ica,

Fruit Growing and”
Farming Commission

(Pursuant to Joint Resolution No. { of the

1909 Session of the Legislature of Hawaii.)

HONOLULU:
HAWAHAN STAR PRINT
“ "1910

Cornell University

The original of this book is in
the Cornell University Library.

There are no known copyright restrictions in
the United States on the use of the text.

http://www.archive.org/details/cu31924013862093

REPORT

OF

Fruit Growing and Truck
Farming Commission

(Pursuant to Joint Resolution No. | of the

1909 Session of the Legislature of Hawaii.)

-

Report .of Fruit Growing and Truck
Farming Commission.

Pursuant to Joint Resolution No. 1 of the 1909 session of the
Legislature of Hawaii, which provided for the appointment of a
commission to investigate the possibilities and suggest means of
improving fruit growing and truck farming in Hawaii, a study
has been made of this subject and the present report is made to
include the recommendations which seem wise along the line in
question,

AGRICULTURAL POSSIBILITIES IN HAWAII.

While much difference in opinion prevails regarding the eco-
nomic status of many lines of agriculture in Hawaii, there is and
can be but little doubt as to the almost unlimited possibilities both
in the variety of agricultural products and the season of maturing
them in this Territory. Climatic conditions, on the whole, are
exceedingly favorable. The range of temperature is very slight,
not only from day to night, but from season to season; and the
temperature which almost universally prevails is favorable for
the growth of tropical crops, as well as for those of temperate
climates. The immense variation in the rainfall in different parts
of the Islands provides all the different degrees of moisture which
are required for the favorable development of various crops. We
have, for example, localities in which the rainfall is so very slight
that sisal is about the only possible crop which promises success-
ful cultivation. From this extreme of dryness, there are all pos-
sible variations in the amount of moisture up to a rainfall of three
or four hundred inches per year. The intensity of the heat na-
turally varies considerably from sea-level to high altitudes on the
mountains, where frosts occur in winter, and occasionally, even
snow. While all of these facts are sufficiently familiar to the in-
habitants of the Territory, their bearing on the possible extension
and diversification of agriculture have not always been clearly
realized. We have in Hawaii suitable climatic and soil conditions
not only for sugar cane, rubber, bananas and other plants which
require a high rainfall, but also for pineapples, mangoes, papaias,
avocados, coffee, tobacco, corn, cotton, potatoes and other crops

4

which thrive best in a moderate rainfall; and also dry regions
where drouth-resistant crops thrive best.

DIFFICULTIES EXPERIENCED BY THE SMALL
FARMER.

Perhaps the most important and most universal difficulty ex-
perienced in raising crops in the Territory is that due to insect
pests. These pests constitute a serious trouble or menace to al-
most all of the crops which are grown commercially, and in near-
ly all agricultural locations in the Territory. Insects everywhere
constitute a source of expense to the farmer, but in tropical re-
gions they are perhaps more serious than in the ordinary temper-
ate climate. It is not every year that diversified agriculture suf-
fers to such an extent as to positively discourage the farmer, but
outbreaks of serious pests are likely to occur at any time, and.
frequently happen in such a succession of attacks by different
pests that the crop is practically ruined. Notwithstanding the
evident seriousness of injurious insect pests, there are effective
means for preventing the destruction of the crop by these pests if
the known methods are applied promptly and ordinary common
sense is used in protecting crops. Parasitic insects have proved
exceedingly efficient, and an investigation is being carried on con-
stantly to discover other effective parasites for the control of in-
sect pests which thus far have been without their natural check.

Fungus diseases offer no more serious drawback to diversified
agriculture in Hawaii than in the average agricultural region. At
times a given crop may be almost totally destroyed over a small
area by a fungus disease, as notably in the case of potatoes and
pineapples; but such attacks are no more frequent nor more se-
rious than is the case with fruit and vegetables on the mainland
and in other countries.

The chief difficulty, which concerns the production of agricul-
tural crops, is found in the nature of the soils. Our soils natural-
ly contain an abundant amount of plant food for the production
of good crops. The physical condition of the soil, however, is
such that special methods of cultivation are necessary in order to
make the plant food available. A large percentage of the soils
of the Territory become compacted so tightly as to exclude both
water and air from the stratum lying beneath the depth to which
ordinary cultivation is carried on. Some of the most serious
troubles which have been had in the cultivation of pineapples, and
in retaining moisture in the soil for other crops, are obviously due
to this tendency of the soil to become so closely compacted as to
exclude the air. Under the circumstances, superficial cultivation

5

does less good than would otherwise be the case, since the deeper
portions of the soil are not affected by the superficial cultivation
and become gradually more and more compacted as a result of
natural settling and of the tramping of horses and mules in cul-
tivating the upper layer.

