PARAGRAPH 277-CITRUS FRUITS. We beg to hand you herewith brief of arguments and information to be laid before the committee at that time, to which is attached: Exhibit A, Crescent City Packing House pay roll. Exhibit C, pay roll of E. A. Williams, Crescent City. Exhibit D, cost of labor, packing house operated by Chase & Co. Exhibit E, figures compiled on averages of thirty different markets on grapefruit. L. B. SKINNER, Representing Florida State Horticultural Society, Of Chase & Co., Representing Florida Fruit & Vegetable Growers' Association. TARPON SPRINGS, FLA., January 16, 1913. Whereas, the attention of the Tarpon Springs Board of Trade has been called to the fact that on the 20th of this month there will be held in Washington a hearing, before the Ways and Means Committee of the House, on the agricultural schedule which includes citrus fruits, and Whereas, a reduction of the present tariff would be the cause of a loss and waste of a large percentage of the Florida citrus fruit crop, abandonment of groves, and great loss to the people who have put their time and money in the groves, because it is a fact that the present duty on foreign fruits is no more than the difference in the actual cost of production and marketing; Therefore be it Resolved, That we, the Tarpon Springs Board of Trade, for those financially interested, for our business community and State at large, do earnestly protest against any decrease in the present duty on citrus friuts, and further Resolved, That copies of this action be sent to Hon. S. M. Sparkman, Senator Fletcher, Senator Bryan, and Mr. L. B. Skinner, vice president, Florida State Horticultural Society, as an urgent upon them to do all in their power to prevent a reduction of the tariff on said citrus fruits. Signed by the board of governors of the Tarpon Springs Board of Trade: J. C. BEEKMAN, President. L. G. NOBBIT. L. D. VINSON. E. L. ZIMMERMAN. T. S. PAPP's. JNO. K. CHEYNEY. Mr. L. B. SKINNER, THE FLORIDA STATE HORTICULTURAL SOCIETY, Vice President Florida State Horticultural Society, Dunedin, Fla. DEAR SIR: Acting for the executive committee of the Florida State Horticultural Society, I appoint you as a commissioner to go before the Committee on Tariff Revision at Washington and urge as strongly as you know how to secure a just and equitable tariff on imported citrus fruit. The horticultural society has spoken positively in this direction, and consequently the executive committee need have no hesitation in acting for the society in this respect. The constitution provides that the executive committee shall act for the society during the interim between meetings. We wish you to use all the influence you can command and use every honorable means for placing before the honorable committee the exact status of the citrus industry in the United States and especially that in Florida. The fact that you are one of the leading citrus growers of the State and that you have given the question of cost of production personal attention fits you well for the discharging of this duty. It is entirely superfluous for me to enter into any argument in favor of not only retaining the tariff, but increasing it. Very truly, yours, P. H. ROLFS, Mr. L. B. SKINNER, PARAGRAPH 277-CITRUS FRUITS. Dunedin, Fla. LARGO, FLA., January 14, 1913. DEAR SIR: Acting as mayor of the town of Largo, in Pinellas County, Fla., I hereby appoint you as a commissioner to go before the Committee on Tariff Revision at Washington, and urge as strongly as you know how to secure a just and equitable tariff on imported citrus fruits. As you know, the business of this town and surrounding country is entirely dependent upon this industry, and as you are a large grower and dealer in citrus fruits, you should have no hesitation in acting as our commissioner in this respect. We feel that any lowering of the tariff would be disastrous to our town and entire community. We wish you to use all influence at your command and use every honorable means in placing before the honorable committee the exact status of the citrus industry in the United States, and especially that in Florida. In fact, you are one of the leading citrus growers of the State, and that you have given the question of cost of production personal attention, fits you well for the discharge of the duty. It is useless for us to put before you any statistics or figures in favor of retaining the present tariff; there is no doubt you are already well acquainted with them. Please use your every effort in our behalf in not only opposing the reduction or removal of the tariff, but increase it if possible. Yours, very truly, The COMMITTEE ON WAYS AND MEANS, S. E. SMITH, Mayor. President Town Council. JACKSONVILLE, FLA., January 17, 1913. House of Representatives, Washington, D. C.: Schedule G, agricultural products and provisions. Paragraph 277: Lemons, 11 cents per pound. Oranges, limes, grapefruit, shaddock or pomelos, tangerines, 