Pullman herald. [volume] (Pullman, W.T. [Wash.]) 1888-1989, 1913-05-02


kkgNaySzE Producer and the Railroad
ksNss@Sg in Marketing Farm Pro-
ducts, and | assume that it is expect-
ed that | will discuss it with special
reference to the fruit-growing inter
ests of the Northwest. If you stop to
consider the full scope of the word
marketing" as applied to marketing
of fruit, you will reach the conclusion
that it practically embraces the entire
business of fruit growing and not alone
the marketing of the fruit after it is
grown, for the quality of the fruit pro-
duced has an important bearing on the
ability to market it at remunerative
prices. Therefore, my subject is very
big one-too big, in fact, to be treated
in much detail on such an occasion as
this, even had | the experience, knowl.
edge and ability to go into the detail
of all of the various features of the
business; nor is it necessary that |
should do so, as | am addressing an
audience of intelligent men on a sub
ject with which I frankly admit most
of them are more familiar than myself.
[ will confine myself, therefore. to
placing before you the principal feat
ures of the marketing problem which
now confronts the industry, with such
suggestions in the direction of rem
edy as have occurred to me-
Governing Economic Law
1t will help us in our discussion if |
state at the outset the governing eco
nomic law, which is that the net COM
pensation of the producer is the price
paid by the consumer less, first, the
cost of distribution and, second the
cost of production With this as
foundation we will now discuss and
consider, in their order, the various
questions that affect the price, distri-
button cost and production cost.
The price paid by the consumer is
governed by the law of supply and de-
mand, but supply can be regulated to
some extent by the producer, who also
can, to some extent, stimulate demand.
Regulation of Supply
This year you have been confronted
with condition that was bound to
happen at some time, should have been
anticipated and is sure to repeat itself
AS long as conditions were such that
you could find ready market at re-
munerative prices for your limited pro-
duct there was no real necessity for
attempting to regulate supply, but it
has been obvious from the beginning
that with your rapidly increasing out
put and with the certainty that some
time you would be confronted with an
abnormally large crop in the east, you
would be forced to take measures that
would insure such a distribution OF
your product in the east as would tend
to regulate the supply to meet the de-
mand
1t must be evident that the suicidal
practice, far too common, of dumping
apples on a market and forcing their
sale, regardless of the demand, should
be stopped. That practice necessarily
and inevitably results in lowering
prices and unfortunately the consumer
seldom reaps the benefit, as the retail
Prices do not by any means rise ana
fall with the wholesale prices, and the
loss to the producer is mostly absorbed
IN an increased profit to the middle
men.
Necessity for Cooperation
1t, of course, goes without saying
that any attempt at regulating dlstri-
button for the purpose Of securing sta
bility of prices can only be accom-
plished by cooperation on the part OIL
the producers. No individual produe-
er, no one district association, and IN
Tact, no state association can carry out
with success a plan for regulating the
distribution. To be successful, there