JULY 15. 1953

'

Potato Marketing Bd. Brief 0n Railway Transportation

poiiowing is the text of the brief iubmitted yesterday to the Board ,1 Transport Commissioners by sir. D. A. MacDonald, Chairman of the P. E. Island Potato Marketing Board. The brief protests against me tentative scale of certain class .,tes mentioned in the Boards order No. 80.410 dated December in, 1952. and argues that the ap- 'illC3ll0Il of those rates would cre- ',.e an intolerable hardship to the W-ato growers of this Province. rzie brief. prepared and presented si Mr MacDonald. has the ap- wwal nf the New Brunswick Po- nit) Board as well so that it con- pztuios a joint brief on behalf of

.lv,P potato grouers of the two P' M iiiccs. Hr. Chief Commissioner and

ii;-rnhers of the Board:

Hie potato industry of Prince tjdwaid Island and New Brunswick ipp:-eciates this opportunity to ap- wmr before your Board to submit, T--. news in connection wltli the wposed plan of equalized class -.1'r.s for application in Canada.

About 20.000 farmers in New Rriiiistvlck and Prince Edward Is- ,.;id grow potatoes in commercial iii-antities, and their acreage and .)I'ftduCil0Ii during the past five in; has ranged from 116,200 acres a 1 27,838,000 bushels in 1948 down ' f 76,100 acres and 16,315,000 bush- r.s ill 1952.

1' is seen from the above figures "it: the potato industry constitutes

,v of the most important seg- ll1PlllS in the economy of these "in provinces. It is an industry in -irntii every effort has been made

. produce a quality product in an :wompt to offset the costs involv- xi in getting our potatoes to the wzzicipal markets of Canada and - v United States.

spiralling Costa

Diixing the last six years the in- ii.sii'y.has been faced with spiral- iranspcrtation costs which rel- . rely have been placing us at a neat disadvantage with each in- riemcnt. In the presentation of lllls brief we wish to stress strong- !' the impact aspect of the freight znve increases that have been aiithorised in the post-war years.

- cnaanorrarowiw -

WUWAY

J ll LY AT EXHIBITION GRNDS.

.4i:'sr1Ci-zs KINSMEN CLUB

1.

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COIVABINED

WORLD'S ' NEWEST!

IlGliEll-IEIIEI-GIAIIIIEII-IIIIN III! on Ieunmo new It! nu WORLD'S GREATEST AMUSEMENT INSTITUTION

”” ' "”m ' W i CRISTIANI no AIINIC sun ,::,,,.1,,. 3?.” g.,.. I

no - ciowm - so at PICCADILLV

lo- MUSICIANS .. 50 U0 wit. ANIMALS '1 ,2 gm . tn , gw s. in III";

' HOOD IATING ugh Acygbglg, Hut NIPFOPOYAMUS in Aggy ca 'r- i"'"""- '5 at noon nos.

5000 - SEAT! - 5000

lninud aggim

lulu oruarmc WW" View i ZACCIIINNI I

31,700,000 CAPITAL Met Irlll till ll INVISTID C II m OOIOIOUS STIIIT PAIADI H130 A.M.

FIII IAI-LOON ASCINSIONI And 8000 OI. ovuluutn Drop an the Show Onond- AI EM. by In Ovid IKYLO

NICE DAILY 2&0 PM. '?”.'y'p?r'""'

PRICES: General Admission: Adults . 01.25 Children .. 600 Reserve Seats: Afternoon . .. 750 Night . 51.25

Above Prices include Tax

nrsnnvn AND ADMISSION

TICKETS ON SALE cmcvs nay AT

HUGHES DRUG STORE iso QUEEN sr.

- pita industry any relief.

is-As..a:.M We are doing so to point up our position that if the proposed plan of freight rate equalization 11 801118 to result in further freight rate increases and thus further enburden our industry, we wish it to be definitely known that we are opposed to any such action. The Board well remembers that during the last several years we have ap- peared before it on several occasions in protestation against increases that we felt would greatly ag- gravate our position detrimentaily.

In December. 1951. a submission was made on behalf of the Po- tato industry of Prince Edward Is- land and New Brunswick, to the Board of Transport Commis- sioners regarding the impact of lrelkht. rate increases effected and proposed at that time.

Position Outlined

in that submission the position of the industry during several pre- ceding years was outlined and it was alleged that the Maritime Po- tato Industry could not stand the impact of any further rate in- creases. In fact, it was suggest- ed that a maximum rate of 50c per 100 pounds to the Toronto area. might be considered the limit under which the industry could be maintained.

