We
cant dispose of our own crop in a democracy!
Okanagan Fruit Growers and the Challenges of a
Single Desk Marketing System
The
1958 Report of the Royal Commission on the Tree-Fruit Industry
of British Columbia began with a sobering statement from an Okanagan
grower:
Fundamentally,
there is only one reason why we growers want a Royal Commission,
and that is the indisputable fact that in the midst of a
booming economy, we are not afraid to admit that we are
going broke. 1
The 1940s
had been the golden era of the fruit industry in British Columbia,
when being one of the over 3,600 registered fruit growers meant
enjoying a relative level of prosperity. This affluence, however,
had been brought about by an industry that had operated through
the depths of financial turmoil, had survived production crises,
and that had ultimately prospered within a rigidly structured hierarchy.
The central selling agency - the cornerstone of the British Columbia
Fruit Growers Associations (BCFGA) broad based policy
to do everything to protect and further the interests of the
growers in all matters directly connected with the production and
marketing of their produce2
- was, moreover, the key to the viability of the Okanagan. Only
a generation earlier the industry had been struggling to survive,
and the growers had turned to the alternative of government control
over marketing in order to survive. It was believed that legislation
would ensure fairer treatment, as a single-desk and
orderly marketing would check unnecessary and cutthroat
competition amongst local growers while directing the flow of produce
to markets in quantities that would avoid unnecessary gluts. It
must be kept in mind, however, that the single-desk was never an
attempt to circumvent the law of supply and demand, to institute
a monopoly, or to establish artificial price levels. Growers had
always had to contend with supplies from other producing regions
on the continent, and to do so with only a minimum of tariff protection.
As well, the flawed settlement philosophy of the Valley, wherein
many growers had been left on land of only marginal capacity, only
compounded the situation of the Valley's growers. The single-desk
offered, on the other hand, growers the possibility of uniting their
economic power within institutional and corporate structures which
would provide stability for the orchard unit and give them, as a
whole, most of the benefits of the modern agricultural corporation.3
By the
end of the 1940s, the restrictions of the War (and post-War) economy
had done much to bolster the single-desk system, as a lack of competition
from imports created a false economy for Okanagan fruit within Canada.
Unfortunately, as the decade came to a close the industry would
be faced with a series of challenges in production and marketing
that had not been seen since the growers strike of the early
1930s. The federal government's removal of restrictions on imports
in 1949 occurred as currency restrictions still prevented sales
to offshore markets, as freight rates to Eastern Canada nearly doubled,
and as production increased by more than a million boxes over 1948.4
To compound the situation, the Valley experienced two
significant freezes in quick succession in 1950 and 1955 that caused
substantial damage to fruit trees. As growers saw their returns
reduced, in some case by as much as fifty percent, there emerged
a growing unrest within the Valley. In addition to the broader calls
for reform that began to be voiced after 1953, there also operated
a small dissident group of growers who had never come to terms with
the illiberal restrictions of central selling. These individuals
would attempt to exploit the wider current of dissatisfaction among
Okanagan growers to push for a relaxation of central selling. The
way in which the industry leadership responded to the challenges
and allegations of these dissidents held the potential to determine
the ultimate fate of the single-desk system, along with the future
viability of the entire orchard landscape within the Okanagan Valley.
The appointment
of Earle Douglas MacPhee, Dean of the Faculty of Commerce at UBC,
to head a provincial Royal Commission in December of 1956 had removed
a tremendous amount of pressure from an industry leadership that
had been under fire for the previous six months. The perceived inaction
of the BCFGA Executive in the face of a mounting economic crisis,
and its open disdain for a Royal Commission, had spurred the formation
of a Ginger Group within the Penticton Local that October. These
reformers wanted a comprehensive, industry-wide investigation, and
set about to convince the 30 Locals that comprised the BCFGA to
adopt their resolution during the delegate selection process that
Fall. Their resolution stated that the plight of growers was such
that the Executive must immediately request an inquiry. As Locals
from all over the Valley endorsed the motion, the Ginger Group gained
in stature as a representative force within the industry, albeit
an unelected one. This made the 1957 Convention a highly anticipated
affair, as there promised to be a clash between the reformers and
the more conservative, incumbent Executive for control of the BCFGA.
