The Kennewick courier-reporter. [volume] (Kennewick, Wash.) 1914-1938, 1929-12-05
: LETTERS OF THE PEOPLE
: 80 Sc e&+++*+.

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It is quite generally admitted
that j. c. Penney has made sue
cess Of chain dry goods stores, and
that he is a very brainy business
man. He branched out and brought
several thousand acres of cut-over
land in Florida into great product
witty only to find that where he as
sumed pooling and shipping facil-
tiles were fairly well organized, the
opposite was true-so true he
abandoned raising potatoes on $40
acres of land peculiarly adapted to
the produce. In order to save them
selves, his company shifted their
attention to marketing. Some of
their findings in investigating the
market conditions are very inter-
esting and very pertinent to all
farmers.
Six cities in the United States
took more than half of the car
load shipments of Is fruits and
vegetables of the entire company.
These same six cities do not have
even half of the population, yet
half of a very important part of
the farmers products is shipped
to the cities in absolutely hit-or-
| miss fashion, because in these
cities only is there any organiza-
ton for taking care of bulk ship
ments.
Mr.. Penney further found that he
was cut off from carload ship
ments to the greatest markets OF
all, namely the 800 towns scattered
between the cities, because these
small towns could not consume a
straight car of variety, yet could
consume a mixed car. He also
found that the loss to the grower
for re-shipping from big cities to
small towns was $105 car. This
figure does not include loss in quail
ity due to delay. Under this meth
cd of marketing, price ranges are
quite out of reason.
/ Take New York, Boston, Phila-
delphia and Chicago in 1926-27
oranges ranged from as low as 45
cents to as high as $12.85 per box
During Is days in New York
Georgia Carmen peaches sold be-
tween $16.87 and $2.0S per hum
dred pounds. Potatoes of the same
grade and variety and productive
district ran from 1888 to $50 a
hundred pounds during a 25 week
period. Furthermore, none of the
Iprices in the four markets were the
same. These fluctuations are not
peculiar: they are only the result
| of an unorganized industry which
does not take the consumer into
consideration, and which has no
| selling organization whatever IN
this modern business world.
Mr.. Penney tried to correct this
condition insofar as his personal
operations were concerned. Let's
see what he discovered.
J i. Scores of Independent local
packers and shippers, as well as
cooperatives, were, generally
speaking, prosperous. They collect
ed refrigerating and packing
charges and commissions, irres-
pective of the price received for the
growers crops. They are fairly
we'll satisfied with present market
ing conditions.
! 9. Voluntary consolidation of
some 1874 independently organized
small units was not possible. Con-
solidation meant elimination of
many competing and duplicating
/ plants with their personnel to COW
! er a great consumers territory
was necessary to do the prelimi-
nary work Of inaugurating a new
extension system of marketing.
This capital and personnel were
not to be had from the local
groups.
i A. The farmer himself was un-
able to cut loose from mortgage
and contract obligations to his To-
cal marketing organization even
i though the extent of the market
ing service went little farther than
| forwarding the produce to dump
| ing piers and auction blocks. Be-
fore farmers could make choice
between shippers and packers,
sums of money had to be borrowed
on the crops and in some cases on
the farms themselves.
! Undoubtedly Mr.. Penney with his
vast and wide marketing exper-
fence was greatly shocked and dis
gusted with the results OF his IN
| vestigation with local conditions.
| Rv local we mean not only Kenne-
~ W0QhIn0.