1 cent per pound. The undersigned, L. B. Skinner, of Dunedin, Fla., citrus grower and accredited representative of Florida State Horticulture Society (comprising over 1,000 growers), Joshua C. Chase, citrus grower and member of the firm of Chase & Co., Jacksonville, Fla., temporary address in Washington, D. C., New Willard, respectfully submit the following brief as an argument for the retention of the present duty on citrus products. It is herewith stated that the arguments herewith submitted are not complete for the reason that other representatives of the important industry in Florida have appeared, or will appear, before this honorable body, whose time is too valuable to be taken up with duplications. HOME LABOR. Whatever may be the fact of the theory as to the benefits of protection in other lines such, as for instance, steel and agricultural implements and many other articles whose value does not easily depreciate; the full force of the argument, which is admitted generally, applies with peculiar emphasis and certainty to such perishable products as fall under the general head of the citrus industry. Labor The chief and indispensable element in the production of citrus fruits is labor, both skilled and unskilled. It is herewith shown beyond question that labor (at very moderate rate of wages) is the largest element in placing in market a box of this fruit. Reference is here made to direct labor paid by the day, week, month, or season. however, appears in numerous other forms. In truth, all the way from the clearing of the land to the delivery of the fruit to the consumer; in the various forms of cultivation, handling, local hauling, transportation, cost of box material, fertilizers, paper, nails, etc. Labor indispensably is the essential factor in actual cost. In support of these statements, we submit for the careful consideration of this honorable body as exhibits, the copies of actual pay rolls duly attested of marketing organizations, firms, and individual growers. See Exhibits A, B, and C, packing house and picking pay rolls; also Exhibit D, cost of labor in 15 packing houses operated by Chase & Co., October 31 to December 31, 1912, inclusive. (Unless the committee desires, we will not consume time of going into details that can be taken up at pleasure.) We state as an unquestioned fact that to-day in Florida all available labor is employed at higher prices than ever before. This has been true since the middle of October and will continue to be true for weeks to come. Not only has all labor desiring to enter this field in Florida been steadily employed during the season, but it has been unequal to meeting the demand. As a consequence, thousands of men have been drawn to Florida from surrounding PARAGRAPH 277-CITRUS FRUITS. southern and more northern States. This has not been exceptional, but it has been increasingly the fact for some years and must continue to increase unless the industry is paralyzed by withdrawing the duty, which is now no more than the actual difference between the well paid labor of Florida and the poorly paid labor of foreign citrus producing fields, or an abnormal and destructive climatic change, which would produce the same results. With this difference, the loss caused by weather changes would be easily repaired, while that produced by eliminating the tariff would be permanent. This is illustrated by the recovery in Florida from what at the time (1894-95) was called complete destruction, the crop of fruit grown this year having never been equaled during 40 years of active fruit growing. The industry for whose growth and encouragement we appeal to this honorable body is not in any way exceptional, as some may suppose. It is now seriously proposed by large numbers, including many Members of Congress, to protect the cotton grower from boll weevil and the fruit and vegetable grower of the lower Mississippi Valley, by the expenditure of hundreds of millions of dollars, against what is a climatic change. Many communities in Florida depend almost entirely on the growing and marketing of the citrus crop, and the amount paid labor per day is reasonable, and any reduction whatever would work great hardship. The honorable committee will be favored with a report showing labor conditions in foreign citrus countries, to which we invite careful comparison with the figures here presented. We are informed that this subject has been treated fully and reliably by California representatives, and for that reason this phase of the subject is not here considered. WHO MAKES THE PRICE. Complaints have been made of the high prices of fruit paid by the consumer at various points, and it has been charged that the orange grower is grasping in his demand. Nothing could be further from the truth. It has been shown by exhibits already made by others and also by exhibits accompanying this brief that the average selling price by the grower and his agents in all the principal markets is low. Average sales for three years.