V.C.R. Mr. 11, 1929

According to the plan formulated, Maine in concentrating on the grading and identification of farm products as embodied in the so called General Standards Law. The department has promulgated grades on eggs and potatoes. The matter of promulgating grades on potatoes is merely a matter of form. For the last 10 years, Maine has recognized the United States standards for potatoes, and so we simply have gone through the form of making them official State grades as well as national. On eggs we were confronted with thee new proposition, and we harmonized our grades with the national standards, using the word “Maine” in place of United States. Those grades have been promulgated, and the New England labels, originated by the various departments of agriculture, and uniform in design, have been applied to a few producers. Now, we are going out with several more who have applied, and not only the matter of giving out tags receives attention, but also the fact that the producer is actually producing under proper conditions and taking proper care of the product, in order that the label may safeguard anyone producing real quality products.

In the matter of apples, things are held in abeyance this year, for the simple fact that we have a crop that local demand probably will take care of, and we do not need to advertise Maine apples this year.

In the case of identifying and grading potatoes, we have had an inspection service for the last eight years, last year having inspected over 5500 carloads. With that service it is an easy matter to safeguard the integrity of the product. We have 100,000 tags printed with the design on it. Several dealers have already asked for a few thousand of them. Before the winter is over we anticipate we will use a large part.

That, briefly, is the progress that has been made in the matter of putting out the standards program in Maine. I think perhaps it is worthy of note that the president and secretary of the Aroostook Grocers and Shippers Organization have endorsed the identification of the Maine potatoes by means of the New England label.

The CHAIRMAN, We will have a short period for discussing these reports after the six states have reported.

Mr. Chairman. The status under the New England marketing program of New Hampshire is identical with that of a year ago. I guess you all know that an effort was made to present practically the same bill in New Hampshire as in the other States. Although the bill passed the House, it has not passed the Senate. Consequently, Mr. Felker and men of the Department of Agriculture have felt it would be very unwise to attempt to promulgate grades without some authority back of it, and so we felt that we had better let the matter alone. We have done this, however. We have attended the various meetings of the Bureau of Market Men, and we have attended the Marketing Conference held in Boston. We have tried to keep in touch with the developments in the other states and we hope we have gained some from their experience, so that if this authority is ever granted to us we can make some advance, and make up for some lost ground.

We are also telling our people of the State about it, some through publications and also at Grange meetings, and the like. Our Governor-elect, as you know, has been a member of the New England Council, I think, since its inception, and I think that he is heartily in sympathy with this program. We will go forward this winter hoping to apply the formula of the New England Sales Program and sell this thought to the people of New England, and we hope that our Legislature will respond in favor of it.

Vermont to date has set up official State grades for the following products. Maple syrup has been set up through the cooperation of the maple syrup producers. The bee keepers association has just finished working with our office in setting up tentative standards for Vermont honey. Potatoes follow the United States grades, eggs follow the grades that have been adopted in all the five New England States, and the apple situation at the present is just about ready to put forth tentative standards on apples.

We have been working pretty closely with the horticultural society on that and feel that whenever the grades are set up it probably will fit in very closely with all of the others in New England, although they are reported just a little bit differently. Our situation in Vermont as regards apples is a little bit peculiar from the standpoint of New England. 95 percent of the crop in Vermont goes to the New York market; the second five percent goes to Boston and the New England market, some sold in fancy packages at retail, so that there is less than three percent goes into New England markets, which makes our problem in apple growing a little bit different.

Last year after the maple sugar and syrup season started, forty odd producers used the New England label on maple syrup and sugar. In addition to that, the department set up small standard samples in one-ounce bottles, showing the different color gradations on Maple syrup, and sent those out to producers to use as a guide for themselves. But we found that the large commercial companies who bought maple syrup by the drum, and who heretofore had been depending more or less on their own grade, wanted those samples, so that we sent out almost 100 sets of 0096samples to two or three of the largest commercial concerns, who in turn gave them to the buyers of the firms, with the result that throughout the State, practically, there is very little if any bickering between the buyer and seller, as heretofore had been the case.

