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Ontario Department of Agriculture

FIFTY-SECOND ANNUAL REPORT

OF THE

Fruit Growers' Association

OF

Ontario

1920

PRINTED BY ORDER OF

THE LEGISLATIVE ASSEMBLY OF ONTARIO

TORONTO :
Printed by CLARKSON W, JAMES, Printer to the Kings* Most Excellent Majesty

1921

Printed by
THE RYERSON PRESS.

To His Honour H. Lionel Clakke^

Lieutenant-Governor of the Province of Ontario,
Mat it Please Your Honour:

I have the honour to present herewith for your consideration the Fifty^seoond,
Report of the Fruit Growers^ Association of Ontario for the year 1920.

Respectfully yours,

Manning W. Dohertt,

Minister of Agricultwe^
Toronto, 1921.

[3]

CONTENTS

Page

OFFrCERS FOR 1921 _

5

Financial Statement, 1921 ^

' 6

Annual Convention „

President's Address : David Allan Y

Some Further Light on the Winter Injury Problem : J. A, Neilson 8

Biennial Fruit Bearing in the Apple: J. W. Crow 12

An Ontario Sales Agency for Apples : C. W. Baxter , 16

The Ontario Nursery Control Act: W. J. Bragg, M.P.P 21

Carriers' Protective Service: G. E. iMcIntosh 22

The M>rket Situation in Great Britain : Hon. Manning W. Doherty 29

The Package Supply for 1921:

Baskets and Crates : J. M. Wallace 33

Barrels : W. A. Eraser 37

Boxes : S. H Moore , 40

The Grape (Marketing Situation in 1920^211: T. J. Mahoney 46

New York State Packing Associations: N, R. Peet 51

Can Production Costs in the Growing of Small Fruits be Lowered?: E. A. Orr 59

Report of Transportation Committee 60

Report of Historical Committee: A. W. Peart 61

Fruit Growers' Association of Ontario

OFFICERS FOR 1921

President D Allan, Grimsby.

Vititef-President H. Sirett, Brixton.

Becretary-Treasurer P. W. Hodgetts, Parliament Buildings, Toronto.

Executive Officers, together with A. Craise, St. Catharines,

and C. R. Terry, Clarkson.

Directors.

Div. 1. W. T Macoun, Ottawa. Div. 8. A. Craise, St. Catharines.

2. J. C Keeler, Brockville. 9. J. E. Johnson, Simooe.

3. R W. Ireland, Wellington. 10. W. M. Grant, Cedar Springs.

4. H. SiRETTj Brighton. 11. H. K. Revell, Godericlh.

5. W. J. Bragg, Bowmanville. 12. J. F. Elliott, Oxford Centre.

6. C. R. Terry, Clarkson. 13. W. L. Hamilton, Collingwood.

7. David Allan, Grimsby. O.A.C. Prof. J. W. Crow, O.A.C, Guelph.

H.E.iS. B. F. Palmer, Vineland station.

Representatives to Fair Boards and Conventions.

Canadian National: W. F. W. Fisher, Bairlinigton.
London: J. C. Harris, Ingersoll, and A. Sadler, Lambeth.
Ottawa: W. T. Macoun, lOttawa.

Committees.

Horticultural Puhlishing Company: Hamilton Fleming, Grimsby..

Neio Fruits: W. T. Macoun, Ottawa; Prof. J. W. Cliow, Guelph; E. F. Palmer, Vine-
land Station.

Historical: A. W. Peart, Burlington; W. T. Macoun, Ottawa.

Transportation: W. H. Bunting, St. Catharines; Jas. E. Johnson, Simcoe; D.
D, Carpenter, Winona; R. B. Scripture, Brighton; H. T. Foster, Bur-
lington.

Royal Show: David Allan, Grimsby; J. E. Johnson, Simcoe; W. F. W. Fisher,

Ontario Horticultural Exhibition: D Allan, J. B. Johnson, Elmer Lick, W. F. W.
Fisher.

Tariff Committee: W. H. Gibson, Newcastle; J. B. Fairbairn, Beamisville; T. J. Ma-
honey, Haanilton; H. Fleming, Grimsby; W. R. Dewar, Leamington,
ington.

Sales Organization: H. Sirett, Brighton; W Palmer, Marshville; C. W. Gurney, Paris;
j; E. Johnson, Simcoe.

[5]

FINANCIAL STATEMENT
1920.

Receipts.

Bal. on hand Dec. 31, $ ^

1919 953 70

Fees 193 50

Show 46 65

Interest 21 33

Grant 1700 00

E3XPENDITUIIES. ? 4

Annual Meeting 80 60

Committees 113 90

Show 58 04

Stock 150 00

Printing 35 25

Miscellaneous 264 02

Balance on hand 2213 47

2915 18

DETAILS OF EXPENDITURE.

Annual Meeting.

$ 4

Consumers Gas Co 15 50

Maud B. Ooo, reporting 60 00

The Journal, advertising 5 GO

Committees.

A. A. Craise 19 55

J. C. Keeler 20 15

H. K. Revell 15 80

H. Sirrett 16 55

H. Fleming 7 15

W. M. Fletcher 34 70

Show.

G. H. Martyn & iSons, fruit 18 00

Jos. R. Oanham, fruit 3 00

P. W. Hodgetts 3 30

Freight, G.T.R 313 74

SrooKt.

2916 18

$ ^

80 50

118 90

58 04

100 00

Canadian Horticulturist

Miscellaneous.

Printing, College Press, Envelopes, Vouchers, Membership cards

Clerical help

Auditing

Dominion of Canada Guarantee and Accident Co., Treasurer's Bond, $10.00
Interest, etc., $2.02

$35 25

242 00

10 00

12 02

Fruit Growers' Association of Ontario

ANNUAL CONVENTION

The sixty-first annual meeting of the Fruit Growers' Association of Ontario
was held at the Prince George Hotel, Toronto, on the 16th and 17th of February,
1921. Much interest was manifested in the proceedings, as the addresses and
discussions were of a most practical character.

Mr. David Allan, of Grimsby, President of the Association, occupied the
chair.

PEESIDENT'iS ADDRESS
David Allan, Grimsby.

We met last year in connection with the Horticultural Eixhibition held, in
^NTovember, in the Canadian National Exhibition Buildings, which in itself carries
with it an educative influence that should tend to send us back to our homes to
produce better fruit than ever before.

Owing to the uncertainty of climatic conditions and the almost impossibility
of heating the building, we felt that we could mot take a chance on a repetition
of conditions such as we labored under at our last meeting, and so we had to forego
meeting in conjunction with the Horticultural Exhibition this year. However,
I trust that arrangements will be completed in the near future whereby we
can meet with every comfort and convenience assured, in the same building and
during the week of the Exhibition, thus combining business with pleasure. We
further decided that owing to the difficulty of securing accommodation, even
in this great city of Toronto, to confine our convention to two days.

We place our program in your hands with a good deal of satisfaction^ —
because we believe it is a good one — ^^and because we believe it deals with things
in connection with our industry that are vital at the present time; such as our
Package Supply, an Ontario Sales Agency, Transportation, Marketing Con-
ditions both at home and in Great Britain, and Co-operation as an essentiality
in our business.

During the year just past, we were vigorously engaged in comlbating the
proposed increase in express rates, and with considerable success, by having the
proposed increase materially reduced. The history of 1920 is written, and from
a fruit grower's standpoint it was in many respects different to that of any
previous year.

In 1920 we had undoubtedly the larrgest pr'oductioii of fruit of aHmiOst
every kind ever previously experienced. It looked like a good thing for the
growers and surely would have been but for one or two conditions that pre-
vailed— such as the deflation in the prices of our product, and the inflation in
the prices of containers. And again, we laibored under a system of distribution
that was entirely inadequate to cope with the situation, with the result that
central points were glutted and markets ruined, for a time at least. So that
the returns did not allow any profit, thus Tesulting in thousands of baskets of
peaches and plums being left on the trees. The remedy, I believe, is in the
one word— CO-OPERATION".

_8 THE BEPORT OF THE Xo. 44

We, as fruit growers, have reason to feel deeply indebted to the Hon.
Manning Doherty, Minister of Agriculture for Ontario, for his personal interest
in our indusry as shown by his taking the initiative in endeavouring to improve
our marketing conditions. Our thanks are also due to Mr. C. W. Baxter, Fruit
Commissioner, Ottawa, for his whole-hearted assistance in everything that would
tend to the betterment of our business.

SOME FURTHEK LIGHT ON THE WINTER INJURY PROBLEM

J. A. Neilson, Lectueer on Hoeticultuee, 0. A. College, Guelph.

Extent of Losses Caused hy Winter Injury. Winter Injury 'of fruit trees
is not an unusual occurrence in Ontario and other countrieis having similar
climatic conditions. As a matter of fact some injury occurs in almost every
winter, but in some winters, however, the loss is very great. The winter of
1917-18 was perhaps the most disastrous ever experienced in Ontario, many
thousands of trees being killed outright and hundred of thousands more damaged
to a greater or less degree. At this date, almost three years later, the full
extent of the damage done has become apparent. All kinds of fruit trees were
found or reported to be injured, the amount of injury varying with the locality ,.
kinds and varieties grown. In extreme cases I'OO per cent of the treeis in
some Baldwin apple orchiards werei reported killed. In otheH oases^ the loss
was very much less. In Eastern Ontario the loss in apple orchards ransred
from 20 to 50 per cent., but in Western Ontario the damage was not ;so heavy.
Peaich trees suffered corusideraJble injury. One grower in Kent is siaid to have
lost twenty acres of young peach trees, and much damage was reported from
the Forest District. Fruit growers in every province in Canada where tree
fruits are cultivated reported more or less damage. In the United States a
similar condition of affairs previailed, injury of greater or less extent being
reported from every state in the niorthern part of the American Union.

Forms of Winter Injury. Nearly all the forms of Winter Injury noted by
others who have studied this question, were seen by the writer during the summers
of 1918-19 or have since been reported by correspondents liviiig in widely
separated parts of the apple growing regions of Canada and the United States.
These range from complete killing of the tree to bud killing and include root
injury, collar rot, bark splitting, trunk splitting, crotch injury, sunscald, black-
heart, killing of bark on large and smiall limbs, killing of fruit spurs, killing
of fruit buds, and killing back of terminal growth.

Factors that Cause or Predispose Fruit Trees to Winter Injury. A study
of winter injury reveals many interesting points regarding the factors that
cause or predispose fruit trees to damiage during the winter months.

(1) Climatic Conditions.

a. Lorn Temperatures. Very low temperatures prevailing for some time
during the dormant season nearly always produce more or less injury which may
manifest in one or more of the various forms listed above.

h. Sudden ^Changes of Temperature. A sudden and greiat drop of ten-
perature during the early rpart of the winter such as wais noted in December,
1918, is responsible for certain forms of winter killing wthicli mlay manifest as
bark splitting, trunk splitting, or blaickheart. Great variations in the day and
night air temperatures which often occur during the late winter or earlj

1921 FRUIT GROWERS' ASSOCIATION.

spring produce similar temperaiture changes in the bark of trees on the south
side of the trunk and large braniches running to the north, this causes a rupture
of the cells and produces wh^at is knx>wn as " sunscald."

c. Cold ^Yinds: Fruit trees growing on sites exposed to sd:roi>g cold winds
are inTariaibly injured more than those growing in well protected sites having
good air and soil drainage. Many examples of the effect of cold winter winds
winds haA'-e been observed by the writer in Ontario and reported by numerouf;
■correspondents in other sections of Atmerica.

Winds may Operate in any one or all of the following Ways: (1) Winds
increase the evaporation of mioisture from the bark in winter and may cause
complete drying out and the death of the tree.

(2) Winds sweep away the isnjow from the ground thus allowiing frost to
penetrate dieeply and loansdng in some casie's root injury or crown not, esp^ially
on varieties worked on tender root stocks.

(3) Strong winds evaporate moisture from the soil and thus rob the trees
•of the moisture they require to go through the doTmant period.

Soil Conditions'. Soil types and conditions have an important bearing
on the power of fruit trees to withstand severe winter cold. Very heavy soils or
•shallow soils underlaid with a hard impervious sub-soil or shallow soils with
a light, gravdly sub-soil lare generally not satisfactor}- for fruit trees ibecause
on such soil-types trees miake a weak growth and hence are not so well able to
stand severe climatic conditionis.

Wet Soils : Poor soil drainage is a predisposing factor of very great im-
portance. This point cannot be emphasized too strongly as this soil condition
is prolba^bly responsible for the death of more trees than any other single factor
except that of henvj bearing. An excess of moisture in the soil retards plant
growth in the sprin|g^ but on the other hand it causes^ a late growth in the
autumn. This is due to the fact that water heats up more slowly than soil and
therefore we find that wet soils are always colder in the spring and plant growth
is correspondingly later on such soils than on well drained soils. In the autumn,
however, tlue re\'eTse occurs. Wet soills are warmer than well drained) stoils,
because after Wng warmed by the summer sun the water loses its heat more
slo-wiy than soil and' thuB keep« the soil warm around it. The increiase in the
soil temperature and the excessive amoimt of moisture present, especially the
latter factor, often causes growth to continue at a sea&on when the growth of
trees ordinarily should ceaJse and tlie tisisne be ripening and hardening for tlie
winter. This liate isnCcnlent is often killed back and the bark of isuoh trees
is sometimes severely injured by bark splitting. The writer has seen several
cases of ^^Ty serious injury by 'bark splitting whidi was largely due to poor soil
drainage.

Cultural Methods. Cultivation continued later in the season than usual
or clean cultivation are factors wliicli contribute to winter injury. Soils
cultivated late in the season or soils on which no cover cix>p ha^ been sowti
contain mjore moisture than is found in soils which are growing- cover crops of
some kinds, and this moisture often causes a late growth, which in some seasons
does not have time to properly ripen before frost occurs.

Bare soils aillwta}-^ freeze deetper than soils which have a protective covering

•of some kind such as snow or a mat of plant growth. In some cases a covering

of vegetable matter or snow makes a dilTerence of several inches in the depth

to which frost penetrates. The efPect of a cover crop in preventing deep freezing

10 THE EEPOET OF THE No. 44

was shown very clearly by Prof. Jos. Oskamp, of Purdue University Experiment
Station. In a series of experiments with cover crops he found that frost
penetrated to a depfth of 57 indhes on a bare plot after six weeks of severe
frelezing in the winter of 1917-18, while on an adjoining plot protected by
a cover crop of millet, the frost penetrated to 37 inches.

Cbver <Tops alslo check late fall growth by absorbing the moisture and heljp
to hdd the snow; thus adding to the soil covering, and in other ways operate
to the benefit of the trees.

Plowing the isoil away from the base of the trees late in the fall and thereib}'
exposing the crown- of the tree to the action of frost is liable to cause injury
to the crown of some tender varieties such as Ontario, Grimes, Pewaukee, King
end others of a simrilar degree of hardiness. This form, of injriry is called
collar rot or crown rot.

Soil Fertility: Soil Fertilit)^ is alsio an important point in a study of
winter killing. Trees growing on properly drained soil well supplied with the
substance reqtiired for plant growth invariably stand any unusual climatic con-
dition better than other trees growing on isoils deficient in jtoit food. This
statement applies to both young and old ex-bearing trees, but especially to
bearing trees. Very oocasionally one may see instances of winter injury due
to a soil being too rich in certain elements of plant food such a.? nitrogen, but
this, however, is very i-are indeed. Lack of sufficient plant food is of m.uch
greater importance as a contributing factor in winter injury than an excess
of plant food.

Heavy Productiofi of Fruit During Preceding Season: Trees which bore
a heayj crop of fruit in 1917 were more sei^erely damaiged thatn treeis of the
same variety or of the same hardiness which bore a light crop or no fruit during
the same season. In Prince Edward County the writer saw a strikfing illus-
tration of the relationship of heavy fruiting to winter injury. A Pewaukee
tree had the unusual habit of producing a crop of fruit on a central leader
branch in one year and the next year the lower lateral branches bore fruit. On
this tree the centrall leader ilimib bore no fruit in 1917, and in consequence
thereof appeared to be quite healthy when examined in 1918, while the lower
lateral branches which bore a heavy crop in 1917 were nearly all dead.

In ISTorthumberland County a ISTorthem Spy orchard which bore a heavy
crop of fruit in 1917 w^as badly injured during the following winter wliil©
another Spy orchard near by on practically the same kind of soil, was very
slightly injured, due largely to the fact that but little fruit was produced in
the previous season and partly to a suffiicient supply of plant fotod.

Eesiearch work recently conducted in the IJnited States shows that the
hardiness of fruit trees is closely correlated with the presence in the trees of
pentosans, substances which are similar to sugars and starches. It is thought
that pentosans impart strength to the cell walls of plant tissues and that these
cell walls have greater power of retaining moisture than the cells of plants
which are relatively low in pentosans. In the ripening of fruits the sugars,
starches and olos^iy allied substances present in leaf, twigs and branches are
drawn on rather " heavily, thus lessening the supply of these materials
which are supposed to impart hardness by their power to resist the drying
out action of cold and strong wind. Experimental work done recently by
Prof. Crow in Ontario, and by Dr. Roberts, in Wisconsin, indicate that it may
be possible to change the fruiting habit of biennial bearing varieties by the

1921 FRUIT GROWERS' ASSOCIATION. 11

application of fertilizers and pruning. When this point has been more definitely
established, it may prove to be a valuable factor in the prevention of winter
injury to those varieties wliieh generally bear alternately.

Hardy Stocks and Varieties: The problem of securing hardy varieties
of good quality, and hardy root stocks or varieties on which to propagate or
top work other desirable and less hardy varieties, is of greatest importance to
fruit growlers living in the northern apple growing regions of America. This
problem has recently come in for consideration by several experiment stations
in the United States and isome valuaible initial w*ork has already beeii done.
Much more remains to he done along this line, and some fruit growers are of
the opinion that Ontario should undertake a comprehensive line of investi-
gation and research work of the fruit stock problem. The growing of tree
fruits in this province will not be placed on the most enduring basis until this
problem has been satisfactorily solved. The writer had the privilege of spending
one year in making a special study of the apple 'stock problem, while acting
as rese^arcth assistant in the Pomiology Section of the Iowa State College. Some
interesting and valuaible data were obtained; partly by original investigational
work and partly by correspondence with practical fruit growers and Experiment
Station Offiloers in various parts of 'Canada and the United States. A summary
of these data shows fairly conclusively that some good commercial varieties of
apples can be more aatisf aiotorily grown hy topgrafting on hardy vigorous stocks
planted for the purpose.

The varieties which are most frequently and favorably mentioned as being
used for stock are as follows: 1. Hibernal, mentioned 154 times; 2. Virgindia
Crab, 136 times; 3. Tolman Sweet, 64 times. These varieties appear to hav*
given the best general satisfaction over a wide range of territory than any other
listed. In the middle Western States the Virginia Crab and the Hibernal
appear to be the most satisfactory for the leading commercial varieties, e.g".
Grimes, Jonathan, Delicious and the North West Greening, and in the Eastern
States the Tolman Sweet seems to be the favorite for working with such varieties
as the King, Spy, Cayuga, Red Streak, Baldwin and Cranberry Pippin.

Mr. David Tait, the pioneer horticnilturalist 'of the northland, who lives
at Iron Bridge, wliich is approximately in latitude 46®;15'', hm used the
Hihernal very successfully as stock for the Mcintosh, Golden Sweet, ISTiobe
and Liveland. He believes the Darts Crab is even hardier than the Hibernal
as a stock, and has attained good results with this variety as a stock for tht-
Mcintosh, De Cromcels, Liveland, Duchess, Dudley and Delicious.

The writer does not wish to be quoted as saying that hardy stock will make
the scions of less tender varieties entirely hardy. iSuch a statement would not
be correct, especially in the colder parts of the apple-growing parts of North
America. In these sections scions of tender varieties worked on hardy stocks
were injured during the test winter of 1917-18. Practical experience and
experimjental work show, however, that some of the less hardy good commercial
sorts can be grown more successfully when top worked on more hardy, vigorous
disease-resistant varieties.

The common nursery practice of using French crab roots for propagation
purposes is open to criticism. French crab root stocks are not entirely hardy and
often predispose apple trees to root killing on unfavorable soils or sites. Prof.
Macoun of the Central Experimental Farm at Ottawa, found that standard apples
grown on French crab roots suffered severely from root killing, but when worked on
the roots of Siberian crab very little damage from this cause was noted. There

12 THE REPORT OF THE No. 44

is €ome evidence to show tiiat own-rooted trees are more desira'ble on account
of the greater hardiness which is believed to be secured. Some economical
system slhiould be worked out oi seicxiring hardy root stocks for (propagataon
purposes or of getting hardy varieties on their own roots to be grown either as
stocks for re-working or for fruit production. As suggested above this work
might very well be undertaken by our Experiment Stations and should be
eventually adopted by our nurserymleai after results of definite value have been
obtained.

How to Prevent Winter Killing: We cannot regulate the temperature
of the air or prevent winds from blowing, but we can, however, adopt means
which may lesisen the losses oooasioned by unfiavorable climatic conditions. The
following suggestions of a practical nature may be worth consideration. These
are not alt all new but owing to reoent derelopmeiufcs have aicquired a new
emphasis.