What the Ginger Group had misjudged, however, was the depth of their
support amongst growers, as their calls for a Royal Commission was
what had solidified their power base. When the provincial government
consented to the demand for a Royal Commission, the Ginger Group,
having attained its primary goal, had effectively run its course
as an agent for change within the industry. Not wishing to inflict
any major upheavals upon their own organization during an investigation,
delegates at the Convention soundly rejected all resolutions aimed
at ousting the current leadership. Though the Ginger Group would
still be heard from on occasion over the next few years, they would
never wield the influence they had had in encouraging the province
to appoint a Royal Commission.
Although
the Ginger Group had been comprised of reformers who attempted to
work within the existing industry framework, there also existed
a small minority of growers who had never accepted the restrictions
of central selling and the single-desk. In the early history of
the fruit industry, they were ardent individualists who had practical
experience marketing their produce and preferred to rely on their
own initiative instead of any collective action. Since the implementation
of B.C. Tree Fruits as the sole selling agent in 1939, however,
the composition of this small, but vocal minority of growers had
been changing. An influx of immigration during and after the War
had brought people into the Valley who were unaware of the industrys
history, and who had a difficult time accepting the bounds of central
selling within a democratic country such as Canada. While not all
emigrants to the Valley were opposed to the system, those that were
compromised a sizable enough group that in the years leading up
to the Royal Commission they had been the targets of an unsuccessful
organizing drive by a group known as the Farmers Union. It had come
out during the Royal Commission that the Farmers Union had conducted
its meetings in the Valley largely on the basis of language, appealing
to the non-English segment, with the objective of rallying them
into a group by themselves.5
One of their leading organizers within the Okanagan was an Oliver
grower named Alfred Beich.
As an individual,
Beich is significant for two reasons in particular. The first is
that he was the lead organizer of the dissidents during this period,
so his views are of some consequence. The second is that it was
his actions that prompted the Royal Commissioner to conduct a series
of private hearings to determine what exactly the dissidents were
trying to accomplish. To read the records of the Royal Commission
on the Tree-Fruit Industry, one must wade through twenty-two boxes
and literally hundreds of files at the Provincial Archives of British
Columbia. The subject matter ranges from the mundane to the very
useful, but the files dealing specifically with Beich are perhaps
the most interesting. It is in these papers that one is presented
with some very candid views from a significant cross-section of
growers, and in which personalities come to play as great a role
as competing philosophies concerning co-operative marketing. The
transcripts of these meetings, at one time confidential, form the
basis of this article and shed light on a period of great soul searching
within the Okanagan fruit industry.
As a grower,
Beich had a long history of agitation and involvement in the Oliver
area, and the industry leadership knew that he had been illegally
peddling fruit to the Coast. Two weeks after the 1958 Convention,
the Oliver Local met to present its report of the proceedings to
the membership, and this meeting was subsequently related to the
Royal Commission in a private hearing. A relatively routine gathering,
it was to be punctuated by what the Locals President called
a rather amusing incident.6
A letter written by Beich to the Local was read aloud wherein he
indicated that he was resigning from the Local and that the BCFGA
would no longer be representing him.7
This was, of course, almost impossible under the structure of the
industry and the nature of the three-party contract, but Beich was
making a principled stand. The response, according to Gordie Wight,
an Oliver grower in attendance that night, was a loud cheer from
the crowd upon word of the resignation.8
Beichs maverick status within the BCFGA, and involvement with
the Farmers Union had not won him many followers among those who
supported the current marketing system.
Recent events
within the industry, however, had been bolstering the resolve of
dissidents like Beich who were determined to test the strength of
the BCFGA. A delay in the proceedings of the Royal Commission the
previous year had been interpreted by the dissidents as a sign that
there was truly something amiss with the marketing system, and that
an opportunity to have the shackles of compulsory cooperation removed
had arrived. These dissidents began a preliminary campaign of spreading
falsehoods and rumours to aggravate discontent among growers. It
was related to the Royal Commission, during the course of another
private hearing, that the appointment of the Commissioner's assistant
to the post of Provincial Horticulturalist, the appointment of the
Manager of B.C. Tree Fruits to a separate Royal Commission on Education,
and the resignation of an Executive in the BCFGA had all been interpreted
as signs of a sinking ship. This type of conjecture on the part
of the dissidents was a key to their efforts to mobilize support
for their position, relying on circumstance and grower discontent
rather than fact.