Potatoes--I say it with a smile when I think of my friend Charlie White--about 1,000 bushels moved out of Vermont this year to the State of Connecticut.

On butter, we have started so far with one creamery. There are only about three creameries in the state who can pass the necessary inspection to put out Vermont Grade A butter. One creamery has started in a small way putting out a very, very fine product that is equal to the best that comes in from other markets. We have just about completed negotiations with S. S. Pierce & Company of Boston, and we hope within the next two or three weeks Vermont butter under the State label will appear on their counters.

In addition to the actual grading and standards, we have begun a survey of the hotel situation and the retail store situation in Vermont, believing that, after all, our largest field for endeavor lies in supplying our own channels of trade. You would be surprised could I have the time to tell some of the things that were brought out by this survey among hotels. There is one outstanding example, that does not concern a hotel, but will give you an idea of the drift. One of the largest wholesale fruit and vegetable houses in Vermont, the largest distributor of the State during the year 1927 bought approximately $60,000 worth of potatoes from outside the State, brought them into Burlington, Vermont and redistributed them to local stores throughout the State. He did it primarily because he could not be assured of securing quality within the State. It wasn't a question of volume. He had volume within 12 or 14 0107miles of his warehouse. It was a question of quality. So you can see what we have before us in the way of supplying our local demands.

That will give you a birdseye view of our progress to date.

When the Chairman of the Agricultural Committee requested that the various Chiefs should speak, it hardle seemed as though Rhode Island should be represented on an agricultural program, as so many people do not consider it of sufficient size to be considered as an agricultural State. Now, I always like to think, although Rhode Island is small, so are diamonds.

We have done more in Rhode Island at the present time in regard to the egg situation than with any other one commodity in an endeavor to unscramble the egg market. Providence has been known for many years as a high priced market with varying degrees of quality. The grades that have been set up for eggs have been sufficiently high to discriminate to a certain extent against eggs coming from outside areas, and yet have not been so high but what the producers within the State could pack and grade to those grades.

With our market reports, which we issue daily, together with the weekly retail report, we have been able to keep a fairly close check on the actual prices that have prevailed in the egg market in Providence.

There are approximately -- well, to be exact, 394,000 labels have been sold to poultry producers or poultry producer packers. At the present time there is upwards of 150,000 dozen eggs that have been sold under this label as Rhode Island Specials. This is from flocks totaling approximately 125,000 birds. Within the State of Rhode Island there are produced approximately 2,500,000 dozen yearly and we feel that conservatively speaking at least 1,500,000 of these can be graded under the label of Rhode Island Specials to the advantage of the producer and consumer.

We cannot talk entirely in altruistic terms when we are referring to a grading program. It is necessary to show a producer that he will receive more money for his product in order to encourage him to pack in grades. Mr. Bevan has shown you what happened in Massachusetts in regard to certain vegetables. This surely shown you in regard to eggs in Rhode Island. Taking the lower chart, the black line 01512represents the price received in the wholesale market by the farmer for locally (12 gathered eggs just as they came from the market. The red line is the price which is paid for Rhode Island Special gathered eggs. The majority of the Special grade, of course, go directly from producer to the consumer. However, there is a considerable volume that goes through the wholesale channel. You will notice that there is a price difference averaging better than two cents per dozen for this entire period in the wholesale market at a very slight additional cost to the producer. In the retail market we find a much wider spread, the black line representing the gathered egg which has been candled, as is the customary practise in the market, with the red line representing the retail price for the Rhode Island Special egg. We find a variation in these of from five to 10 cents a dozen. You will notice some of these drops which happen to occur in the wholesale market for eggs in general, which was a question of supplying demand when there happened to be quite a large supply come in rather suddenly, and we have quite a drop in the resulting price line. You don't notice that same dip in the Rhode Island Special. The demand has been sufficient to take a ready supply at all times, and you find a gradual upcurve. We are just reaching the peak at the present time. With these figures as a basis, it is estimated that in Rhode Island alone, if approximately 1,500,000 dozen of eggs are graded according to the Rhode Island State requirements, with a conservative estimate of a difference of five cents per dozen in price, it would net to the farmers in Rhode Island approximately $75,000 a year more than they are now receiving.

