Imperial Valley press., 1917-03-28
MELON CROP FOR 1917
ANALYZED BY EXPERTS
CONTINUED FROM PAGE ONE)


est item to figure in the overhead.
kilograms cost an average Of 81 per
cars, taking several seasons expert
once. AS over IS per cent Of the
crop goes to the Eastern markets and
there are usually a bunch of cars
which have to be consigned-the adj
oltlonal brokerage or commission must
come out Of the distributors Is per
cent.
Then comes in the Overhead" here
-bookkeeper and stenographer and in
spectors at SIS a day, with the ex-
pense of keeping one or more auto
mobiles to save time in examining the
loadings. The distributor must also
have chief inspector always on the
ground-to see that not only are the
inspectors doing their work properly,
but that the cars. are going out with
dispatch, the fields are being watched
closely so that the melons are cut
just at the right time, so they will
carry. Such expenses can only be
figured accurately with large bust
ness and vary so widely with the diff
ferent seasons, labor conditions,
weather conditions and other causes
that no one so far in the deal has
ever been able to offer a complete
record covering several seasons.
But what about the 70 cents crate
advance? This is what the grower
gets-under any or all condtions-so
long as he delivers the goods. That is
the 70 cents is the basis of the load
ing shed, which means an additional
2R cents per crate for hauling and
loading. 1t also means an additional
21a cents crate for the bracing of
the cars-an item which the distrib
Utter must meet under the 1917 con-
tract. This makes the 70 cents ad-
vance full rs cents to start with
This is actually couple of cents un-
der the real figures.
But that is only the start. The
average distributor seldom figures that
when he accepts the cantaloupes at
the shed he not only assumes the
guarantee of 70 cents, but also the
loading and bracing, bringing the item
to rs cents, but at the same moment
he assumes the freight and icing. This
averages $1.05, taking the entire coun
try over for the entire crop, but
which is $1.25 coast to coast. The
lowest actual money cost is thus seen
t. be $1.8O, with the most of the cars
showing $1.90 and large percentage
st So. This is not counting the per-
oentage of loss from ponies which sell
for 25 to so cents a crate less, al
though the alvance is only cents less
and the freight only 16 per cent less
than standards.
There is no allowance shown in the
81 cost for the usual overhead OF
"cost of doing business" which every
manufacturing concern insists upor
when it takes on a side line of any
character. If any part of the move
ment has to go on commission to othe1
markets the distributor is then prac
tically out his entire commission, fol
after he pays per cent for selling
and his actual operating cost Of II
per cent, the Is per cent from the re
turns has been eaten up. One wei
known operator, who ought to know
says he must get 1925 crate average
simply to break even. Another say
he gets out at So, but admits he take
q chance at meeting certain additiona
expenses which may or may not come
Last season the advance was 60 cent
on board cars. This season it is z
cents at the shed. The distributor
made some money last year, and th'
growers the largest returns in years
The year when 70 cents was the ruiz
the distributors lost money, and plen
ty of it.
The cantaloupe game is withou
doubt the biggest all l-American gamble
known. just where the 81 crate
"fixed cost" is going to lead to i;
one of the problems which will bt
solved after the season is over. 1t is
anything but a 70-cent crate advance
With the labor situation as actue as
it is in the San Joaquin valley, those
who are responsible for the Imperial
Valley end of the deal may have THEN
hands full so that they will have to
forget all their former troubles.