-17- 



■ • '--' 



4. Growers with differeing views as to sales methods could choose the ; 



type of sales agency most desirable to them. ., , 



5. Tonnage from the Entiat area would tend to increase the volume, and 

 reduce per unit cost, of the cooperatives in Wenatchee or Chelan and the 

 lower cost should be shared by the Entiat growers. 



6. Tonnage from the Entiat area would increase the volume of fruit sold 

 by marketing organizations in Wenatchee or Chelan which would increase , 

 their competitive advantage (fewer sellers, control of larger share of 

 supply, and greater volume to meet needs of large-scale buyers). This 

 improved competitive advantage should be reflected in better prices and 

 be proportionately shared by Entiat growers. 



7. The improved highway, noxir under construction both north and south of 

 Entiat, would make long-distance hauling more feasible than in the past. 



Disadvantages 



•^osu ^i^u .;<s;i.v jj.,-i-'' r.'.):.- 



1. Grower costs in transporting their fruit to packinghouses in Wenatchee 

 or Chelan would be increased, due to the added expense of hauling the 

 fruit greater distances, probably a minimum of 18 miles one way. 





a. Growers not having trucks or other suitable transportation , 

 equipment for the trip would have to invest in such equipment. l\, 



b. Operating costs for transporting fruit this distance by straddle 

 carrier may run between 5 and 10 cents a box. Similar or higher 

 costs may be expected for other means of transportation, such 



as truck, or farm tractors with trailers. ... 



2. Grower returns may be reduced through lowering the quality of the 

 fruit due to more bruising in transit as well as by a longer period elapsing 

 between the time the fruit is picked and the field heat removed. „ , . . ., 



3. Problems may be involved in finding enough excess capacity in Wenatchee 

 or Chelan to handle immediately all the fruit from the Entiat area. 



4. Since the packinghouses now provide about one-half of the tax revenues 

 for the town, not to rebuild would remove this source of revenue for support 

 from the school and other community services. Also, the packinghouses 

 provide full-time employment for some persons (about 12 in the 2 coopera- 

 tives) and part-time employment for others (about 175 in the 2 cooperatives 

 during the peak seasons). Not to rebuild would remove this local source 



of income from these members of the community. 



5. Growers receiving their total equities and capital gain in cash all 

 in one lump sum would be liable for Federal income taxes at a relatively 

 higher rate than if the allocations were received over a period of taxable 

 years, except where growers would have losses to carry forward. 