The present setup of the Department of Markets, or the Division of Markets of the Department of Agriculture in Connecticut started back on May 1, 1928, and since that time standard grades for eggs, bunched vegetables, and strawberries have been established. We had an apple grading law which is still in force and there have been defined specifications for the standard box, the standard half box, the standard barrel and the standard bushel basket. As far as the standards program is concerned, educational work has been carried on principally with eggs and vegetables, although most of the time has been concentrated on the matter of marking eggs, probably because the Connecticut new laid, fancy egg grade, our top grade egg in Connecticut, had been established prior to that time and a number of men were more or less familiar with the requirements. We revised the egg grades this past year, added some new ones, revised some of the old ones, and the interesting thing is this, that the standard requirements for the Connecticut new laid, fancy, and the Connecticut Special No. 1 are exactly the same as far as quality is concerned. And yet a study of the resulting prices for that same egg boxed and unboxed, going out as Connecticut new laid fancy, or Connecticut Special No. 1, would show just about the same relationship as Mr. Brightman has shown you on this chart. For the past two months there has been a price spread in the wholesale market in Connecticut between Connecticut Special No. 1 and the new laid fancy of approximately five cents per dozen. Understand they are exactly the same quality eggs, except that one is packed in a carton properly identified, and the other goes out in cases.

Now, with that margin of difference, it is very fair to assume, I believe, that it won't take the farmers of Connecticut very long to see that it is to their advantage to put their eggs out on the market as Connecticut new laid fancy. You may be interested to know that at the present time we have in Connecticut 288 poultrymen marking their eggs according to this grade. They represent a poultry population of over 170,000 birds, and there are at the present time over 230 retail 01714stores in Connecticut that are handling this product, although the use of the New (14 England label in Connecticut started September 1. By the way, we started distributing eggs in Connecticut the way Massachusetts started distributing asparagus in Massachusetts. We presented the Governor of Connecticut with two cartons of Connecticut new laid fancy eggs bearing labels No. 1 and 2. And, of course, the attending publicity did help very materially in getting the thing before the people. We have distributed to date 156,000 Connecticut new laid fancy egg labels and repeat orders are commencing to come in now, and the thing is going along at a very decent rate. Take since September 1, that is a pretty good showing as far as distribution is concerned.

I mentioned the standard egg carton. In Connecticut we are very fortunately placed. We have what is known as the Connecticut Poultry Producers Incorporated, which is a cooperative marketing organization, composed of about 210 or 215 poultry-men in Connecticut, and this association is using this grade to market their top eggs. You can easily see that that has given the proposition in Connecticut a wonderful sendoff, because last year they marketed through that association over 600,000 dozen eggs. This standard carton which we have adopted in Connecticut for the independent poultryman, the one who is marketing his eggs himself, or selling to a wholesale store is here. I ran up against a proposition where some 50 or 60 poultrymen were marketing their products in 50 or 60 different types of cartons. You can see the confusing element which enters in. And we felt one of the services which the Department of Agriculture could do would be at least to standardize the type of box which was used by these various independent poultrymen. So we have established this box and the only difference that exists between this which one man uses and another uses is simply the man's name, the producer's name and his registered number is on the carton. We feel that this is going to be quite a help when there is a shortage on the market of a certain producer's eggs, that those of another man coming on to the market at that time in a similar carton are going to help the marketing of the cartoned egg.

The independent poultrymen are taking to this box very kindly. There is only a very small price charged in the buying of these boxes collectively, but there is 01815a tremendous advantage to them in the form of advertising. It really cost them less to put up in the standard box than it does to buy their boxes independently. Not only that, but they get a much better box.

