AN INDUSTRY THAT SPRANG FROM A KETTLE A BRIEF HISTORY OF CALIFORNIA PACKING CORPORATION PR i ) COMPILED BY CHATMAN DEWOLFE COMPANY MEMBERS . SAN FRANCISCO STOCK EXCHANGE "SAN FRANCISCO CURB EXCHANGE AN INDUSTRY THAT SPRANG FROM A KETTLE AMR CALIFORNIA PACKING CORPORATION President Chairman of the Board OFFICERS Vice-President and General Manager Vice-President Vice-President . Vice-President . Vice-President . Vice-President and Treasurer Assistant Treasurer Assistant Treasurer Secretary Assistant Secretary Assistant Secretary B.D. Apamson F. B. ANDERSON G. N. ArMsBY J. K. ArmsBy R.M. BarTHOLD R. I. BenTLEY J. C. Cownin A.W. Eamss Copyright, 1928, Chapman De Wolfe Company DIRECTORS Ww. Fries S. L. GoLDpsTEIN A. G. GriFrIN C. W. GrrrrFIN W. J. Horcukiss A.M. Lester W. E. Loucks R. I. BenTLEY J. K. ArmsBY . 1. E. Woop G. N. ArmMssy R. M. BarTHOLD A. W. Eamss A. M. Lester L. A. WooLams H. L. Jones J. G. Larson . H. Z. BALbwin G. McLean I. S. ScHEFFLER C.A. Luvs F. D. Mabpison E. L. Marston V. H. Owen R.L.Prarr N. R. Tucker L.E. Woop L.A. Woorams CHAPTER 1 Origin and Growth of the Canning Industry reason for the discovery of the art of canning foods, for it was in 1795 that the French Government in an endeavor to feed Napoleon's army and navy offered a reward of twelve thousand francs to the discoverer of a method of preserving foods whereby their freshness and flavor would be retained. The discoverer, Nicholas Appert, later called the “Father of the Canning Industry,” spent ten years over his pots and kettles experimenting before he achieved success. In today’s world of exact sciences, Appert’s hit and miss methods would not be tolerated, but from them have grown the industries which assist materially in feeding the world. Paramount among these organizations is the California Packing Corporation, which last year marketed over sev- enty million dollars worth of canned and dried fruits, fish and vegetables. When it is considered that the average cost of a can of goods is less than twenty-five cents it can readily be seen the amounts of fruits and vegetables supplied by the producers and the size of the pack the Corporation handled. Aside from the large amount of goods disposed of imme- diately following the pack, it is necessary for the Corpora- tion to keep on hand at all times a varied assortment of goods to supply the year-'round demands of its customers. The consumption of foodstuffs does not have the fluctu- ating periods experienced by other businesses. Tastes shift from one product to another with seasons and localities, but the amount of food consumed each day per person does not vary to any material degree. The family may go to the coast or the mountains or rough it along the highways, but they T= Napoleon's armies might eat,” is graphically the 3 must cat and canned foods are depended upon to supply variety and needed fruits and vegetables. There is no trad- ing post so remote from civilization but that the wayfarer can obtain from it canned goods, and there is no nation, unless it lives in almost complete savagery, that does not know and welcome the use of the present day perfectly pre- pared fruits and vegetables that come from the can. To better serve the world wide demand for foods with the products of California orchards and gardens, and at the same time lessen production and distribution costs as well as assure the grower a reasonable price for his produce, the California Packing Corporation was founded in 1916. At the time of its incorporation the company had acquired the business, properties, and assets of four old and well estab- lished California concerns, the J. K. Armsby Company, Grifhin and Skelley Company, California Fruit Canners’ Association, and Central California Canneries. This far-sighted policy of consolidation has assisted in raising the standards of packing and canning, has stabilized the market for the producer, and has resulted in production economies which have materially increased the dividends of the stockholders. The acquisition of 829, of the capital stock of the Alaska Packers Association augmented the output of the Corpora- tion and at the same time placed at the disposal of the Alaska Packers Association the Corporation’s very efficient system of marketing and distribution. The Corporation also owns the Oregon Packing Com- pany, the Pacific Fish Company, and the Utah Packing Cor- poration. The fruit canning plants of the Virden Packing Company were purchased last year by the California Pack- ing Corporation, the transaction being handled through the Sterling Canning Company, which company is con- trolled by the Corporation. This year they purchased the 4 plant and equipment of the Sea Coast Packing Corporation, located at Terminal Island, Los Angeles Harbor, and re- cently the H. G. Prince & Co., with canneries located at Fruitvale and San Leandro, California. This firm is one of the oldest canning establishments in California and has for many years enjoyed a large and profitable business. It is the intention