584 U. S. BUREAU OF FISHERIES 



MARKET PRICES FOR CANNED SALMON 



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

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

 In May or June, when the spring-packing season has sufficiently 

 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 being 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 in some years as much as one-fourth of 

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



The custom grew up amongst the smaller packers of Alaska and 

 Puget Sound of waiting imtil the association fixed the prices on its 

 own pack, when the others would generally fall into line with the 

 same prices for their packs. 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 the 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. 



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 business, 

 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 

 required of each grade, and when the biryer 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 booking to be filed with packers for delivery 



from (naming year) pack, subject to buyers' approval of opening prices 



when named; the option being granted buyers of confirming the total number 

 of cases specified below; confirming a smaller quantity, or declining any confirmation. 



furthermore agrees that buyers shcdl have the option of increasing 



quanities 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 patrons, he will distribute such increase as he 

 can secure among the dealers who have filed conditional contracts with him, 

 according to the date order that said contracts have been received in his office. 



Under this form of contract the packer is expected to be ready to 

 fulfill the terms of same, except in case of a short pack, when the 

 orders are generally prorated; i. e., all orders are proportionately 

 reduced until they come within the compass of the pack. Should 

 the buyer dislike the opening price he has the privilege of canceling 

 the order. While this latter privilege may not, at first glance, look 

 just to the packer, yet it is doubtful if any buyer would place a 