_After the farmer has learned how to prevent the destruction of
his crops by insects and fungus diseases, and after he has learned
methods of handling the soil so as to prevent it from gradually
acquiring very poor physical properties, there still remains the
serious difficulty of marketing. To this side of diversified farm-
ing in Hawaii we wish to give particular attention in the remaind-
er of this report.

LOCAL MARKETS AND IMPORTATIONS.

It is generally recognized as impossible for any country
to become developed to the fullest extent in an industrial way,
or to furnish satisfactory conditions for life and proper citizen-
ship until a good variety of crops has been placed upon a busi-
ness basis. In no other way can a varied population find satis-
factory means of livelihood for all concerned and the conditions
for happiness and contentment, which are naturally demanded
by human beings. Such a status of affairs is still to be realized
in Hawaii. One of the most conspicuous features of our Islands
is the great extent of apparently waste and unimproved lands.
The scarcity of rural population is at present responsible in part
for the great extent of real agricultural land which is either not
utilized at all, or merely used a portion of the time for grazing
purposes. In considering the agricultural possibilities in Hawaii
we should bear in mind, therefore, not only the climatic and other
conditions which are favorable to the growth of almost all kinds
of crops, but also the fact that there is an abundance of land suit-
able for various agricultural purposes and at present totally un-
utilized.

It is scarcely necessary to state that there is little use in en-
couraging the production of crops for which there is no demand ;
and, therefore, no market. If any one should engage in the pro-
duction of such crops and meet with the inevitable failure which
will await him he would not only become a mal-content himself,
but would offer discouragement to others who might have a bet-
ter scheme for obtaining a livelihood from the cultivation of the
soil. It should, however, serve as a great encouragement to
those who are interested in the proper development of the Terri-
tory, to know that there is a regular and urgent demand on the
part of our consuming population for a large variety of farm

6

produce and that the commission men, wholesale dealers, retail
dealers and buying public will take, by preference, Island pro-
duce. The statements to this effect, which we have obtained
from nearly all of our leading dealers, were not based on a patric-
tic sentiment which might sooner or later lose some of ‘ts ardor,
but on the more matter of fact foundation of demand by the
trade for products which we can raise in the Territory. _

After having heard for some time the complaints which are
made by the producer of diversified crops, it seemed wise to in-
vestigate the matter, first from the standpoint of the dealer. It
was hoped than in this way satisfactory information could be ob-
tained as to what sort of agricultural produce is demanded by the
trade, and therefore, desired by the dealer; also the regularity
with which it can‘be obtained, the uniformity in quality of the
product offered for sale, and particularly, the attitude of dealers
toward Island produce, as compared with that imported from
California and other parts of the mainland.

It is of no particular importance to the purposes of this report
to determine exactly the value of produce now imported from
the mainland and which could be grown in Hawaii. The value
of such produce varies from year to year, but runs into the hun-
dreds of thousands of dollars. While the idea of a complete in-
dependence, as regards food supply, is attractive from a theor-
etical standpoint, it should always be remembered that no coun-
try can long carry on a satisfactory trade with other countries
without being both a seller and a buyer. In developing a satis-
factory market it is necessary to have something which is in de-
mand and is satisfactory to the trade, and also to have certain de-
mands for other produce or materials to be bought from the
other party in the trade relation. While, therefore, there may be
the possibility of growing almost any agricultural crop in Ha-
waii, it is scarcely conceivable that everything can be produced
here more economically and more advantageously than anywhere
else. The rational system of procedure for our farmers, there- .
fore, is to determine those things which can be advantageously
grown here, in consideration of our present markets, and to de-
vote their attention to them rather than to the problematical
business of producing materials which can, at present, be laid

down in Honolulu more cheaply than they can be produced upon
our agricultural land.

It would not be possible to state accurately the relative advan-
tage in the production of the various crops which are now grown
in small quantities and sold on our local markets. Some of these
materials are at present supplied to nearly the extent demanded
by the trade; others are decidedly deficient. Some are furnished

7

with a quality which leaves little to be desired; others are quite
below a proper market standard. Some are shipped in a satis-
factory sort of package and attractively packed, while others are
sent to market in a careless and unattractive condition.

The sweet potatoes which are sent to the local market are sad-
ly lacking in uniformity of shape, color and flavor. Sweet pota-
toes are not imported from the mainland and the local market is,
therefore, exclusively in the hands of local producers. They
have been repeatedly assured that ten times as many sweet pota-
toes as at present could be handled in Honolulu if they were
supplied regularly and in uniform condition. Some of the pro-
ducers have been repeatedly informed of this fact, but they have
not given sufficient attention to the matter and have, therefore,
not met the demands of the trade. It is impossible to force a
product upon the public in a condition in which they do not want
it.

