Evening star., 1928-04-25
LONG RAIL HAULS
BEING ELIMINATED
Policy of Placing Branches
Near Consumers Followed
by Manufacturers.
BY ]. c. RoYLE.
.al Dispatch 10 The Star.

Special Dispatch TO The Star.
NEW YORK. April 25.--1t will ht
only q matter Of time until the larger
units in all American industries estab-
liSh manufacturing plants abroad. This
was tie cuinion expressed today by
Howard Heinz president of the II. j.
Heinz Co. of Pittsburgh. a factor in the
preserved food industry. He declared
that the company would build large
msnufacturing plant in Australia.
The corporation is now completing a
large distributing plant in Berkeley,
across the bay from San Francisco.
which will mean added facilities for dis
tribution of its products at Pacific
Coast, Oriental and South Seas points.
Mr. Heinz. who has just returned from
visit to Australia, New Zealand, Ha-
waii and other South Sea countries, Is
highly optimistic over the opportunity
presented in those sections for tXpan-
sion OF American trade.
Australia" he said. els practically
the same as the United States and 1t
enjoys all the climates of the tropical
t0 antarctic within its borders. 1t can
produce erything needed for its own
subsistence and have a margin for eX-
port The problem is to take advantage
of American methods before II is too
late TO capture Australian trade"
U. S. Canned Goods Staple.
American canned goods have always
been staple throughout the world and
the demand for them increased to an
astonishing degree as a result OF the
war. Canned salmon is one of the deli
Cacies of the south Pacific islands.
although fish Of every variety are avail
able fresh. The development of facto-
ries in other countries is a direct refiec-
ton Of the necessity Of moving closer
TO markets and diminishing the cost of
transportation.
Producers today are becoming accus-
toned TO the policy Of small orders and
frequent ones, with demand for
almost instantaneous delivery. Many
manufacturers go so far as to say that
the railroads soon will cease 10 fight
or argue over long and short haul
freight rate tariffs. since the long haul
is being gradually eliminated.
This is especially true of the earned
goods and preserved food industries
The canning trade for years was one
of the best paying units of the food
industry 1t Slumped for some years.
cue in part TO overuroduction in certain
districts and to long and expensive
hauls. Today 1t Is getting back on its
feet. with district production being bet
ter regulated and hauls shortened by
establishment Of district factories.
Heavy Carryever Melted.
The trade today is in much stronger
position than at this time in 1927. The
heavy carryoYer OF canned goods has
melted. The combined pack of toma-
toes, peas and corn was reduced from
&C. 600 900 cases in 1925 To $4,000. 900
cases in 1927. At the same time dealers
have more carefully regulated their
stocks. AS result prices today are at
least firner and in most instances
higher than q year ago. The current
year. therefore, should be more pros
porous than 1927 for most companies.
The South has made remarkable
strides in supplying the markets with
fresh beans, peas. strawberries and
other fruits and vegetables during sea-
SONS of the year when formerly the
canned goods had full sway. This does
not seem to have diminished the con-