There has been a very considerable amount of attention given to the educational side of this proposition. And I think that there really is where the success or failure of this whole proposition lies. Mr. Bevan illustrated some of the work they are doing in Massachusetts along educational lines, gathering the basic data which or be presented to the farmers to show the price advantage of grading. If this educational program is not successfully put over, I believe the whole program will fail. And I think right there it may be well to bring this point out, that primarily the agricultural departments are not set up as educational institutions; that we have existing in all of the States a very well organized extension on service at the various State Agricultural Colleges, supplemented by the County Farm Bureaus and county agents within the county. That is a recognized form of educational agency which exists throughout New England. I think that our job is to sell this New England grading proposition so wholly and so successfully to the various extension departments that the specialists and the county agents will be just as much interested in putting this proposition over as the Division of Markets. It is not a proposition which concerns wholly the Departments of Agriculture, it is a State agricultural program, and I am very happy to report that we have 100 percent cooperation along that line in the State of Connecticut. We have had wonderful support from the county agents and from the extension on service, and we are planning joint demonstrations at farmer's group meetings where these grades are being interpreted and where the advantages of grading are being discussed by the specialists.

I think that that covers briefly what we are doing in Connecticut. We have decided one thing, however, and that is that the success of this proposition lies very largely in a careful checkup of the producers and we are registering the producers and following them up with a proper inspection, and following up with a retail inspection of the markets and I think the maintenance of the grading idea depends very largely on the effectiveness of that inspection system.

The CHAIRMAN. I know that you people, like myself, are extremely pleased with this progress report, because it does show something very definite accomplished in the past 12 months. We are going to take six or eight minutes for questions and discussion while we have these men here. Who will ask the first question?

A VOICE. I would like to ask Mr. Cooley of Vermont if anything is done in the effort to standardize hay?

Mr. COOLEY. Nothing definite yet. The preliminary work has been begun but it is quite a ways from completion.

Mr. COX. My name is Cox, and I am a grain dealer. We have about 30 retail stores in Massachusetts with every facility for marketing Vermont hay in Massachusetts. It is natural that we should do so. We have every opportunity of buying it in Vermont, and we can do it, and it would be thousands and thousands of dollars in the pockets of the Vermont farmers if you could standardize hay. Frankly speaking, we get clean hay much better from other States than from our own New England States. If the Vermont farmer knew that he was losing money by putting a lot of stuffing in the middle of a bale and by mowing his hay so it becomes mixed in the mowing, if he could only know he was throwing away money in doing that, it would be a wonderful job. The same thing holds true there, if it holds true in apples and everything else. When our own stores get a carload of hay from our own farmers in Vermont, and when it comes back to them from the local buyer, and when he makes a claim the claim is rejected, he is not going to buy any more hay in Vermont.

The CHAIRMAN. Has anybody else a question?

A VOICE. I would like to ask the Vermont man how much of the hay is graded fancy?

Mr. COOLEY. I do not know. I might just as well tell you right now I do not know. We have not gone far enough with the hay situation to 02017warrant anything like a definite answer, and of I cannot be definite I would rather not talk, because you see this program is just started in Vermont, it started the second day of January of last year, and the preliminary work, as I indicated, is under way but it is not in shape yet, and we haven't any definite facts we can give.

A VOICE. I would like to know what proportion of hay will be on the market this year from Vermont in proportion to other States?

Mr. COOLEY. I can answer that. There is a much large proportion than usual. As a matter of fact we know that a good bit of hay this year eventually wound up on contractors’ hands for spreading on concrete.

A VOICE. May I say a word on that? All a man wants is to get what he buys. Give us a good grade, well out, it doesn't need to be No. 1, because the Lord doesn't make No. 1 every year, but give us what we buy. I am a grain dealer and I only have a general idea of hay, but I say 20 percent of the hay we get is desirable.

The CHAIRMAN. I am going to give Mr. Power an opportunity to state a situation which he has come up here to state briefly.

Mr. POWER. I have not time to apologize, I will apologize later for butting in. I have a wire here from Mr. Potts, of the Bureau of Agriculture and Economics in Washington to the New England Marketing official. This was received yesterday.

