Monday, Aug. 22, 1938
"Lowest in 20 Years"
Heavy with fruit last week were 51,000 acres of California cling peach trees. Heavy too were their owners' hearts. The Peach Protective Association telegraphed Attorney General Homer S. Cummings: "You respectfully are requested . . . to investigate the activities of the Canning Industry Board of California, an association of about two-thirds of all canneries in the State, which has blocked the issuance of the marketing order proposed by the State Department of Agriculture. . . . The result has been that, notwithstanding this year's crop is the smallest in three years, the price offered growers is the lowest in 20 years. The price paid last year by canners was $44 per ton. Price offered this year so far is $5 a ton. . . . Cost of production is $23 a ton. The result will ruin the majority of growers. . . ."
California produces about 80% of the nation's canning peaches and every year has a surplus problem. Growers first tried destroying trees, then pegging prices, once got rid of their crop only through the aid of nationwide promotion by chain stores (TIME, Jan. 31). Last year, at the industry's request, State Director of Agriculture A. A. Brock appointed a Canning Industry Board which was partially successful in pegging prices, but left a carryover of 5,000,000 cases. Last week the industry failed to accept Director Brock's plan for limiting the pack of this year's 250,000-ton crop. This meant that the whole crop would be dumped on the market, threatened growers with a $4,500,000 loss as prices cracked. Homer Cummings agreed to investigate.
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