19^5 



BETTER FRUIT 



Page 7 



Present Definite Plan of North Pacific Fruit Distributors 



THE following is a plan presented 

 by the North Pacific Fruit Dis- 

 tributors ;it the Seattle confer- 

 ence of growers held January 22, 

 which was referred to the Taconia 

 meeting held February 15, for further 

 consideration : 



"Whereas, the fruit industry of the 

 Northwest is in a serious position and 

 threatened with disaster because of 

 a lack of proper distribution and be- 

 cause of uncontrolled competition be- 

 tween the different shippers, arising 

 from the larger number of agencies 

 engaged in marketing the fruit, each 

 one operating inde))endently, and each 

 one competing with the other in the 

 same markets; and, whereas, there are 

 constant charges and counter-charges 

 of price cutting and improper and dis- 

 astrous competition between these va- 

 rious agencies which result in prices 

 to the producer below the cost of 

 production, and yet do not result in a 

 proper distribution so as to increase 

 consumption; and, whereas, there is 

 at the present time but a small per- 

 centage of the acreage planted to tree 

 fruit in the Northwest now in bearing, 

 and there will be a very rapid increase 

 from year to year in the tonnage and 

 shipments until a total output will un- 

 doubtedly he reached amounting to at 

 least 50,000 cars annually, and such a 

 large crop cannot be profitably mar- 

 keted exceiit by some Harmonious and 

 united plan of co-nperafion between 

 growers and shipping agencies; 



"Now, therefore, for the purpose of 

 securing, so far as possible, a itroper 

 and legitimate co-operation wldch will 

 lead to the securing, for the benefit 

 of the grower, of the full amount to 

 which he is entitled for liis fruit in 

 the markets of the world, and for the 

 purpose of investigating the charges 

 of unfair business methods between 

 the various shippers, and to keep rec- 

 ords relating to the sliipments and 

 sales of Northwestern fruit, be it re- 

 solved, that there be established and 

 maintained a board of three to be 

 known and designated as the Fruit 

 Growers' Advisory Bureau; that this 

 board shall be appointed in such man- 

 ner as those concerned may deter- 

 mine, and that its members shall be 

 appointed to serve, one for one year, 

 one for two years, and one for three 

 years, any vacancy occurring by ex- 

 jiiration of term, or otherwise, to be 

 filled by the remaining members of 

 the board, such appointment, however, 

 not to become effective until con- 

 firmed by seventy-five per cent of the 

 affiliated tonnage; any member of the 

 board or other officer may be recalled 

 and any order made by said board 

 reconsidered or vacated bv the vote 

 of those affiliated with the bureau 

 controlling sevenlv-five per cent of 

 the affiliated tonnage; that the mem- 

 bers of this board shall not be fruit 

 growers nor connected in anv wav 

 with any organization engaged in tlie 

 business of producing or selling fruits, 

 cither fresh or processed; that one 

 mendier of said board, who shall he 

 the chairman thereof, slinll devote all 



of his time to the business thereof and 

 shall receive such salary as may be 

 from time to time determined; that 

 the other two members of the board 

 shall be entitled to expenses and per 

 diam whenever engaged in the busi- 

 ness of the board; that said board 

 shall establish and maintain an office 

 in Walla Walla, Wash., as the most 

 central and convenient city which is 

 not the headquarters of any large mar- 

 keting agency. The board shall em- 

 ploy such clerks and assistants as may 

 be found necessary to carry on the 

 work contemplated; the expenses to be 

 paid from a fund to be raised by such 

 mininuuii assessments upon the ton- 

 nage handled by the affiliated mem- 

 bers as the board shall from time to 

 time determine to be necessary there- 

 for, any surplus which may remain 

 in such fund at the end of the season 

 to be pro rated back to the contribut- 

 ing members. 



