1. It is quite necessary that our producers maintain the intercoastal markets that had required many years and patient efforts to establish. These are required as a material part of their annual marketing outlet. The employment of workers in various lines and general local business activities, as well as the occupational employment and livelihood of the growers, must depend upon this. We must continue to serve our established customers located on the coastwise shipping routes, else we might lose them and if so, local producers, employees and business would suffer severely. 2. Certain consumers, among which are those of the South and certain portions of the Atlantic coastal area, who desire and depend upon our soft white wheat or the flour milled therefrom locally. In turn, those consumers ship to the Pacific ports, on the return trips of the ships that had transported our grain or flour, certain of their products or manufactured articles that are required here. If a continued lack of maritime shipping facilities should cause a disruption of this mutual benefit exchange of produce and goods, that would result doubly in a very serious upset and loss at both ends. 3. Our handling and storage facilities are geared and capacitated for taking care of one crop only at a time. Therefore, we are under pressure to dispose of each crop within each 12-month period of time. Even with some newly constructed bulk-handling and storage facilities constructed lately, mostly on the banks of the Columbia River and its tributaries, our carrying capacity is but little more than equal to the volume of an average crop, so we are under severe pressure to move out practically all of the previous year's crop before the new crop is harvested. Unless immediate and rather drastic changes in our maritime shipping facilities and accommodations shall be arranged, a very much larger than usual carry-over will remain on hand when the now-promising new crop will be upon us. If a lack of shipping facilities should continue and this should occur, our storage facilities most likely would be insufficient. There is great uneasiness over that just now. Local millers advise us that New York brokers are now warning them of the cancelation of sizable flour orders previously arranged, if intercoastal shipping should continue for very much longer to fail making the scheduled deliveries, and these contract buyers are holding back from signing any new contracts for flour from this area, because of the uncertainty of delivery at future dates. Therefore, it is of extreme urgency that the needed maritime forwarding facilities be provided at once. Usually wheat and/or flour can be worked from Pacific ports to Gulf and/or Atlantic ports when the differential of Portland market under Chicago market reaches 13 cents per bushel, but now with that differential ranging between 17 cents and 20 cents per bushel, hardly any of said business can be worked, because of the shortage or utter lack of the necessary intercoastal maritime shipping facilities. The Wheat League would urge that the Maritime Commission shall do everything within its sphere and power to promote and encourage our intercoastal maritime shipping activities at this time. Our members very much question the advisability of the disposal by sale of United States owned maritime shipping units. Especially while the present war shall continue, accompanied, as it is, by the loss to our producers of their peacetime overseas markets, we believe that Government owned maritime shipping units should be supplied to shippers upon terms that will enable them to move promptly our now stagnant maritime com merce. The failure of the usual and seasonal movement out to market of our wheat, this year, is causing considerable unemployment locally and about our coastal terminal markets, in that the handling and loading workers about our warehouses and elevators have but little to do, the railroads and/or river boats that should be transporting the grain in due season are partially idle and the water-front grain and flour handlers have less than their usual employment the while. Local banking and credit merchandizing facilities are geared for financing only one crop at a time. They must require of their patrons and customers a settlement in full once each year and, in order that this may be accomplished, it is necessary that all the producers who are financed by the banks and/or carried by local merchants should sell their current year's crop before the following year's crop matures. The very backward movement out to market of the 1939 crop is causing concern and inconvenience along these lines. Most respectfully submitted by— JAMES B. ADAMS, EXHIBIT J-1 NORTH PACIFIC GRAIN GROWERS, INC., (The) North Pacific Grain Growers, Inc., an association representing approximately 8,000 farmer members of the Pacific Northwest, hereby designates Mr. A. M. Scott as its representative by proxy at a meeting of shippers, manufacturers, millers, and producers, called for early April in San Francisco. The intercoastal movement of grain has been disastrously impeded by the increasing lack of tonnage due to diversion of vessels and outright sales of ships heretofore available. The Pacific Northwest is absolutely dependent on the usual off-shore movement as an outlet for its grain and milling products. A continuation of the existing extremely narrow distribution will definitely lead to a depressing accumulation of stocks at terminals and interior storage points, which will stagnate the oncoming harvest of the 1940 crop. This will result in very serious financial losses to farmers in this section, who are unable to market their 1939 crop, either as wheat or flour. We The distressing seriousness of this situation calls for immediate action. therefore, through Mr. A. M. Scott, subscribe our support under the sponsorship of the said meeting to the representations which it may find desirable to make to the Maritime Commission, and if necessary, to the President and Congress. NORTH PACIFIC GRAIN GROWERS, INC., A. E. SUTTON, General Manager and Treasurer. EXHIBIT J-2 CONTINENTAL GRAIN CO., Mr. PHIL THURMOND, April 6, 1940. Portland Chamber of Commerce, Portland, Oreg. DEAR PHIL: I wrote to you at some length yesterday about wheat shipments to the Atlantic coast. I went into considerably more detail than you have done in your general statement, but I am of the opinion that what you have written is sufficient and states the case quite well. Further details, such as were embodied in my letter, may give you sufficient background for use in case there is any oral discussion at the meeting. My only objection to your report is in the second paragraph of the "Wheat" section. I do not believe any volume of business could be done on an $8 rateat least, so far as sale to domestic mills is concerned. Figures in my letter showed that wheat could move to