(1) Selection of Varieties: In establishingi new plantations plant only
those varietieis of good quality known to be hardy in your diBitrict. If possible
secure own-rooted trees. Varieties of high quality which are susceptible to
collar rot, siumiscald, and crotch injury (should be top-worked on hardy, vig'orous,
congenial stocks, whidh are resistant to these forms of winter injury.

(2) Proper Soil Drainage: All soils intended for the growing of tree or
bush fruits or land already planted, should be thoroughly underdrained if not
naturally or otherwise well drained. Good sloil drainage is abisioliuteily neoesfiary
and this point cannot be too strongly emphasized.

(3) Protection Against Strong Cold Winds: Orchard sites exposed to strong
cold winds in the winter should be protected by a suitable windbreak on the
north and west sides. This will materially lessen the damage caused by the
drying out action of cold wtint^T winds on trees and poil.

(4) Regulation of Fruiting Hahit : Varieties which are heavy biennial
bearers should where econoanically possible, have the fruit thinned to prevent an
•undue exlhauettion of tho'se materials wthidh are required for the ripening of the

fruit and wfcich are aillso believed to impart hiardines^s to the tree.

(5) Cultural Methods: Where ouHtivation is given begin cultivation early
in the season and <?eas'e cultivation at an early date say not later than July 1st,
on mjost sbils and for the majority of apple varieties. In peach orchards a
little later, say up to August 1st, and on light soils in dry seasons it w'ould be
advisable to cultivate a little later than on heavier soils, in wet seasons.

(6) Maintenance of Soil Fertility: Apply sufficient fertilizers in the form
of stable manure, comlmierciall fertiiliizer or green manure or a combination of all
to keep the soil properly supplied with those elements required for the best
growth of tree and fruit.

BIENNIAL FRUIT BEARING IN THE APPI.E
J. W. Crow, Professor of Horticulture, 0. A. C, Guelph
Biennial bearing is not a fixed characteristic of apple varieties. It is brought
about by the development in some one year of blossoms on too large a percentage
of spurs. Alternate bearing trees commonly show in their fruiting year fruit
buds on from 60 to 90 per cent, of their fruit spurs. From 30 to 50 per cent.
of ihese wmild be suffiicent to prodiuce a full crop. Growths on bearing Duchess
and Wealthy trees are of six distinct types, based on their position and on the
beihaiviouT of their terminaH buds.

1921

FEUIT GKOWERS' ASSOCIATION.

13

(1) Weak leaf spurs, making Ui mm. oi' growth annually. So long as
they make only this amount bf growth they do not set fruit buds.

(2) Auxiliary leaf spurs, 1-3 mm. is length, produced as lateral growths
on blossoming spurs. They rarely produce fruit buds in the season of their
origin but nbmnaly do so the followiing year.

(3) Weak fruit spurs, 3-4 mm. in length. They blo^om but seldom produce

fruit.

(4) Stronig fruit spurs 4-9 mm. in length. These bear nearly all the fruit.
Individual spurs bear every second year and rarely blossom Wo years in succession.

(5) Extra long fruit spurs (or k*oots). With some varieties fhoots from
10—200 mm. in length, occasionally produce strong terminal fruit buds.

(6) Non-fruiting shoots of lengths varying from 10' mm. up to 500 mm.
or more. The majority of the longer growths on a tree are of this nature.

The pOTcen-tage (from actual cx>unt) of growths failing in each category
is as follows:

TABLE No. I

Class 1

Class 2

Class 3

Class 4

Class 5

Class 6

1-2 mm.

1-3 mm.

3-4 mm.

4-9 mm.

10-200 mm.

10-500 mm.

1. Alternate bearing tree,

in on year 2-6

2. Alternate bearing troo,

in off year 2-6

3. Annual bearing tree,

(Mcintosh) 1-5

83-96

2-8
31-34

0
16-28
6-11

0-.2
59-73
29-34

0

3-9
2-3

4-17
6-18
3-18

To secoire annual fruiting lit Ibecomeis luecessary to stimulate the growth of
th€ tree in the off year so that a oonisiderable percentage of spurs wihich would
normially produce fruit buds in that iselascxn will be forced into categories 5 and
6. Spur beha-^T^our will then tabulate as follows;

TABLE NO. 2.

Class 1

Class 2

Class 3

Class 4

Class 5

Class 6

1-2 mm.

1-3 mm.

3-4 mm.

4-9 mm.

10-200 mm.

10-500 mm.

1. Starting with (on year) 2-6

2. Stimulated (by prun-
ing) off year 1-3

3. Next year (estimated)

83-96

1-4
30-40

30-40

0
7-11

0-.2

18-49
30-40

30-40

0
4-6

4-17
21-44

4. Result is annual fruit-
ing

We tli.uis get a tree with two siets of sipurs, each set of which produces fruit
in alternate years. Our experim'enfts shew that this re-ult oamnot be aceom'
plisihed by thinning of the fruit, but that it can be accomplished by moderate
heading hack of small branches in the off year. Our experiments show that
it can also be accomplished by stimulating the grow^th of the tree with Nitrate
of Soda in the off year. We have gotten good results from 4 lbs to a 12 year

14

THE REPORT OF THE

No. 44

old tree. The Mtrate requires to fbe appilied very early in the spring for the
reason that the large majority of fruit spurs have a very short period of growth
(from 4 to lO^ days). Our observations lead us to believe that 75 per cent, or
more of the fruit spurs on Duchess and Wealthy have completed their growth
for the season ly the time the first blossoms have well set on llooming trees of
the same varieties. Experiments in bud and blossom removal indicates that
the date ^iven is certainily the oritioal period of fruit bud formiaiti'on for trees
€>f the Dudhess variety m their on year.

TABLE No. 3.
BLOSSOMING AS RELATED TO FRUIT BUD FORMATION

1919 Growth

Dates of

Types

of Growths

Developed, 1920

Blossom
Cluster

Branch

Strong

Long

Short

Long

Weak

Strong

Long

No.

Fruit

Fruit

Removal

Leaf

Leaf

Fruit

Fruit

Fruit

Spurs

Growths

Spurs

Growths

Spurs

Spurs

Spurs

la

125

7

15-5-20

3

0

17

101

4

11a

110

8

18-5-20

5

0

21

83

4

12a

91

6

19-5-20

2

1

11

76

4

.12b

121

12

20-5-20

7

0

16

89

3

lb

155

9

21-5-20

19

6

12

116

8

2

327

24

22-5-20

First Blossoms
Opened

46

2

43

263

7

3

112

11

23-5-20

7

14

15

89

9

Ic

130

8

24-5-20

6

0

19

98

13

Id

302

15

25-5-20
Full Bloom

28

9

61

231

11

lib

404

36

26-5-20

36

21

72

315

31

10a

129

16

27-5-20

43

7

17

81

9

10b

124

13

28-5-20

First Petals
FaUing

117

13

3

14

6

5a

117

5

29-5-20

Fruit well

set

110

27

13

2

0

Total

2,247

170

79% fruit buds.

429

100

320

1,558

109

9

118

13

31-5-20

128

31

0

0

0

7a

122

10

2-6-20

143

13

0

0

0

7b

105

7

5-6-20

116

18

0

0

0

4a

110

6

8-6-20

123

11

0

0

0

6

185

12

21-6-20

199

16

0

0

0

4b

209

11

check

236

17

0

0

0

5b

188

9

check

210

14

0

0

0

8

337

22

check

384

32

0

0

0

Total

1,374

90

100% leaf buds

1,539

152

0

0

0

Table 3 showis 79 per cent of fruit bud formation frfom ispurs disbudded
before ithait time and none whatever from spurls disbudded after that time,
We suspect that no treatment can be applied after that period which will
<jhsunge the destiny of buds faling in categories 1, 2, 3 and 4 on either bearing
(OT nouTbearing trees.

1921 FRUIT GROWERS^ ASSOCIATION. 15

Tliese observations verify work done elsewhere, partiauliarly by Roberts
in Wisconsin, who is, however, of the opinion that with some varieties fruit
bud determination may continue for several days after iblooming is over. We
plan to extend these studies and expect to find that with later varieties the critical
period will he later than that stated iherein for the Duchess variety. It would
seem possible, however, to base on the information we now have, very definite
statements in regard to annual bearing as affected by pruning, fertilizing, tillage
and drainage.

It should be borne in mind throughout, that because of froists, rains anjd
other conditionis heyond the cooiitrol of the grower the number of blossom's
produced affords a much more accurate basis for estimating the correctness
of orchard methods than does the amount of fruit produced.

To secure aamual bearing it becomes necessary to regulate wiiih a considerable
degree of accuracy the growth of the tree in the off year. In the light of our
present knowldge it does not appear that any treatmient oan be given in the on
year wihich will affect the deisired resullt. Pruning, fertilizing, thinning and
tillage in the on year all affect the isize 'and colour of fruit but none of them
seems to affect the set of fruit buds for the following .season. They do, of
course, necessarily influence the conditions of internal nutrition of the tree
throughout the winter and early in the following spring. It is well known that
a tree which has borne a heavy crop is more easily injured by a severe winter
but the weight of evidence suggests that early spring growth conditions may, if
they are favorable, very quickly overcome any handicap the tree may be under
at the end of winter. We know that in heavy bearing varieties the tree is certain
to set a large number of fruit buds in the off year. We know now that the
question as to how nuany fruit budls and how many leaf buds wiU be produced
is determined very early in the seajsion — ^much earlier than we formeirly thought.
It is probable that bud differentiation begins (physiologically) very early in
the spring and that the process is practicaMy completed by blossom time
or soon thereafter. iSince our problem in securing annuM bearing is to stimulate
growth in ihe off year and thereby change into vegeltative gro^Hh a percentage
of spurs which would normailly 'set fruit buds„ any Condition affecting early
growth becomels important. It is remarkable, in this connection, that a tree
win set fruit buds heavily in its off year in Fpite of iseriouls' neglect and even
under conditions which would seem to be very adverse. This fact probably
only verifieg the statement that physiological differentiation of buds takes place
very early.

It has been shown that pruning and also nitrate of soda may be made lusie
of to stimulate growth. It is probable that in seasons of abundant early spring
rainfall, it would be neither necessary nor advisable to use nitrate in any con-
siderable qu^mtity.

These studies also suggest very emphatically that thorough land under-
drainage may under certain conditions be extremdy importanlt. It has been
pnoven through lonlg experience that root growth betgins earlier on drajined
land. The roots of fruit trees are influeniced directly by soil temperature and
soil aeration, whereas the top of the tree is acted upon only by air temperature
and sunlight. Early tillage likewise becomels a much more important matter
than it has sometimes been considered. It is probably correct to say that
where tillage is practised in fruit orchards, cultivation should begin as soon
as the land is in fit condition to work. It may be stated that there is in this
recommendation nothing new. In reply thereto I would point out thiat hitherto

16 THE REPORT OF THE No. 44

we have lacked definite information dealing "vntli these as well as with many
other points in fruit growing practice. In my judgment we are now a])le to
submit actual evidence drawn from careful observation and investigation and
to base thereon intelligent and authoritative recommendations.

These studies also suggest thiat tillage after blossom time has no effect on
the succeeding crop and should be therefore considered strictly in relation to
the crop of the current season. There is well known and valid objection to late
cultivation on the score of increased susceptibility to winter killing but it would
appear that in general we might profitably discontinue cultivation much earlier
than we have been doing. This thought carries with it a suggestion that pesr-
h'aps under certain conditions orchards might be grown advantageously in sod.
It is possdhle that the early use of nitrate of isodla might overcome the most
serious objections to this method of orchard practice, and make it possible for
us to secure bountiful annual crops from sod orchards. We should expect to
lose somewhat in regard to size of fruit, but would gain very materiallly in colour
and would certainly gain very important advalitages in regard to winter
hardiness.

AN ONTARIO SALE AGENCY FOR APPLES
C. W. Baxter, Feuit Commissioner, Ottawa.

The fruit grower's problems are many and varied, probalbly more so than
those of any other agricultural pro'duct. A great deiaH of time and money is
spent in preparation for the season's crop, the size of which is determined to
a large extent by the weather oonditions obtaining duiring the ishort period at
blossom time. The same amount of time and money is spent in preparation
whether the crop is light, heavy or a complete failure; this is not a net losis, as
the orchard is benefited by the care given it, and subsequent cropis will return
part of the outlay, but a portion is lost, and must he charged against the orchard.

As an apple-growing province, Ontario offers possibilities which are
unexcelled by any other province in 'Oaniada. In fact, its geographic position
provides some marketing advantages whieh are unattainable (by other provinces.
Its commercial producing districts are in the midst of the best of local markets,
indluding Toronto, Ottawa and MontreaJl and many other cities and large to^Vns;
and in addition it is very conveniently (situated for supplying the large con-
suming centres of the prairies; and the port of Montreal is also easy of access
for the export markets.

The varieties w<hich are of the highest quality and in greatest demand, both
on the home and export markets, do exiceedingly well, and can be produced at
a cost not exceeding and in some cases less than in other provinces Imt,
notwithstanding these possibilities and advantages, it cannot be said that the
apple industry in Ontario has progressed to the same extent as in other parts
of the country. This is by no means an indication that the apple growers of
Ontario are lesis progressive than in other provinces — far from it. It is because
the conditions under which apples have been produced here differ materially
from other provinces where the industry is a specialized one, and where the
grower's time is given practically altogether to this one line of endeavour. In
Ontario, on the contrary, at least 75 per cent, of the crop is produced on mixed
farms, and the grower's time is of necessity divided. Unfortunately as a result,
on many farms, the orchard receives little or no attention, it being left entirely

1921 FRUIT GROWERS^ ASSOCIATION. 17

to the tender mercies of nature, and no attempt being made to combat the
numerous destructive insects and dijseaseis Whiich take a heavy annual toll.

In this connection we are not unmindful of the labour difficulties on the
farm. These are always more or less in evidence and during the past few yciirs
have reached a serious stage hut, if an equal portion of time were devoted to
the care of the orchard as is given to othcT farm operations, the inicrease in
production and the improvem'ent in the quality of the crop would undoubtedly
give average returns equal to, or greater than some of the other crops produced on
mixed farms. There are some people who hold the view that apple grooving
and fruit growing in general is 'a 'higthly speci^rized industry, and should not
be a part of mixed farming. If we intend to follow the same methods of
production and marketing ais in the past, it would aippear that this view is
fully justified.

Notwithstanding the unsatisfactory results of the past season, tlie present
condition of the apple industry in Canada and the United States is such, as
should warrant every care being given to all orchards, small and large, so as to
produce the maximum quamtity of high quality fruit.

It will he remembered that the returns to the grower from the heavy
crop of 1912 were most unsatisfactory, which resulted in the conclusion that
there had been ove replanting, and that it would. be unprofitible to give further
oare to the orchards. From this time on many orchards were neglected. Again
in 1914, with a fairly large crop, the situation was oompietely disorganized
owing to the outbreak of war, which wias later followed by an embargo, against
ex-portation to Great Britain. This resulted in further neglect and a lowering
of the vitality of the trees to such an extent that onjany were unable to withstand
the severe temperatures during the winter of 1917-1918. Practically the same
conditions obtained in ih& iStates to the souths although perhaips in a lesser degree.
The net result is that in so far as production is concerned, we are where we
were at least twenty-five years ago.

The methods employed in harvesting and marketing the aipple crop of
Ontario are practically the same as those obtaining during the past twenty-five
years. If these methods are satisfactory to the grower, there is no need for a
change, but it is safe to say that only a comparatively few will agree that such
is the case. There have been "off' years when the crop was light and no difficulty
was experienced in marketing at profitable prices; the demand was equal to or
greater than the supply; but with the recurrence of each medium or heavy
crop, the results have been lanything but satisfactory, and as outstanding examples
of these unsatisfactory conditions we have the crops of 1913-14-16 and -20'.
The difficulty is that we have not been prepared to take adrantage of the big
crops.

It is not necessary here to go into details of the methods of harvesting and
marketing the Ontario apple crop. These are well known but, in order to com-
pare them with some of the other provinces, I shall refer to them briefly.

The bulk of the crop is graded and packed in the orchard under varying
weather conditions, which are very 'often unfavorable, and by labour provided
by the grower and obtained locally. No facilities beinor available for storing
the packed fruit against frost, it is necessary to get the fruit packed and shipped
within a very short period, depending upon the season. Owing to the limited
time of employment, it has been difficult to obtain skilled labour, and growers
have been compelled to compete with each other in securing labour, and to
employ whatever local help was available, whether experienced or inexperienced.

18 THE EEPOET OF THE No. 44

more frequently the latter. These conditions are both unsiatisfactory and expen-
sive. They db not permit of the proper care and attention being given to
produce a uniformly graded and properly packed output.

The methods employed in marketing have been various. When the crop
is shorft, there is no difficulty in. finding a profitable market There is competition
between local dealers and wholesale dealers in market centres but, when the
crop is medium or large, there is comparatively little buying, and the only
alternative has, been to cousign. Very soon the large centres become overstocked,
while others are often under-supplied. The tendency of individual effort has
always been towards large centres, and this< is not surprising as there is not
sufficient time to develop new markets, and the expenditure would be out of
all proportion to the value of the crop.

One of the most outstanding examples of the unsatisfactory results of the
present m'ethods of marketing was in 191'2, when a great portion of the
crop was sold at $1.00 per barrel and less. The crop^ although large, did not at
any time justify the acceptance of such low prices', which were the result of
individual competition and the almost total abisence of organized effort.

The past season, although different in some respects from 1912, is another
outstanding example.

A small portion of the Ontario crop is lalso marketed through fruit grower's
organizations, operating independently of each other and, although a few of these
have been fairly .siucoessful, generally 'speaking individual co-operaltive 'effort
has not worked out satisfactorily. There have been many co-operative fruit
growers' organizations formed in Ontario during the past twenty-five years, hut
only a comparatively few of these are functioning to-day. The priacipal cause
for the failure of these organizations is evidently their inability to successfully
miarket the crops. In some 'cases the manager, who is also the salesman^ has
been selected from among the members, and, although successful as a grower,
has not had the time nor opportunity to gain sufficient marketing experience
to dispose of the product to the best advantage To engage a fully qualified
salesman, who would deVote all his time to the work, would be to incur an
expenditure out of proportion to the value of the crop.

The methods employed in harvesting and marketing in Nb\'^ 'Scotia and
British 'Columbia are very different from those in voo-ue in Ontario. The
bulk of the crop, instead of being graded and packed in the orchard, is hauled
by the grower to the packing house, which has been specially equipped for the
work, and where it can be done at a minimum cost. This method is followed
both by fruit growers' organizations and dealers, and the work performed by
employees who, having fixed standards to guide them, are able to obtain uniform-
ity in the pack which is not possible where the work is done in the orchard.
lEven inexperienced help very soon becomes efficient under the central paekinix
house system. When necessary, employees can be moved from one packing
house to another, and the longer period of emp[byment under this meth^od is
a further inducement to engage in the work.

In regard to marketing in Nova Scotia and British Columbia, the satis-
factory results of centralized endeavour are so well known that they need scarcely
l)e referred to. There are, however, one or two outstanding examples of what
has been accomplished that are worthy of note.

British Columbia's natural market, by reason of her location, is the prairie
provinces, where there is keen competition from the Northwestern States, whose
growers are also well organized. British Columbia growers did not feel secure

1921 FRUIT GROWERS^ ASSOCIATION^ 19

in depending upon the prairie markets to take their crop against this competi-
tion and they have therefore esta'blis'hed sales agencies in many large centres
and brokerage connections where they have not their own representatives, so that
they no longer feel they must meet the prices of their competitors on these
markets if not satisfactory.

Similar results have 'been obtained 'by growers in Nova Scotia through
centralized endeavour. In 1919, with a crop of approximately one and three-
quarter million barrels, they were able to find a profitable market in the United
States for approximately 500 cars of low grade and cull fruit, for which there
was no market in Canada, and this would have been impossible had there been
no central selling agency and no co-operation between growers' organizations and
dealers.

Transportation is not among the least of the fruit grower's problems. If
adequate facilities are not available to move the crop at the proper time, all
energy and mJoney expended in production will have been in vain.

Ontario has always had more or less difficulty in securing a supply of
refrigerator cars in big crop years, and last year was no exception. Especially
is this the case for shipments to the prairie provinces where refrigerator cars
are required early in the season. There has been no co-operation between
shippers to cope with this problem; each has 'acted independently of the other.

The transportation companies are not without their responsibility in pro-
viding an adequate sujpply of suitable equipnuent, but this responsibility can
be more definitely fixed when growers anticipate their requirements well in
advance of the shipping seas'on, and so advise the transportation companies.

Nova Scotia and British Cdumbia growers and shippers have accomplished
a great deal through their shipping and traffic associations. Last year when
contracts for Ontario apples were bein|g cancelled owing to the inability of
growers and shippers to isecure cars^ British ^Columbia through the traffic associa-
tion, co-operating with the railway companies, had an ample supply. The
shipping and traffic organizations in both these provinces are composed of fruit
growers' organizations and dealers.