Tons of dried beans of different varieties are annually im-
ported, and all of these could be raised profitably in Hawaii. The
mangoes, avocados and papaias, which are offered on the local
market, are also sadly lacking in uniformity, some of them being
delicious in flavor, and others barely fit to eat. The local demand

. for jellies, jams, chutneys, pickles, taro flour and starch is fairly,
well met at present by local production. A little more business
energy put into this line of industry, however, would make it
possible to secure a profitable outlet for such materials on the
mainland. This would, in turn, make possible certain improve-
ments in manufacture and in the ultimate quality and appearance
of the product. As a matter of fact, the demand for all the ma-
terials just mentioned is increasing slowly. Rhubarb and celery
are now furnished the year round to certain local dealers, and
the rhubarb, at least, is received in Honolulu in a much better
condition than that which comes from the mainland, and is satis-
factory in every way. The celery produced in the Islands usually
wilts a little too soon, but is tender and of very good flavor. It is
doubtful whether the producers here would care to meet the
price of imported celery during the winter season.

While all parts of the Islands are suitable for the production of
citrus fruits, we import large quantities of oranges, lemons and
grape fruit, of no better flavor than those which can be easily pro-
duced here. It is unlikely that for some time the local market
for limes and grapefruit could be over-supplied from local pro-
duction, even if a number of fruit growers went into this business.
Both our limes and grapefruit are superior in flavor to those
which can be secured by importation. Moreover, some of our

8

seedling oranges are of exceptionally good quality and seedling
oranges of fine flavor can be produced here.

While complaints are sometimes made about the market for
locally grown corn, the actual requirements of the market are not
met by our local producers. Tons of corn are imported from
the mainland and from Manchuria to supply the trade. A part
of the trouble experienced by local corn growers is due to their
inattention to the requirements of the market, and to a lack of
business methods in handling and shipping their products. Our
corn growers can meet the prices of corn imported from Seattle
and Manchuria and still make a reasonable profit at the business.

vs already indicated, the demand for beans is not satisfied by
local production, and if a great increase in the production of
beans should occur there is a ready outlet for any surplus of dry
beans on the mainland. The possibility of exportation of beans
to the mainland is practically unlimited. At certain months of
the year, particularly from December to June, a much larger
quantity of onions, than is now raised, would be welcomed on
the local market at about 3 cents a pound. Moreover, garlic,
which could also be readily grown in Hawaii, is imported at the
rate of two tons per month and sells for about five cents per
pound.

Eggs, fowls and turkeys are not produced in quantities suffi-
cient to supply the local market, notwithstanding the fact that
they bring high prices the year round and therefore offer excep-
tional inducements to poultry raisers. At present, turkeys bring
about the same price as a sheep and can, of course, be produced
more cheaply than the latter. The market for some of these pro-
ducts takes whatever is offered and asks for no more. The
supply, however, could be greatly increased with no fear of over-
stocking the market. It is impossible to secure enough locally
produced eggs to supply local demands, and the quantity needed,
in addition to the local supply, is imported in the form of less
satisfactory case eggs.

It seems unnecessary to specify further in this report particular
instances of products which can be grown at a profit in Hawaii,
but which are not now grown in a sufficient quantity to supply
even the local market, without considering the possibility of ex-
portation. The point which should perhaps next be discussed is
that of the comparative standing on the market of local and im-
ported produce.

iar]

LOCAL DEALERS.

Before any systematic efforts can be put forth to increase the
production of truck crops and fruits it is necessary for the pro-
ducer to know something about how his produce will be received
on the market. In order to get some first-hand information on
this point, interviews were held with the leading grocers and com-
mission merchants of Honolulu. It was found that a very grati-
fying uniformity of opinion is held by all of these men. They
prefer to handle Island produce, rather than imported produce, if
the former can be obtained in satisfactory condition and with
regularity. No prejudice was found to prevail anywhere against
Island produce; on the contrary, the trade takes kindly to it and
asks for it by preference. It is easy to understand why this con-
dition should be true. There is a natural sentiment among deal-
ers and consumers in favor of using home-grown products. This
sentiment alone, however, would not carry us very far if the
quality of home-grown produce were not satisfactory. It is pos-
sible to obtain fruits and vegetables in better condition from island
sources than from the mainland. While the methods of cold-
storage have been so perfected as to enable most perishable ma-
terials to be carried for long periods in good condition, neverthe-
less, materials carried in cold storage deteriorate rapidly upon be-
ing exposed for sale. The delicacy of flavor, which characterizes
perfectly fresh fruits and vegetables, is soon lost and the ma-
terials soon begin to wilt and lose in appearance, as well as flavor.
The one serious trouble for the dealer in Honolulu in handling
Island produce is the irregularity with which it arrives in the
city, and therefore, the uncertainty of obtaining a constant supply
which will meet the needs of the trade. For this reason, dealers
are forced to import fruits and vegetables in order to protect their
own business. There is no other way of overcoming the con-
stant differences, which tend to appear between the supply and
demand, except by having the supply for the city of Honolulu
come to one point where it can be held and from where it can
be distributed to dealers.