of the Corporation to carry on the business as a separate division that will operate under the name of H. G. Prince & Co. Division of the California Packing Corpora- tion. : The California Packing Corporation now owns and opet- ates seventy-eight plants for preparing and packing various fruits and vegetables; sixty-one in California, four in Ore- gon, three in Washington, one in Idaho, six in Utah, and three in the Hawaiian Islands, while the Alaska Packers Association owns fifteen fish canneries in Alaska and three on Puget Sound. In addition the Association owns a large fleet of modern steamers well fitted for work in Alaskan waters, and maintains a shipyard with shipping terminals in Alameda, California. The Corporation is the largest packer and distributor of California dried fruits and canned goods in the world, and is one of the most important factors in the Hawaiian pine- apple industry. Through one of their many ramifications, the Corpora- tion is engaged in the preparation and distribution of a di- versified list of staple non-perishable foodstuffs consisting of such dried fruits as peaches, apricots, prunes, and raisins. In the field of California canned fruits and vegetables, the California Packing Corporation’s brand Der Monte stands alone. So high has been the standard of the Der MonTE products and so well have they been distributed that goods bearing this label are to be found wherever canned goods are sold. CURRENT POSITION February 28, 19268 CURRENT ASSETS: Inventories: Merchandise . $9,989,443 .93 Materials and Supplies 2,863,852.52 Advances to Growers . Notes Receivable Accounts Receivable Cash . Total Current Assets . CURRENT LIABILITIES: Notes Payable Accounts Payable Dividends Declared Provision for Federal Taxes Total Current Liabilities $12,853,296.45 ¥,425,247.57 97,001.16 6,729,252.01I .. 0 %474,502.28 - $23,519,299.44 . $ 3,500,000.00 3,084,780.22 977,416.00 375,000.00 . $ 7,937,196.22 CHAPTER 11 Financial Condition was made by the California Packing Corporation in 1927. This increase was due largely to better methods in both the canning and merchandizing end of the business. The first quarter of 1928 has been an even more satisfactory period for the Company. Its sales are now considerably in excess of those for the same period last year. The Company has acquired additional plants at important geographical locations, and has broadened its facilities in order to be able to meet the increased demand by packing a greater variety of fruits and vegetables. These new propet- ties are beginning to operate in full co-ordination with the rest of the organization, and shortly this expansion will be reflected in increased earnings. In 1926 the Company carried over a pack valued in excess of fifteen million dollars. This carry-over was due to the heavy yield of peaches and vegetables that year. At the close of the fiscal year for 1927 the Corporation had on hand an estimated pack of under ten million dollars. This is about the normal amount of goods carried to meet the year-round demands of the jobbers and wholesalers. That the California Packing Corporation is in a very strong position financially will be readily seen from the fact that Notes Payable this year amounted to nine million dol- lars less than a year ago, and that shortly after the close of the fiscal year all Notes Payable had been liquidated in full. The Corporation during 1927 added plants whose sound replacement value is in excess of $2,500,000, but the capital assets have only been increased by $500,000 over last year. 20%, expansion in the volume of sales over that of 1926 7 The total net profit of the Company for the year ending February 28, 1928, after deducting all expenses and provis- ions for Federal income tax, was $3,439,685.35. : The California Packing Corporation with an authorized capital stock of 1,500,000 shares common stock of no par value has 977,416 shares now outstanding. The Company's assets are in the ratio of three to one to their liabilities, and they have a sound book value of $49.12 per share with a working capital of $15.94 per share. - The total value of the lands, plants, equipment, ranches, and other properties of the California Packing Corporation in 1917, one year after they were incorporated, was $7,494,- 247. The consolidated balance sheet for the year ending February 28, 1928, showed the increase in the value of these properties to be over four times the 1917 investment, the lands, buildings, machinery, equipment, and ranches now totaling $30,982,422.81. The first year of the Company's operation showed total assets of $22,528,511.00, while the total assets for the past year totaled $55,950,208.89. On May 18, 1926, the authorized capital stock was in- creased from 500,000 shares to 1,500,000 shares of no par value and on August 2, 1926, a 100%, stock dividend was paid to stockholders of record June 30, 1926. At the close of the fiscal year in February the Company had an earned sur- plus of $18,013,012.67, or more than four times the