One of the most outstanding examples of what can be done by concerted
effort was accomplished by the Nova Scotia Shipping Association about two
months ago. The market for apples in the United Kingdom had for some time
been weakening and prions had dropped to where it was unprofitable to ship
unless something could be done to offset this decline. The regular steamship
lines were asked to lower the ocean freight rate, but could not see their way to
do this. The Association then sought to charter fifteen steamers for straight
cargoes, and in this they were successful, and at a rate aipproximately $1 per
barrel cheaper than the rate then being charged. Nbt only did this benefit
the members of the Association, but other shippers a? well, as the regular lines
subsequently lowered their rate .75c. per barrel.

The Fruit Branch has endeavoured to render every assistance possible in
fruit and vegetable transportation, and our experience in this work has shown
that one hundred-fold more can be accomplished where the growers and shippers
are well organized.

I have endeavoured to outline briefly the methods employed in other
provinces in marketing the apple crop and the results obtained and to compare
them with those of Ontario. And this brings us to the point of asking, if a
selling organization and a transportation organization are esssential to the
•nccess of the apple industry in 'other provinces, are not these equally essential

20 THE KEPORT OF THE ^o. 44

to the suiooess of the industry in Ontario? It is my opinion that they are
even more necesary, and furtherm'ore that the fundamental principals and
methods governing these are adaptable to Ontario conditions. It is true that
the area served hy these organizations in British Columbia and Nova Scotia is
considerably less than the apple growing area in Ontario, but this should not
mean any insurmountable difficulty. It will be noted that in both Britisih
Columbia and Nova 'Scotia, the shippinig and traffic associations are separate
from the marketing organizations. The shipping associations, composed of growers,
selling organizations and independent fruit shippers and dealers, have but one
objective, namdy, improved transportation and all that that term stands for.
The growers and shippers realize that unless they are in a position to solve the
many transportation problems, they cannot succeed in marketing.

There are in Ontario to-day approximately fifty fruit growers^ organiza-
tions, thirty-five of which have confined their operations to apples only. Several
of these have not been active in marketing for a nun/ber of years. Very few, if
any, handle the fruit through a central packing house, the work being done in
orchards or in buildings on the premises of each member, and each organization
marketing its fruit independent of the other, with more or less success.

While independent oonoperative organizations offer gome ad\i'antages over
individual effort, it is practically impossible for these to successfully compete
with other provinces and districts where growers are thoroughly organized and
have established an efficient central selling association. In view of this growing
competition, one hesitates to recommend the further organizing of growers into
independent units until there has been established a central selling organization
with which they can affiliate and to which they can turn over their product to
be marketed.

The tonnage of the organizations now in existence, if centralized, is
sufficient to warrant the expenditure necessary to establish an efficient and
economical central selling organization. The greater area covered by these
units might necessitate the establishing of two sub-centrals, one in eastern and
one in western Ontario, both undjer the control of the central.

Standardization is essential to the success of such an organization. We have
certain grades that have been established by Federal legislation, which have
done much to advance the apple industry, but these are only minimums and
permit a great variation in values packed within the grade reguirements.

By the establishment of brands which represent specific qualities and which
are uniformfly present at all times, the grower who produces the highest quality
of fruit is assured of receiving returns accordingly. This also establishes
confidence with the trade, and permits trading at long distances.

In addition to the establishing of (brands, the central would esitablish sales
agencies in sufficient numbers to 'obtain the widest possible distribution, antici-
pate the requirements of its members with respect to supplies, estimate the
crop, and be prepared to quote prices well in ad^"ance of the dates of shipping,
co-operate with the transportation companies in the matter of car requirements,
in order that a sufficient number of cars may be assembled wihin an accessible
area, and direct the operations of the local organizations with respect to harvest-
ing and shipping.

In conclusion, I would say that the possibilities for successful and profitable
apple growing in Ontario are unsurpassed by any 'other province. The present
condition of the apple industry is such as should warrant every care being given
our orchards but, if Ontario is to take full advantage of these possibilities and

1921 FRUIT GROWERS' ASSOCIATION. 21

present conditions, there must be a change in our present methods of packing
and grading. The apples must be ihandled through central pajcking houses, and
marketing centralized. The trend of prices for agricultural products has been
decidedly downward of late while the cost of production has not shown a
corresponding reduction. It is necessary, therefore, to reduce the cost of pro-
duction to a minimum, and to obtain the best results for the production. This
lias been accomplished by growers in other provinces and districts by co-ordination
and centralization of marketing, and I am confident tliat it will be equally
successful in Ontario.

THE ONTAKIO NURSERY CONTROL ACT

W. J. Bragg, M.P.P., Bowmanville.

I do not intend at this meeting to make an address. I am simply going to
outline some of the clauses of the Act, and I desire that this shall take more
the form of a round-table conference than anything else. We have this after-
noon both nurserymen and fruit growers, and I am sure you will all be interested
in what may come out in the discussion.

In forming this Act, there was no thought in the minds of lanyone that
it was going to injure the nurseryman, but shortly after the Act was formed
and introduced in the House, we found that the nurserymen were taking very
strong excep'tion to some of the clauses, amd in the different stages, the Act
received very severe criticism, so much so that we thought it advisable to
withdraw the Act at the last session. I have with me a number of copies of
the Act 'as it was presented to the Hou'se, which will be distribuJted among you.

One reason why we took this matter up and gave it so much consideration
was that our friends to the south of us had, in almost all the apple-growing
States of the Union, similar legislation with regard to nursery control. In order to
show you the interest that has been taken in this matter, I would like to read
to you a number of letters which were sent in to myself and the Department
of Agriculture from the Fruit Branch in connection with this matter. I received
some very strong letters of criticism after this Act was introduced, and I also
received some very complimentary letters. The Horticultural Association of
the Province of Ontario at their convention held laist week in Toronto took this
matter up, and although they are not particularly interested in fruit growing
of any kind, they felt that something along the line as laid down in this reso-
lution was of very much importance. The resolution reads as follows: *'That
the Ontario Horticultural Society requests our Legislature now in Session to
introduce such legisilation to punish misrepresentation and deception in the sale
of such trees, scions, bushes and vines as are gro^^Ti for commercial and
domestic purposes, so that the purchaser and grower may be fairly protected
from fraud, and that copies of this resolution be forwarded to the Premier and
the Minister of Agriculture,'^ etc.

The farmers in the Province of Ontario have complained that nurserymen
have come to them and sold stock at fabulous prices, and they found out later
that the stock was the very cheapest and not fit for growing at al^.

There are some clauses in the Act which I think are rather objectionable, and
possibly it would not be amiss to just read the Act and then take it up clause
by clause. The fathers of this bill had not anything in their minds in any
way affecting our own nurserymen; it was more to protect our people from the

22 THE EEPOKT OF THE No. 44

foreign nurseryman, and I think we should do all we can to protect our own
interests on thiis side of the line. I think some legislation along tliis line is
highly advisable.

A member: I can see nothing for it from a nnrseryman^s standpoint except
that there will be a very miaterial advance in prices. My opinion is that the
seven year clause is quite sufficient because with tlie best commercial varieties
you can tell at the end of six or seven years whether you are getting a tree
true to name. If a man has ever planted an acre of orchard and has planted
ten Spy trees, he will know whether he has planted a Spy or not when he has
planted it.

There should be a particularly strong dlause in this Bill as to the impor-
tation of foreign stock, and it has 'been suggested that the bonding of the dealer
who is selling foreign stock should be heavier than that required of the Ontario
nurseryman. If a foreign nurseryman is coming to Ontario to sdl stock, he must
lay his catalogue and price list before the Department of Agriculture for the
Province of Ontario before he is allowed to go out and make a sale. Men who
are dealing in nursery stock in Ontario have their honor at staJre, and they
will not deceive the grower; they cannot afford to, and I feel that something
should be done to protect the growers in this country against these foreign
nurserymen.

I would like to name a committee composed of fruit growers and nurserymen
as follows to consider this bill and redraft it for presenting again to the
Legislature, and with your permission I will nominate Mr. Bailey (E. D. Smith
& Son) ; Mr. Wellington (Stone and Wellington) ; and E. 0. Plumb (Brown
Bros Co.); J. E. Johnston, Simooe; H. T. Foster, Burlington; W. H. G-ibson,
Newcastle; P. W. Hodgetts, Toronto.

The committee as named was accepted, Mr. Hodgetts being named as
convener.

CAERIEES' PROTECTIVE SERVICE
By Gt. E. McIntosh, Fruit Division, Ottawa.

ISTeither the time of this Convention nor the patience of those in attendance
would permit me to review in detail the many transportation problems with
which the Fruit Branch has had to deal during the past season. I can only
assure you there has been no slackening in our efforts with the railway executives,
the steamship companies, the express companies and the Board of Railway
Commissioners, in cultivating a Closer co-operation, and a clearer understanding
of difficulties between operating and traffic officials and the shippers, for better
service.

One of the problems which it is necessary to solve, particularly in this
period of reconstruction, when the consumer is looking for a downwaird trend
in the cost of living, is that of preventing waste of foodstutiEs. The introduction
of a carriers^ protective service" by Canadian Railw^ays will go a lonof way towards
solving this problem.

By such a service the carriers would accept shipments of fruit and vesretables,
say from October 15th to April 15th, inclusive, assume, apart from the liability
now provided for negligence and omission in transit, full liability for loss or
damage by frost or over-heating, and for such a service the carriers would be
permitted to assess such charges a® may be agreed upon between the carriers
and the shippers, or as may be ordered by the Board of Railway Commissioners.

1921 FRUIT GROWERS^ ASSOCIATIOJN. 23

It is iniipossible to estimate the loss and waste that occurs each seaison
from frost or over-hoatiiig in transit. That it is tremendous is conceded by
everyone concerned, especially Tvhen we consider the enormous tonnage of
perishables that is required to be transiported during the cold periods. About
90 per cent of the Ontario applets are moved undei? these Icondition?. One
railway alone bandied 4514 heated cars on Western lines during the season of
1918-19. The service now available— that is to siay a heated refrigerator car
service on a mileage basis — is fairly satisfactory for short-haul movements,
but it is not satisfactory for the long-hauls and the carriers have not so far
suggested any improvement for this traffic. I believe, howev^er, they are
interested in this matter, but require to collect data upon which they can base
reaisonable charges.

One instance occurs to me which miay throw some light on the amount of
loss that is resulting each season from frost or overheating. Sixteen car-loads
of Canadian aipples, moving to one consignee, on wihioh claims were presented
for damage, amounted to $5,892, or approximately $1.60 per barrel. The shipper
claimed the damage occurred somewhere between shipping point and destination,
and it is generally conceded that a modern refrigerator oar, properly cared for
under heat, will safely transport perishables during severe cold weather. One
Ontario shipper in referring to the present service states: — "We have this day
a telegram from consignee on a heated oar of fresh apples that went out from a
Dominion Atlantic point along with another car. The one has arrived cooked and
the other frozen.^'

It is true, cases such as cited are the subject of claims, and eventually
no doubt, are paid. That is not the point, however. Few, if any, fruit producers
or shiippers wish to sdl their product this way. It is most unsatisfactory to
bring fruit to the stage of marketing and have it damaged in transit. A carriers;'
protective service would place definitely the resiponsibility for .such loss, and
would assure proper care in transit. It would be as beneficial for the carrier
as the shipper. The carrier w^ants the full earnings of the traifiJo^ and the
shipper certainly does not want t'o be comipeilled to file claims.

It is recognized, I thinfc, by the fruit and vegetable interests] both in
Eastern and Western Caniadia, that a carriers' protective service would be a
service distinct from the freight transportation service, .and would be something
for which there Wiould properly be a separate charge. The carriers would become
the insurers, and the charge should be something in excess of the actual cost of the
service, but in proportion to that charged for a similar service by, railways
operating in the United iStates, and recently adopted on recommendation of
the Interstate Commerce Commission. It should not be an out-of-pocket
service for the carriers.

For severaJ. years, up to and including 1919, a form of carriers-' protective
service, known as Option 2, wias in effect from the Northwestern States, Wash-
ington, Oregon, Idaho and Montana, to various States as far east as Illinois,
and to points on the -Canadian Pacific, Canadian JSTorthem and the Grand
Trunk Pacific in Western 'Canada. In fact the rules of certain carriers
governing heated car service, provided for the protection of perisihable articles
from 1k)sis on account of frost, freezing or over-heating[, under two so-called
O'ptions: (1) The shipper furnished the service and assumed all responsibility
for loss not the direct result of actionable negligence of the carrier; and (2) the
carrier, at the request of the shipper, furnished the service and was liable for

U ' THE BEPORT OF THE No. 44

loss not the direct result of actionable negligence of the shipper. When the
carrier furnished the service the charges per car in addition to the transportation
charges, from Washington points were as follows:

Alberta points $18 00

Saskatchewan points 21 00

Manitoba points 24 00

In the general revision and oonJsiolidation of the perishable protective services
in the United States, about a year ago, the iC'anadian roads withdrew from
participation in any protective service against frost, so that on international
traffic the carriers' protective service is now offered only on that portion of
the haul within the United States and to Great N'orthern and Northern Pacific
points in Manitoba.

Effective March 1, 1920, American carriers, as a result of recommendation
by the Interstate 'Commerce Commission, published what is knK>wn as Perishable
Protective Tariff No. 1. This Tariff contains under one cover practically all
of the rates, rules and regulations governing the handling of perishables from and
to all points. In connection with this the carriers formed what is known as the
N'ational Perisihable Freight Committee, and with this committee the shippers
may file comiplaints and adjustment proposals which are listed, for a pujblic
hearing. If a satisfactory adjustment cannot be arrived at, the shipper still
has the right of appeal to the Interstate Commerce Commission.

There is a f celling of dissatisfaction among the handlers of fruit and
vegetables throughiOut Canada over the present regulations goveming the move-
ment of these commodities during the period for which a heated car service is
required. Previous to the Fall of 1916 the charges for a heated car service, for
fruits, were absorbed in the freight rate, or the carriers may say it was a special
service for wihich they received no remuneration. In any event, an additional
charge of 1 cent per car per mile, minimum $2, became effective at that time, which
has since been increased to iV^ cents per car per mile.

With the introduction of the heated car service shippers expected the railways
would assume the risk of damage. They isay the railways are selling a certain
service to the public and the responsibility of risk for the safe transportation
of the goods should be definitely assumed by the carrier and ^ould not be left
to the sihipper, dependent upon claim proceedings or npon any uncertain or
indefinite rule. In answer to this the carriers say the heating of the car is
an expense never considered in the line-haul rate.

At a sitting of the Board of Eailway Commissioners in Ottawa, January 7th,
1920, in answer to an inquiry as to whetlier, under present conditions, the
carriers accepted the risk, the representative of the Canadian Pacific Railway
Company made it quite clear that they did not.

It was on this occasion that the proposition for a carriers' protective service
in 'Canada was first brought to the attention of the Board, it being submitted
on beihailf of the fruit and vegetable shippers of the Dominion that the charges
then in effect for heated refrigerator car service were ample for tlhe service
given; that the railways in CamadJa should be required to furnish, a carriers'
protective service for long-haul shipmentis; and that shippers would n'ot object
to reasonable charges, provided the responsibility of the carrier was clearly deifined.

The 'Chief Commissioner intimated, that an important question had been
raised and 'one wihich had his hearty sympathy if it could be worked out properly.
It was further suggested that interested parties should make a formal application

1921 FRUIT GROWERS' ASSOCIATION. 25

to the Board. This has recently been done by the British Columbia Traffic and
Credit Association, in behalf of the fruit and vegetable shippers of that Province.
The application is for an order of the Board, requiring Caniadian carriers of
British Columbia fruit and vegetables to provide a service, such as outlined.
This has been supported by the Western Canada Fruit Jobbers' Association, Tvith
a suggestion that it be made applicable to all Provinces.

If Ontario shippers feel that it is in their interests to have a carriers^
protective service, support should be given the application and a request made
that the service be available for simailar shipments from this Province.

In the evidence at Vernon, B.C., it was submitted that the way to provide
against the risk of damage by frost or over-heating is through, insurance; that
the regular insurance companies have no provision for this type of risk, and both
Canadian and American companies had declined to consider the business. It
is unquestionable that as the carriers furnish the equipment, furnish the heating
ser^^ce, and have the shipments under the personal oversight of their employees
at all times, they are the logical party to undertake the insurance. This
question was fully considered in the Northwestern States, and resnlted in the
carriers voluntarily undertaking the service and further voluntarily continuing
it after four years experience.

Statements filed with the Interstate Commerce Commission show that
m the case of perishable freight moving to some 26 wholesale houses in Western
Canada during the period of October 15th to April 15th, 1917, the percentage
of claims paid to freight charges was 2.48 per cent and the percentage of all
claims filed to freight charges was 2.77 per cent. This, it mil be noted, was a
period during which the carriers' protective service was in operation, and the
percentage 'of claims filed to freigOit charges was very low.

The Interstate Commerce Commission says: — "No method seems to be open
10 the carriers to avoid claims for damages arising from the freezing of potatoes
m winter, except by offering a protected service at reasonable rates and under
their own full responsibility for the results, giving the shipper at the same time
the right, without additionial charge, to assume the liability himself by providing
his own protection, the carrier to remain liable, of course, for any loss or damage
resulting from their own negligence."

Further. — "The alternative rule suggested by the defendent carrier, and
now puiblished in the tariff with this Comlmission, is in our opinion fair and
reasonable, in that it allows the shipper a choice between shipping his traffic at
a lower rate under a special contract, by which he becomes his own insurer
against weather loss and damage, or making his shipments under terms imposing
the full responsdbility upon the carrier."

In suggesting that Canadian carriers become insurers there is no new
principle involved. The Oanaddan classification provides thaft in the case of
a shipper dediniinig to ship at "Owner's Risik" any article sihown to be sio carried,
the articles will be carried snbject to the terms and conditions of the bill of
lading at "Carrier's Risk," on payment of 25 pe rcent. over and ahove the rates
specified. The carrier thereby undertakes to accept the risk of weather, or as
the case may be. It is accordingly the insurer. The principle is therefore not
new and sihould not in any way conflict with railway operation.

It has beefi suggested that this provision in the classification covers the
situation. That is not the case, except where commodities are moving under
class rates. Fruit and vegetables, as you are aivare, move under special commodity

THE REPORT OF THE

No. 44

tariffs and at these rates do not share in the service provided by this classification
regulation.

It would not be 25 per cent on the commodity rate, but 25 per cent on the
class rate. For instance, under this regulation, a carload of apples from an
Ontario point to Winnipeg, would cost the shipper, in addition to the regular
freight chaiiges, the difference between the class and the commodity rate, plus
25 per cent on the class rate, a total of $18-6.90' per car, or 15.1 cents per car
mile, if the shipper insisted upon a bill of lading without the notation ^^Owner's
Risk.^' It may therefore be siaid there is no protective service offered for the
fruit and vegetable movement, because the additional charges are more than the
traffic will bear. "All that the traffic will bear'^ is a good thing for the rail-
ways, but " more than the traffic will bear '^ is a bad rule for everybody.

For comparison reference is made to the following figures showing the
relationship now existing between the commodity and class rate for aipples from
Ontario points to representative receiving points in Manitoiba and 'Saskatchewan:

APPLES RATES IN CENTS PER 100 LBS.

Destination

Mileage

Com.
Rate

Class
Rate

Class Rate
Plus 25%

Difference
per 100 lbs.

Winnipeg 1,232.4

Portage la Prairie 1,288.0

Brandon 1,365.5

Moosomin 1,631.1

Regina 1,768.0

92
105
112

1183^
1373^

123.5

131.5

137

154.5

167.5

154.3
164.3
171.0
193.1
209.3

62.3
59.3
59.0
74.6
71.8

The difference in charges is from 59 to 74.6 ceiii^s per lO'O' lbs. A comparison
with the rates effective for a protective service for similar distances over United
States lines, which are approximately from 7 to 10' cents per 100' lbs., mdicates
tlie relationship between these charges land what American railroadte consider
practical for shipments of a similar character.

Assujning that the classifioation did permit fruit and vegetables to move at
commodity rates, plus 25 per cent, for a clean bill of lading without notation
^'Owner's Risk,'' the result would be as follows, on shipments from Ontario
points.

Destination

Miles

Winnipeg 1,232.4

Portage la Prairie 1,288

Brandon 1,365.5

Moosomin 1,631.1

Regina 1,768

Com.

Com. Rate

Rate

plus 25%

92

115

105

131

112

140

118.5

148.1

137.5

171.8

Difference
per 100 lbs.

23

26

28

29.6

34.3

The difference in this instance is from 23 cents to 34.3 cents per 100 lbs.,
as compared with from 7 to 10 cents per lOiO libs, for corresponding distances
under the protective tariff effective on American lines.

The application therefore now before the Board of Railway Commissioners,
(and it should probiably be decided at this meeting whether it will have the
support of Ontario shippeifi) is for a carrier's protective service such as will

1921 FEUIT GROWERS' ASSOCIATION. 27

give a measure of stability to the fruit and vegetable business in a direction in
which ihe&e industries, so far as winter marketing is concerned, are now prac-
tically at the mercy of the weather and the carriers..

