10 



BULLETIN 412 



TABLE 2. FREIGHT RATES ON CANNED GOODS, AND EQUIVALENTS PER TON OF 



VEGETABLES 



* 2000 pounds of fresh tomatoes is considered equivalent to 1200 pounds of canned goods. 



t 2000 pounds of green peas is considered equivalent to 4000 pounds of canned goods. 



j The rates from California to New York City were actually less than those given above, because the 

 rate by water from California to New York City was much lower than the rail rate. The ocean rate from 

 the Pacific Coast to New York City was less than the rail rate from middle- western points to New York City. 



Canning factories located in the more densely populated regions ordi- 

 narily would be expected to have to pay more to get their raw produce 

 because of the higher prices for all kinds of agricultural products in those 

 sections. -So long as the consumption of the region exceeds the production, 

 such factories are able to pay a higher price for the raw product because 

 of the saving on freight. If production exceeds consumption, they will 

 not be able to pay as high a price. However, if a surplus is produced 

 continuously, it is very likely that the region has some special advantage 

 in the growing of the crop which makes production possible at such a price 

 as to enable the local canners to compete with canners with whom they 

 are at a disadvantage as regards freight rates. 



PRACTICES IN BUYING CANNING CROPS 



Most of the crops grown for canning factories in New York State are 

 raised under contract. Under the form of contract in common use in 

 the State, the canner agrees to take the total product of a certain number 

 of acres of a crop at a price fixed in the contract. These contracts are 

 usually made in the late winter or early spring. The price to be paid, 

 the price at which seed or plants are to be charged, the dates of payment, 