In a judgment and order of the Board dated January 25th, 1952, those representations were recog- nized to the extent that potatoes were exemped from the additional increase granted. In fact. when the judgment stated in its con- cluding reference on potatoes, ”therefore we would allow no further. increase on this com- m0dity,y' the industry hoped that this might be interpreted to mean that the purport of this decision would include further increases as well. Such has not been the case. and while we are grateful for the concession granted on that occas- ion it is to be regretted that furth- er increases since that time have placed the Maritime Potato In- dustry in a worse position than ever.

The Board also stated in its Judgment that it is under obliga- tion to see that the rate structure on any product shall be such that it "may freely move." We fear that an industry which had tu curtail its production under the rate structure charged some years ago cannot hope to survive when the cumulative effect of rate in- creases since 1948 roaches A total of 39 per cent.

Would Warrant Appeal

It has been stated by the Board on at least one occasion that at-iv branch of industry which feels that it cannot carry existing rate changes should make representa- tion: to the carriers and endeavor to obtain more favorable rates. It was also indicated that failure to obtain such consideration would warrant a direct appeal to the Board.

We believe the Railways were also advised at that time to watch continuously just how different branches of industry were able to carry existing rates. on several occasions since that time we have formally advised railway authori- ties that we would be prepared to render any assistance in such an investigation.

Early last March we advised the Railway Association of Canada that market levels for potatoes were becoming very low and this condition was being aggravated by the increased freight rates which had become effective.

We pointed out the fact that most of railway potato freight revenue originates in Prince Ed- ward Island and New Brunswick, and it is well known that in most other parts of Canada local sup-

lies are largely moved by truck.

e suggest that it would seem to be in the best interests of all concerned if potato rates were kept. at the lowest possible level. A month later we received an acknow- ledgement saying that it would be extremely difficult for the Railways in exempt voluntarily potatoes from any general authorized in- crease in freight rates. '

These facts clearly indicate that the railways, on their own volition, iugnot, prepared to offer our po- The im- pact of the increases still remains and unless we can find ways and means to cut our transportation costs rather than shoulder further increases we will be in a serious plight.

In contrast with several previous years the price level of potatoes has beeh high from November 1951-February i953. This was caused by some unusual factors such ;.5 a very poor growing season during 1951 and a decrease in acreage caused by the WW PI'lC0'l that prevailed for the crop years l04d-1049-1950.

Decline of Potatoes

However, since last February when the supply position in re- lationship to the consumer demand became relatively normal again. market levels rapidly declined and our industry for the past four months has again assumed the position where producers are not able to obtain production costs from the sale of their crop. In fact it now costs far more to move 100 pounds of potatoes from the Marltlmes to Montreal and Toronto than producers are re- ceiving for growing and packaging the product.

Our shipping record.s indicate that the movement by rail from Prince Edward Island declined from 8.835 cars in 1946. 8,038 in 1947. 7,893 in 1948. and 8.950 in 190, to 6,712 in last) and approximate- ly 4.680 in 1951. Those figures would indicate that even with the increased rates prevailing during 1950 and 1951 railway earnings from the movement of this product have not been equal to what they were ill the three preceding years. Any increase shown for 1962 will be at- tributed to our unusually high yields of last year as acreage for the past several years has been only about 80 per cent to 70 per cent of former levels.

The Prince Edward Island or New Brunswick farmers. to mar- ket their potatoes in Ontario have to move them from the farm to the railway station by local truck and at the station is an agent to assemble shipments in carloads as required. Then this carload has

to be sold by a shipper at this

Tl-IEgG:UARDIAN. CHARDOTTETOWN '

ed fur Refrigerator Car Se;".'icc5.

We believe that carriers are under an obligation to provide ade- quate and proper facilities to transport any ordinary product and believe that this principal is generally recognized. Surely if rail- way companies can supply coal can to move coal and stock car: to move livestock. without any ex- tra charge, they should supply re- frigerator cars to move potatoes and other vegetables in a similar man- ner. Furthcrinbre, other perish- able products such as fruits, meats, etc.. are not Subject in ii similar charge,

The Eastern United States Rail- ways were required by the Inter- state Commerce Commission to eliminate refrigerator car charges several years ago. The rating on potatoes in the Eastern United States is very low. The Canadlnii railways followed the ac'ion order- ed by the Interstate Cummvice Commission on Maritime shipments to United States destiiiiitioiis. As I result when an Island shipper sends a car to Buffalo there isnt any charge but when he ships vol Niagara Falls for example he must pay the amount of sf-197.