In presenting the case for the British Columbiia shippers, it was pointed
out that it is not the actual loss on any particular shipment that is the real
concern, but rather the edement of risk, whi<^h debars the distributors from
purchasing as freely as the production and consumption demands. The appli-
cation is to secure a working arrangement that will meet the situation. The
service should be available from October 15th to April 15th, inclusive, eaxjh
season, and effective from and to such points as trade conditions demand.

It would be more or lesis experimental for a time at least, and if granted,
either vdluntarily or by an order of the Board of Railway Oommissdbners, the
charges should be sufficient to show the carriers fair results undfer average oon-
ditionis, and at the same time not too high to be a service.

The generail opinion is that the charges should be on a flat basis. That
is to -say, shipping territory should be blanketed, and rates fixed to destination by
provinces. This is a matter which should have careful consideration. Charges
at present in effect between points in the United States are arranged in a similar
way.

The following schedule shows the charges for a carriers^ protective service
from Wenatchee, Wash., to different states also the heated car service rate from
Ontario points to points of similar mileage, at "Owner'ig Risk'': —

From Rate Basis

Wenatchee to Glacier Park, Mont 5c. per 100 lbs. all West. Montana.

Sarnia to Montreal 1 j^q. per car per mile.

Wenatchee to Glasgovv. Mont 6c. oer 100 lbs. all East. Montana.

Forest to Fort William 1 i^c. per car per mile.

Wenatchee to Northgate, NT. D 7o. per 100 lbs. all N. D.

Clarkson to Winnioeg Flat rate from points West Montreal.

Wenatchee to St. Paul, Minn 8c. per 100 lbs. all Minn.

Clarkson to Regina Flat rate from West of Montreal.

Mileage

Charge

Per Car

^529

$17.50

505

7.50

858.3

21.00

860.1

12.90

1,168

24.00

■1,248

16.50

ri,610.4

28.00

1,590

22.50

•"* ^

Deducting the present charges for heating, which Canadian Railways say is a
just and reasonable charge, and which has been authorized by an order of the
Board of Railway Commissioners on request of the carriers, would provide, if
applied to the American traffic, an insurance fund of roughly $9.00 per car
to Montana points; $6.50 per car to North Dakota points, and $4.00 per car
to Minnesota. It is doubtful if this is sufficient to protect the carriers. On
the other hand the American railroads were recently refused authorization of
proposed increased charges for the service.

British Columbia shippers, through the British Columbia Traffic and Credit
Association, are on record before the Board of Railway Commissioners as favoring
charges as follows : —

Alberta points $30. 00 per car

Saskatchewan points 40. 00 per car

Manitoba pomts .50. 00 per car

Ontario points 60. 00 per car

2S THE EEPOET OF THE No. 44

Deducting the present heating charges of IV2 cents per mile, this would provide
an insurance fund roug'hly as follows: —

Alberta points $22. 00 per car with average haul 530 miles.

Saskatchewan 27.50 " " " 830 "

Manitoba " 33.00 " " " 1,130 "

Ontario " 36.00 " " " 1,600 "

The charges suggested by the British Columbia shippers are approximately
64 per cent, higher than those proposed by American carriers, but refused by
the Interstate 'Commerce Commission for lack of substantiation, and nearly
100 per cent greater than the charges now effective on American lines.

In asking the railways for a service which entails increased operating
costs, we must Consider that while gross earnings of Canadian railways were
stimulated by the recent rate concessions, nothing appears to have happened of a
favorable nature in respect to net earnings. As a matter of fact they have
actually declined. Adequate service can be provided only in two ways: out of
earnings, or by borrowing. If a carriers' protective service for perishable foodf-
stufls is a necessity in €ana,dQ, and I agree with the finding of the Interstate
Commerce Commission wihere they state: — ''^We are convinced that there is a
vast opportunity in protective service against both heat and cold for conservation
not only of carrier revenues, but of food products of the nation" — then we should
be willing to pay a charge whioli will protect the carrier against loss and assure
an eifficdent service. It would appear, however, even though the risk may be a
trifle greater on Canadian traffic, that a charge of nearly 100 per cent, greater
than that which the Interstate Commerce Commission evidently think is
just and reasonable in territory somewhat similar, would be a rather generous
attitude to assume. The Western Canada Fruit Jobbers' Association have
suggeisted, considering the trifle more hazardous territory covered in Canada,
the rate here should be approximately 25 per cent. ,a^ove the American rate.
"Whatever the charge may be, it should be fixed on a per 100' lb. basis for certain
mileage areas.

The references thus far relate to shipments moving in insulated or
refrigerator cars. There must always be a proportion of the fruit and vegetable
tonnage moved in box cars. It is not always possible for the carriers to supply
insulated cars. This is a serious matter for the industry, as the risk bf damage
by frost is present with box car shipments from the early part of October on.
If a considera:ble portion must move in this cla^ss of equipment, then some
arrangement for protection should be worked out. The only praotical way
perhaps. Would be for the carriers to supply lined box cars when refrigerators
are not available, and provide the protective service, at a very slight advance, if
any, over the rate charged on insulated, or refrigerator cars.

The question of responsibility of the carriers to furnish proper equipment
for the commodity tendered enters into this phase of the matter, therefore careful
consideration of this point is suggested.

It would appear, under the rules provided in Perishable Protective Tariff
No. 1, .which governs shipments moving under carriers' protective service in the
United States, that the carrier is wholly liable for proper equipment no matter
what equipment the shipper accepts in lieu of what he orders.

1921 FRUIT GROWERS' ASSOCIATIOJN. 29

Rule 80 of this Tariff reads :—

"(a) On carload shipments shipper must declare in writing in shipping orders
and in bills of lading at loading station whether or not the shipments are tend-
ered for transportation, under refrigeration, non-refrigeration, icing, ventila-
tion or under protective service against cold.

Note — If the shipper, under the provisions of Rule 35, orders a car of a parti-
cular type and specifies the type of service desired, in accordance with Rule No.
80, and the carrier is unable, within a reasonable time, to furnish the type of car
ordered, the shipper may accept a car of another type without waiver of his
right to the kind of protective service which he has specified."

Whether a carriers' protective service should be optional or obligatory on
the tariff, is an extremely important matter for consideration. Personally, I
think the service should be optional. The present mileage-heating service at
*^Owner's Risk" should be retained. It might be that a large number of shi'ppers
would not want to pay an additional rate for the insurance ; they might prefer
to carry the risk themselves. The American lines, after four years, are retaining
the optional feature of their service, and Canadian shippers should not be deprived
of the privilege of carrying their own risk if they wish to do so. .,

Briefly, the request of the shipper to the carrier is: — "We want sometihing
reasonable, and are willing to pay a reasonable charge for it."

A Member: What is the minimum now?

Mr. McIntosh: 3€,00i0 lbs. It is now 35,000 on shipments from British
Columbia to the Prairie Provinces.

Mr, Johnston: I do not think our business will stand the high freight
rates that we have to pay at the present time. Some arrangements will have
to be made whereby the products of the orchard will be carried safely and arrive
at their destination in proper time. We all know that when we ship in iced
csLTs the companies do not carry out their contract and keep the cars well supplied
with ice, because our fruit does not always arrive in proper condition. I think
we should have some protection in that matter.

Moved by Mr. Chapin, seconded by Mn. Johnston :

'' That the following members be a committee to meet at seven this evening to
consider the matter of freight rates and transportation generally and report : Messils.
Maycock, J. E. Johnson, Bragg, Lick, Scripture, Mcintosh, Chapin, Foster,
Jemmett, Blaikie, Bunting, Drysdale, Carpenter and Bailey."

Mr. McIntosh : The ISTiagara Fruit Growers^ Association in co-operation
with the Ontario Fruit Grower's Association took every possible opportunity to
protect their interest before the Railway 'Commission in the Express Rates case.
Several representatives were sent to Ottawa to attend at the final sitting, and
I can say that it wais largely due to the representation from the growers that we
have been treated as fairly as we have in the order of the Board. The Express
Companies asked for an increase of 40 per cent., and they were only allowed 20 per
cent, on fruit, and to my mind that was very reasonable consideration. It is the
first increase in express rates, and I think the fruit industry has been well taken
care of.

THE MARKET SITUATION IN GREAT BRITAIN.

Hon. Manning W. Doherty, Minister of Agriculture, Toronto.

1 am intensely interested in the fruit industry, although I am not a fruit
man, being practically altogether in the business of live stock, having only four
acres of bearing orchard and four acres coming in; but I have for years watched

30 THE REPORT OF THE No. 44

the development of the fruit industry in this Province. When at the Guelph
College back in 1895, and up until 1904, I realized that a great deal of effort
was being expended by that institution and its staff and the Federal Department
in their attempts to develop the fruit industry in this Province, and I am free
to say that I have from time to time been a little discouraged in regard to the
real progress which the fruit industry was making in the Province, considering
our natural advantages. I havB all along felt that possibly in this branch of our
industry, as in other branches of our industry, that we have been devoting too
mudh time — or shall I say, not enbugh time, to one end of the problem, and
consequently forced to devote too much time relatively to the other end. Back
in the years gone by, the efforts of the institution were practically directed to
telling fruit growers how to grow fruit. This was good work, necessary work
and a valuable work, but it is only possible to make progress to a certain point
unless you provide the other end. I have all along felt that we have given too
little attention to the marketing end of bur business and too much to the pro-
duction end. If you create a situation where the demand is in excess of the
production, and where it is possihle for those engaged in that line of industry
to depend each year on a reasonable profit upon their investment, if you in other
words sta/bilize the industry you won't have the same difficulty in disseminating
any information which you want to spread around, and you won't have to shove your
technical knowledge down the throats of the people in the industry, because if
you make it profitahle they will seek after it. I feel that the Federal and
Provincial Governments should leave nothing undone to provide every proper
facility for the marketing of our crop.

Our fruit industry starts early in the 'Spring, and at first the fruit oomes-
gradually but in a very few weeks the rush of fruit is on. We have been con-
ducting the industry every man for himself and the fruit is tumbled on to the
market here, there and anywhere during the rush season until it tapers off in
the Fall. As a result a lot of fruit reaches the market, some in good condition
and some in poor condition and a quantity is lost between the orchards and the
consumer. To my mind we should take a lesson from the lumberman and
build a dam or two so as to regulate the flow and so that the fruit will reach the
consumer, no matter where he may be situated, and so that our fruit will be
evenly distributed according to the powers of absorption and consumption ot
every point.

This can only take ) place and be accoanplidied by co-operation and organi-
zation, and I look forward to a few years of life yet, and I hope to be able to
live long enough to see the fruit industry in this Province in such a position
that there will be no glutted season and so that there will be no glut in Toronto
today, and Kingston bare of fruit. 'So that there will he no glut at Montreal,
and no fruit in Port Arthur or North Bay, and so that there will never be a
time that we will have hundreds or thouisands of dollars' worth of fruit not
marketed at all because the channels of trade cannot take care of it. .

While I am a firm believer in iihe possibility or potentialities of co-operation,
I am of the opinion that the most snccessful co-'operative organizations that are
in existence anywhere in the world are those that are condncted by those actually
engaged in the business and not from Government aid. I believe it is a duty of
the Federal Government and the Provincial Government to do everything in
their power to assist in these organizations, because it is a matter of national
importance.

1921 FRUIT GROWERS^ ASSOCIATION. 31

I would like those who are not engaged in the fruit indmstry to realize that
it is never an adivantage to the consumer of natural products to have that
product placed at his disposal below the cost of production. That statement
might need a little argument to prove, but if I had time I could prove it to
the satisfaction of any reasonable man. If the consumer buys a basket of peaches
for 25c. that costs 50'c. to produce, he thinks he is making 25c. but he is not,
because that prdce reflects back on the industry and there is going to be a day
that he will have to pay that 25c. and more; because the supply will decrease
to a point where he will have to pay a great deal more.

I had the pleasure of spending a few weeks in the Old Country last Fall,
and I wais very anxious to acquaint myself with the situation over there. I
have placed over there as our Agent-^Greneral a man who is intimately acquainted
with all branches of agriculture in this province. In certain seasons of the
year the efforts of the staff there, are directed towards emigration. There is
a portion of the year when I have felt that their efforts and services could be
very well used to further the development of trade in our agricultural products
in the old land; because I realize that we have over there a market that can
take all we can produce for years and years in this country, no matter how rapidly
we may develop. That is true not only in regard to fruit, but is also true in
other linies of agricultural products. Our staff over there should be used to
develop a market for agricultural products. The Federal G-ovemment have
officials over there, but they have the whole Dominion to look after and Ontario
is looked upon as a kind of big brother that can stand on his own feet and the
officials of the Federal Government feel that the less wealthy provinces have
first call upon their services.

I was astonished when over there to see the degree of perfection to which the
Governments of other countries had developed their system of marketing. The
system of marketing of New Zealand, Australia, Denmark and Ireland are wonder-
fxd and in their development they have spent consid-erable money and effort. Their
product goes on the market graded to a nicety. Their gnade is always absolutely
reliable. If you buy a ton of New Zealand butter of whatever grade it may be,
you can ship it to Glasgow and you can be sure that you have got exactly what
you bargained for. The same is true with regard to New Zealand mutton. The
New Zealand mutton was formerly handled by private concerns anxious to make
dividends and who were not so keen to see that the product was up to the market.
This was carried on to such an extent that New Zealand found herself face to
face with the loss of their trade in chilled meat, and she sent to England Sir
Joseph McKenzie, who had formerly been Minister of Agriculture, and he spent
seven years in England and he got the New Zealand trade back on its feet, and
to-day they watch the quality of the product and no private concern is allowed to
put carcases on the market that will injure the quality of their mutton and lamb.
We have got to take some such steps. I have had a great admiration for the private
concerns who have had the nerve to go out and trade in other countries, but the
reputation of our products is of such prime importance that I am of the opinion
that every country should insist that agricultural products for export should pass
through Government grading stations so that there will be no danger of any product
going on the market of an inferior quality.

While in England I \dsited Covent Garden market, and went out in the
country and talked with the fruit growers and men in the counties in England

32 THE EEPOET OF THE No. 44

where they grow considerable quantities of apples. The first thing that struck
jne was the price of the fruit; it was so high. I bought apples on the Strand
ttiat were picked and packed at Thombuiy, Ont., and I paid at the rate of
$28 a barrel for them. I saw Canadian apples sold in the Covent Garden market
at from $16 to $18 a barrel. I went to the Old Country rather unexpectedly, and
having only two men on my farm, and a I'olt of fall ploughing to do-, I decided
that the best thing to do was to sell my apples on the tree. Spies, Greenings and
Russets at $2 a barrel for No. 1. I knew that apples were selling here from
$0 to $6 a barrel. The point I want to make is that it is too bad that the
Canadian grower should get isuch a small price when the consumer in England
is paying lOd. a pound. You can quite understand that the Englishnmn ia
independent. I was in the house of a very wealthy man down in Surrey, and
he told me he did not like to !be imipiosed upon. He travels in *this country
sufficiently to know what things are selling for here and he told me he refused
to allow his people to buy apples at the price they had to pay-

I have been warned that there is a ring over there that is very strong, and
that the man that went up against it would be very sorry. I want to say to the
fruit growers that you need not be afraid of any ring, no matter how big it
may be ; because if you control the source of supply, and if you conduct your
marketing operations on sound and safe business lines, there is no ring on earth
that can beat you.

I was surprised to find that South Africa was placing peaches on the
British market. Last Saturday I was in Winona, and a gentleman there said
he was muc'h interested in South Africa because he was the second officer on
the ship that carried the first load of peaches that ever came from Africa to
England, and he said he was on the line for seven years and watched the trade
grow. There is a ready market for peaches in England, and they receive 20c.
to 5'Oc. apiece. Their peaches are fairly large, but the quality does not appeal
to me like 'our Ontario peach. They have not got the flavour of our Ontario
peach, but they are doing tremendous business with them in England, although
it takes twenty-six days to get them from Africa to England and they have
to cross the equator. With proper organization our orchards are not more than
ten days from the consumer in England, and I feel that with a little care,
energy and enthusiasm we can place peaches on the market over there at prices
that will give a profit to the grower. Think of the tremendous iconsuming
population that they have at Manchester, .where within a radius of a very few
miles there are eight million people, and London with about the samfe population.
An apple grower in Kent told me that they had difficulty in marketing the
fruit grown in England because of a water-tight association or ring that controls
the market, and as a result they established their own stores opposite Covent
Garden, and they are sellinlg their fruit there to-day, and they are making
money and are receiving from 50 to 100 per cent, higher than they formerly did.

In conclusion, I want to say that I look to the building up in this province
of an organization that will take care of this industry, and I want it distinctly
understood that in the development of organizations of this kind it will not
result to the injury of any legitimate industry. I look to the development
liere of a safe, sound, sensible and strong organization for the handling of our
fruit, and I want to say that you may rest assured that at any time my services
will be at the disposal of the fruit growers, and anything which I or the officials
of my Department can do in oo-oiperation with the Federal Government for the
building up of the fruit industry in the province will be gladly done. There

1921 FRUIT GKOWERS' ASSOCIATION. 33

never was a time in the history of this country when every branch of our agri-
culture should be stimulated and developed to the utmost as right now. We
have big proiblems ahead of us and over us, and the only possible way that we
can discharge our obligations and solve these serious problems is developing eaoh
and ever}^ branch of agricultural industry and stimulating it to the utmost and
by cutting clear channels of trade so that there may be an outlet for all these
products at a price which will make it reasonably profitable to those who are
connected Avith the industry.

THE PACKAGE iSUPPLY FOR 1921

BASKETS AND CRATES

J. M. Wallace, Oakville AVire Bound Box and Veneer Co.

Your committee has requested the company I represent to give you some
data which we may have availalble regarding the basket supply situation for
the coming season. That is one of the vital questions with the peach grower,
the early apple grower, vegetable growers and small fruit growers; they are
the particular phases of the fruit industry that would he interested in my con-
versation. I take it that the main point you want some light on is : Are we going
to fbe held up as we were last year for baskets? Yo'U were held up last year
because the supply was not in the country. The price this year will be quite
a factor in yoiu costs when you go to market your fruit. I am not in a position
to say whether fruit will be lower than last year, but I am in a position to talk
from the cost end of the baskets, and give you some information as to the
available supply for this year, both in the Chmiax and other packages.

We will take first the 11 quart and 6 quart baskets, which are the main
packages used in the Niagara Peninsula, the Burlington and Oakville Disitricts.
At Clarkson they are more interested in the berry bastket. At the commience-
ment of the season of 1919-1920', I mjade a close invento'ry of the available stock
of baskets on hand' — about the 15th of October, 1919i — to see where we stood.
T estimated there were about 2,0'0'0,0'0O baskets in the manufacturer's hands
and in the bands of the growers. The manufacturers last year produced about
7,40O,0'0'0' Climax baskets, which made a total available supply of about 9,40'0',000'.
T would judge there was fruit packed in packing boxes, bushel baskets and
destroyed on the trees or ground an equivalent of about l,5O0',0'00 baskets. In
other words., we should h'ave had l,5t0'0>,0'00i more baskets than we had last year.
That would mean that about ll,'0'00,0O0 baskets should have been available
for last yearns crop, which was a very large crop as you all know. You may
ask why we did not have these baskets available. I want to present the manu-
facturer's side of the case for last year. You are more or less conversant with
the fact of what happened at Oakville. We got hit by a fire on the 20th of
Mar(?h, and previous to that we were only about 50 per cent, capacity due largely
to the adjustment of machines to the new basket. At Burlington we were right
up to capacity, but the other factories throughout the country were up against
the labor condition that developed as spring came along, which was not equalled
at any time during the war. We could not get labor to build baskets last year
•t the price the baskets were sold at. The other manufacturers did their best
with the labor they could get, and paid for it at the price the baskets were sold
for. So far as we were concerned, we filled, both in Burlington and Oakville,
100 per cent, of our orders at the old price. T^bor, or rather the lack of labor,
was the reason we did not have an adequate supply of baskets last year.

S4 THE EEPORT OF THE N.) 44

Now you may mk. the q-uestion : If we liave another suoh crop next year,
can the manufacturers supply the baskets? I would say, yes, providing the
manufacturers have a chance. Nommlly the requirements for baskets is about
11,000,0010. Our factories, if they are given half a chance, can manufacture
1 2,500', OOOi basikots wiih the greatest of ease, and thait is just including the
23 factories that are in existence in o'lxi Ontario, and excluding the British
Columbia capacity. The Ontario fajctories can manufacture a little better than
1,000,000' baskets a month, providing they are allowed to manufacture that way.
But are you allowing them to manufacture that way? I wish some more of
the Niagara Peninsula men were here that we might develop this thought
further.

I have only (been in the basket business abouit seven years, (but I have mad©
a very thorough study of the situation, and I find one of the great troubles is
that the grower does not co-operate with the m'anufacturer. We hear a lot about
the manufacturer holding up the grower for a big price for baskets. I want to
dispute that statement. The grower is responsible to a great degree for paying
more money than, he shonld for his p-aickages to-day. I did not come here to
criticise; I take it you brought me here for some information that might sa;ve
you dollars, because when it is all said and done, it is the dollars that you all
work for, and that we all work for.