"Be it further resolved, that all 

 shippers of tree fruit in the four 

 Northwestern States be invited to af- 

 filiate with said board and to sign a 

 contract to that effect, in which they 

 agree to submit to said board daily 

 copies of all telegrams and letters 

 passing through their offices relating 

 to the sale or disposition of fruit; to 

 file with said board invoices and ac- 

 count sales showing the true record of 

 each and every sale made by them, 

 together with a full and true state- 

 ment of any allowances or rebates 

 made thereon, and to furnish such 

 other data relating to the sale and 

 disposition of fruits as mav be from 

 time to time required by the board; 

 that such reports, letters, telegrams 

 and other information shall be veri- 

 fied as to accuracv and completeness 

 by affidavits when so required; that 

 they will, at the beginning of each sea- 

 son, file with said board a cooy of 

 the grades and grade rules which they 

 are advertising to their customers and 

 in accordance with which they pro- 

 pose to sell during the current season, 

 and will, from time to time, file with 

 said board a full and complete price 

 list of the commodities offered by 

 them to the trade. They shall agree 

 also that they will not dispose of their 

 fruit bv open consignment to anv 

 dealer, broker, factor, agent or com- 

 mission man. except in cases of dam- 

 aged or reiecled cars or under other 

 neculiar circumstances which make it 

 impossible or difficult to disnose of 

 the car otherwise. Auction sales to be 

 permitted only under such rules and 

 regulations as said board may estab- 

 lish. Each affiliated member shall 

 agree to pay the assessment aforesaid 

 or such other assessment as may from 

 time to time be agreed upon by a ton- 

 nage vote. 



"Be it further resolved, that said 

 board shall receive, file and make 

 proper records of such reports, infor- 

 mation, letters and telegrams, but all 

 such I'ccords shall be for their own 

 information only, shall he kept by 

 Ihem secret and shall not under any 



circumstances be turned over to rival 

 organizations for their inspection. 

 This rule shall apply except so far as 

 it may be necessary to determine and 

 substantiate the decisions of the hoard 

 in questions of price cutting and im- 

 proper business methods referred to 

 them for decision. Said board shall 

 be authorized to entertain, investigate 

 and determine charges of price cut- 

 ting and improper business methods, 

 and shall be authorized at the close 

 of each season to publish a detailed 

 statement of prices obtained in each 

 fruit growing district by each of the 

 affiliated organizations or shippers. 

 Said board shall have power and au- 

 thority to make any examinations 

 which it deems necessary to determine 

 any facts in relation to prices re- 

 ceived, brokerages paid, allowances, 

 rebates or refunds granted or other 

 matters necessary to be determined to 

 carry out and fulfill the ends and pur- 

 poses sought in the establishment and 

 maintenance of said bureau, and in 

 connection therewith may employ ex- 

 perts to audit and expert the books 

 and accounts of any affiliated shipper. 

 In the event that such examinations 

 or audit shall show that the returns 

 and reports made by said shipper are 

 not correct and true or that his books 

 are not accurate, or there has been 

 any effort to conceal or misrepresent 

 any fact properly the subject of in- 

 quiry by said board, then the cost of 

 making such audit shall be paid by 

 the shipper to whom said books and 

 records belong. 



"Be it further resolved, that said 

 board shall, from information filed 

 with it as aforesaid, and from other 

 data and information which it may 

 be able to obtain, determine from 

 time to time what is the fair market 

 value of the various tree fruits being 

 marketed by the associations and slii])- 

 pers affiliated with if, and shall en- 

 deavor to prevent them, in so far as 

 practicable, from selling below these 

 prices; that the prices so established 

 shall also be used as a basis to de- 

 termine whether or not any affiliated 

 shipper is cutting prices or selling 

 or offering to sell fruits below th,; 

 prices which they are reasonablv 

 wortli upon the market; that the 

 prices so fixed and determined by 

 said board shall be used only for such 

 purpose and shall not he given out to 

 the public. 



"Be it further resolved, that this 

 resolution shall become effective and 

 said board shall be instituted and vest 

 cd with the authority herein provided, 

 onlv when the shiiipers of eightv-five 

 (85) per cent of the tree fruits in the 

 four Northwestern States have affili- 

 ated and entered into the agreement 

 aforesaid; and shall continue there- 

 after only so long as such a percent- 

 age shall continue in such affiliation. 

 Said board shall have power to adopt 

 such rules and regulations as shall be 

 necessary to carry out the purposes 

 for whicli it is created, as above out- 

 lined." 



