The Hood River glacier. (Hood River, Or.) 1889-1933, 1912-03-07
ROGUE RIVER VIEW OF
MARKETING METHODS

II
have the finest selling machine in the
United States:
The toll that is extracted from the
farmer for marketing his products is
all out of proportion TO the price that
he receives and the consumer pays.
statistics prove that il
costs the farmer more than double to
his products, than it does the
or other town producer
to dispose of his wares. This is large
IN due TO the large number OF middle
men that intervene between the farmer
aud the consumer. Ii is not alone
caused by high freight rates, as alleged
by the commission dealers, for the
railroads give a lower rate on fruit
shipments than they do on manufac-
tured articles. The rate on apples
from Rogue River Valley to New York
is 81. 90 per hundred pounds. And fruit
goes by fast, first class freight No
factory in this Valley could get this
low rate to ship its products TO the
Atlantic Coast by fast freight.
In the sale of manufactured products
there are seldom more than two mid
dlemen between the producer and the
consumer, wholesaler and retailer.
Often the manufacturer eliminates the
wholesaler aud sells direct to the re-
taller and there are many manutactur-
ers now that sell direct to the cOnsum-
er. But the farmer through his lack
of organization and cooperation and
his inexperienee in the methods of
trade has been forced to depend on
middlemen to sell his products. TAX
ing advantage of this dependence of
the farmer, the middlemen have in
creased their numbers and their
charges until it frequently occurs that
farm produce will pay toll to dozen
dealers and it is seldom that less than
four of these profit sharers have a
hand in the deal that leaves no profit
al all for the luckless farmer.
In the endeavor TO eliminate some of
the middlemen, and thus lessen the
cost of marketing their products, far
mers in various parts of the country
have formed selling associations. In q
few instances these associations are 3
success and a benefit to the members,
but in most cases they have not les
sened the farmers burden at all. II
this new arrangement, the farmers at
too often have found that their profits,
previously taken by the middle men
absorbed by big salaries for managers
assistant managers, cashiers, secretar
les and host of other clerks and EN-
ployees, big telegraph tods, elaborate
office equipment and other lavish eX
penses.
This is to be the experience of thu
fruit growers of Rogue River Valley
who went into the Rogue River Frui
& Produce Association. This associa
tion, formed by the consolidation o
the local associations at Medford ant
Grants Pass, started out two years ag,
with large membership and fine pros
poets for success, but the greed of
few and the Indifference of the grea
majority of the members, has put thi
organization in a fair way to go to
finish, as has so many other co-opera
tive marketing organizations. 1t !
thus possible that this Association ma
not handle another crop, for many o
the owners of bearing orchards /
Rogue River Valley are to the know
lege of the editor of the Rogue Rive
Fruit Grower, planning to market the
crop of this year through some othe
channel.
One of the many expensive mistake
made by this Association was to EN-
ploy as manager for the first year, a
eX-commission man direct from Ch
cago. The opportunity was turne
1 g., hn nf
Hood River Fruit Growers Associi
tion, Il man who had made a success
handling association marketing, an
who had high standing for his ability
integrity, economy and close attentio
to all business matters. The Chicag
! man was a total stranger to Rogu
River Valley, and knew nothing {
local conditions, and admitted that
had no knowledge as to marketin
pears, the principal fruit crop of tn
. Valley. He was paid salary of S5OC
a year, though the Hood River ma
! could have been had for So, 900, wit
1 an additional generous allowance eaC
e month for automobile hire. The ASS
r citation fitted up a fine suite of Office
t for him in Medford, and installed rol
! topped desks and other elaborate fu
2 niture. A force of clerks sufficient
q run bank handling deposits of mi
!. lion dollars were employed and pa
: liberal salaries.
. All went well, and the fruit grove
were proud of their fine office and the
!, dignifed manager, whose broad e
# panse of white vest and pompo
;, manner impressed strangers that Il
e orchards of Rogue River Valley we
l. gold mines. AS a real estate adverti
|; ing scheme, the Association tor tn
~ year was a booming success. but VIII
d the members began to get statemen
{, showing the returns for their frui
d their pride turned to resentment al
1, they bowed out their manager, he
a the broad expanse of white vest.
!, Then new manager was elected,
u man who had lived few years in I
n n Valley. but had had no experience
ID handling an association or marketi
is fruit.
>, The assessment being rather hea
ii on the members, they cut the NJ
" managers salary to $1,000 and ma
% some reduction in the number
o. clerks, foremen, etc Then the n
st fruit growers again took up their
ne chard work with the tond hope Il
~ when they got returns for the y6
n that there would be something o
=, showing on the profit side. Again tn
he we're disappointed. Evidently to ma
is a display of activity and to impr,
r., strangers passing on Southern Pac
trains, the new manager had three
ir- warehouses erected along that railro
Nv though they we're not needed to han
ay the seasons crops, and but one Y
used and it but little. These usel
building expenses mean more asse
ments on the members.
And the fruit growers in this h
r. priced Association have found to tt
disappointment that as market
combination for getting better pri
nm il is no improvement over the old
TEN, nor less expensive than were
on, middlemen. Both seasons that
~ Association has handled fruit 1t mel
ast loaded the cars and consigned then
in a California commission firm. as