Unfair Nuisance Charge

We submit therefore time has come whet

that the this unwar-

should no longer be allowed to remain as a further liliidraiic? to vegetable shippers. Tins rciii:cr- ator charge aspect is tciiiz bmuglit to the Board's attention now pri-i

point, through a broker to a con- P ' ” suming outlet such as a chain store. 4.

wholesaler. etc.. and it takes ap- proximately ten days from time negotiations start and the sale is made. until the car is de- livered in Toronto. The approxi- mate cost of those services is as fol- lows per 100 pounds:

Farm to car truckage .10 Assembling and loading costs

at station

Freight to Toronto Refer Car Charges Brokerage Heat-November-April

l.02 For the same services Ontario charges would be about 25c per 100 pounds.

Ontario Farmer Favored

The Ontario potato farmer who has a truckload of potatoes ready for market notifies his dealer that such is ready and the dealer makes the sale by telephone. sends his truck at the time required and de-

livers practically from the farmers

storage to the wholesaler or dis- tributing warehouse. The time be- tween the commencement of ne- gotiations and delivery of the goods is normally 24-36 hours. This difference in time and costs can easily force the Maritime grower out of the Canadian market ex- cept when adversc weather con- ditions leave the province of On- tario short of potatoes.

Our cost of distribution has risen to the extent that the principal

growers and shippers feel that it

will not be long before the Ontario farmer will produce potatoes in sufficient quantities to practically cut us out of that market. except for the small trade that will pay a premium in excess of 75c per 100 pounds for Maritime potatoes.

During the period 1933-1937 be- fore the threat of war developed, potatoes were moved in quantity by water from Prince Edward Is- land ports to Montreal, during the months of October, November and early December. and the month of May. by Associated Shippers, Inc-., Simmons dz Macfarlane, Canada Packers Limited. Potato Orowers' Association. Steamship lines are now making inquiries and offers to the trade' for re-establishing ser- vices to ports along the St. Law- rence-Grreat Lakes waterway at laid down charges lower than rail.

There is also a definite trend towards increased potato move- ment and distribution by truck. It is easy to foresee that with the further development of modern highway facilities an even great- er volume will be diverted to this type of service. In fact already the major part of fertilizer used in our two provinces is shipped in this manner.

Bigger Market Home

An impression has been evident in other parts of Canada that our chief potato markets are outside this country altogether but while it is true that we ship substantial quantities of seed and some table- stock to southern United States and other markets. we have al- ways hurt to depend on the larger centres of population in our own country to absorb the major part of our production, for while we have favorable water freight rates to those export markets, and such rates have dropped substantially in recent years. the tariffs and quotas which we have to contend with are similar in effect to the prevailing freight rate structure within flllli own country.

Another matter which has caus- ed a great amount of dissatisfac- tion among Maritime Potato Ship- pers is the special charge impos-

IIORNE MOTORSQ. ,

CHEVROLET . ososuoauz solve an it-rvic-'

the

Everyone knows that cleplianisl are intelligent animals. and they fact that they perform better for women than the)" fl” Till "ll-"ll-i proves it beyoncl n cloubt And”. when one looks at the girls who present the huge bcasm ill the rings of the Kim: Bros. and Cris-, tiani Combined Circus. Cflllllllz to; Cliarlottctonn. July 20 for after- noon and night pei'foi'iii:1iiccs uii-y tier the auspices of the Kinsmen Club at Exhibition Park. iherel just can't be any argument abauil it for the girls are very atiractivc and they know their job.

Jane King, pictured here illllll "Bess". is a girl who knoiis cic- phants. Size can make them rlnj their stuff and like it, - and. like her too, and you'll iigrcc after you see her in the center ring as slici

puts thcm through their paces , A prior glimpse of the liuzcl lumbering beasts will be given,

circus fans when the sper.tnciilar.l old-time circus street parade is presented downthwii at 1130 show

day morning. It is the only Cllf-L cus parade in America. Bands. I calliopes. moiintrti cirrus stars.

clowns. floats. tong-as. allcrznrit-all units and all the lradlilnllal thrills seen in the circus parades ycnrs.

Tlu Soldier Afrprmliu it Iauglvl

gr! almig it ill: r)IlI('U. .43 a mldirr lvl learn: to rnl If" H5 urmpmn and lo min-rlv rmmllr. Uni of Ibo (raining nnergu yyyidg in puxrawl nrmmpllylrmml and in bi: writ.

marily to point out that in addi- tion to freight rates there are oth- er rail transportation costs which accentuate our problem in reach- ing Canadian markets. It is not intended to be a formal complaint at this time in that it is hoped that railways will as soon as pos- sible review this matter and under- take to remove this unwarranted surcharge for equipment.

So much for the impact of the freight rate increases which have been applied to date.

