THE COST OF A CASE OF
SALMON
In the advertisement, signed “The
Canning Industry of Alaska,” and
published on January 10th, we are
informed that the cost of a case
of salmon is as follows: “Fish 27
per cent; salt, labels and lacquer,
2 per cent; cans, 25 per cent; box
shooks, 5 per cent; cannery labor,
25 per cent; fuel anti oil, 2 per cent;
freight, 7 per cent; insurance, 4 per
cent; taxes, 3 per cent.” If you
were to add all of these figures to
gether you would find that it adds
up 100 per cent. In other words,
there is no allowance whatever for
profit. So that if Mr. Alaska Packer
is to be believed, he is operating
canneries here for the sole purpose
of keeping us employed and alive;
no allowance made for storage,
which equals 5c per case per month;
no allowance made for selling the
goods, which amounts to 5 per cent;
nor is there any allowance for the
little matter of financing a season’s
pack, which will run from 8 per
cent to 10 per cent at least.
In other words the person who
wrote the articles is a special
writer, inexperienced in this line
of business, and who has overlooked
expense items that cannot be evaded.
He was careful enough to add the
percentage of figures so that he ac
counted for 100 per cent, but how
can he escape storage, finance and
selling cost?
In the matter of taxes, the spe
cial pleader of the Alaska Packers
credits himself at 3 per cent, but
as a matter of fact the tax on the
model canner, which he seems to be
discussing, is only 10c per case
Territorial tax on reds, and 4c ad
ditional tax imposed by the Federal
Government. This makes a tax of
14c per case. The selling price be
ing $9 per case, the tax is 1 1-2 per
cent. The additional tax based on
net income is not included, for the
special pleader is not figuring any
profit.
Take the item entitled “box
shooks.” The price paid for box
shooks, f.o.b. any factory in Alaska,
is 20c per box. The special pleader
takes credit for 5 per cent, so that
a case of reds, according to his
figure, amounts to 45c. The objec
tion will be made that we are figur
ing on the basis of red salmon,
whereas the special pleader is talk
ing about pinks. Our answer is that
the special pleader should indicate
the class of salmon on which he is
figuring, otherwise the advertise
ment, which is published for the
purpose of “informing the public,”
becomes nothing more than a piece
of rank deceit. This is a fair re
quest, for the reason that there is
approximately 3,000,000 cases of
pinks packed and 2,000,00 cases of
reds. The market price of each
being $4.40 and $9.00 respectively.
We have tried to secure from the
Territorial Treasurer exact figures
on the net income of a large num
ber of canneries in Alaska. We
were refused this information. How
ever, in a law case which originated
in 1919, at which time the cannery
refused to pay the Territorial tax,
we found that as a matter of court
record that the profit of the Annette
Island Packing Company for that
year was $121,000; that the total
expenditurees were about $440,000;
that the total labor charges amount
ed to $35,000, and that their salary
account totaled $48,000. A compar
ison of the last two items is very
significant. The estimated cost of
this plant is $250,000, so that the
profit here listed amounts to almost
50 per cent. Please bear in mind
too that this was not an abnormal
year but average year with this
cannery.
The special pleader of the Canning
Industry in his figures allows noth
ing for profit.
We can only say in closing, “What
doth it profit a man if he gain the
whole world and lose his own soul.”
Regarding1 the above discussion
the Alaska Packer may say that
the percentages that enter into the
cost of a case of salmon indicate
the relation of the different items
to the total cost. For instance, the
cost of fish is listed at 27 per cent,
and hence .this 27 per cent refers
to the total cost, so that if the
total cost was $4 a case, the raw
fish would amount to $1.08.
This manner of figuring, however,
only makes the deception of the
Alaska Packe-1 all the more griev
ous, for we are id informed what
the average cost nor case is. Un
less we are informed what the cost
is as it relates to the selling price,
resident Aalskans should withhold
their tears of sympathy. For ex
ple* If the total cost only amounts
to $2 per case for pink salmon,
there would be an average profit
per case of $2.40, which would give
the canner a profit of 100 per cent
on the money used. How then can
any one feel sorry for a business
man who makes a profit of 100 per
cent ?
In the case of red salmon, where
the > filling price is $9 per case, the
profit would amount to $7, or 350
per cert. It is our opinion that
the can tiers of Alaska are still en
gaged in the old game of fooling
the public, and that even now they
are not giving us the facts, although
they allege that this is tneir sole
purpose in printing the a Ivertise
ment.
-♦
In (New York a messenger boy
has disappeared with $11,000 but
they’ll find him when that money
begins to talk.
JUNEAU BOAT OWNERS’
ASSOCIATION
The halibut fishermen and boat
owners met recently in the store of
Izzy Goldstein and formed the Ju
neau Fishermens’ and Boat-Owners’
Association. Olaf Larson was elect
ed president, Paul Jensen was named
secretary. The following1 person
were elected on the Executive Board:
Paul Jensen, of gas-boat Dixon; John
Jackson, of the Ina J.; Harry Lar
son, of the Celtic; John Lowell, of
the Fern; Olaf Winter, of the Dagny.
The alternates on this committee
are Oscar Oberg, Anton Hildre and
John Kostness. There were some
thing like forty boat owners and
fishermen present.
The sentiment of those present
was that the Juneau local buyers
have not paid a fair price for fish,
all things considered. The officers
of the Association are determined
to require the same prices at Juneau
as are being paid at Petersburg and
Wrangell, and not more than one
cent per pound under the Ketchikan
market.
The Alaska Fisherman is very
much in sympathy with the move
ment at Juneau, and sincerely hopes
that the movement will be success
ful. The one great danger is that
Izzy Goldstein will use the organi
zation for his own political ends.
Fishermen should remember that
Izzy Goldstein had a good laugh at
their expense during November, for
he sent out to the fishing grounds
all boats in which he had any inter
est, and thus deprived a large num
ber of fishermen of their right to
vote in the general election. Izzy
Goldstein well knew that the votes
on those halibut boats were Suther
land votes.
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A DEBATABLE QUESTION
The question to be debated at the
Inter-School Meet has been chosen
under the direction of the school
authorities of Alaska, of which Les
ter D. Henderson is the head. Tt
is: “Resolved—that an educational
test should be required of all voters
in national, state and territorial
elections.”
It seems the propagandist, Mr.
Henderson, slipped a cog for his
position now must be that the im
position of an educational test on
voters is a debatable question, and
that the arguments for it may or
may not be as good as the argu
ments against it—else why debate
it?
Certainly a fairminded man like
Commissioner Henderson would not
make it so that debate would turn
on the flip of the coin or the length
of the tooth-pick or the shake of
the dice—for victory