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Rainbow Ranche Collection

Letter to "Sirs" [J.E. McAllister and Robert Stanhope Dormer] from James Goldie, March 22, 1931 Goldie, James Mar 22, 1931

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 Okanagan Centre,  B.C.
March 22nd. 1931.
Dear Sirs   :-
I last  wrote  you on Nov.   I2th  ,  but have  since written
private letters.
1 am enclosing my annual statements  without  the Auditor's
report.     It should arrive  within a day or twofand will  be at once
sent on to  you*
These statements have  been made  out on similar lines  to
those of the  last  two  years,  and I hope  that from them you will  be
able  to get a  fair idea of the years operation.
This  is very much the worst  year in our experience.
While our expenses are slightly higer, most of  them are largely
beyond our control. .^^JBT it  is difficult  to see where our expenses
can be materialises! still  protect our assets and future  production.
Looking over the figures  it will be seen that  the selling price is
the vital  factor in the  Profit & Loss  account.
Please let me know if there  is anything
understand in the statements, or if there is
which  you would like  to have. My working papers  leading up
these final  figures  will show almost any detafcl.
you 0o
any ot&er ^formation
looking forward  to  the coming season,  we should with
a  reasonable break have a  fairly good crop.       Our greatest danger
is of course  the lack of watrev^t We have had a very remarkable
Winter. Twice  we have*Ttie  thermometefc down  to  12 degrees
of frost,  but  for most of the Winter there has  been no  frost  in
the ground. There has  been practically no snow or rain.     Never
at any time have  we had more  than,at  the most#four or five  inches
of snow in  the orchard. Outside of the  irrigated lands  the sub
soil  is  bone dry. Test holes  in the orchard show a  fair amount
of moisture, and we again propose to clean cultivate intensively
to save  this moisture. The  reports 2L4^he water in the hills
are  rather conflicting,   but as  we have^two very dry years  we  should
have  it wet  this  year if the law of average works out.
The last  two  years have given us considerable  winter injury to  the
trees,   this  year there should be none of this and  the  trees  should
be  in better condition to use what water we do get.
fe expect to  reduce wages some  what,  but  the other expenses  will  be
similar to last  year. It  was our intention to  go ahead with
building an addition to  the  packing house and  to  instal a  new grader
this  year.     We have side  tracked these  for the  time  being at least,
and will not  think of
is going  to materially
Last season the market was  in such
to hold  the  late varieties  loose.
was eventually shipped in bulk,  so
which  was  shipped as  packed  fruit.
them unless it  is  shown that speed in packing
improve our marketing conditions.
poor shape  that  it  was decided
The fruit  that  was  held loose
we actually packed all   the  fruit
However with our present
we did not and cannot  finish packing before  the danger of
O&tside of some  fluming and a  small  shafck for the men we
do not  forsee    any extaordinary expenditure  this  year.
In regard to Auditor and reorganization. I have taken
the liberty of going back to the Maclachlan firm to make the audit
this  year. On going into  the question of reorganization with
Cummins, I found that he was not at all sure of his ground, and I
could not get  proper legal advice  in the Valley. I  began to
realize  that  we  were up against a more  serious  problem thaJi it at
first appeared,  so  I  took up the question with Mr.  Maclachlan.
At  first he  thought  that  there was  something to  be gained by
reorganization,  and  I decided  that  it  would  be  better for us  to use
his  firm for the  reorganization and  to have him again audit our books
for this  year. I  did  this  feeling that  you would approve.
Maclachlan has gone into the different angles of the question and
in his last letter advises against itf unless we are prepared to
dispute any assessment which the Department might make on  the advances March 2£nd  1931.     {   2   ).
to  shareholders  prior to  1925 under Sec,   13 of the Act.       In his
judgement  tfey would certainly assess   themfif we  reorganised.
I am still  in correspondence  with himmabout  the different2 points
or reorganization and  will  write you later.
It  would seem to  be clear that  we  would have  to  lo/se our old
Charter,   which  in itself is a consideration.     We/  could gain nothing
by revaluation of our accounts  so long as  the  shareholders   remain
the same.
The question of being assessed as a   Ftemily Corporation
is  also  in doubt. I notice  that Ottawa  is considering a change
in  the act   that  would hrin% about  the  same  result.
In regard to the vmtcr question.    We have reams of
correspondence and figure in regard to pumping, but none o** them
worked out to a pine point.    Our ability to use water out of
foods lake is still in doubt,  fe hope to have some decision on this e
early this Spring.    As foods Lake is 164 feet higher than
Okanagan there is not much use proceeding with the details until
we are sure o
this point
Roughly speaking' the plant and
pipe would cost nearly $10,000.   It would cost about flO. per
acre foot and about |I4. to pump out of foods and Okanagan Lakes.
I would like to know more of the chances of getting a supply out
of the gravity system before tackling the pumping proposition.
The Power Line is now at the Centre'.  The line crosses over at the
South end of '.Yoods Lake and comes down the road past the packing
house to our house and ^rom hare goes South to the Centre.
The Power peoole intimate that if we put up a cleffineA  proposition
they would consider making a rate for us.
Markets.   I might write page^ on this question.
You no doubt have seen by the Vernon News that we have been having
a fine time out here talking over Pools and legislation.
Tho Central Soiling bill will likely go to the House, but nothing
come of it this year.   This years crop will likely be a small
one and there will be little trouble getting rid of it.
Owing to the Pooling arrangementwhich we started to work under,but
knocked over late in the season the Associated Pool will be lower
than most o^ the Indopendanta prices.
I think that the Associated
will be in better ahapa to get their share o^ the Prairie market
this year, and I hope that they will out out advertising etc. which
they have been doing for the good of the industry.  There is a good
deal o^ unrest however among the Associated members and anything
might happen.    Personally I have kept off the board this year
for personal reasons, so if we think it good buaineas to make a
change we will be fr^e  to do so.
To continue to market our fruit profitably we must regulate the
picking date, spread the shipment over as long a period as possible
by storing, maintain a standard pack, extend the export market
and advertise.   All these things could be done by on© selling
agency, but it never will be done by a lot of small inexperienced
shippers. Our trouble is that we have a small preferred
market on the Prairie. To get our stuff into it we pick before the
fruit is mature, and then proceed to cut prices or give inducements
to Dealers.    The trick is to beat the gun and not have any fruit
to carry over to supply the Winter and Spring market.
A serious factor that has to be dealt with is the line up of Jobbing
houses on the Prairie. fTwQ  house3 control about 70>£ of the trade.
J.3. McAllister
R.3. Dormer.
As the Pools close I will advise you.
Your sincerely,


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