The first
direct challenge to the BCFGA and central selling came with word
that the previously unheard of Canadian Fruit Growers Association
had formed a Local in Salmon Arm. The fact that the CFGA first emerged
in the north was not surprising, as that end of the Valley had been
hit hard by the 1955 freeze. As A.G. DesBrisay testified in a private
hearing: the Salmon Arm Local had no tonnage, their packing
costs were as high as $1.95 when a box of apples was selling for
around $2.00 and, simply put, their position was impossible and
they were lashing out.9
News of this first CFGA Local received only sporadic coverage throughout
the Valley. The Oliver Chronicle, whose readers where the most familiar
with Beich, ran an article that week detailing the motivations for
the creation of the organization. It was pointed out by the editorial
board that if the CFGA sought to compete with the BCFGA as an equal,
it was fighting an uphill battle because the BCFGA held a preferred
position under the Natural Products Marketing Act.10
The reception that the CFGA received in the Kootenays, however,
was altogether different. Growers in the Creston area had endured
a particularly rough period since the single-desk had been introduced
in 1939 as the new marketing system had come to be dominated by
Okanagan growers. As a result, the pooling returns were based on
the lower Okanagan costs of production, and Kootenay growers could
not economically exist under the regime.11
By 1958 these growers had become a fertile group for dissent and
outright rebellion on the single-desk. The vast majority of the
members whose support Beich claimed to have would be found around
the Creston area, as these growers' failure to attain a division
of marketing on geographic lines from the Fruit Board was leading
them to embrace the CFGA, even if this moved entailed a policy split
with Okanagan growers.12
In dealing
with the Salmon Arm Local of the CFGA, the industry leadership in
Kelowna called in the three to four members that comprised the group
to discuss their position. In relating the meeting to Dean MacPhee,
the President of the BCFGA, Arthur Garrish, conceded that he could
sympathize with their position. Many had bought their orchards after
the War when things were rosy at Salmon Arm and elsewhere.13
In the fallout from the 1949-50 freeze, many of these people had
found it heavy going, and this was the inevitable reaction.14
Despite the deceptively reformist approach of Beichs platform
with the CFGA control from the grassroots, elections on a
regional basis by mail ballot, and open accounts of tree fruit industry
officials15 it was
made clear to the rouge Local that the ultimate purpose of their
new Association was the removal of the single-desk system. In short
order, the Salmon Arm group announced that they had not realized
what they were getting themselves into with the CFGA, and opted
to fold after only two weeks in existence. Beich, in typical fashion,
responded through the media that B.C. Tree Fruits had worked out
some secret deal with the group. Nevertheless, his CFGA appeared
to be on the verge of collapse. The only person that still seemed
to be taking note was Dean MacPhee, who felt duty bound to meet
with the CFGA in light of its claims to represent 300 growers.
Of great concern
to MacPhee, however, was the possibility that his investigation
might lend undue credibility to the CFGA. He was unsure if they
were only
a
little dissident group who are always going to arise in
any situation and to whom one does not give an opportunity
for public appearance.16
If they
were indeed a group that represented a significant percentage of
the grower population, however, they were entitled to a public hearing.17
In an attempt to resolve this problem, the Dean met privately with
the Executive of the BCFGA and leaders of the Penticton Ginger Group.
Both the President of the BCFGA, Arthur Garrish, and the President
of B.C. Tree Fruits, Gordie Wight, were Oliver growers who had had
a long history of confrontation with Beich at the local level, and
both men were completely dismissive of Beich and his abilities to
organize a credible challenge to the BCFGA. When asked if he thought
any responsible growers were joining the CFGA, Wight responded:
I
think most of them rather laugh about it when you ask them
what they are going to do
Of course in our area
most people know Beich so that to some extent eliminates
his factor.18
To which
Garrish commented:
I
may treat these things too lightly because weve had
to live with Beich so long that weve developed sort
of a defence mechanism were you just take Beich as he comes.19
Both
men were of the opinion that with the collapse of the Salmon Arm
Local, the CFGA had been effectively broken. Wight further questioned
Beichs claims to have the support of 75 growers in the Oliver-Osoyoss
area, believing the number to be closer to two.20
To the question of whether the Royal Commission should worry about
making the CFGA a more credible organization than it might otherwise
be through a public hearing, Garrish equated Beichs current
agitation with the CFGA to his activity in the Farmers Union:
I
said to them then that Beich could kill the Farmers Union
far more effectively than I ever could, and I proposed to
leave it to him to do it. As far as Im concerned,
hes the kiss of death for any organization.21
A.G.