“The Bureau of Agriculture and Economics conducted a grading service on turkeys for stores in Washington last year. It was a great success. This year we are extending this service to points in New England and New York State. Last Friday and Saturday the turkey grading school was held in Virginia. Five representative of the Division of Markets attended grading school and have been licensed as Federal State Graders. They will grade turkeys for producers and shippers in Virginia for Virginia producers in Washington market. Bureau of Agriculture and 02118Economics will hold turkey grading school at Boston and we hope every New England State will have two or more representative attending the school. We should welcome and desire the cooperative of each New England State in grading turkeys for the A and P Tea Company and others who desire the service. This Bureau will furnish stamps and tags and will make equitable pro rating of fees collected with each cooperating State. I hope you will give this matter favorable consideration and this Bureau may have the cooperation of each New England State in grading turkeys for the New England Thanksgiving market. Mr. Power will be glad to answer questions in regard to this service.”

Now, briefly what we do to those turkeys is this. We stamp and tag those turkeys which are of United States prime quality grading under the standards and grades set up by the Bureau about a year or a year and a half ago. Those birds grading prime will bear a stamp on the back which has this legend, “United States prime.” Across the top, “Official grade.” On the bottom and center will be, “B.A.E.” Bureau of Agriculture and Economics, and on the wing of those birds will be a tag attached, one side of which bears the inspection date and the point at which it is graded, and on the other side will bear a statement showing that the turkey is either a tom or a hen turkey or a young tom turkey or young hen turkey, and that the turkey to which this tag is attached was officially graded by the United States Department of Agriculture and was found upon examination to be of the quality of United State prime.

We believe you people would be interested in such a program as that because there are a great many turkeys produced in New England, and hundreds of thousands of turkeys that are sold in New England as Vermont turkeys were raised in Texas. This program offers an opportunity for some spectacular grading service which you can use your own tagging program or labeling 02219program for those turkeys produced in your own New England States being United States prime. It is a little late to do that this year, but it will give you people who are in the grading work a chance to see what is what in turkey grading, and perhaps see ab opportunity to apply it to your other poultry.

The fees collected will be two dollars an hour per grade. That is, if your grader puts in 10 hours, $20 is collected for it. Our Bureau will furnish the stamp and tags to be attached to those birds. Grading for the A. & P. will be done at the following points. Boston will have 12 cars, Portland one car, Providence three cars. There will be three cars in Springfield, three cars in Albany and two or three in New Haven.

I just wanted to present this to you at this time. We got this word at the last minute and didn't have a chance to warn you so you would have a chance to think about it. We want to hold a grading school in Boston not later than next Tuesday or Wednesday or Wednesday and Thursday, and by that time I think surely the A. & P. will have a car of turkeys on which we can have a grading school. Some of you men who have had experience along that line would not take very long to learn our standards of quality on turkeys. I believe that covers the high points, Mr. Chairman. I will be glad - I want to catch the 11.30 train, and it is five minutes of 11 now - if any of you indicate you would like to have one or more men at that meeting in Boston I will be glad to hear from you. In Albany it will be the 23d to the 25th.

The CHAIRMAN. Why don't these marketing men who want to talk to you retire to the back of the room and talk to you? It is quite a novel service. The Government did some very spectacular work on grading turkeys last year, very successfully. Now, we have, as I said, a very full program, and in order that everybody may be given a full opportunity, I am going to ask the main speakers if they can limit their remarks to not more than 10 minutes and a little shorter if agreeable. We have number of speakers who were going 02320to give us their reaction on producer activities in developing standards and marketing practises.

I have been asked by our Director of Markets, Mr. Bevan, to say just a few words in regard to marketing apples under New England trademarks. I might say that I represent the Nashoba Packing Association, which has been packing apples in this way for some seven or eight years, and putting out a fairly large volume of apples. Packing apples under a New England trademark means that we must pack under our New England grading laws and our standard laws of New England. It also means that each box carries the name of the association in the State where the apples are grown and packed. As I said, we have been doing this for seven or eight years so we really have a little jump on some of the rest of you in advertising New England products, because we have been at that now for several years longer than the New England label has been in effect.