I want to taike for an illustration a factory standing idle that has got to
run in two months time. You have got to maintain your superintendent
and possibly the manager or foreman, and your teams and so on. Your over-
head goes on all the time. You have to charge it up when you start to manu-
facture. If on the other hand, you start to manufacture on the 1st of October
or the ]5th of October, and store your baskets, you niust have a storehouse as
big as this hotel for every faotory. We have two storehouses, one ils 140 ft. by
three stories hig^, and the other is 2O0' ft. long by two stories, and we can fill
these in a short time. When they are filled, it means we have to handle those
baskets in there; it is an added cost of about $1 a thousand. Then the basket man
has to insure those baiskets, which also costs considerable money. We have to
carry the interestt on that money until next October or November or December,
which you have got to pay for, because no business can operate continuously on
a philanthropic basis; it has got to be a real business proposition.

If a fruit grower will come in in the fall and pay for his baskets, or say,
" I will take delivery now,'^ we can give him 15 per cent, off, and be ahead of
the game, because we can keep down our overhead by spreading our manufactur-
ing more systematically all through the year. Instead of that we have to penalize
you later on for this extra work we do, and we could keep down the price if
we had that privilege.

I madte up my mind that this year, with basikets so high, it was not
practical to store our houses full. It was not sound business, because w^here
you only use from one to five thousand, in the two plants we would store half a
minion baskets. We do not mind a little gamble to help you, but we do not
want to taike all the load. The point is you can make a substantial reduction
in the price or cost of your basiketsi, if you will order early and allow the
manufacturer to deliver in time so that he can keep his plant systematically
running all the year.

A manufacturer would very much sooner shut down his plant in September
or October if there was an over-supply, than he would in the winter months.

1921

FRUIT GROWERS' ASSOCIATION^ 35

because we can manufacture probably 55 per cent, more baskets in the fall and
in the winter months than we can in the summer months, due entirely to the
fact that in ihese towns, there is a lot of labor that goes on the farms in the
summer, but which can be used in the winter in the basket business. We
cannot afford to pay a competitive wage, in a great many instances, and the result
is in the summer time we cannot manufacture anything like the capacity we
can in the winter, which is another reason why the growers should give the
manufacturers sonne consideration because all these things enter into the oosits
©f packages.

Touching on the cost of packages, when I went into the Ibusiness, the first
year I put in a stock of logs which cost me $18.50 in my yard, and they were
good logs. In the last two or three years, the increase would amount to over
100 per cent, on freight. We used to get the logs within 25 or 50' miles: now
we have to go from 75 to 275 miles to insure our supplies. We take out about
a million and a half feet every winter of hardwood logs, and therefore we ha;ve
to scour the country pretty widely. To-day logs cost f.o.b. the cars at any
shipping point about $35, and last year wihen the basket situation wa>s so bad,
I paid as high as $40 a thousand freight alone on logs, whereas I used to' buy
the logs at $18.50' landed in my yard, and baskets then were selling at $35.
There was more money in them then thian to-day when they are selling at $100.

Basket bottoms that we used to buy at $8.50', last year they wanted $25
and $26 for, which is 30O per cent, advance. Leno that I hought in 100,€0O yard
lots at 314c., last year they charged us 13%c. a yard. The Government require-
ments for baskets mean that we must have doser suipervision and throw more
])askets to the discard, and when you throw 25 out of every thousand, it means
money. All these factors enter into the cost of the baskets. And it is very
difficult to get timber. Last year after our fire, I was able to selfl. our logs that
were at shipping points and which I could not possibly use early in the season
at $80' and $90 a thousand f.o.b. the shipping point.

At the Fruit Gr'owers' Convention at Rochester about a month ago, the
growers were contracting and buying at that time their baskets at $135 a thousand
for the 12-quart size, which is equivalent to our ll-quart basket, nested. As
compared with that we are charging you $130, less $6 if you will oome to the
factory and get themi, nested; that would be $124. Then we allowed you 15
per cent, off, last fall, if you would take the basikets and pay for them, which
would mean an^other $20 or a little less, so your baskets would only cost you,
with the covers, about $10i5 or $10i6 as against a price of $13i5 across the line.

I can ship baskets to the United States and make as much money out of
them as by selling them to our own growers, because over in Penyon, the biggest
factory of Climax baskets, they are selling at $150 a thousand, nested, and they
wanted to buy some from us. I believe the manufacturers in Canada are treat-
ing the growers fairly. Are the growers treating the manufacturers, right in
withholding their orders and allowing the manufacturers to remain shut?
When you want baskets next year you will pay the price.

Mr. Fleming: You say you can sell in the States; there is the exchange
to be taken into consideration.

Mr. Wallace: Baskets are quoted at $150 a thousand, nested; our price
nested is $124, so there is $26 a thousand difference. Then if we allow 10 per
cent, commission to a commission man over there, it brings that down to about
$112. Our price would be $112 plus 25 per cent, duty, which would be $137.50.

36 THE REPORT Oi^ THE No. 44

In other words, we oould land them over there at $137.50 paying the duty
going in, and that allows the man on the other end $12.50 to handle them,
and we would 'be in about the same position.

What is the position of baskets coming over here? They are hooked out
there at $135 we pay 271/2 per cent, duty or 30 per cent, duty on $135, which
would be $40^50', and that makes $175.50, plus the exchange on $135 at 15 per
cent, say, $20l In other words, baskets coming over would coat you. $195 and
then you have to pay the freight and the exchange on the freight so that your
baskets would cost you at the minimum $200 a thousand f.o.b. here. So you
cannot think we are treating you unjustly when we offered you baskets at $106
a thousand last fall, and you would not buy them.

To show you the business ability of some of the co-operative assiociations,
I will take you back three or four years. Take the 'Clarksons Association. They
call for their tenders for the 1st of October. They know what baskets they are
going to require, and so does every grower. When their tenders are in, we book
their orders, and they get that 15 per cent. off. We put in the basikets at Clark-
sons at $85 a thonjsand this year as against the prevailing prices of $100. We
have already put in about $30,000 worth of deliveries to Clarksons, because we
can run our shop and get all the help we want.

I want to touch on the quart berry box for a moment. There is used in
C-anada at the present time about 9,000,000' quart berry boxes a year; that is
the average consumption. Last year we were short, and there was carried over
possibly 1,000,000 from the year before. We only manufactured last year about
8,500,000, and there are no quart berry boxes in the hands of the farmers, the
growers, or the manufacturers, so it is up to the manufacturers to build a
sufficient quantity for this year's requirements. I believe quart berry boxes are
gomg to be scarce — 'they are going to he very scarce — ^and the reason is that
labor has got beyond the manufacturers. We used to pay a girl $1 a day to
huild quart berry boxes; and she would turn out 1,500' quarts with a tacker.
The day has gone by when you can ask a girl to work for $1 a day. It is not
right nor fair nor just under the present living conditions. They do not want
to do piece work, and we cannot organize and get production through on that
basis. We went out of manufacturing altogether at Burlington and Oakville
just for that reason, but we got two other factories where we make quarts entirely,
and by starting the 1st of October and never stopping we got out five or six
million. We handle from 50 to 70 per cent, of the quarts used in Canada. This
year we find we will have to increase the production by making quarts in both
Burlington and Oakville.

We submitted a package to the Fruit Commissioner yesterday that he con-
sidered would be satisfactory as a quart berry box this year. It will be sold at
the same price as the regular wooden quart.

In connection with the 27-quart crate, we were unable to buy shooks the
last two years, and we have been making a veneer crate out of the waste material
from our box shop, and that is why we are able to seU at our low price. We
put 40',00O of these in Clarkson, and each man I have spoken to is satisfied
with the crate. It cost the Clarksons Fruit Growers' Association 32c. ; it is
33c. for the shooks alone.

At Burlington we are making an a.pple package that might interest you.
We used to make a market hamper, but we found that it was not satisf aotory ;
the apples in the bottom got bruised, and they were not stiff enough in the sides.

1921 FRUIT GROWERS' ASSOCIATION. 37

Thien we started to make this package, and the business has gradiiall}' increased.
Last year we made from 8,000' to 10',000. Our manager at Burlington said
bhey shipped a oar, first of hampers, then of barrels, and then this package,
and the word came back: "Please ship the hamper with the board bottom
when next shipping/' St» they must have ^ound the fruit arrived in good
condition. The package is straight up and down with a solid board bottom
r-einforced, and the package is well protected.

Q. — How much does it hold? A. — I have never measured it, but I would
say practically a bushel.

Q. — What is the price? A. — It all depends on the quantities and the ship-
ping point, and the time we get our order.

Q. — What is it worth to-day? A.^ — 35c.; at the factory 34c.

Q. — Does that include the top? A. — Yes.

Q. — And the fasteners? A. — No.

Q. — How do you prevent depreciation in piling one on top of the other;
the bottom of the package is smaller than the top? A. — Yes; but you pile
r.hem on the rim, and the rim is sufficiently rigid to take the weight.

Q. — What is the price of the 11-quart basket at the present time? A. — It
i? $100 per thousand, delivered in the grower's barn. We make a reduction of
$6 per thousand if the grower will come and take these baskets from the factory.
If he pays for the haskets now, we allow a discount of 10 per cent, per annum
from the date of his payment, computed until the 1st of October. He can take
this discount if he wants to avail himself of it.

Q. — Do you pay the freight? A. — We will pay the freight to the shipping
point in carload lots. That would be nested.

Q. — In the event of a grower buying these baskets the 1st of October, who looks
after the insurance of them in his barn? A. — He has to protect himself if
they are out of our hands.

Q. — They are still your baskets if they are not paid for? A. — Once they
are delivered we have no control over them.

Q. — That is the price without covers? A. — Without covers. The elat
covers are $30 per thousand, and Leno covers $40 per thousand.

BARRELS
W. A. Fraser, Trenton Cooperage Mills, Limited.

Mr. Wallace has pretty well covered the general features that have governed
the manufacture of packages for the last two years.

The barrel situation must be looked at from two angles: first, from the
standpoint of the grower or the buyer or user who purchases his own stock and
makes his own barrel; and second, from the standpoint of the distributor, and
that is where I am interested. Our contention is that the distributor must be
protected or he is not going to stay in the business. He is essential to the trade
in its present shape, because if the distributor does not purchase his etodk
and make apple barrels for the grower, the grower in 90' cases out of 100 is not
going to have the package when he wants it. If the grower at the proper time of
the year will make his purchases, or give the manufacturer a chance to anticipate
the supply he will be expected to deliver, he can purchase his stock at a minimum
price, make his barrels himself and have them when he wants them. On the

38 THE REPORT OF THE No. 44

other hand, if he is willing to go to Ms local cooper and place an order with
him even at the time of the year when the aipple has started to develop, he will
be assured of his barrel supply at a reasonable price. Those are the essential
features in the situation as I see it from the general standpoint.

In 1920' there was undoubtedly a very acute shortage of apple barrels. That
shortage developed through different circumstances both in the United States and
Canada^ ajid it was a question of supply and demand which resulted in a high
price. In 1921, the situation mujst change. It has changed inasimuch as there
has been a reaction in the prioe of most commodities, and cooperage stock has
decreased in price. Those w'ho want to purchase cooperage stock can do so at
quite a nominal figure. On the other hand, if they want to follow the second
procedure and buy barrels from their cooper, if they will get together and size
things up and gamble on their requirements, they can get their packages at a
nominal figure. It is up to the grower to a great extent to co-operate not only
with the manufacturer but with the working cooper.

As far as prices are concerned, we won't again get back to pre-war conditions.
Prices have materially decHned but we cannot get back to pre-war conditions,
because there are so many things that govern the cost of production to-day
that did not exist before 1914, that demand additional expense. We have the
Workmen's Compensation Ajct. LaJst year we paid some $4,200 to get our men
under that Act. We have a 45 per cent, increase in freight rates. The cooperage
manufacturer is confronted by the fact that he has purchased his raw material
for the past year under war conditions, in competition with men in the basket
business, cabinet business and other businesses where that class of lumber is
used. Therefore the Canadian cooperage manufacturers to-day are carrying a
stock of raw material that cost them as much as the stock of 19'20, and they
do not expect to make any money out of it. The prices this year are competitive,
and they will be competitive whether the manufacturer makes a profit or not.

As far as labour conditions are concerned, that point was covered by Mr.
Wallace. As far as the supply of cooperage stock for 1921 is concerned, owinig
to the very mild winter in Canada, there is less stock in the mills than at any-
time since I have been in business. In fact there are only two cuts landed at the
mills. We are not only mianufacturers but jobbers, and we buy extensively in
the United States to take care of our Canadian business. As jobbers we are
quite willing to gamble on a job, and the user of the apple barrel must be willing
to help us gamble or give us an inducement to gamble inasmuch as they will
require a certain amount of stock. If the growers will gamble on two-thirds
of their requirements, we will gamble on the other third, and guarantee they will
have it when they want it and also set the price on it so that they will know what
they are paying. We have got to get together, in that particular situation and
trust each other. It has heen our policy to tell our customers what the situation
i? likely to be. We are in touch with the cooperage situation riot only in Canada
but all over the United States; we possibly handle 50' per cent, of the cooperage
business in Canada, and we will give any of our customers the best advice as to
when he should buy. We will see that there is enough cooperage s^tock to supply
the demand, but if we are going to do that, we have to know where we stand.
In 1920, the whole district where we supply 95 per cent, of the cooperage stock
was looked after, it may be at a high price, but we liave to buy at a high price.
At any rate^ the crop Was taken care of, and that can be done this year if w«
get together, and if we get together at the proper time, it can be done so that
we will get a cheap package.

1921 FRUIT GROWERS' AS'SOCIATIOJN. 39

Q, — Can you tell us about the price to-day? A. — It is based on the present
price of apple barrel stock.

Q. — G-ive us the price of stock first? A. — ^Apple barrel staves, 28^/2 inche«
to-day list at $20 a thousand. No. 1. 6 ft. coil elm hoops, $35 a thousand ; apple
barrel heads 16 cents and 17 cents each, depending on hard or soft wood. Coopers*
nails $11 a keg, f.o.b. cars, Ontario points.

Q. — AMiat about the price per barrel? A. — About $1.10' each; I am
answering that from the standpodnt of the retail cooper. As I said before we
•have to protect the distributors, and the only way is to see that he has a living
profit.

Q. — Are these prices iiast fall prices? A. — Present prices. These prices
are not based on cost; they are based on competitive markets. Logs cost $50
or $60 delivered at the mill, which those prices do not cover.

Q. — What would be your price on 3,000 or 4,000 lots? A.' — When would
you take delivery?

Q.— The present time? A.— $1.00 each.

Q. — What time would you make that delivery? A. — I would make that
•delivery up to April 1st.

Q. — What about the quality: do you have different grades? A. — ^Yes,
depends on the kind of stock you use. There is only one grade in hoops. We
eell No. 1 elm hoops. There is only one grade apple barrel listed, but there are
different grades in staves. That price would <jover No. 2 elm stave.

Q. — It would come under the head of what? A. — Apple barrel stave 2SV2 inch
mill run; the hard wood heading would be mill run and the soft wood would be
No. 2. It would be the 'standard size 28 3^, with % bill.

Q. — ^Have you decided on jodntinig for proper sized barrels? A. — Yes; "we
manufacture all our stock this year, standard apple barrel size.

Mr. Wallace: I want to make special mention about this barrel business.
I have been advocating to the growers to buy their stock now and use up some of
the surplus energy that is going to waste all over the country, and I think a
barrel would cost about 9^0, 91 or 92 cents altogether.

Mr. Fraser: I would say in round figures those prices are right, but I
would say 95 cents to be sure. Last year the barrels were costing 17 fcents apiece
for labour, but you can make a barrel to-day for 10 cents or perhaps less. If
anybody is thinking of buying stock, he should buy it as soon as possible. The
statistics covering fifteen years in the cooperage business show that during the
months of February, and March, the stock is always lower than at any other
time of the year. Another reason is that the cut in Canada is practically nil;
it is not one half of wihat it should be.

Q. — How is it in New Ontario? A. — We have two mills working in New-
Ontario, but we are only manufacturing heading, and part of that heading is
going into the sugar and flour barrel business.

Mr. Wallace: There have been fewer logs taken out of New Ontario this
^nter starting from Huntsville north than there has been in any of the last five
jears, and in the older sections down here we cannot get the lumber.

Mr. Fraser: The second point I want to make on the stock situation is
that those prices are competitive with the American quotation; there is nothing
in the world that fluctuates so much as American quotations, they are governed

jiO ^ THE BEPORT OF THE . N^ 44

by necessity. They will fluctu'ate overnight. For those two reasons now is the
time to buy apple barrel material.

Q. — Is there any supply on hand of dry staves and heading worth while
manufacturing this winter? Aj — 'No; there are iiiot enough dry staves and
Heading on hand to make 25,0'0'0i barrels in the whole Province of Ontario.

Q. — Cannot you import dry staves? A. — Yes, but at the present rate of
exchange it runis the price up. There is a stock of about 25,000 or 30,000 barrels
on hand now available for shipping, but nobody is in a position to diagnose the
case for six months.

Q. — How miany barrels are required in Ontario annually? A. — I cannot
give you the statistics off hand, but isomething like 5O0i,0'0'O used in Ontario.

BOXES.

S. H. Moore, British Columbia Manufacturing Company

We come to you this morning representing the British 'Columbia forests,
sphere as far as this generation, the next generation and tiie next generation are
concerned, there is no shortage. Furthermore the British Columbia Manuiac-
curing Company, which I have the pleasure to repreisent, operates three large
lumber mills and two shook mills, continuously throughoat the year, working
full force, and they are able to handle very large contracts.

Anyone who has been to British Columbia and seen the fruit and tasted it,
with all due deference to our fruits in British Columbia, knows that the Ontario
apple has the flavor. There is no question of that. However, it is only fair to
state that the British Columbia fruit growers are really Ontario men, who have gone
West and are develofping their business in a very satisfactory way. They have gone
there and found themselves up against several conditions different to the old Pri-
vince. They have found the fruit growers in the neighboring States to the south
were able to get a larger profit from their apples than the fruit grower in Ontario.
They also found there were none of the beautiful elm trees out there so they could
not make the Climax baskets, but they were not sorry because they found in packing
them in boxes it lent itself to better display and the fruit reached the consumer
in better condition than when packed in barrels and topped off, and all the other
features of a large package. They found a very much greater profit was avail-
able to them through packing in the method that had been adopted largely by
their neighbors to the south.

I have with me this morning an apple box made by the British Columbia
Manufacturing Company for a firm in Ontario, and by the way, we have already
developed a large business in the Province for its prodnction. The box is made of
B.C. spruce; all their boxes are made of the same material. It is odorless and
tasteless, which is a great point in favor of it. Tt has one piece ends and one
piece sides.

Mr. Carey : Is that general ?

Mr. MoOROi:: Yes, we will guarantee to deliver to you in carload lots, boxes
that will have one piece ends and one piece sides. This box never splits. On
account of the B.C. spruce tree growing so large, it lends itself to much better
wood, better grain, less knots and not liable to split. I have never seen any boxes
that have conne down here, split or cracked in the end. That box is also very
mu-ch lighter in weight than the Ontario box.

1921 FHUIT GROWERS' ASSOCIATION'. 41

The two geaitlemen who have spoken have already told us about the scarcity
of lumber in Ontario. We know w'hat the government is doing about the re-
forestation of our Province which is a good thing. The British Columbia
timlber being of a long grain giveis it the feature of stabdlity, which is very neces-
sary in the packing of fruit. It is miadfe lighter as well and that means less cost
in freight in sliipping overseas or long dii stances.

Q. — They have abandoned entirely the one piece top and bottom? A. — I
think so for the i&ake of ventilation, and aliso for the giive that is neceslsar}^ The
apples are packed a little higher in the top. These are priced to the buyers here
at 30' cents, delivered at your station, in carload lots.

Q. — ^D'oeis it take four to a barrel? A. — Three apple boxes to a barrel. It
IS printed in two colors at one end, without any extra expense.

Q. — What is the inside size? A. — It is absiolutely standard siize; inside
measurements are 18 x 11^2 x lOi^/4.

Q. — Is tbat p'rice made up or in the shook? A. — 'In the shook.

Mr. Carey: You are not quite right about the comparative capacity of the
barrel and thisi box; it takes three and a half or three and a third boxes to the
barrel.

Mr. Moore : As far as the berry boxes are concerned I would call your
attention, to this collapsible berry box used inj British Columbia. These are very
dry. They come in the knocked-down form as well and are easily put together.
This box has some features worthy of notice ; the bottom for ventilation is a very
necessary feature.

Then there is a 2'7 box crate. I w'ould like tO' correct a stateanent made this
morning, when 32 cents was the price given of the crate iih knocked-down
form ; it is 23 cents delivered in any part of Ontario.

