PACIFIC SALMON FISHERIES. 175 



MARKET PRICES FOR CANNED SALMON. 



The manner of fixing the sellmg price at which the canner is willing 

 to dispose of his canned product varies slightly in certain regions. 

 In May or June, when tne spring-packing season has sufficientljy 

 advanced so that a line can be gotten on the probable pack of chi- 

 nook, the highest priced of the pack, the Columbia River canners 

 agree upon a price, this usually bemg high or low, as the pack is small 

 or large. 



Since the Alaska Packers Association was formed, through a com- 

 bination of a number of canneries operating in the Territory of 

 Alaska, it has packed annually in recent years about one-fourth of 

 the salmon canned. It also owns several canneries on Puget Sound, 

 thus being quite a factor in that region also. 



In the early days of the association the custom grew up amongst 

 the smaller packers of Alaska and Puget Sound of waiting until the 

 association fixed the prices on its o^^'n pack, when the others would 

 generally fall into line with the same prices for their packs. This 

 custom is still in vogue. At no time has it ever been compulsory 

 on the part of any packer to adopt the same prices as the association. 

 In fact, it has sometimes been tne case that, while the small packer 

 publicly quoted the association's opening prices, yet in secret he was 

 shading it by 2 ^ to 5 cents per dozen on certain grades. In recent 

 years this has frequently been the case and the big packers, who 

 adhered to the opening prices, have had to sit idly by and watch 

 their small competitors underselling them and getting the bulk of 

 the business until they had finally disposed of their goods, when, 

 necessarily, they would have to drop out of the market until the 

 next season. 



Occasionally the other packers do not like a certain quotation of 

 the association and make one more nearly in consonance with their 

 own views. This happened in 1913, when the association quoted 60 

 cents for chums, while the Puget Sound canners quoted 55 cents for 

 this grade, and in 1915 when the association quoted 65 cents for 

 chums and the Puget Sound interests 70 cents for the same grade, 

 thus showing clearly the independence of the smaller packers. 



Owing to a peculiar feature of the salmon marketing l)visiness, 

 more depends upon the opening prices than appears on the surface 

 to the uninitiated. 



Shortly after the first of the year buyers throughout the world 

 begin to take stock of their salmon supplies and shortly thereafter 

 begin placing their "future" orders. These cover the quantity 

 recjuired of each grade, and when the buyer orders through a broker 

 the orders are placed subject to a contract similar to the following: 



The undersigned hereby authorizes to book the number of cases of canned 



salmon specified below; said bookdntr to be filed with packers for delivery from 



C naming year) pack, subject to buyers' approval of opening prices when named; t?ie 

 option being granted buyers of conjirming the total number of cases specified below; con- 

 jirming a smaller quantity, or declining any confirmation. 



furthermore agrees that buyers shall have the option of increasing quantities 



listed below, when he names opening prices for his packers, contingent upon his 

 ability to secure at that time an increased allotment from his packers. In event 



secures an increased allotment from his packers insufficient to meet all increases 



requested by his [)atr(jn8, he will distribute such increase as ho can secure among 

 the dealers who liave filed conditional contracts with him, according to the date order 

 that said contracts ha-" 1 een received ii. his office. 