MAINLAND MARKETS.

Thus far we have spoken only of local markets ; and evidence
has been presented to show that even the demands of our local
markets are not met by the present local production of fruits and
vegetables. If, however, a method should be adopted for hand-

10

ling and distributing these products locally, so that reasonable
profits are obtained by the producer and increased production is
encouraged, the producer will naturally not wish to be limited
entirely to the local market, but will seek encouragement for
greater production in the broader outlook which will be furnished
by mainland markets. There are many of our fruits and vege-
tables which could be marketed with satisfactory profits on the
mainland if the difficulties attending the transportation of these
products could be overcome. There is no fundamental reason,
for example, why Hawaii should not occupy the banana market
of the western coast of the United States. We are most favor-
ably located for supplying this market, and there is an abundance
of land on which the soil and climatic conditions are favorable for
the growth of bananas. Nevertheless, difficulties have been ex-
perienced in marketing this fruit at a profit in San Francisco and
other western cities of the United States. Actual losses have
been experienced in numerous instances in attempting to ship this
fruit, these losses being due, in most cases, to the antagonism of
other fruit interests and a lack of intelligent effort in pushing the
claims of Hawaiian fruit. With pineapples there is another cause
of failure which at present is too serious to allow any recommen-
dation for shipping this fruit to the mainland. It is hoped, how-
ever, that the difficulty may be overcome. The one serious trou-
ble in shipping pineapples to the Coast is the prevalence of pine-
apple rot. The losses from this disease were so extensive during
the past year that all who engaged in the shipment of fresh fruit
have been discouraged from continuing that part of the pineapple
industry. It is admitted on all hands, however, that if a really
practical method of controlling the disease can be devised the ship-
ment of fresh pineapples will be resumed with reasonable assur-
ance of good profits. It has already been mentioned that a large
demand for beans exists in various western cities, and could be
profitably supplied from Hawaii. Moreover, as soon as large
quantities of uniformly good mangoes and avocados are produced,
they can be marketed with profit on the mainland. At present
the supply of the best fruits of these kinds is taken up by local
demand. With the establishment of suitable cold-storage facil-
ities in the boats plying between Honolulu and San Francisco, pa-
paias could be sucessfully marketed in the latter city, and the de-
mand for this fruit would grow rapidly as people became ac-
quainted with its good qualities. | Moreover, onions and sweet
potatoes can be produced here during the off season on the main-
land and marketed so as to supply the demand for these vegetables
. during the vacant interval in the mainland supply.

11

INDEPENDENCE AMONG FARMERS.

Too much has been said by way of encouraging a false idea of
independence among farmers. The farmer is, in the proper
sense, the most independent of all professions, but until recently
he has been too independent in the sense that he has refused to re-
cognize the imperious necessity of combining for his own good.
Perhaps the most conspicuous feature of all modern business is
the combination of related interests and of numerous individuals,
in order to cheapen the cost of production, sale and transporta-
tion of products; and in order to make it possible to secure a large
market outlook for the produce of each concern. In this move-
ment the farmer has lagged behind all other professions, but with-
in the past few years the establishment of co-operative associa-
tions among farmers has brought such conspicuous success that
organization along this line is progressing rapidly. At first co-
operative movements among farmers were poorly organized and
their methods were ill-advised. | Such associations, therefore, had
short and precarious lives and left discouragement in their wake.
At present, however, these associations for co-operative purposes
are being established on a business basis with a better understand-
ing of the purpose of the organization and with more certainty of
rational management and success. There are now in existence on
the mainland about 80,000 co-operative associations among farm-
ers, including a membership of more than three million farmers.
Nearly every line of agriculture has been organized on a co-opera-
tive basis and wherever these co-operative organizations have been
established the best financial success has been accomplished by
the farmers concerned.

ADVANTAGES OF THE CO-OPERATIVE MOVEMENT.