Just a few words to explain the functions of our association work. We take the apples from our orchards, grade, pack, store in cold storage and sell them through one commission house in Boston. That is the entire crop. If the market demands we export or ship in straight carloads. We finance the above operations and make a cash advance to our members to help them pay their harvesting cost. Some of the advantages of marketing under New England label, as I see them, are first, we must put up a uniform product. That has to come under our New England grading law. We have a large volume of 150,000 boxes packed, and yet we are in a position to ship and sell just the size and grade that a particular market demands. It is naturally of considerable advantage in dealing with a chain store system. Our brands are well known in Boston and the New York markets by all the dealers, in fact, I believe most of the larger dealers in fruit today feel 02421they must have some of our boxes of Docaway and nashoba brand in stock in order to supply the wants of their customers at all times.

I have several labels here that show the two brands we put out on our boxes. Of course, the biggest advantage in selling under a New England brand is the higher average price received and the higher net return to the grower. This year our A.Grade or Docaway brand of Gravestines sold at $2.50, $2.75 and $3.00, according to the three sizes. Our B Grade or Meda brand sold for $1.75, $2.00, and $2.75 in the Boston markets. We do not ship Gravestines, I believe, outside of the Boston market. We are now selling our McIntosh apples, and the Docaway, for $3.00 to $4.00, and the Meda at $2.00 or $3.00 in round figures on the Boston market.

I spoke of the advantage of having volume. I want to say a word about the lower shipping grades of apples. We have been able, by having a large volume of uniform grade of cider apples to net around $1.00 per pound at the packing houses for the entire output for the last three years. And that means considerable help in th net returns to the grower for his entire crop.

As one example of how the label, a well known label works out in the market, I might just mention a couple of sales we made last year along in February and March on the New York market. The market looked ripe and with the advice of our agent in Boston we shipped over a couple of cars to try them out on the New York market. I think perhaps many of you heard about those two cars, because they really did go rather well. One car averaged $4.30 for the entire car per box, and the other car close to $4.000. We received for the average for the two cars $4.19 a box for the whole two cars. I do not believe this would have been possible without the use of our New England trademark, that is our own label, bearing the name of the State and where grown. Those apples we shipped to the New York market brought 50 cents over apples of like grade from all other sections.

I will admit there are some special apples packed by outstanding individual growers in our State, such as George Marshall, and a few others, that will bring a higher price on the Boston market than our own packed, but when it comes to the average of a large volume of apples I believe our returns are running very close to the top.

Now, the New England Commissioners of Agriculture have given us this New England label which I see here. We have not used that because we had our label on the boxes for a good many years before this came out, but I hope in the very near future we will be able to incorporate the idea of part of that label on our own label as you see it here.

In closing I should like to say that our instructions to our sorters in the packing houses are, when they are in doubt regarding any apple, the quality or what grade it should go into, we always tell them to put it in the next lower grade. That keeps up our grading. We have never until this year packed a fancy grade of apple. We have always had the fancy and A come under the Docaway brand, so the Docaway runs a little better than the requirements of the A Grade, and I think the same apples to our B. Grade and to the lower grades below that. This year we have completed a new packing house and cold storage at Ayer, to which Dr. Gilbert referred last night, having a 50,000 box capacity. This plant will lower our cost of packing considerably and also our cost of sorting. We would be very glad to have you visit this plant and see our work there.

I just want to say also that I have attended all of the New England Conferences so far and certainly received a great deal of help from listening to the talks of different men there.

Mr. SEARLES. Mr. Chairman, ladies and gentlemen. It wasn't until the last moment last Sunday that I knew I was going to be called upon to make any remarks in regard to the subject on the program, which was assigned to Mr. Minor. He being unable to be here, Mr. Lewis asked me if I would say a few words.

The subject assigned on the program is, “Cooperation in the Marketing of Eggs.” Mr. Lewis has asked me to state if I could in a few words some of the outstanding accomplishments, which makes a little different approach to the subject. Understand that we have two egg marketing associations in Connecticut, the Eastern connecticut Poultry Producers, which was organized with its central organization point in Willimantic, Connecticut, and includes producers in the eastern part of the State, a great majority of which are located in Windham and New London Counties. Our natural markets are either Boston or Providence. Prior to the formation of our association, which was made some four years ago, our producers were shipping to the Providence market. That is our natural market. Then there is the Connecticut Poultry Producers, of which Mr. Minor is the manager, that was organized about a year later, and they are operating from the Connecticut River west, and they lap over this side of the Connecticut River.