Q. — That is the price of the crate; whiat is the price of the box? A. — ^$6.00
a thousand. The crate is built with these decks resting upon the ledge in the
fiide and not restamg cm the berries, and it is so miade that the 'boxes will not
slip out. There is plenty of ventilation through this box, both from the bottom
and the open features in connection with it.

One big feature in connection mth the beri-y box is the isquiare sides. With
the tapered box, there is alwa^ys a tendency in transportation of the shaking down
of the berries, and the crushing of the bottom berries. TM® is also of the
standard size.

This is the 24 box crate, and is preferred by some for long distance shipping.
It is a good solid package.

Then we have the five pound tin top basket for early tomatoes or other larger
fi-uits. There is plenty of ventilation, and it is a good solid box. The price of
this is $18 a hundred.

Q, — Do you use those for peaches or plums? A. — Peaches, plums or any
of the larger fruits. For tomatoes it would bring a mian great reward for his
trouble in packing, and not allo-vving tlie Americans to ship in all the early
tomatoes. TheTe are plenty of tomatoets in Ontairio to taike care of the early
market providing you have the package to put them in.

Q. — Does that $18 include the price of the crates too? A. — It would be $18
a thousand of these containers, and $18 a hundred for the crates. As far as
we are concerned, we can promise deliver}^ almost imimediately from the time
the goods are ordered, on to the track in Vancouver, and in about three weeks to

42 THE REPORT OF THE Xo. 44

almost any point in Ontario. An unlimited' supply of mjatexial makes it possible
to afford you a service, that I believe will be appreciated.

Q-— The prices quoted are f.o.b. Toronto? A. — For Ontario points.

Q.— Carload lots? A.— Yes.

Q.. — Not open for distribution from Toronto? A. — No; -w^ have a number
of associations that buy in quantities, and the looal fruit growers get their
supplies from the headquarters.

Q.— How many apple boMs are there in a carload? A.— About 5,000.

Q.— Is the price 30 cents, made up or in the shook? A.— In the shook.

Q. — Do you make a pear box as well as an apple box? Yes.

Mr. Palmer : We have a basket that holds a standard States bushel, slightlj
less than a Oanadian ibusM, but wihich I understand pas-sefs all right on this-
side, and wMch we cam deliver to Toronto or Ontario points for 30 cents, set up.
I believe it is a package that is going to be popular over here. It goes right to
the consumer, furnishes about the right amount, and it comes already set up,,
and there is no extra expense. It loads weU in oars, and makes a very fine display
package.

Q. — Would that be duty paid? A.- — Duty paid and exchange paid. That
is the price in Toronto in carload lots.

Q. — Does that include posts? A.— Posts are 15 cents a dozen extra.

Mk. 'OouLsoN, of the Canadian Wire Bound Box Company, also spoke m
regard to the box manufactured by his company. He said: This box can be
shipped out in the shook form or in the made-up form. The top is called a wedge-
loft; it is slipped' in and the wedge secures it, and it goes to its destination
without danger of being broken, and this box cannot be tampered with in transit.
It is standard size.

Q. — What is the price of the small box ? A. — 42 cents and 52 cents.

Q. — How do you pack it? A. — The box is set on its end, amid the oontenl*-
placed in and filled.

Q. — ^It ifl a jumble pack? A. — Yes.

J. R. Hastings, Chief Inspector Western Ontario: I have a few things
to say with regard to packages in general, aoid it will have reference more to
the Fruit Marks Act 'as it a,ppli0s to the paokagas than what has been said by
the previous speakers.

We are going tO' face a somewhat different condition in the season of 1921
from what we faced in 1919 and 1920, in the package situation. In 1918, an
effort was made for a very complete standardization of all fruit packages, par-
ticularly of the eleven and six quart baskets, and that is one of the features that
many of you are not particularly interested in. An effort was mjade to put these
regulations in force in 1919, but it failed for the reason that packages wihich had
been in storage in mtany of the fruit houses from one to 25 yeiars, were brought
out, and there was nothing for the G^ovemment to do but permit the use of all
these old packages. It was felt by the Departmetnt that 1919 would clean up that
condition and get rid of all these amcient packages.

1921 FRUIT GROWERS' ASSOCIATION. 43

Then we readied the season of 1920, antd you know what happened. Jijvery
conceivable package that would carry fruit was used, and it was certainly not up
to the Grovemmont to prevent the use of anything that would carry fruit in any-
tldng like a reasonable w<ay.

I feel now that practically all of the old packages have been disposed of.
There are very few packages which were manufactured prior to 1920 left in the
country, and we are now face to face with a somewhat different condition. So
far as barrels are concerned, I oanmot see that there need be very much dilTiculty
111 getting a barrel that willl be absolutely satisfactory to the grower. There is
much less danger of a barrel going to pieces than there is of our Climax baskets,
so that after the manufacturer has complied with the requirements of the Fruit
Marks Act, there is nothing left but for the grower to give the barrel reasonable
care when it is in his possession.

I think you have heard enough on the subject of the box, but I want to say
a few words aibout the Climax basket. Prior to 1918, we had no specific dimen-
sions or well diefmed specifications for baskets; the manufacturer could make
pretty we*U what he pleased so long as it held the quantity. In the Honference
of 1918, everything that entered into the manufacture of that package wsm
specified, and it was done with the aoquietsoenice of the fruit growers and the
maniufactureirs. It dkDes not impose a hardship on any manufacturer to comply,
not exactly with, but to make a substantial compliance with the regulations,
and I want to say that most of the manufacturer® are doing that. There are
somje basket manufacturens who are evidently a law unto themiselves, and they
are going to make a basket as they please, regardless of any Government regu-
lations, but there are only a few of them. The package question, so far as the
basket is concemed, has readied a point where the grower hais to put his fruit
into a basket in order to have it accepted by the trans-portation companies, and
it is up to the grower himself to see that he gets from the manufacturer a package
that is in substantiail compliance with the Fruit Marks Act.

Mr. Fairbairn : Would that put the onus on the grower ?

Me. Hastings: I am coming to that. The opinion seems to be abroad
among the growers that the Government should see that the manufacturer lives
up to the standard as set, and the onus is on the manufacturer and the Govern-
ment, rather than on the grower, but it does not work out that way in general
prajctice. When you contract with a basket manufacturer for your suppliejs, by
simply Waiting it mu-st come up to Govemmient standiards, the manufacturer will
probably see where that provision is in his contract, that you get baskets that
comply mth the Government standardls. We do not insist on an exact compliance
with the apecifiicationjs, but a isubstantial compliance.

Mr. Fairbairn: Is it not possible for these factories to be looked after
by the government through quaJifield inspectors, because there are very few
growers who actually know what these specifications are?

Mr. Hastings: There is no trouble in finding out by getting a copy of
the Act.

Mr. Fairbairn: That entails a good deal of work when you spread that
over 3,000' growers, where one inspector could do the work much more efficiently.

Mr. Hastings: I will probably cover that point shortly. As a matter
of fact the government is doing that thing now. I have been to practically
every factory in Ontario west of Toronto, with two exceptions, and I under-

44 THE REPORT OF THE No. 44

stand it to be my duty to see that these factories live up to the regulations, and
most of them are doing it. ,

Me. Fairbairn: You are speaking purely of Climax baskets?

Mr. Hastings : Yes, entirely. I do not wish to create any wrong impree-
fiion wi,th re^giard to other bajskets. Tbeire are other packages offered to the
growers tihat are not Olimax paokageis. I have referen/ce purely to the eleven
and six quart Climax haskete.

During the last season, I have found thiat one of the vital difficulties is
the handle, and this is isoimething that the growers may be to blame for to
a certain extent. The basket may be in aill other resipecte of excellent material
and strong, but if the handle is faulty the whole package is faulty, and I daresay
that 75 per cent, of the loisses that 'aocrujed to the tranfeportation companies last
season on account of fanilty baslkets was due to the rotten handles — ^liandles
that had been made ooit of d/ea^d wood or not made aocorddng to ispecifications.
I know of one instance where la grower purchased SOiQi handles, and out of 5O0
he used 40i, the rest were absolutely useless. That is one thing the growers can
certainly dnsdst on, and he can tedl very readily whether^ that handle is all
right. The handle mnist be sitrong enough to carry the package or the package
is faidty.

A Member: If the package is improperly handled or improperly taken
care of by the expreiss company or carrying com(pandeisi, the handle won^t saive
the package if it is made of iron?

Mr. Hastings: The fault d'oeis not all lie with the expresis companies
or carrying companies. Another thing I have diiscovered is that the law requires
that two nails will be driven into the bottom of the handle, and naturally it is
expected these nails will he driven into the hottom of the package securely.
A great many of our growers handle their own 'baskets, and they use only
one nail, and in. .some instances the nail was not in, and I venture to say 90
per cent, of those baskets never reached their destination unless the transporta-
tion oomtpanies fixed them np'.

Q. — How will the growers remedy this handle business?

Mr. Hastings : Refuse to ajccept handles not in accordance with specifioa-
tion's. The grower must taike stepis tO' see that he is getting a package the lajw
reqidres. The government cannot do all these things for him. We are going
to see that the factories comply with the law as far as the government can do
it. T know the factories that are making the paickages the law caM'S for, and
the task is not going to be very difficult. As to the penalty for not keeping
to specifications, first of all we will lay the information against the man and
have him fined. Another thing that may be done iis that the grower may refuse
to accept those ha&iidles or the baskets. Also the express agent may, when he
sees these baskets are not in accordance with the regulations, refuse to accept
them.

Q. — ^Suipposing he idjoes not; he is at a loss for the fruit in the basket?

Mr. Hastings: Over and above all that, the Dominion Fruit Bran oh
Inspectors, in addition to inspecting the fruit, are aUso inspecting all tliese
packages, so that really the grower is pretty well protected, and I am perfectly
well satisfied that we are not going to have very many faulty packages on the
market during 1921, so far as these baskets are concerned.

Q. — ^What would you do with a manufacturer who accepts a contract,
nc cording to stpecifications, but did not deliver the goods until after the main'e
crop was all miarketed; in fact had no intention of delivering the goods?

1921 FRUIT GROWERS^ ASSOCIATIOiS. 45

M'E. Hastings: That would be a breach of contract, and the man has his
remedy at kw. We oomld not pint him in jail for it.

I want to impreiss upon the growers that when th^y aixe handling their
own baiskets, they mu^t iput in two naiils in the bottom., and see they go into the
bottom. I think the manufacturer should ha,ve liis sihare of the bLame, ajid
the transportation company should take its share; but I think the grower should
also take his share, and he has got a share. In a great many instances, the
grower does not take oare of his baskets. I have seen baskets stored in all kinds
of unsuitable places; over chicken coops, in lofts, exposed to the weather during
the whole winter, ajiid piled uip altogther too high, so thjait they are out of sha>pe
in the spring. They are left out in the orchardis during rain atorms, and in
dirty plajces until the pac'kiage hais become very rni'sightly, and no one can tell
me that that has not a tendency to cut down the price of the fruit. Women will
take a clean package 99 times out of 100.. For that reason I think it is well to
call the attention of the growers to that feature.

Mr. Biggar: In regard to packages from the Statesi, do they have to meet
requirements ?

Mr. Hastings: There are certain requirements that have to be met by the
importer. .

Q. — The strawberry boxes are only about half a box?

Mr. Hastings : They have a small box of berries and they have the regular
box, that is, the box thait ooirresponds with out!si, but there is no provision in
OUT Act that excludes these packages. I think the only provision is that the
man who imports from the United Statetei or any other foreign country must

put his name on the box : Imported by= • — i — . That is the only requirement

so far as imported fruit is ooncemedl.

Mr. Wallace: There is one point you cannot dwell on too emphatically,
and that is the care the package gets alfter idteliveiry. The stock should be kept
absolutely dry; no barrel will stand kept wet three or four weeks at a time in
an orchard. It is important that a bairrel ishouilid not only be kept dry before
filled, but every grower should have a proper place to keep his barrels in after
they are filled.

Mr. /Hastings: I You will never get a satisfactory pack of aipples, even
if you put km an army of inspectors, until your apples ajre packed under com-
petent supervision, and under cover from the weather — in other w^ords, in a
central packing place. That is the conclusion I have reached after a study of
the situation exteniddng over three seajsons. The government is not particularly
interested in how a man packs his apples so long as the grade is there. They
can legislate until they are black in the face, and we can inspect until we are
black in the face, but we will never get a -siatisfaictory pack until the packinig
is done under competent supervision and in a central packing house. We ha^
men in Western Ontario who have well equipped packing houses, and they put
up a beautiful pack, but there is onlly one in a humidred who dio that.

Mr. Wallace: That is not covering the point that it is absolutely necess-
ary to keep the barrel dry.

Mr. Hastings : You are absolutely right. No grower should allow a barrel
whether empty or full to stay out even an hour on dirty ground, where it can
be rained on a(nd snowed on until it is hardly fit for anything.

Mr. Foster: Has an inspector any jurisdiction over that? Have they
the privilege of refuaing to let them go forw(ard?

46 THE REPORT OP THE No. 44

Mr. Hastings: No, we have not. We do ais/simie juri;s<liction sonietimes,
but we have no legal authority to stop a shipment of fruit no matter how dirty
the haskets may be, so long as they compily with the regulations as to dimensions,
and the fruit complies with the reguiLations. I have iseen packages that were so
dirty I would be ashamed to ship them even to the cheapest huckster in Montreal,
and the fruit in tliat hasket was absolutely first class.

Mr. iSirett: Unleiss you have a 'Cold storage to put Greening apples in,
they will keep better in the orchard than in the ordinary storehouse, so they are
left in the orchard until the weaither is oool enough to store them, and is it not
much better that the barrel should suffer than that the apples should suffer?

Mr. Hastings : Do you mean to tel mie that a barrel of Greening apples
will keep better expoised to all sorts of weather conditions, rained on and soiowed
on, and then dried tout by the sun the next day, than in a store house? Do
you mean to tell me those apples are in good condition for shipping?

Mr. Sirett: I mean to sajy I would sooner have a Greening apple in the
orchard than in the ordinary storehouse. We do not usually expect there will be
very much snow or rain until later on. I am speaking from my experience and
the experience of the other men throughout Northumberland: that the maji that
has his apples out in the orchard suffers less from injury to his apples, if they
are left there until the weather is fit to store them, provided he gives them as
much protection as he can in the orchard, than in the ordinary storehouse.

THE GRAPE MARKETING SITUATION IN 1920-1921.
T. J. Mahoney, R. R. 1, Hamilton.

I find in order to give you a comprehensive idea of the grajpe situation it
is necessary to go back . a little further than 1920 and refer you to August 1919,
when the first Grape Growers' Association was established in the Niagara Penin-
sula. At that time there were a number of grape growers especially in the
Yiciniy of St. Catharines, who felt in making comparisons of prices received for
grapes in Ontario and on the American side, that they were not receiving a
fair price for their grapes; they were more convinced of that fact by reason of
the wine manufacturers setting their own prices.

Because of that these gentlemen got a small organization together, which
gradnailly extended to other places, and in Atigust 1919 we had from four to
five local organizations in the Niagara District. The president of the St.
Catharines Association was appointed to wait on the wine manufacturers with
regard to the prices for 1919. They were tcM when they approached the officials
of the organimtion that the ^prices of grapes had been fixed on the 7th day of
June, and so far as they were concerned there was nothing to be gainedi by
further discussion. However that small organization succeeded in getting in
touch with a couple of dealers on the other side, and one of them was induced
to come to the Niagara District and he bought some 58 cars of grapes, which,
I believe was the largest amount shipped from the Niagara District up to that
time.

In January, 1920, we decided if we were going to do any effective work
with regard to marketinjg the grape crop, we would have to start early and if
we were to have the proper influence in the district we sihould have, it would
be necessary to get more information. We decided therefore to approach the
Councils of the different grape-growing districts and secure the services of their

1921 FRUIT GROWERS^ ASSOCIATlOiN. 47

officials in hawng a*censu'S made. The result of that ceiisiiis was tabulated in the
first part of June, and it \vac> certainly a surprise to us to know that there were
only 4,500 acres, and not 8,000 acres as had been thought, and in a normal
year there would be a production of 10),000' tons.

When we began to make comparisons and consider the limited acreage which
had to suipply the whole of Canada with grapes, and when we considered tihe
Mnount the wine manufacturers needed for their purposes, and what the grape
juice concerns required, and further wtlien we considered the prices that obtained
in the States were higher than we were obtaining, we were thoroughly convinced
of the fact that We are not receiving tthe market price for our grapes, and in
looking around for the factors which prevented us from getting that price, we
immediately decided tHie wine manufacturers were probably the cause.

We will take as an example 1917; in that year the wine manufacturers went
out in the early part of July and made contracts foa- their requirements at $30'
a ton. As soon as the wine manufacturers got their supply, the dealers made
contracts for what they considered a sufficient quantity for themselves at 20'C.
a basket, basing th^eir prioe at $30 a ton. As the season advanced it was seen
that the grape crop was going to be short — the average was a little over 50 per
cent. — and the prices went up as high as 30c. a basket. It is true the wine
manufacturers in order to keep the grapes froon being taken atway altogether
increased their price from $S0 to $40 a ton, but the dealers did not follow their
example, and the grape growers of the Niagara District who had contracted their
grapes at that price had a very substantial loss.

These are the conditions the grape grofwers saw facing themj, and when
they found there were only 4,500' acres of grapes in the district they decided
that the important thing to do was to have the facts placed before the growers.
Beginning in June we held a series of meetings, and we organized thirteen
local divisions with a chairman and secretary, and secured the memibership in
our Niagara Grape Growers' Association. Just here I would like to distinguish
between the Niagara Grape Growers' Association and the Niagara Peninsula
Growers' Limited which is really an outgrowth of the Association.

Having placed the facts before the grape growers of the district by these
series of meetings — I think thirty-two all told — ^we held executive meetings in
St. Catherines every Saturday afternoon at which the presidents were present,
and the whole situation was thoroughly discussed. We decided to get in touch
with the wine manufacturers because we felt that was where we should staM
our work if we wanted to secure any results. We sent letters to all the wine
manufacturers asiking them to meet us to discuss the grape-marketing situation
in 192^0. Two of the representatives that met us took pains to explain they
were not there as official representatives but simply to hear the proposals we
had to make. One of them m)ade a suggestion that a conference be held at
which there would be three representatives from the wine manufacturers, three
from the dealers of the Niagara District and three from the grape growers.
That proposition was entirely satisfactory to our committee, and iiie meeting
was arranged to take place on August the 4th. On August the 3rd our secretary
had a telephone me.ssage from the gentleman who made that proposition, who
represented one of the biggest wine-manufacturing concerns in the district, and
he .«;tated thait after taking the matter up with the other factories they decided
there was really nothing to be gained by having a conference with reference to
the grape-marketing situation as they thought it was too early in the season
to discuss prices or other matters connected with the industry.

48 THE KEPQRT OF THE No. 44

We did iiiot have any in}istaken idea of what tha^t meant; we knew it meant
a show-down, and we determined to come out as victoriously as we could. We
then called a meeting of the grape gi^owers at St. Catharines on August the 7th.
We could not get a hall big enough to hold the meeting, and it was one of the
Ijottest days in 1920'. The executive met before the meeting took place and
we decided to go before the meeting and propose tha^t a Joint Stock Company
be formed, capitalized at $50'0',0i0i0i, 50,000 shares at $10 eaich, and that we go
into the business of selling grapes. ,When that proposition was submitted to
the mass meeting there was onlly one man in that large aisisembly who refused
to stand when we asked for a standing vote approving of it.

Our charter was drawn up on the following Monday, on Tuesday the
Provisional Ddredtors met and signed the aipplication for the charter which we
received on the 26th of August and on the 13th of September we opened an
office in iSt. Catharines. Between that anid the 10th of November we sold 410
cars of grapes of which Ml wenjt to the United States market.

With regard to price: In the early part of the season the Tvdne manu-
facturers endeavoured to make their contract for supplies ajt $50' a ton but the
price we thought we should get was at least $80' a ton. When we decided to
form our company we had a mdghty difficult situation to contend with. As
you know in the Niagap^a Disitrdct we had a most abnormal crop of fruit. Peachee
were a glut on the market lamd pilums you could not give away, and we were up
against the most acute basket famine in the history of the district.

When we organized the compa|ny we had three objects iu view; first, to
get packages to handle the gnape crop; scioond, to get experience as dealers; and
third, to take away from the \\dne m.anufacturers the power which they had
been so long exefrcising in fixing the price of grapes without consulting tihe
growers.

Before we opened our office on the 13th day of September, we had made
arrangements with the American Fruit Growers, Incorporated, one of the largest
selling organizations in the United States to handle our grapes on the United
States market on a 5 per 'cent. basis, they to guatrautee all ooliections. Our
experience has been entirely satisfactory with that organization; and they came
highly rec'ommended to us, and we have had no reason to doubt the high
recommodationts which were represented to us when we mlade our contract
with them. In order to handle our grape crop it was necessary to import over
100,000 bushel baskets from Indiana and Georgia,, and of these, 96,000' were
filled, loading 200 cans, and sent back to the United 'States. The actual price
to the grower for his grapes shipped in these bushel baskets wais $80.20 a ton,
that is, after everything was <paid including the price of his baskets. We sold
306,000' six-quart baskets of which 200,000' went to the United States, and we
sold ':i5,0OO eleven-quart baskets. These brought !$10'3 a ton, or 693 after the
baskets were paid for. We sent grapes to Boston, Philadelphia, New York,
Pittsburgh, and even over to Detroit, notwithstanding the fact that they have
such a quantity of grapes in Michigan, and other markets in competition with
the American grapes, and they brought as good if not better than the American
article. Had we been able to handle them in the American standard basket, we
would have received $12 a ton more.