The potato industry has studied the Board's Order No. 80410 and while it appears that there exists

is possibility of some reductions in

freight rates on potatoes from New Brunswick and Prince Edward 13- land origins to destinations in Quebec and parts of Ontario. a great deal in this connection dc- pends upon what scale of rates eientually evolves from the Board's plan of equalization and whether or not in the final analysis reduc- tions would actually result. Moi'eovergit lS bclievrd that nixmy of the materials used in the production and marketing of po- tatoes. such as. machinery. insecti- rides, fungicides. some types of fertilizer, packages. bags. ctc., mnst oi iilllch are brought from areas west of Levis and Diamond Junc- tion. will carry additional freight charges and thereby further lil- crease our already high growing

ranted and unfair nuisance charge nC05l5-

Muve At Commodity Rate

At the present time potatoes inovc on commodity rates to cer-

ago. will wind its way through the downtown streets.

More than 600 people C0mPl'l5P the personnel of the big show this season with literally scores of internationally known stars and features, headed as they are by the renowned Crlatiani Fannly oi bareback riding marvels, with Liicio. conceded the greatest rid- ing camcdirm in all circus history.

Other headliners will include the Hcrmanos Rodrys. high trapeze sensation: the Caroll Troupe, high- pcrch thrillers; Hugo Zacchiiii. the man who is shot from a giant can- ncn: the Cambera Troupe. acro- bats from Australia: James Millet. suicidal aerial star; the Freddy Canestrelli Troupe, uiisupllcllifdc lridder marvels, and many others of equal note from among the 150 stars and periorincrs listed on this year's mighty program.

The performances starting at Z and 8 pm. open with a magnifi- cont spectacle. "Persia" in which inassrs of people and hordes of animals take part. and for thc con- vonicnce of circus patrons. a down- town ticket. office will be in opera- tion show day at the Hughes Drug Store at I50 Queen strcct.

In Inn! all" himself and la

tain points) for example. Montreal and Ottawa. whereas to stations in Ontario west of Kingston the rates are basically the 8th class rates although published in a com- modity rate tariff. Since the Board's Order No. 78164, dated January 25. 1952, it would appear that the hold-down on potatoes- that is, 12 per cent increase in- stead of 17 per cent.-has placed this commodity more in the cate- gory of a commodity rate than a class rate. The question arises, therefore, whether or not the rates on potatoes are involved in this particular phase of the Board's equalization hearing. It is our un- derstanding that where any com- modity rate is related directly to I. class rate it is involved. For ex- ample, it could well be that a re- duction in the 8th class rate from the Mnritimes to a point in Que- bec nl' Ontario emerging from equaliaiion would place this rate Oll a lower basis than the coni- modity rate. What we do not know at the present time is that in the event the proposed class rates fail to hold up the railways rev- enue ill the region where increases are proposed. in. Central Canada,

will this result in further demands for freight rate increases which in application would be added to the increases whicr we have already incurred during the last six years?

Difficult To Apply

The potato industry of Prince Edward Island and New Brunswick, therefore. is much concerned over what will happen to our potato traffic to the Central Canadian markets if freight rate equaliza- tion is implemented. This theory of freight rate equalization may appear to be very laudable but we submit will be one most difficult to apply in the light of the freight rate structure which has evolved throughout the years. The potato industry of Prince Edward Island and New Brunswick must, in its own interests, strenuously oppose any plan of freight rate equaliza- tion which would render more diffi- cult our efforts to obtain entry into the markets of Canada.

We know by reason of their re- corded words that the men who de- signed the Federation of Canadian provinces believed they were build- ing the framework of a country

PAGE SEVEN

wherein all parts would enjoy an equality of economic opportunity and 1 common standard of exist- ence. Unfortunately trade barriers which were broken down by the Confederation Pact have been re- placed by a freight rate structure which just as effectively tends to strangle our very existence. Only bold and decisive action can correct this situation and give the potato farmers of New Brunswick and Prince Edward Island the oppor- tunity to obtain fair access to the markets of Central Canada. Respectfully submitted,

Prince Edward Island Potato Marketing Board: Donald A. Mac- Donald. Chairman.

New Brunswick Potato Marketing Board: A. M. Pugh. Chairman.

SEEK INDUSTRIES H73

HAVERHILL, England (OP) - Officlals are circulating pamphlets to industrialists to attract more industries to this Suffolk town. Haverhill's population will be more than doubled in a plan to mow 10.000 Londoners as a ”population overspill" measure.

OUT OUR WAY By J. R. William: -mus FIRST VET-i-AN' WE KEEP IT ones A , OLD RANGE AN' SENTlMENT.' THl5N I5 "x CEMETERY. A CaOV'MENT TEST PLOT. I, x-x EH 2 THINK--TO see HOW FEED LL

jlix kn.