I don't like to say anything on my own responsibility in regard to anyone else's business, and I communicated with Mr. Minor on Sunday and asked him for a memo of which he considered the outstanding accomplishments of his association. I am going to read to you from which I received from him. He says:

“The Association has passed through the early trying years with which nearly every cooperative organization has to contend; our growth has been normal and steady; poultrymen join of their own volition; volume has increased yearly; the seasonal receipt curve is flattening; quality and standards have been raised, and we are operating at a profit. In other words The Connecticut Poultry Producers is successful in rendering a service to the poultrymen of western Connecticut that is appreciated. All of which leads up to this point: I would rather answer your question by stating what I consider the outstanding factor in the accomplishment of our success.

In this connection can be mentioned the tireless efforts and sound policies of a capable board of directors, a nearly 100 percent loyal membership, economical management, etc. - all helpful contributions to the cause - but to confine the statement to a single outstanding factor, it would be the identification of a dependable product straight through to the consumer.

Our trade-mark is stamped on each individual egg, including those sold in cartons.

The first year of operations indicated the need of such a marketing program; and the past year has borne evidence of the wisdom of the adoption of that policy. Consumer demand and preference has been created and expanded.

The success of marketing trade-marked merchandise depends very largely on the maintenance of uniform standards and high quality. We accept that responsibility and share it with our members. The moral effect of mutual obligations helps create that true spirit of cooperation so essential to our success.”

In regard to the association of which I am a director, I might add that we consider some of the outstanding features;02825

1. A raising of the average price level compared with the New York market.

Personally I believe that the cooperative marketing of eggs, as soon as it reaches an appreciable volume of the total sales, has a decidedly stabilizing effect upon the egg market.

The CHAIRMAN. I understand that Mr. Webster, scheduled on the program as the next speaker, is not here. Are there any questions which you wish to ask either Mr. Gilmour or Mr. Searles?

Our program is grouped in three groups. These two men have discussed the problems from the producer's standpoint. Now we are going to proceed to a new phase of this marketing program, and that is the interest those persons have in it after it leaves the farm.

I feel in a sense rather out of place, for this reason, that I am among a different type of men and in a different line of business than I have ever appeared before. If it were a lot of grocers I should feel perfectly at home, because I have been at that game about 40 years continuously for myself, so that during those years I have had quite a little experience. I didn't know that I was to come here until just a few days ago, and all of this is new to me. I might say that I have learned quite a good deal since I have com to Portland about this New England Council.

It has seemed to the retailer that the people generally, until the last few years, have been very slow to recognize the potentialities of our New England States, and it is with much interest that we, as an association, learned of this New England Council whose objects, as we understand, are to develop interest in New England itself and in New England products. New England is primarily an industrial area. People in our industrial plants must eat. New England also produces a large quantity of agricultural products. The quality of these products will stand comparison with any from any part of the United States. climatic and seasonal conditions taken into account. During recent years the diversification of farming in southern and eastern areas, improved methods of transportation and handling of these products, brought more of these products into our local markets. Thus the New England consumer has somewhat lost sight of the high quality products which may be produced in his own area. It is not entirely his fault. The farmer, in some cases because of intense competition from these other States, has become discouraged.

The same thing in principle has occurred with the retail grocer. Because of the inroads of large capital investment he became afraid, being the opposite effect from what it should. In both cases they should have said, “If the other fellow can do this, why not I?” We are ranked all over the country as very conservative here in New England, but when awake are equal to any emergency. The grocer in a good many cases has thrown up his hands and died, commercially, because of these other firms that I speak of, or companies. But others have applied themselves, by improved methods, studying their problems in the light of the new day, and putting that lively interest in their business that will not be said no, and are succeeding as never before. I liked what Mr. Hoover said during the last campaign, that the time must never come when the individual initiative of the farmer or business man will be destroyed. This has been the secret of our success as a nation, and this was never so displayed as during the recent campaign. The people did their own thinking.