Our total turn-over wias $496,000. In paying the growers we decided in
the first place, to fix on the price of $85 a ton aind pay them 80 per cent, within
ten days, and the remaining '^0 per cent, inside of thirty days. We followed

1921 FRUIT GROWERS^ ASSOCIATION. 49

that policy throughout the s'oason, and we found after the year's business was
don© we had a surplus left of $33,0i0O, which we did not know what to do with,
so we pooled that amount of money, giving each grower what was coming to
him in pr'oportion to the amount of grapes he had supplied, and based, of coume,
on the kind of package. Those who haid 11 -quart baskets got the highest price.
In entering 1921, we are doing so with much better jprosipects than we
had when we organized. We were forced into the grape marketing business owing
to circumstances over which nobody apparently had any control except the
wine manufacturers, and possibly the dealers. However, we got into the business
and we are in it to stay. We have at present under contract of the 4,500' acres,
2,500, and our objective is 100 per cent, of the grapes under the control of our
company. We may not succeed in getting that this year, but we are going to make
the life of every grower in the Niagara Disrict miserable until we do get him;
if one man cannot get him, we a\t11 send another to point out that it is to
his own interest to get into the organization and form a distributors' company
that will have absolute control of the grajpes which he produces.

On account of the Emergency Tariff Bill which appears in the papers
to-day, which puts 4c. a pound on the cherries going into the United States,
there may be some misunderstanding on the pa;rt of some grape growers that
possibly the United States will put a higher tariff on our grapes; at the present
time it is about $15 a ton. I do not think there is the slig'htest danger of that,
at present. We are receiving more grajpes from the United States than we
ship in, and there are other reasorus why there is not much danger of any
agitation taking place for higher duty on Canadian grapes.

A short time ago there was a National Grape Growers' Convention, con-
sisting of representatives of the co-operative grape-selling concerns from the
different states. Two from each company told of their experience with regard
to the marketing of grapes for 1920i, and it was the general opinion of all that
the most profitahle package to seill in was the sta;ndard twelve-quart basket.
At this convention there was some discussion of Canadian grapes on the American
market; owing to the effect of the odd-sized baskets, six and eleven quarts, our
grapes attrajcted considerable attention, and it was the opinion that we had
a tremendous quantity of grapes for export. But when the Niagara District
is called upon to supply grapes for the whole Dominion, . for wine manufacturers
and for grape-juice concerns, if there is the same demand for grapes on the
part of the people here as in the United States, we would not have nearly enoug'h
to go around, and when we explained these conditions they were inclined to
think there was not much danger of our few acres interfering with the United
States market. In the Chatauqua belt there are 30,000' acres, and if we put
our whole grape crop over there, it would not make a ripple in the demand for
them there. Since prohibition has been in force in the United States, there
has been a tremendous demand for grapes to make home-brewed wine.

Our grapes went as far south as Louisiana; six cars went to Mempihis,
Tenne;ssee, and it was a remarkable coinciden<3e that my brother there saw
Canadian grapes in a fruit store ajid went in and bought some. He paid $2
for an eleven-quart basket, and he said every person who received the ^apes
was entirely well pleajsed with them, and that there would be a much better
market next year. Under these conditions we have not the least doubt that
we will be able to market our grapes. Ais far as the grape growers are con-
cerned, we are going to insist on every package bein^ the proper kind, and every

50 THE REPORT OF THE No. 44

carload of graipes being packed and loaded in the proper way, something which
was impossible for us last year owing to the short time we had to get our organiza-
tion together. If we put our grapes on the American market in the same baskets
the Ajnerican grapes are put in, we will get anywhere from $5 to $10 more thaji
the American article beoaujse our vineyajrds are very much better taken care of.

In connection with the Niagara Peninsula Growers, Limited, which is being
organized for the purpose of markeiting other lines of fruit, under the original
agreement, those who wanted to join that organization were obliged to put
all their fruit through it, buit it was found in securing application® for member-
ship, there was a very strong opposition on the part of grape growers who had
gone into our comipany lafst year, from joining under these conditions; they
felt that the Grape Growers had done good service in 1920, and they had got
a much better price for their grapes than otherwise, and it would be as well to
let the Grape Growers ca;rry on and handle the grape crop at least for this year.
For that reason, an agreement was entered into between the Niagara Grape
Growers' Association and the committee of the new organization, whereby grapes
are excluded from the list of fruits which any member had to put through the
new company, provided he became a shareholder in it.

The arrangement arrived at is this : The Niagara Grape Growers^ Limited,
will secure contracts for all the grapes possible to secure, not only from their own
meonlbers but those joining the new organization. They will also be allowed to
contract for grapes with us, and we willf undertake to supply the wine manu-
facturers with the grapes they need at prices not fixed by them but by ourselves.
I hope, and to supply the grape juice concerns and the United States market,
or what we can spa^re for the United States mai^ket. It was felt, owing to the
fact the new Association is going to organize a Sales Department to take care
of practically the whole of Canada, that they would be in a muKjh better position
to handle the grapes on the Canadian market than we oould, while we c?ould
handle them better for the American mai^ket. It is also agreed, in the event
of the new concern wishing to sell any other line of fruits on the American
market, that these fruitiS will be sold through our organization. There was
nothing specified sus to what remuneration would be received for our services
in that respect, but I think it is generally known that as a Grape Growers'
Company we do not want to make any profit on that business. If there is
a glut of grapes on our Canadian market, and we can find an outlet on the
Ameri<?an market, we will do so.

We have two organizations with exactly the same objectives, and while it
is a much more difficult pi^oblem to successfully launch a new organization tham
it probably is to deal with the Grape Growers, still I think if the growers will
show the same co-operation and loyalty as they haA^e shown the Grape Growers,
there will be no difficulty about this new concern heing a success.

Mr. Wallace: We as manufacturers are prepared to m^anufacture the
12-quart basket if it is going to be of advantage in the marketing of any of the
fruits in the United States.

Mr. Mahoney: I have a communication signed by Mr. Baxter stating the
Government is quite willing that these 'baskets should be manufactured, and
used if stamped "For Export Purpose," and we already have an option on
500,000 baskets.

1921 FRUIT GROWERS^ ASSOCIATION. 51

NEW YORK STATE PACKING ASSOCIATIONS

N. R. Peet, General Manager, Western N.Y. Co-operative Packing

Association, Inc., Rochester, N.Y.

I hesitate to say anything without first calling your attention to the fact
that there is a krge rpanacea, as I see it, for co-operiative associations. The con-
ditions under which they operate in different sections are very varied, and it is
to meet these conditions that we organize. For that reason, organization takes
different aspects, adopts different terms and performs different functions under
existing circumstances.

To get on common ground, let me go back to the time before we had
co-operative organizations, and tell you about our situation. Our particular
secti'on of Western New York 'State lies along the iSouthern Shore of Lake
Ontario from the Niagara river, a distance of about 2,500 miles. It varies in
depth greatly, but the district with which we a/re concerned is largely in a belt
not much more than 10 miles wide from the lake shore. Some of our organiza-
tions do extend down into the Finger Lake section. In that section there is a
tremendous amount of fruit, but it is largely tree fruit. Apples are the most
prominent, then peaches and pears, running down through plums, prunes,
quinces and finally grapes. The real grape section of Western New York State
is on the shore of Lake Erie and also around the Finger Lakes; very little around
the Lake Ontario Belt. That is one of the oldest fruit sections in the United
States, there are apj^e trees bearing that are over one hundred years old.

There has sprung up in tha^; district a system of marketing which may be
characterized something Like this: There are three types of people that are
handling that fruit; first, the speculator who comes into the district and buys in
large quantities sometimes as high as 200,000 barrels, but usually from 50,000' to
200,000 harrels depending on the year. If he foresees sl rise in majrket he buy»
in larger quantities, and in a year 'Hke this he would not buy at all. The next
class lis the local buyer who lives at the station or in the coonimunity, M^ho
operates a buying and sellling business in general and distributes the fruit which
he buys from the grower in thait conamunity. There is also another class at
b.uyer which may be familiarly called a cash buyer, who comes in from a distant
market and either buys from the local buyer or independently, and ships the fruit
from there out. I have taken pains to outline these three types of salesmen because
they are important to what I want to say. As a result of this method of handling
and marketing the fruit there has grown up a system like this ; A speculator, cash
buyer or local dealer would come into a grower's orchard and say," I will give you
so much for these apples just as they are, and I will pick them f or he might say,
*' I will buy this fruit and you can pick it. Everything goes in except the cider
apple.'' There are others who want strictly Al stuff, and will pay the price
a<^cordingly. As a result of that varying system of buying there developed a
situatioDi where there was practically no 'standard of Western New York apples. In
fact it got so bad that they passed a New York grading law which was intended to
standardize it, but you cannot legislate men to be honest. It was impossible, not
of enforcement but of operation, for the reason that everybody began to pack their
fruit ungraded, and labelled it ungraded. Ninety per cent, of the fruit of Western
New York went into barrels ungraded so as to get by the law. As a result of that
we were losing the confidence of the buying public, and the small or retail mer-
chant who had been in the habit of huying apples in the barrels did not know when

52 THE EEPORT OF THE Xo. 44

he bought a dozen barrels to-day whether he could get another dozen barrels any-
where like them.

We can sum up the situation by saying that there was no standard of pack of
Western New York fruit and that was the big need. Because of the losing of
thi® confidence in our pack, our fruit has begun to take a very less rate than
fruit from other isection®, and ia»s la result, in 1910' there sprung up a co-operative
ajssociation which some of you may have known, the Eastern Fruit Association,
with headquarters at Rochester. It was organized primarily tot get better prices,
to have a better ntethod of distribution, and to cut out .some of the overhead and
some of the comrniissions that were taken in the business. They failed miserably
after about four years' operation, because they did not have anything to sell.

When I was county, agent in Niagara County we began taking farm manage-
ment records, the same as you have been taking up here, and it developed that
our labor incomes in a typical fruit growing section in Niagara County on one
hundred farms for a period of five years averaged $2'74. That meant that the
growers were getting $274 for a year's work together with the interest on their
farm at 5 per cent, and with payment for the usual unpaid family labor and
their living off the farm. In other words, those gr'owers might as well have sold
their farms, put their money out at 5 per cent, interest and hired out to somebody
else for $274 and the living they could get off the farm. That did not appeal
to the growers there although it was news to them, becajuse most of them owned
tlieir own farms, but they did not reckon on 5 per cent, interest on their invest-
ment. The average of these hundred men is that kind of a man. He had a
70 acre farm, fully equipped, with tools, live stock and good buildings. Such
a farm was wx)rth $18,000, they were aelling for more than that, but that was
thee average capital investment on the farms. In the five year period the average
returns from that farm was $3,500. These were largely fruit farms, 15 acres
of apples, 12 acres of peaches, 3 aicres of small fruits, that is pears, plums and
so forth, and the awrage cost of operating the farm including barrels, packages,
seed fertilizer, etc., was $2,300, leaivijng a gross profit of $1,200' on the year'g
business. Most of the farmers felt they were rich. If they could come through
the year, have a living off the farm and $1,200> besides, they felt they were having
a pretty good time of it. But the fact remains thait the farmer was not alone
responsible for that $1,200; he and his farm w'orking together were responsible.
His famij had an earning capacity of its own; he could rent it to sometbody else.
If it has not an earning capacity he might better sell it and put the money out
at interest at 5 per cent, whik^h on $18,000 would be $900, and yet he was content
to receive $274. Another strange thing this faiTn record showed was that in
the year of heavy crop production we got less money for total orchard sales than
in the years of light production. That is not so in the manufacturing business.
If yofu go to a shoe manufacturer and tell him he can make more money by
cutting down his production he will laugh at you. The more shoes he turns ooit
the more money he miakes, and yet it its true that in the years of heavy production
we took less mioney out of the orchard than in the years of light production.

It would then appear to be a marketing proposition. As a resxdt of that,
and taking the advice of the best people we could get in the United (States, we
started the building of Central Paiciing Houses where the fruit could be brought
as it grew on the trees and padked to uniform grade. Three more packing
houses were built in 1919. This year there were 22 in operation. Next year
there will probably be 50.

1921 FRUIT GROWERS' ASSOCIATION. 53

There are hardly any two of these packing houses alike, and yet they do
have some chairacteristics that are very simiW. We needed a unit to build
around. There was no other apple section of great extent where Central Packing
Houses were in operation under similar conditions^ ais ours. We figured that a
packing house of 5;0O0' feet floor space would profbably handle 20,00(0 barrels
of applfeis. We imisi have space to put the fruit after it ijs pa^cked. We con-
sidered 5,000 feet of floor space would proibably handle 20i,0OO barrels of apples
together with all the other fruits that the association members would have. It
then became necessar}^ to select the membership, and thait is an entirely different
proposition from what you ha^^e in your Nia,gara Penihisula for fruit growers;
here your success largely depends on the number of people you get in. In our
position just the reyerse is the case. We need to seOect a smiall number of men
who will -work in harmony; so the membership is picked, so th-at in a normal
year they would produce 20,000 barrels for that community. Most of these associa-
tions have about 20 members ; they var\^ from 6 to 55, but average around 20.

We will assume that at loading station A there is aj facility for building
a packing house that would accommodate 20,000 barrels. The committee get to
work and pick out twenty members, and they find that to build a large
packing house it would probably cost around $4,500 for the building and $1,500
for the equipment. Ten of these men are not able to make their payment, the other
ten men are. These men may vary a great deal in the number of barrels of fruit
they individually will haive but they each put in $300, and all go in on the same
basis. The ten men who have not the $300 put in a demand note, non-interest-
bearing, to the association; the other ten men pay their $300. The Association
gives the latter ten men a certificate of indebtedness which is not exactly the same
as stock. We organized under the Non-Stock Law^ because we have a very serious
trust law on our side. The Association took these ten $300 notes and made a note
for $3,000 and borrowed $3,000 from the bank, and at the end of the first year $300
^vas taken out of the returns of these ten men, they were given back their notes
and given a certificate of indebtedness for the $300 which they put in.

The building was built. Each grower then made a contract with the
Association to deliyer all of his fruit. The fruit is delivered just as it comes
from the trees. The number of the grower ia stamped on each barrel and they
are put in one part of the receiving room and the grower is given* a receipt for
his 25 or 30 barrels, listing the number of packages and barrels they contain.
That fruit is then put on the sizing or grading machine. They would probajbly
grade four or five of his loads at one time, and by that time the next rrt^mber has
three or four loiads in and they will grade his. It does not take long to change
from one man's pack to the) next; it may be done without stopping the machine
80 long as the variety is not changed. A^ soon as the fruit is run off, the
grower is given a packing house tally of the number of full barrels, together
with the number of part (barrels that his fruit has graded into, and then the
fruit has beoome the property of the Association and its identity is lost. N"o
man could tell which was his fruit; it is the property of the Association.

We find it takes a labor organization of about 15 or 20 people to pack these
20,000 barrels of apples. Of course it depends on the varieties; if they run to
Duchess and Wealthy it does not take quite so many. And if all the fruit
came together it would take more.

The organization is like this: There is a man at the receiving door who
checks this fruit in, a mian who empties the fruit from the barrel into the grading
majchine, three or four women taking out culls, depending on the quality or con-

M THE EEPORT OF THE No. 44

dition of fruit, four or five men filling and packing barrels, two girls facing the
barrels, two headers, and then a crew to take the fruit away, deliver it to the
trucks or put it into storage. Besides that there is the superintendent and
bookkeeper, and there is one other person who checks the fruit as it goes from the
packing hooise. We find isuch a person ought not to do other work but keep track
of the fruit, because it is very necessary that it be done accurately. With suoh a
crew we find the first year the Association can pack about 400 barrels a day.
The next year with the same number of men even though the crew is not the
same in the packing house but with different arrangements 60O barrels can he
packed a day, and some Associations with a crew like that halve packed as high
as 969 barrels in one day of ten hours.

We pack our fruit graded to one-quarter of an inch. Each Association so
far has been handling its own sales policy ; each Association hires its own salesmen,
and makes whatever contraict they want with himi. When the sales are m;ade
regardless of where they are made, from the storage or right from the packing-
house floor, when the net amount is ais<)ertained it is pooled and. each grower gets
for the same size and the same grade, the same price for his fruit.

These 23 associations last year, consisting of StOO' growers, paicked an equivalent
of 350,0O0i barrels. By that I mean there were 250,000' barrels of apples, about
200,000 bushels of peajches, 50',00O or 60,000 bushels of pears, about 55,000 twenty-
pound bajskets of plums, besides some other fruits. When these are reduced to
barrels it makes an equivalent to 350,000 barrels.

Up to last spring all of these associations were in Niagara County. They
had formed a County Association to own a brand under which all of its fruit
wais packed. There were ten associations, ail in one county, all using the same
brand, although they had different salesmen. When the proposition came up of
putting up packing houses in the other four counties, the question immediately
arose, what brand shall we use? It was decided to develop one organization
which should ibe a parent organization for all of these others, owning the brand
and employing proper inspectors to see thajt the brand was lived up to and so
forth. We feel that the brand is the main thing. We have had several growers,
and some are now members of the association, whose pack of fruit with their
special brand on it has been better than the average grower's and is known on the
New York mjarket, and brings ^5 to 50' cents per barrel premium. Yet when
the New York market is not working properly their brand is no hetter than the
other man's on the Philadelphia market. The only time we want tonnage is
under one brand, so that they may be known on all the markets as the Sun-Kist
oranges are known everywhere. That carries with it a tremendous amount of
responsihility to see that there are no packages which go out under that brand
that are not up to standard. We are getting that standard very largely, by one-
quarter-inch sizing our apples; no grade of apples varies more than a quarter
of an inch in size. On peaches we have made divisions, all below an inch and
three-quarters are number 3's or X. The inch and three-quarters to two inches
are Cataract brand, XX, and two inches and up are 'Cataract brand XXX.

I want to stress the apple situation. It is not so hard to get variation in
the peaches, but it has been difficult to handle one-quarter-inch-size apples so
far as the trade is concerned. Much of the trade have tried to discourage us
packing in quarter-inch sizei3. Each of these barrels is faced with exactly the
same size as they are filled, and the colour is not selected for the face. A\Tien
the consumer or huyer gets one of these Cataract barrels he knows ever}' apple
right down through that barrel is exactly like the face. We have stood four

1921 FRUIT GROWERS' ASSOCIATION. 55

square on that proposition despite all the trade hais said, and we are beginning to
make an impression. In fact, right from the first we have not lost anything
by so doing, and this year we are beginning to get a\ premium. We have five
different sizes in apples, 2 to 2^4, ^H to 21/2, 21/2 to 2^4, 2% to 3 and 3 up.
There seems to be a place for each size and our 21/4 size are se'lling despite all the
trade says; our 21/2 are selling despite the fact that the trade want 21/2 pack
faced with 2%. They are selling for just ajs much as the old style of pack, and
we are getting premiums on. our 2%. I hope we may make an impression on you
with our quarter inch sizeis and get you to help us, because it will mean much to
us and the whole barrelled industry to have apples packed in quarter inch sizes,
and I think it will bring back the consumer's confidence faster than ajiy other
one thing.

So far the apple grading business has been done by growers. The grower has
his point of view, the customer may have an entirely different point of view. The
big proposition that the central organization has been putting over this year
has been the packing of quarter inch sizes. In talking about this proposition
either in public or private we are usually asked, "How do your prices compare
with the independent grower's, the man who is not a member of the Association?"
I say, **^I don't know," and so far I don't care. We have not been operating to
secure prices; we have been operating to secure confidence, and I am quite
convinced from the experience of the last few years that we cannot get prices until
we have accomplished three things. There are three things which a co-operative
association can accomplish and are very worthy things to accomplifeh ; they are
three things that have not been accomplished by any other agency or association
and I think they are the hope of the fruit businesis. They are: 1st, Standard-
ization; that is fundamental and the others cannot come until that has been made
sound. Next, is Merchandizing and Distribution, and the third is Advertising.
I don't believe we will accomplish prices until we have put all three of these
across.

There are several reasons why the Associations have not tried to combine
so far as price is concerned, one of them has been the necessity of (impressing
upon our members the need of standardization regardless of price. Some years
a dealer will out-guess a market or over-guess a market, will pay more than the
Association can secure, and in the year when the dealer has over-guessed the
market and then backs it up hy paying wh'alt he has agreed to pay, in such a year
it is a better proposition not to be a member of the Association when you are
looking for prices alone.