seaboard mills on a $7 rate; and I believe this is about the maximum, based on the present spread in the markets. Your statement regarding a $10 rate is entirely out of line. Wheat can move to the Atlantic coast by rail and Great Lakes and compete with a $10 rate. It seems to me ill-advised to mention such a possibility; and, in fact, the attempt should be made on the basis of the present conference rates. Yours truly, CONTINENTAL GRAIN Co., EXHIBIT K Hon. EMORY S. LAND, WHEELER-GILLIAM STOCKGROWERS ASSOCIATION, Mitchell, Oreg., April 4, 1940. Chairman, and Members of the United States Maritime Commission, Washington, D. C. GENTLEMEN: It has come to the attention of this organization that certain circumstances have brought about a reduction in the numbers of intercoastal steamships and a resulting shortage of available shipping space. This situation is having a depressing effect on the price of wool on the Pacific coast, as this commodity is dependent on cheaper water transportation to eastern markets. We respectfully request that your Commission do everything within its power to release idle ships for intercoastal shipping in order that a serious loss to wool producers in this section may be avoided. Very truly yours, PACIFIC STATEs Butter, EgG, CHEESE, AND POULTRY ASSOCIATION, STATEMENT The principal need of the poultry industry of the Pacific slope, in connection with intercoastal movement, is a reliable refrigerator boat service from the principal Pacific coast ports. This is obviously true as respects other perishable products of agriculture. A limited service was formerly maintained, but with the withdrawal of Panama Pacific and Grace Line refrigerator boats our shippers have been left with only an undependable and very limited refrigerator service. The production of eggs and poultry in the Pacific slope area has been an important and far-reaching factor in the agriculture of these States and involves probably more producers than any other part of agriculture. The accompanying charts will show what has been happening to the east-bound movement of eggs and the same is true as respects poultry. We respectfully urge then, gentlemen, that in whatever action is taken an earnest effort be made to supply an increased and dependable refrigerator service for our east-bound movement. We, of course, need considerable space for grains, supplies, and other dry freight, but without proper facilities for moving the perishables there will be a diminishing need for the other tonnage. Very truly yours, B. F. MCKIBBEN, Executive Secretary. Interstate carload shipments of eggs from Pacific Slope States, for 10-year period Above shipping mostly to eastern markets. COMMENTS Above figures speak for themselves showing persistent decrease in shipping from Pacific Slope States, the total for 1939 being 65.6 percent less than the peak year of 1931. This reflects and confirms the same story as shown in the charts indicating receipts at eastern markets. Comparative receipts of eggs at New York from typical States of origin Comparative receipts of eggs at New York from typical States of origin-Continued Comparative receipts of eggs at Chicago from typical states of origin Total receipts (cases) 33.0 Truck receipts (cases) Comparative receipts of eggs at Chicago from typical states of origin-Continued Although Chicago is not a large consumer point for Pacific slope eggs, it is a focal point for transiting, storage and distribution into territory east thereof. The following observations from this exhibit should be noted: (a) Decrease in total receipts from Pacific slope since 1931 was continuous and totals over 184,000 cases or a decrease of 86 percent. (b) Total receipts from typical Midwest States increased more than 1,000,000 cases or 27.6 percent since 1931. Increase has been consistent since 1934, but represented in truck movement. (c) Increase in truck receipts continuous since 1934, the 1939 receipts being more than double those of 1934. (d) Total receipts from all origins in 1939 were more than three-fourths of a million cases greater than in 1931 and over 13 million cases greater than in 1934, but, these increased receipts are more than absorbed by the increased truck deliveries, hence (e) Net rail receipts (difference between truck and total) actually decreased more than 279,000 cases. Truck receipts constituted 60.2 percent of total receipts in 1939 versus 48.2 percent in 1938, 37.8 percent n 1937. Truck receipts prior to 1934 not available. Government advises that all truck receipts are not reported, hence, the above would represent a minimum. CHART 6.-Comparative egg production by geographic divisions Although the final production estimates for 1939 are not yet available, the period shown (1934-38) clearly indicates the trend by geographic areas. The following should be noted: (a) All districts of the United States, excepting the Western States, have increased the production of eggs since 1934. The Western States alone show a decrease of 2.3 percent. (b) All of the Atlantic States increased their production between 13 and 14 percent showing rapid develop ment of the industry in territory nearby to the large consuming markets of the East (truck-service territory). (c) Large producing districts of the Midwest show less increase than in the Atlantic areas. This seems to be a case where the tail wags the dog-the large consumer outlets draw the production into adjacent territory-by reason of cost advantages. COMMENTS RE CHART ON PRECEDING PAGE New York has been the big consumer market for Pacific slope eggs. The showing of comparative receipts at New York is typical of other eastern markets. The following facts should be noted: (a) Receipts from Pacific slope States decreased consistently from 1931 to 1939, the decrease amounting to more than 1,500,000 cases or 66.4 percent. (b) The total receipts from Midwest States decreased slightly (12 percent) compared with 1931, but, increased consistently since 1934 (obviously with the advant of motortruck competition). Truck arrivals not available prior to 1938 but show mushroom growth in 1938 and 1939. (c) Total receipts from nearby States show heavy expansion in poultry industry in that territory. Increased receipts in 1939 versus 1931 amounted to 66% percent. Truck receipts not available prior to 1938 but show mushroom growth in 1938 and 1939. (d) Total receipts from all origins were less in 1939 than in 1931 due to heavy decrease in Pacific slope ship. ments and moderate decrease from midwest, these more than offsetting the substantial increase from nearby States. It should be noted that truck receipts amounted to over a million and one-half cases in 1939, which is an increase of nearly 443,000 cases over the previous year. (e) Net rail movement less in 1939 than in 1938 by one-third of a million cases. Truck receipts were 24.2 percent of total receipts from all origins. |