The chief advantage of co-operative associations, from a busi-
ness standpoint, is that it enables the farmer to meet the present
demands of the trade in agricultural produce in the way in which
all other lines of industry are carried on. Traffic in fruit and
vegetables, as well as in other agricultural products, is not carried
on at present in terms of quarts, dozens, bushels, or even wagon
loads ; but in crates, tons, car-loads and cargoes. It is obviously
impossible for one farmer, unless he has control of a large area,
to furnish any kind of farm produce in quantities which would
appeal in a business way to dealers or to transportation companies.
If the farmer has but a few crates or bushels of produce or a
few dozen eggs to sell, he cannot secure favorable rates in trans

12

portation, nor take any dignified business standing with the deal-
er to whom he sells his produce. There are but two ways in
which business can be conducted on a scale commensurate with
the demands of modern trade, namely, by corporations and by
co-operative associations of individuals.

The lines of agricultural work in which co-operation has been
successfully established among farmers include almost every pos-
sible kind of agriculture, and almost every operation more or
less connected with the farm. We may mention, by way of illus-
tration, co-operative creameries, cheese factories, syrup mills,
potato growers, fruit growers, hay growers, cotton planters, grain
elevators, egg producers, poultry producers, bacon factories and
similar associations among all other lines of agriculture.

The various attempts which have thus far been made in put-
ting co-operative associations among the farmers on a successful
business basis, have not always been attended with success. In
fact, failure has come as frequently as success from these ven-
tures. The essential conditions of success are: first, a mutual
confidence among the individuals who enter into the co-operative
association ; second, the selection of men with really clever busi-
ness ideas for the management of the association; and third, the
serious study of the demands of the market in order to be in a
position to meet these demands in the quality of the materials pro-
duced and in the method of packing. Perhaps the one factor
which has caused more failures than any other in co-operative as-
sociations among farmers, is the lack of confidence among them-
selves. Farmers have been notoriously suspicious of one another
and have been unwilling to trust the management of their co-
operative associations to the members which they have themselves
selected. As long as such mutual suspicions and lack of con-
fidence prevail, the life of any co-operative organization is doomed
within a short period. In Hawaii there are peculiar difficulties of
this sort, due to the great variety of races with which we have
to deal. To the mutual suspicions which are felt between mem-
bers of the same race, we have the added suspicion and antagon-
ism which is so often shown by one race toward another. For
the present, at least, it must remain quite doubtful whether co-
operative organizations can be successfully established and main-
tained in which several races are involved. It may become neces-
sary, at least temporarily, to attempt the formation of some sort
of organization almost exclusively along the lines of race, and
the nature of the crop produced. This would not furnish as
many difficulties as might at first thought be supposed, for rice
production is largely in the hands of the Chinese, corn and grapes
largely in the hands of Portuguese, and taro and sweet potatoes

13

in the hands of Chinese and Hawaiians. There seems to be no
good reason, however, why it should not be possible ultimately
to combine all races concerned in the production of truck crops
and fruit in a given locality.

One of the far reaching effects of co-operative associations
among farmers is to be sought in the educational influence of
such organizations. The farmer is often too prone to neglect
study along the line of his own business. Without encourage-
ment and stimulus of associates, lines of reading and study once
taken up may be abandoned and old methods are persisted in
without an attempt at improvement. Our federal and state gov-
ernments have for years provided more liberally for agricultural
investigation than any other country. The results of these inves-
tigations are published and distributed gratis throughout all the
states and territories. The bulletins, circulars and reports of the
United States Department of Agriculture and Experiment Sta-
tions constitute together an enormous mass of literature relating
to all lines of agriculture. Some of the more technical publica-
tions are not for general distribution, but the most of this mass
of literature is to be had for the asking, and those bulletins and
reports which relate to the lines of work of each particular
farmer should be in his home library. Too often, however, it
happens that individual interest is manifested in agricultural in-
vestigation merely long enough to write for bulletins and reports
on subjects in which the farmer in question is interested, but the
interest may end here and the bulletins and reports may not be
read. With the establishment of co-operative associations an
added impetus is given to the study of such literature. At the
regular meetings which such associations may have for business
and educational purposes, discussions are held on important pub-
lications relating to the business in hand, and these publications
bear fruit in their application to actual farm conditions. The
farmer himself is the final judge as to the applicability of agricul-
tural research to his own conditions, but unless the available liter-
ature is studied, with this idea in mind, the suggestions in such
literature are made in vain and lie concealed in the home library.
The United States Department of Agriculture, State Experiment
Stations and State Departments of Agriculture have long shown
a willingness to make special efforts toward providing sets as
complete as possible of their publications for the use of any asso-
ciations of farmers which have educational objects in view.