annual, dividend requirements on the outstanding common stock. CHAPTER 111 The World for a Market realize and make use of California's premier position in fruit and vegetable production. Consistently they have established their factories in the sections where the best fruits and vegetables were obtainable, as well as keep- ing a close watch on their transportation problems. In this manner they have built up a strong organization which holds a commanding position in the food packing industry of the world. The intelligent administration of the affairs of the Cali- fornia Packing Corporation has not only profited the growers, the Company, and their stockholders, but has been established as a guide by which lesser companies may chart their course. The Corporation's strict adherence to standardization has " won for them a place in the food packing industry that is practically unrivaled. This known dependable standard of quality, coupled with consistent advertising, has built up a wide following of consumers. In fact, it is safe to say that in half the homes in the United States today California Pack- «ing Corporation goods are the gage by which the housewife judges all other brands. Another incident that illustrates the far- teaching effects of the Corporation’s quality and advertising is borne out in the following incident: A California canned goods broker, who makes an eastern trip each year representing a small company, repeated the happening which took place on his last trip. He was talking with a group of fellow travelers and the conversation drifted to the occupation of each. 9 Cain Packing CorrorATION has been quick to When the broker told his business and said he was from California, instantly he was asked, “That's where DeL Mone is packed, isn’t it?” Not only has the Corporation established itself through- out the United States but its goods are to be found around the world. Sales offices are maintained in London, and the brands of the Corporation have entered the European mar- ket with the most favorable results. Douglas Miller, Assistant Commercial Attache of the United States Department of Commerce at Berlin, reported on his recent visit to San Francisco that the German people regard California fruit packers as masters of the business and that the name of California was a trademark in itself appealing to allGermans when they were buying foodstuffs. He declared that sentiment ran high in favor of American produce and that the demand for California's canned and dried fruits was steadily increasing. Dr. Julius Klein, Director of the Bureau of Foreign and Domestic Commerce of the Department of Commerce, Wash- ington, D. C., not only agreed with Mr. Miller but aug- mented his statement to include the entire continent of Europe. In a recent interview Doctor Klein made the fol- lowing statement: “I noticed in my study of foreign trade and in my various trips abroad that one of the most reliable indexes of the purchasing power of a region and of its general well being is to be found in the sale of dried fruits—and more especi- ally perhaps of prunes. This is one of the first of the semi- luxuries to be indulged in more extensively when people of a country have more money in their pockets. They have an abiding fondness for dried fruit and they gratify this desire whenever they are able. It is therefore significant that Europe since the war has been buying more and more of the delicious products of the California orchards.” JO There was a time when the marketing problem of the canning industry was a problem not of how to make the consumer to eat more food but to get him to substitute canned foods for something else. The government, perhaps unconsciously, helped solve this, for they have carried on dietary experiements and have found that the results were precisely identical when people ate canned or fresh vege- tables, all vitamines being present in both cases. A result of these investigations is that a huge outlet for canned foods has been established. The government alone will use, for the navy, over 16,200,000 pounds of canned fruits and vegetables yearly. This figure does not include any other of the United States fighting forces. Add to this large ready market the buying habits of the world and the fact that approximately 43% of every working man’s in- come goes for food and that canned fruits and vegetables rank in the twelve essentials of practically every household in North America, and it will readily be seen the field for growth and development of the California Packing Corpor- ation has scarcely been touched. “or II aa a RETURN MARIAN KOSHLAND BIOSCIENCE AND TO — NATURAL RESOURCE LIBRARY 2101 Valley Life Sciences Bldg. 642-2531 j LOAN PERIOD hi 5 MEF) - ALL BOOKS MAY BE RECALLED AFTER 7 DAYS. q DUE AS STAMPED BELOW. y .BECDOIOB | Bi 'N1=127 00 D = Pil, U6 200% | eamoWiL TREE U. C. BERKELEY - a 00 «1 00 HM VRE F TD 20S u OR 11 90 PN TT a LBW FORM NO.DD 8 UNIVERSITY OF CALIFORNIA, BERKELEY FC 24M 4-00 Berkeley, California 94720-6500 RS Ao) by Wr dL