Exchange and
the independent shippers can easily withhold
the necessary amount when offering you a
price for your fruit and this be sent in to-
wards the fund. However, it would seem so
much more respectable to have each grower
willingly volunteer his portion and just share.
Yours urgently and sincerely,
(Signed) DONALD J. NICHOLSON.

P. S.-Mr. Wight, in his letter wisely points
out the value of additional advertising and a
protective feature, which very likely has been
seriously considered by all agencies interest-
ed. This is advertising at a very low cost, but
it must be remembered is not as effective as
other means, but a very good feature. This, of
stamping the fruit, with the word FLORIDA.

This country was all right while we only
tried to keep up with the Joneses-the depres-
sion came when we tried to pass them.


August 15, 1932


Page 7









THE FLORIDA CITRUS INDUSTRY'S DEBT OF GRATITUDE TO THE STATE PRESS


ADVERTISING

The Results Obtained by Florida Citrus Growers' Clearing
House Association

A


$40,000
Spent for Advertising Shows Increased
Returns to the Grower of More than

$1,500,000



$40,000 Spent Advertising Grapefruit and the Result
Total Grapefruit Shipments in the 10 Weeks Preced-
ing the Advertising..................................................2,550,010 Boxes
Average delivered price at auction................................................$2.05
Total Grapefruit Shipments in the Next 10 Weeks
Following the Advertising-----.............................--------2,481,612 Boxes
Average delivered price at auction............................. ..... $2.67
AVERAGE GAIN IN PRICE ...........62c
Total gain in 10 weeks' shipments-
2,481,612 Boxes @ 62c---........ -------........................... -- $1,538,599.64
DID IT PAY TO ADVERTISE?



These Figures are Very Interesting and Prove Conclusively the Benefits
Derived from Advertising Expenditure Made on Grapefruit

It had been asserted by some that the increase in price had been largely due to les-
sened volume, but a check of the 10 weeks preceding March 3 when advertising began
and the 10 weeks following that date shows an almost equal volume of fruit for the two
periods, so the increase in price cannot possibly be credited to lessened volume. Others
had asserted that each year shows a natural increase in prices during this period. A
study of last year's records shows that the increase in price for the corresponding two
10-week periods was only 8c per box. Figures of the two previous years were without
value because of the Mediterranean Fly regulations. The total additional returns
shown on the boxes shipped during the 10 weeks following the advertising was money
in growers' pockets, inasmuch as picking, packing, hauling, transportation and sales
charges were the same and, therefore, the additional money went directly to the growers.
This additional amount means a return of $38 for every $1 invested in advertising or,
if you do not wish to give all the credit to advertising, then cut off the half million dollars
and we have $25 return for every $1 spent in advertising; or again cut off the million'
dollars and we find $13 return for every $1 spent in advertising; or again cut the half
million in two, leaving a quarter of a million dollars increase and we still have $6.50
return for every $1 invested in the advertising, and that is only taking into considera-
tion a 10 weeks' period instead of considering the whole remaining part of the season.

This is a very convincing argument in favor of adver-
tising and is of tremendous value in the presentation
of the proposed advertising program to the grower

ADVERTISING PAYS


Use

The Ledger and Star-Telegram
For Best Results in Polk County


We Point With Pride to These
Who, following the very generous example
of the Lakeland Ledger and Star-Telegram,
have so very liberally contributed their help in
serving the industry by the promotion of an all-
state advertising program for the coming crop
of Florida citrus fruit by the publication of
the advertisement shown on this page. To these
newspapers who have so freely given of their
space to promote this effort the industry owes
a debt of gratitude, and Florida should be
justly proud of the splendid cooperation of the
press of the state in their continued and willing
public-spirited advancement of all matters of
state welfare.
ADVERTISING PAYS
Use
PALATKA DAILY NEWS
For Best Results

ADVERTISING PAYS
Use
ST. CLOUD TRIBUNE
For Best Results in Osceola County

ADVERTISING PAYS
Use
THE EUSTIS LAKE REGION

ADVERTISING PAYS
Use
THE BRADENTON HERALD
For Best Results in Manatee County

ADVERTISING PAYS
Use
THE DeLAND SUN-NEWS
For Best Results in Volusia County

ADVERTISING PAYS
Use
THE AVON PARK TIMES
For The Best Results

ADVERTISING PAYS
Use
THE NEW SMYRNA DAILY NEWS
For Best Results in the New Smyrna
Trading Territory

ADVERTISING PAYS
Use
THE SANFORD HERALD
For Best Results in Seminole County



IRRIGATION

Advices of our Engineering Department
offered without charge. Let us show you
some of our installations.

67 Years of Service.

The Cameron & Barkley Co.
TAMPA, FLA.


Pan-e


HOUSE NEWS


August 15, 1932


FLORIDA CLEARING


Pae 8




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