During the past few years the retail association, that is the grocer and marketmen, both state and national, have been educating our business men. This has been done by classes in salesmanship, more economical methods of business, cleaner and better stores, quality and variety of vegetables, fresh vegetables and fruit, and so forth. It is not enough to say to the consumer, this is so, but we must know why. And here lies the crux of the whole situation. The consumer must be satisfied. The grocer must know his groceries, vegetables and fruits, and he must know that he knows. He is in a position to aid this farm marketing program by requiring so far as is possible local products, products that are brought from the nearby farmers and graded in accordance with the grading regulations set up by the various New England States. He can then with confidence display and recommend these things bearing the New England label.

The individual grocer and marketman is vitally interested in the New England States, just as much as the New England farmer is. This is his home, this is where he has his all invested. Here he raises his family, here he pays his share of the taxes, with all the community interests he supports, whether it be in philanthropy or in moral betterment. I have interviewed a number of retailers, both large, medium and small, within the past few days. And here are some of their reactions.

I find very few men who know at the present time much about the New England Council. They are very willing to cooperate, but it should be on a business basis, for they are willing, always willing to pay a better price where the better values are. Sentiment should not control. What I mean is this. Because things were produced on a certain man's farm, it does not make them valuable. But because of their quality and their market value at the time they are brought into the market they are valuable. Many a time I have seen side by side things from other sections than ours, and thw wholesaler has called my attention to these things and has asked my opinion. He said, “Will you tell me why this man here (indicating) will not take the care that this other man does?” Both, if they were looked after carefully, would be of the same quality, and yet there was a carelessness in the one and a neatness and a carefulness in the other. Quality will always command a better price, but that price must not be inflated either by the producer or by the retailer himself. It should be upon a fair basis. Each should have at least a fair return for the work put in and for the values that are there. We should like the name of the manufacturer or the producer on the goods we purchase. This helps us greatly. For a while difficulty certainly will arise, but patience and fair discussion, I believe, will bring about desirable results. We must stand or fall together.

I was reminded of this when one morning my son and his wife were talking together at the breakfast table about some things, and they were talking very earnestly together, and they never dreamed that their little fellow five years old was taking any notice. And all at once he stood up and looked up into his father's face and he said, “Daddy, we men must stand together.” Well, now, that taught quite a lesson. We must stand together. Put it must not be with the attitude we are always right, it must be because the thing of itself is right.

I was also reminded of that four years ago in California in regard to what they say about their State. I know a chauffeur that was driving a car through the streets there. At the time I was a member of our National Board of Retail Grocers, of the National Association, and we were there for our convention. He was showing us this building, and that building, and telling us what it was, and so forth. And I said, “Well, I suppose this is where the streets were torn up by the earthquake, and the rails of the car tracks were scattered here and there, and lifted up, and so forth.” He said, “We never had any earthquake in San Francisco. We don't have them here.” I said, “You are a pretty good Westernes.” “But,” he said, “I will tell you what you mean. You mean the great fire that we had.” It taught me a lesson again, although I have never been ashamed of New England wherever I have gone. I live here. I was not born here in New England. I came here from across the sea, but it is my home and I love it as dearly as any one of you. And if we have the attitude of this kind, not overstating, I don't believe in that, but it is our home and we should speak of it with respect, with confidence, and boost it wherever we can get a chance.

These things mean education, line upon line, and precept upon precept, with both farmer and the retailer. The possibilities of this Council cannot be measured for either the farmer, manufacturer or retailer. Let us remember that the consumer is the final factor with which we have to deal. We as retailers all have our interest, because this is our lievlihood, but the consumer no longer finds it is necessary simply to accept goods that we may offer him. We are finding that it is incumbent upon us to satisfy consumer demands and preferences. We are more and more interested in quality rather than in price. We are concerned that the goods that go from our stores must have four things and when I tell you that the retailers are awake as they never have been -- and I know this because our organization has been in effect now for the last 23 years, and I have never seen our retailers so much awake as they are today -- they must have four things go from their stores -- quality, right price, and also the personality and the integrity of the store from whence they came.

The CHAIRMAN. I want to express the appreciation of the Council to you for coming here and giving us these find remarks.