Another immediate effect of associations among farmers is
concerned with the improvement of the status of social conditions
on the farm. Persons who were born on farms and have grown
up under the conditions furnished by farm life, have naturally be-

14

come accustomed to the somewhat restricted social advantages
and are not much disposed to complain. The influx of city po-
pulation into farming districts has, however, added a disturbing
factor in that complaints are at once made regarding the absence
or limited extent of social possibilities under farming conditions.
In cities and villages there are so many occasions presented, with-
out effort on the part of the populace for gathering together and
enjoying the educational and social advantages thus presented. In
farming communities the occasions for such social intercourse
must be provided by the persons concerned. To this end co-ope-
rative associations are admirably adapted, for the reason that they
furnish several inducements for a closer and more fraternal asso-
ciation of the citizens of each neighborhood or district. If there
are good business, social and educational reasons for meeting to-
gether at stated intervals 1o discuss those matters which most
vitally concern the neighborhood in question, interest is not
likely to wane in the fraternal association.

One of the most conspicuously weak points in the attitude of the
farmer toward his own profession is his lack of business methods.
The farmer has always been a producer content to let the other
men distribute his products to the consumer. Even when the
farmer has been induced to study thoroughly the science of pro-
duction he has still too often neglected the business side of the
question. With the establishment of our elaborate system of
agricultural research, the farmer has learned much to enable him
to increase the yield of his crops and to control insects, diseases
and unfavorable soil conditions which tended to reduce produc-
tion. In the meantime, however, others have reaped the benefits
of his skill and industry. Some of the largest fortunes of the
world have been made in the speculative and legitimate distribu-
tion of the products of the farm. At last it is beginning to be re-
cognized that the farmer can, to some extent at least, control the
distribution of his own products and prevent speculation in them.
The ordinary farmer cannot ship his produce in car lots or cargo
lots. He, therefore, cannot get favorable transportation rates and
cannot become a factor in controlling the market. He offers his
produce in small quantities, and often in an unattractive form.
The result is that he must beg for buyers, spend valuable time in
making sales, and finally sell at a sacrifice.

In this age of unusually high prices it may seem ill-advised to
ask why the farmer should ever fail to get a remunerative price
for the things which he has to seil, for all farm products are ab-
solute necessities and the usual reason for the prevalence of un-
profitable prices is that the farmer does not control the distribu-
tion of his products. Food products hauled to town in a farm

15

wagon and stationed in some out-of-the-way place about the mar-
ket do not bring good prices because the majority of farmers do
not know how to market their produce in an attractive manner.
The result is that the buyer prefers to go to the regular dealer
and pay his added profit.

The nttmber of links in the chain of distribution of farm pro-
ducts has been increased beyond all reason, with the result that
the consumer pays too much for the farm produce, and the farmer
receives too little. The only obvious way of improving these con-
ditions consists in eliminating the excessive middle profits and
bringing the farmer and the consumer nearer together. The
immediate results of such a movement are that the producer gets
more for his share of the work, the consumer pays less and the
quality of the product is improved. As an illustration of how
these results have been brought about, we will mention a co-opera-
tive woolen mill, which has been in operation for many years in
New Mexico. _ This co-operative association includes among its
members both the consumers and the producers of wool. About
two million pounds of wool are annually manufactured into cloth-
ing, blankets and other woolen products at the mill. Woolen
suits, guaranteed to be absolutely pure wool, are made to order
by the best tailors which can be found, for $15.00 a suit. A suit
of corresponding quality in an independent tailor shop costs from
$30.00 to $35.00. Nothwithstanding the fact that the price is
thus cut in half by the co-operative concern, the profits from the
manufacture of clothing at this greatly reduced price amount to
thirty-three percent annually. The cost of the production of
clothing in this case has been reduced by the elimination of mid-
dle-men’s profits. In the co-operative woolen mill in question the
wool is received from a wool growing member of the co-operative
association, and is directly manufactured into clothing, without
passing through any other institution. The cloth used in the ma-
nufacture of clothing in the shop of the independent tailor of the
same town, however, goes through a large number of hands and
makes a long journey back and forth across the country. In the
first place, a buyer comes from an eastern wool broker, usuallv
located in Boston, to the far West and bids on the wool produced
by the sheep raisers. The expenses of this buyer, even to the
cigars which he furnishes the sheep raisers, are ultimately paid for
by the man who buys the suit of clothes from the independent
tailor. After the wool is purchased it is freighted across the
country to Boston or Chicago, where it passes through two or
three companies before it is finally turned over to the woolen mill.
From the woolen mill the cloth is distributed to wholesalers, from
them to distributors who ship it to dry goods merchants located

16

in the district where the wool was originally produced. The
woolen cloth must, therefore, be transported again over the same
two or three thousand miles of journey which the wool originally
took. From the dry goods merchants the tailor buys his cloth
to make suits of cloths. At every step in this complicated journey
of the wool, from the sheep’s back to the man’s back, a profit has
been added by each dealer through whom the material was passed,
and the consumer must ultimately pay the whole bill. The elimi-
nation of unecessary links in the chain of distribution has enabled
the co-operative woolen mill in question to reduce the price of
clothing by one-half and still make a large profit for the co-opera-
tive stock-holders.