In 1917 one of our Ass'ociations at Burke, New York, was sellin.g peaches
just as fast as they could pack them up at $2.50 a bushel, and the local dealers
were paying $1.25. Things were going nicely when along came that car shortage.
I was in their packing house one Monday when they had 20 barrels of peaches
standing on their floor, that had been there since Thursday and they were a total
loss. When that Assoaiation got through it was able to pay 95 cents to each
grower. Some dealers paid $1.^5, others got from under, some paid in paper,
but if price had been the only object that year the Association would have gone
under, because it had not got the price the dealers were paying. I believe that
our growers have got the vision of these very thijhgs, so that they may leave to
their* children a fruit industry which may be safe, which may be substantial and
which may pay in the end.

We have been going over four years in some localities. It is getting under
way in ^leaidid ^hape in others, and so far all we have been trying to do has

66 THE REPORT OF THE No. 44

b€€n to Istandardize. I think we are beginning to secure results. We shipped
ten cars of apples to one buyer. I assemlbled those ten oars from seven dilferent
associations in five different counties and when that fruit arrived I asked the
buyer which Association gave him the best deal, and I am proud to tell you
that hiis word came baick he could find no difference between those ten cars. So
I believe we are getting standardization. We have not attempted standardization
of co'lor as yet; all we have attempted to do has been size. This year we shall
probably undertake a little standardization work along the line of color Avhich
will probably be necessary, because there is another feature coming up. Our
members are now wanting a central sales organization. It is very natural they
should want that, and I am glad to see it coming. Our Association find that they
are now in competition one with the other; selling the same sizes and the same
l)rand, land selling it through different agencies. The receivers are beginning
to demand a central selling rate, 'so that they may all (buy at the sapne prices on
the same day for the sarme goods, and they want a man put into the market who
will distribute that fruit for them and put a little system into the deal.

Another thing that has been driving the Association into a central selling
organization has been a lack of buyers. This has Ibeen one of the years when
there were no buyeiis in the district, and we wakened up to the fact that we have
been depending on the man who came into the district to buy. The independent
grower has been forced to consign, and you know what consignments usually
amount to. One man characterized it by saying, ''^There's only one thing to say
about consignments, and that is to say good-bye.^'

Our Associations have hesitated to liave one central selling arrangement
because they have not been able to visualize a man big enough to handle the
sales. It is a tremendous job to sell even what we already handle, but there is
in the district potential sales of $5'0',0l0'0v0'0»0' a year, and we have not been aible
to get the man to taoMe these sales. We ha,ve been looking for that man, and
we have come to the conclusion ^^There ain't no such animal." We are changing
our minds now, and are looking for a system and not an individual. In a year
like this, when there are no buyers in the commiunity, what we want may be
more clearly visualized by a wheel. The hub might be the distribution office
in the centre, the spokes establishing connection with 100' or 200 different cities
and distributing points', and then our salesmen are on the end of these points
out on the rim of the wheel where the people are who want to buy. That is
what we are trying to find at the present time. I have travelled about the
Eastern States for the past month trying to get the system of various organiza-
tions, and from them develop a system which will take cognizance of the people
who come into the district to buy and are willing to pay cash. I believe these
are the best kind of sales that can be made. I hope whatever system we establish
may include some arrangement whereby the man can buy at the loading points
if he is willing to pay cash and take the responsibility, and I tbink he should
have a premium for ta-king the risk incurred in transportation.

There is one other thing why our Associations want to get a central selling
arrangement. Those wbo have been in our district know there is a system of
cold storages, and in the past there has sprung up a system developed by some
people, who, anticipating future markets, have bought heavily, and have ^ put
the fruit into cold storage expecting to make large profits. Their example has
encouraged the growers to do these things themselves, and our Associations have
been putting some of their fruit into cold storage; and yet there is nobody in
Western New York who dan clearly foresee the future, and say whether or not

1921 FRUIT GROWERS^ ASSOCIATION. 57

it IS going to 'be a profitable thi'ng to store apples. We want to have some
system where we can start thi'^ fruit going as soon as it is produced, and keep
it going right through the season in certain, qauntite®, putting a certain propor-
tion into cold storage, depending on varieties. We should put our Wealthies
on the market in the fall when they should be put on, and keep our Baldwins
until after Christmas. One of the worst things I know of was this year, after
Christmas, Avhen we took a survey of the storages and found them heavily loaded
with Weaithies and not heavily loaded with Baldwins. Baldwins should not
be eaten until iafter Christmas, and yet a large number of them are put on the
market before Christmas.

If we can start merchandizing this fruit going in the fall and keep it going
week by week through the season, is it not fair a&sumptioni that we can change
our cold storages into a warehouse propO'Sition and not a gambling house?
That is a thing that we want to accomplish.

In adverttising, nothing as yet has been done at all. That i& still in the
future; it cannot come until standardization is more perfect than it now is.
It will not be effective until we have a distribution system to back it up. If
we want to attempt national advertising we miust have a system whereby people
can buy them oni their own fruit stands^. One advertising specialist, who
addressed our meeting the first of June, said a thing that went right through
me; he said, "A thing to be sucicessfnlly advertised must be of such a nature
that it will sell without advertising.'^ There ite a lot to think about in that.
Advertising simply provides a stimulus; it djoes not provide the whole system.
There is a big future in advertising. The results that have been secured
not only by the California people but also repeated in one of the Pacific Coast
Co-operative Associations, have created a friendly feeling towards their products,
and they have been able to merchandize a crop in heavy production years without
any decrease in the price per package. That is really worth while and it is
something to think about.

Just to sum this up : The huh of the fruit industry of Western New York
as we now see it 'seems to hang upon these three things: first, standardization,
that is fundamental; then, distribution and merchandizing, and we simply cannot
merchandize and distribute unless the fruit is standardized; and third, advertis-
ing, and advertising cannot oome until we have first standardization and then
the marketing and machinery to make advertising effective.

Mr. Fisher: Can Mr. Peet give us his idea of the arrangement of an ideal
packing house in order to put the fruit through with the best system and the
least cost.

Mr. Peet: There are several features that are beginning to be principles
in such an affair, and it depends on the number of ^^ifs,'' but I will try and
answer your question in this way : A packing house is usually divided not by
partitions, hut in our nrind, into three divisions: First what we may call the
receiving room, second a packing room and third a handling room after the
fruit is packed. The receiving room does not need to be very large. We had
quite a jolt; we thought it ought to be very large. We find that the smaller
it is the better it is. Especially on peaches, and so far as peaches are concerned
we do not have any receiving room at all, because the fruit is emptied right
from the wagons on to the grading and sizing device.

So far as apples are concerned the receiving room is large in proportion
to the number of members. An Association packing 20,000 barrels of apples

58 THE EEPORT OF THE ^r^. 44

with only ten mem'berts does not need as large a receiving room as one with
twenty-five members, because you must have a place for the fruit of each man.
In spite of all we have been able to accomiplish, a grower will bring in three
or four varieties on each of his loads, and we have to have room to set aside those
we cannot grade to-day. For an Association of 20,000 barrels and ten members
I would 6ay a receiving room of 10 x 16 feet is plenty large enough, or perhaps
12 X 60 feet.

The packing house floor depends altogether on the type of grader that ia
used. I presrume you will ask me what is the best sizing machine, and if we
start that I would not get home to-night. On peaches we have been using the
Burke machine manufactured at New Fain, New York. It is graduated like
one of our big gun barrels that is used on a man-of-war. We are finding that
quite limited in its capacity, and ats ability to change sizes. I have just found
another peach machine whi<?h I think is much better and that i's the Skinner
Machine.

Q. — What apple grader do you use? A. — Use all of theim, but we think
the best is what we call the Succatash. It starts with a hopper. We make it
at home and it is a combination of several makes. We have also made up our
minds we want packing talbles. We want the fruit to discharge from the sizing
machine on to packing tables so that each pereon can operate independently.

Q. — Po you handle more than one grading machine? A.^ — Yes, we handle
more than one. We have some Associlations that have two of the Burke machines.

Peof. Ceow : Do you have any trouble with the bruisnig of the apples
on the way from the orchard to the central packing house?

Me. Peet: We don^t find mu'oh of that, because we have pretty good roads
and we make the men use springs under their wagons. We do have a lot of
trouble with the pickers, especially where we are paying them by the barrel.
They will man-handle that fruit something awful, hut this year we hope to be
able to say we won't pay by the barrel but by the day.

Another idea that occurs to me in using the barrel as an orchard package:
Do not make the mistake of putting the heads in the bottom of the barrel. We
had some pickers who would put these in the bottom of the barrel so that the
barrel did not contain more than 2% bushels. We take the heads out and put
them in an empty barrel criss-cross. We are getting away from the barrel as
an orchard package, and we are going to use a crate. We need to have some
other orchard package than the barrel but we have not come to that yet.

Q. — Has your unit a manager? A. — Yes, but we call him the super-
intendent.

Q. — Is he a highly paid man? A. — No, I think he will run from $35 to
$50 a week during the packing season. He has nothing to do with the sales.

Q. — Do you thihk the central packing house idea with peaches could be
worked out successfully? A.— Yes I do, I think we have more of a future in
centrally packing peaches than with apples. I presume you refer to the injury by
packing machinery. I will guarantee that not nearly so much injury is done
to the peaches by packing machinery as is done by the package into which it
is put.

Q. — Can you s'hdp out the same day? A. — Absolutely, if we get the oars.
This year we did not get the cars; but you would be in the same position if
you did not go to the packing house. We were short 50 per cent., and of the
50 per cent, we got, 50 per cent, were not iced.

1921 FRUIT GROWERS' ASSOCIATION. 59

Q._\^liat are your grades? A.— We are just packing so far in A. grade.
A. grade refers to the grade of the fruit and not its size. You might have a
two inch and it ^vdll be A. grade. Fancy grade goes one step higher in color,
and then there are other grades which are vspecified by the law but which we
donH use.

CAN PRODUCTION COSTS IN THE (IROWING OF iSMALL FRUITS

BE LOWERED?
E. A. Orr, Clarkson.

My subject is, '''Can the production costs of small fruit be decreased?" I
claim they cannot. We have listened this morning to the address from the
basket man from Oakville, who told us his product had advauK^ed in price, and
I think every other class has advanced. I n'otioed the nurserymen said yesterday
that if there w^ a standard put on the fruit trees it would be a great detriment
to them. In our oas^ we feel we have been very muchj handicapped by the
extreme prices which we ha^d to pay for laJbor on the farms, and if labor is not
skilled on a small-fruit farm it is very disastrous.

I will try to give you an estimate of the cost of an acre of berries at ni|y

o^vn farm at Clarkson. People have an idea tliat all the land at Clarkson is

fruit-growing land but it is not. They have some good land at Dixie; they have

portion's helow the track at Clarkson and a small p^ortion above the tracks,

therefore my prices may be a little high, but I may venture to say I am very

nearly accurate.

CLARKSON DISTRICT.

COST PER ACRE STRAWBERRIES.

1st Year 2nd Year

Interest on Investment, $1,000 per acre— 2 years $120 00 $60 00

50 tons of manure at $2.60 per ton 130 00

HauHng , manure from station 50 tons — Spreading at $1.50 per ton 75 00

Plowing, harrowing, rolHng, discing and cultivating 15 00

8,000 plants at $10.00 per thousand 80 00

Planting— 2 men for 3 days 24 00

Cultivating — 3 times a month for 5 months, with man and horse at 60c. per

hour. 27 00

Cultivating — 3 times in fall — 9 hours 5 40

Hoeing and placing runners — 2 times per month, for 5 months, each time 1

man for 4 days 160 00

15 tons of manure for covering at $2.60 per ton 39 00

Hauling from station and spreading at $2.00 per ton 30 00 30 00

Raking off covering— IH days $4.00 per ton 6 00 6 00

Hoeing — twice in spring — 1 man for 4 days each time 32 00 32 00

Picking— 7,000 qts. at 3c. per qt 210 00 210 00

Baskets— $8.25 per thousand 57 75 57 75

Crates— 260 cases at32c. each 83 20 83 20

Carrying berries — 1 man for 10 days, $4.00 per day 40 00 40 00

Packer— 10 days at $4.00 per day 40 00 40 00

Hauling to Station— 2 trips each for 10 days 40 00 40 00

Express— 12c. per crate— 260 crates 31 20 31 20

Cartage— 2c. per crate 5 20 5 20

Transportation of pickers from Oakville by truck 10 days — $8.00 per day. . . 80 00 80 00

Team and mowers to cut off vines 2 00

Ploughing off the edges of rows 6 40

Weeding 18 rows— 8 hrs. at 80c. per hr., $1.00 per row 18 00

Shaking the centre of rows out — 1 man for two days 8 00

$1,325 35 $794 15

Crop sells for 2 years at 16c. per qt. (14,000 qts. at 16c.) $2,240 00

Taking care of berries 3 years 2,119 50

PROFIT $120 50

60 THE REPORT OF THE No. 44

I do not think any of these iprices are exoessdve; that is what it practically
cost us to look after our berries. I have not dealt with the commission to the
commission man, but the commission on these 14,0i0'0 quarts will cost you 2c.
a quart. Drawing the pickers back and forth to the station and the picking
costs you 4c. a quart. Your manure costs you IV^c. a quart. Your baskets
cost you 2c. a quart; therefore you have to pay out 9y2C. a quart. All these
prices are figured on this year's costs.

Q. — What kind of manure do you use? A. — We get a mixture from
Toronto.

Q. — Do you use paunch? A. — Yes, I have used it. It works out first-
rate. The motor is taking the place of the horse in our cities which makes
for scarcity of manure.

REPORT TRANSPORTATION COMMITTEE

Moved by Me. Maycock, seconded by Mr. Johnson, and carried unanimously.

^^Resolved: 1. That in the opinion of your com^mittee it is in the best
interests of the fruit industry of this province that it is not advisable to have
compulsory loading to higher freight minimum than that now provided by
tariff regulations now in force, and that consideration should be given to the
lowering of minimums for certain varieties of fruit by express shipment.

"2. That this 'C'ommittee further recommiend that the Ontario Fruit
Growers' Association go on record, as supporting an application to the Railway
Companies, and the Board of Railway Commission, for a "Carriers'' Protective
Service" to be put into force at the earliest possible date.

"3. Further that a permianent transportation committee of not more than
five or less thian three be appointed."

The report of the committee on resolutions was adopted as follow®:

"1. That the thanks of this Convention be tendered to the Hon. Manning
Doherty for his very able address delivered at our evening meeting, and also
for the interest he has shown in ajl matters pertainiug to the fruit industry.

"2. Also that we, as an Association, would ask the Department to require
that the manufacturers of 6 or 11-quart baskets put their name on the bottom
of said packages so that it will be possible to inspect for defective making.

"3. Also that we, as an Association, express our thanks to Mr. Peet for the
valuable information that he has imparted to us covering the handling of fruits
in a co-operative way in New York State.

"4. That in view of the statements of the Royal Stock Show that their
buildings will he ready for an exhibition in Decemlber 1921, we instruct our
Directors! to arrange for the holding of a National Apple Show in conjunction
with the Royal Show, and ask the Federal Department of Agriculture to hold
a Dominion Conference of Fruit Growers at the same time and place.

"5. That this Convention place on record on behalf of the fruit growers
of Ontario, its deep appreciation of the valuable information presented to this
convention by Prof. A. Leitch.

"Also that copies of these resolutions be forwarded to Prof. Leitch, and to
the Hon. Minister of Agriculture.

1»21 FBUIT GUOWEUS' ASSOCIATION.

61

"6. That the Directors be asked to appoint a Coinniittet" to consider and
forward the scheme outlined bj Mr. Baxter, Ft-d'eraL Fruit Commissioner for
the central handling of the sales of apples.

"7. That a Committee of fruit growers be appointed by the Directors to
watch any changes that may be proposed or made on the present tariffs on
fruits oommg from or going to the U.S.A., and that they keep in close communi-
cation with the Fruit Commissioner, Ottawa.

"8. That the Board of Directors of the Ontario Fruit Growers' Association
be requested to take ujp at once with the Minister of Agriculture, tbe mutter of
e.\tension in educational work in the interests of the fruit industry of Ontario."

The Resolution was carried with the understanding that the Directors
appoint the Committee's asked for in Nos. 6 and '7.

REPORT OF THE inSTOMCAl. COMMITTEE FOR 1919 AND 1920.

A. W. Peaet, Burlington.

The winter of 1920 was cold hut not unfavourable for trees and vines The
temperature was fairly steady and trees generally passed through the year in
a healthy condition. The San Jose scale is heginning to reappear, notwith-
standing itis severe check by the cold winter of 1917-18.

Black knot, espeoially on plunrs of the Loiribard and Gage types, is making
orchards' ' '° *" '^'^" "'*'' '"^'''"^ '" ""^'^ to n,;i„tai„ ouf

Fruit prices during 1919 and 1920 probably reached the peak. In 1919
apples were sold at $1 to $1.10 per bushel, tree run, for good fall and winter
variehes delivered at the packing houses. Bartlett pears $1 per 11-quart baXt
and Keiffers 2 to 2l/, cents per pound: plums 50c. to $1 per Jer basket '

In 1920 pnces of the smaller fruits were fairly well maintained cherries
raspberries, strawberries and grapes sold well, but a heavy slump t;okXe
in plums, pears and m apples during the late fall ^

Grapes for once came into their own. Not only were they a heavy eroD

1 eff rV"''"^''.^* P"''' """'^ ^* ^'"^ *- $120' Ver ton,'which hTs had
the effect of giving the grape growers renewed confidence in their vinevards
Plums fell do™ hadly, due partly to the ver,' heavy cn,p, and also to the lack
of cars for proper distribution over the countrv.
Keiffer pears were hard to sell at any price

90c tXVrTf f, "'" ''P'r"" *°^^ "^ ^'^^ °°lo^' P"'^'^^ >-anging from

mi &n tv;ric::";ag':d^^ tZ'ztiI'tz' ^ ^'^^^'^-"
w 'h:^ s^reSf i;'"p;r*tnr o:i^t:r*^ ^"' -^'-'f^} -^ -^

and boxes and hampers at 35 to 40 cents " ^ "^-

62 THE EEPOET OF THE No. 44

On the night of November 12th there were 7 degrees of frost. Hundreds
of bu'shels of apples were still on the trees, and even some of those in barrel's
in the orchards were injured by the continuous low temperature during that
month.

While we are speaking of apples it may not be amiss to recall to our minds,
that over 50' years ago, there were apples handled and shipped from this province.

The Late George E. Fisher.

The following is an extract from a letter kindly furnished to us by
Mr. Hodgetts:

George B. Fisher was born in Nelson Towii'ship, Hal ton, in 1850, on the
farm which he owned and operated until Mq death in July 1919. He was a
man of wide sympathies and interests, a forceful speaker and writer, and had
the rare faculty of saying a good deal in a few well^chosen words.

He took an active part in the various activities of his community — the
Grange, the school, and especially the advanoement of the fruit industry.

In 1887 he helped to organize the Burlington Fruit Growers' Association,
and was the first president. Twenty-five years ago he was a useful member of
the Ontario Fruit Growers' Association, and served on several committees.

For several years Mt. Fisher was the president and manager of the Burling-
ton Canning Company. He was a member of the Halton County Council for
two years, a director of the Halton Mutual Fire Insurance Company for several
years, and also of the Hamilton Fire Insurance for a time.

Mr. Fisher, 25 years ago, was one of the largest fruit growers in the
Burlington district. About 1885 the apple growers, under his management,
began to ship apples to England] and Scotland in carload lots.

When the San Jose scale invaded the southern poirtion of the province
some years ago, Mr. Fisher was commissdoned by the Hon. John Dry den.
Minister of Agriculture, to investigate, experiment and report on the most
efficient remedy. He went into the work very earneistly, iboiling lime and
sulphur in varying quantities and proportions, and making tests from time to
time on scale-infested trees until he reached a remedy which was effective, and
which is still in general use, in its main features.

In the passing of Geo. E. Fisher, the district lost an able and a good man.

The Late William Armstrong.

William Armstrong was born in 1847 in Chambly near Montreal, and was
of Scotch descent. He was educated in a private school, and in his younger
manhood went into the dry goods business with the Morgan Brothers, Montreal.
Later he moved to St. Catharines, and continued in the same business for several
years.

In 1881 he began fruit farming at Queenston, in which as the years went
by he was enthusiastic and successful. From time to time he was awarded many
prizes for fruits at the local fairs, the Canadian National Exhibition, Pan Ameri-
can at Buffalo, and was the winner of the Wilder Miedal. His farm was also
awarded 1st prize in the Ontario Orchard Competition, 1911. He was always
much interested in the fruit associations, schools, Agricultural College, Experi-
mental Farm and in historical societies, was a Liberal, a Methodist and a temper-
ance worker.

1921 FRUIT GROWERS' ASSOCIATION. 63

During the past few years Mr. Arm'strong enjoyed leisure on his old
farm during the summer, and went to Florida in the winter, where he made
many friends, and became a member of the St. Augustine Touring Club.

Wliile there this winter his death occurred and the remains were brought
home and interred at Queenston on Feb. 6th 1921.

Thus lived and passed a man of. usefulness and of good influence.

5PCL sg 3^^, 6 c:i Ft^5 ,95(5

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