-Averages received by Chase & Co. (f. o. b. packing houses), seasons 1909-10, 1910-11, 1911-12: Oranges, 863,262 boxes average.. Total (1,162,902 boxes average). $1.455 2.639 2.362 1.749 I hereby certify that the above figures are correct and were taken from the records of Chase & Co. From the above figures must be deducted the cost of selling, picking, packing, hauling, and production, in order to show what the grower receives on the trees. T. M. JONES, Accountant. These selling prices are the actual sales. To reach the consumer this fruit placed in market at prices that hardly compensate the grower for his outlay passes through the hands of the jobber and of the retailer and in the last stage, the hands of those who serve the fruit. Each one of these several classes demands an elaborate profit for his services, which involves comparatively small outlay on his part. This is not a matter of opinion, but of established fact, as following exhibit shows. (See Exhibit E.) COST OF PRODUCTION. There is no natural mine from which citrus fruits can be drawn when wanted and in quantity to serve the purpose, as is true of minerals and timber. To produce a box of oranges, tangerines, grapefruit, or other fruit of this class requires preparation of soil, time, and an outlay of money of several years. The amount of this cost can not be exactly determined because of local conditions, and of the fact that machinery has never been considerably used, and from the nature of the case we believe never can be. Let us say six years of continuous outlay has been involved and nothing marketable has been produced. From the time the product is ready for market a new expense account is opened and one that contains many ems, such as those for spraying, pruning, cultivating, and general care of the grov To all of these are added picking. hauling, packing, selling, and other charges. Thus the cost of production to the grower is and always must be fixed PARAGRAPH 277-CITRUS FRUITS. FURTHER REASONS FOR RETENTION OF duty. The safety of the consumer requires competitive venders. This condition we have and always had to an admitted degree. The reduction of tariff would not reduce the price to consumer. The geography of the country is such that citrus growers on the Atlantic coast and citrus growers on the Pacific coast have not and can not successfully combine, and the strongest kind of competition obtains between them. Certain territory on account of distance is more economically served by California, and on account of similar reasons, other territory better served by Florida. Foreign fruit has not been excluded by the tariff, but by the low prices at which jobbers are able to buy the home-grown oranges. The supply generally equals and often exceeds the demand. DISTRIBUTION. In order to show the wide distribution of oranges, the records of Chase & Co. show that during the season of 1911-12, its carload shipments of oranges were disposed of in 147 different markets in 32 different States. During the present shipping season of 1912-13, which is from a third to half past, our orange shipments have reached 144 different markets in 32 different States. Here again in the entire course of the orange industry labor enters into the account, as railroad expenses are largely labor. The wide distribution of oranges shows that oranges are not prohibitive or high, that Florida orange growers are only holding their own and not getting rich proves that nothing should be done to injure the industry or even take a chance of doing it harm. Supply and demand regulates itself. When the United States has large crops, growers must sell cheap, when light crops their prices rule high. Importers can afford to bring in foreign oranges and keep prices reasonable. This makes it impossible for the American grower to manipulate and sustain extreme high prices. Owing to the heavy cost of labor in Florida and high transportation charges, the Florida growers can not reach foreign markets, whereas, the American market are at all times open and available to the foreign producer. In closing, permit us to quote an extract from the second annual message of Thomas Jefferson, our third President: "The prohibiting duties we lay on all articles of foreign manufactures, which prudence requires us to establish at home, with the patriotic determination of every good citizen to use no foreign article which can be made within ourselves, without regard to difference of price, secures us against a relapse into foreign dependency." Very respectfully, L. B. SKINNER, Representing Florida State Horticulture Society, Tarpon Springs Board of Trade, City of Largo, Fla. JOSHUA C. CHASE, Of Chase & Co., representing Florida Fruit and Vegetable Growers Association. EXHIBIT A. Time of employees and amount due each for services rendered Chase & Co. at Crescent City packing house during week ending Dec. 7, 1912. |