It is desirable for farmers to get together, not alone for the
purpose of learning how their products are distributed and who
is getting the profits from this farm produce, but also to study
business methods of marketing. Farmers have been and still
are very negligent in this regard. Produce is sent to market in
carelessly made crates, and without thought of the appearance of
the product when it reaches the market. The price of farm pro-
duce, however, depends to a large extent upon its appearance
when viewed by the prospective consumer. If the packages are
untidy and the products not crated to secure uniformity a dis-
agreeable impression is produced and the consumer looks else-
where to make his purchase. With the establishment of co-opera-
tive associations men are found among the members of the asso-
ciation who have the proper training and ability to take the leader-
ship in directing the methods of packing, marketing and distribu-
tion of the products of the community, so as to get these products
upon the market in a satisfactory condition and to obtain reason-
able profits for the original producer. As has been demonstrated
time and time again, this can be accomplished without increasing
the price of the product to the ultimate consumer; in fact, the
final retail price may be lowered and the price paid to the pro-
ducer increased by a reduction of the unnecessary middle profits.

Co-operative associations are of the greatest business signifi-
cance to the farmer, not only in showing how to market his pro-
duce better, and therefore obtain more profit from his farm opera-
tions, but also in enabling him to buy farm machinery, fertilizers,
furniture and other material at a better advantage. In other
words, these associations naturally operate both in the line of sell-
ing and buying co-operatively. The business of the merchant
in the city is calculated to make him a profit for the simple reason
that he buys at wholesale and sells at retail prices. The farmer,
on the other hand, has always sold his produce to commission men
and wholesalers and, of course, at wholesale prices, while every-

17

thing which the farmer has bought has been obtained from retail-
ers and at retail prices. Co-operative associations among tarmers
have already shown, however, that the farmer by combining can
purchase those materials which he has to have upon the farm, at
wholesale prices, and by taking in his own hands the means of dis-
tributing his products can sell them at retail prices. In other
words, the profession of farming is thereby put upon a rational
business basis with the assurance of reasonable profits. The only
explanation of how the farmer has been able for these many years
to sell at wholesale and buy at retail prices is to be sought in the
natural fertility of the soil, which, for a limited time, at least, has
produced crops without asking any return. As soon, however,
as it was thoroughly appreciated that to impoverish the soil was a
suicidal farm policy, and that money and time must be expended
in maintaining fertility, business methods had to be adopted in or-
der to avoid inevitable bankruptcy. The principles of business
methods are essentially the same whatever the business concerned.
It is obviously necessary to understand as thoroughly as possible
the market which one seeks to reach, the requirements which must
be met upon this market, and every method of reducing expense
from one end of the chain of operations to the other.

PROPOSED PLAN FOR ENCOURAGING FRUIT GROW-
ERS AND TRUCK FARMERS.

We have already attempted to present the attitude of business
men on the question of how to encourage diversified agriculture
in a substantial way, and how to put it upon a profitable basis.
It has been shown that dealers have demand for more agricultural
products than are now produced in the Islands, and would prefer
to handle Island products if they were presented in the way the
dealers wish to have them, and in quantities to satisfy the de-
mands of the trade. The problem is, therefore, now passed along
to the producer to do his part toward the improvement of his
own business. Are we to suppose that the producers will go on in
the old way, taking such returns as can be secured for the pro-
duce which they ship at irregular intervals and in carelessly pre-
pared packages ; will they continue to maintain that there is neith-
er prospect nor encouragement for growing miscellaneous crops ;
will it still be contended that co-operation- or mutual association
of whatever nature, is impossible on account of the sparseness of
our population and the mixed nature of the races with which we
have to deal? If this be the case, there is indeed little hope to
hold out to the small producer. There is little prospect of pre-

18

venting a man from committing suicide if he is determined to do
so. No one can assume that the Government owes him a living,
nor can he reasonably expect some one else to work out his finan-
cial salvation. The producers must take a hand in their own
affairs, and must manage their business in a satisfactory manner
if success is to be expected. ;

Examples have been given of satisfactory co-operative enter-
prises which are now in operation among farming communities.
As a result of this method of managing the marketing end of
farming a financial success, hitherto unknown, has been brought
about. The results already mentioned along this line have all
been accomplished by co-operative effort of private individuals
associating themselves together for mutual benefit and without
Government assistance of any sort. If it still be felt that under
our conditions it will be impossible, for some time at least, to
establish a co-operative marketing scheme for miscellaneous agri-
cultural products by the combined efforts of-individual growers
alone, even that objection on the part of growers should be aban-
doned, for it seems desirable to recommend that the Territorial
government give some assistance in establishing this movement.
The Territorial assistance, however, should be granted only tem-
porarily with the idea that.it will be withdrawn as soon as the
enterprise can stand on its own feet.

If a portion of a wharf, convenient for the Inter-Island steam-
ers, were set aside for the reception of such miscellaneous pro-
ducts as can be used in Honolulu or be shipped to the mainland;
and if this government warehouse, as it might be called, were put
under the supervision of a practical man on a Territorial salary,
it is believed that such an experiment would receive the support
of our small producers. If so, the business problem, which now
faces them, can probably be solved and the increased profits from
such an arrangement would ultimately make it possible for the
enterprise to be taken over by the producers themselves, without
further Government assistance; or by a private individual or com-
pany who would operate the warehouse for the convenience and
benefit of producers and dealers. In order that such a plan
might have even the hope of success, it is necessary for the small
producers to enter into the experiment with willingness; if not,
the plan will inevitably fail for the reason that unless a good quan-
tity of produce is thus brought together in one warehouse, the
material will not pay for the maintenance of the necessary ma-
chinery of distribution and there will not be enough material to
supply the needs of dealers who would come to the wharf to make
purchases.

19

It has already been shown that the demand in Honolulu con-
siderably exceeds the supply in eggs, fowls, turkeys, sweet pota-
toes, corn, beans, onions and various other crops which can read-
ily be purchased here at a profit. At present the materials of
this sort which are furnished to the Honolulu markets come at
irregular intervals, in irregular quantities, and, for the most part,
in an unsatisfactory condition. If all of this produce were deliv-
ered to one point it would be far easier to formulate information
as to the deficiency of the supply in different products, as to the
times when it is needed and the methods of packing which will
best preserve the produce and give it the best appearance when it
reaches the market. The dealers and commission men of Hono-
lulu have signified their preference for buying produce of a mis-
cellaneous nature at one point where a uniform price can be es-
tablished, and where, therefore, all dealers would be on an equal
footing. If a wharf, maintained temporarily at least under a
Territorial official, were established to receive all of this produce
it would be a simple matter to notify the trade promptly of the
quantity and condition of produce on hand and thus secure its
prompt dstribution. If all dealers are put upon the “same basis
in buying this produce, the dealers will be willing to give more
for it than at present for the very reason that they will thereby
feel assured that all dealers are treated alike; and that there is
no likelihood of one dealer receiving a consignment of material
at a much lower price than other dealers have succeeded in ob-
taining.

The necessity of better methods of marketing and distributing
miscellaneous farm products has long been recognized by the
agricultural experts of various countries. The requirements in
different localities have been met in different ways. Wherever
sufficient interest in agricultural co-operation has been establish-
ed the marketing of crops and the business end of farming have
been placed on a satisfactory basis. Results have by no means
always been accomplished without difficulty; in fact, at times
only after repeated efforts has anything like a successful organ-
ization been brought about. Particularly in the Australian Col-
onies, the Government has lent a hand in the better marketing
and distribution of crops. Market places have been established
by the Australian Government, and more or less responsibility
assumed in the sale and distribution of the products. These ex-
periments in marketing under government supervision in Austra-
lia have yielded results far better than were expected by the ad-
vocates of co-operative marketing.

At the last session of the legislature our territorial lawmakers
manifested an active interest in offering substantial encourage-

20

ment to the establishment of better marketing facilities for the
small farmer. The means were provided for making such an ex-
periment in accordance with plans to be provided by the present
commission, appointed for that purpose. The territorial govern-
men, therefore, stands ready to give its assistance to the project
in hand and, as already shown in this report, the dealers in Hono-
lulu desire to see such a method of marketing established. They
consider that under such a system the problem of obtaining mis-
cellaneous farm products would be considerably simplified, in so
far as their interests are affected. In order, however, that a
Government wharf sor the reception and distribution of miscel-
laneous farm products under territorial supervision should be set
aside and maintained with success, it is necessary to have the
co-operation of the producer. An attempt is now being made
to make known to our farmers the essential features of the pro-
posed scheme of marketing and distribution, and to enlist their
active interest in the improvement of their own conditions.

Respectfully submitted,
° E. V. WILCOX,
Chairman, Fruit Growing and Truck Farming Commission.
THEO. F. LANSING,
Member of Fruit Growing and Truck Farming Commission.