DesBrisay, a Governor on the Fruit Board and past President of the
BCFG from the Penticton area, admitted that he was not as familiar
with Beich as Garrish and Wight, but knew of him through reports
to the Board that he had been bootlegging fruit to the Coast.22
Although DesBrisay admitted that he didnt understand
the mans type of mentality23
, he disagreed with both Wight and Garrishs assessment of
the CFGA. While he did not feel a public hearing was warranted,
he did recommend to the Dean that Beich be questioned in a private
meeting as to exactly what it was he was doing. DesBraisays
further added that Beich was
a
man who wants to be elected to office and he cant
make his neighbours elect him so he is seeking another method
of trying to get a position of power within the industry.24
DesBrisay
was of the opinion that if Beich felt that the Commission was listening
to his views, it was possible that a lot of wind would be taken
out of the CFGAs sails.
The
Penticton Ginger Group were the only ones who felt that the CFGA
constituted a real threat to the industry which was due in
large part to the overlapping constituencies that both groups appealed
to. Herb Corbishley, the de facto leader of the Penticton group,
was especially concerned over Beichs manipulation of the language
division amongst growers. He felt that the CFGA was attempting to
pick up where the Farmers Union had left off by claiming there was
an organized clique of growers holding power over the BCFGA, while
the foreign element was being marginalized.25
Of course, it had been the Ginger Groups main argument that
the Executive had become complacent and were not doing enough for
growers. As Corbishley testified:
This
may not be in line with a lot of growers thinkings,
but there are a lot that have lost confidence in Mr. Garrish,
mainly because of his overbearing attitude and open opposition
to the growers requests
Hes a very capable
Chairman, but where we differ is that hes not down
to the farmers level. He used to be but now hes
above it. Hes getting arrogant.26
He also
pointed out that he believed the main appeal of the CFGA to so many
growers was, again, internal industry problems. The United Co-op
packinghouse in Penticton, for instance, had misread their crop
and paid out too much to their growers. Both Corbishley and Garrish
agreed in separate meetings with the Commissioner that this blunder
was due to internal problems at the packinghouse, and, in talking
with MacPhee, Garrish hypothesized the following:
I
heard a very interesting comment from one of the packinghouse
fraternity on that particular activity. It is true that
they have a basis for what they did. Bill Darrough is a
very cautious, conservative soul, and he felt that it was
his duty to see that packinghouses protected their position,
and like most of these conservative Scotsmen, he leaned
over backwards to do it, and this particular packinghouse,
which was unnamed in the early stages, apparently took full
advantage of that item and passed it on. But one of their
fraternity right here in Penticton discussing it with another
packinghouse manager was at a loss to understand why they
had done such a thing deliberately as he put it
but came up with this solution. I think it is very intriguing.
They had made such a mess of their Bartlett pear deal and
were so far below their competitors that it was practically
essential to throw up some sort of smoke screen. They had
just closed their Bartlett pear pool and they were running
about 25¢ a box behind their competitors. They had
run very heavily into a local maturity situation and of
course they couldnt handle their pears properly and
they took the rap in the pool, and from the standpoint of
their own internal policy it was essential that they obscure
that, so this provided the opportunity.27
To compensate, they announced that it was going to be a poor crop
year in the hopes of getting their growers conditioned to either
no returns, or even potential red ink.28
Since this forecast had come out so early in the season, it became
the yardstick against which all other growers in the Valley began
to determine what their returns for the year might be. The discontent
this spawned was precisely what the Ginger Group feared Beich and
his followers might tap into.
Based
on this advice, the Royal Commissioner ultimately decided to hold
a private meeting with the CFGA in June to find out what they were
advocating and telling growers. The intervening months had been
anti-climactic, as Beich continued to hold meetings, mostly for
the benefit of the press, in the Creston area where he would savage
the BCFGA and make his case for authorized peddling. When MacPhee
finally met with the dissidents, it would prove to be the only meeting
between the two sides. Under questioning, Beich revealed that not
only was the CFGA an unincorporated Association, whose very name
was in doubt, but that they were operating without a Constitution
or By-laws.29 The CFGA was
turning out to be nothing more than a shell that Beich and other
dissidents were using to push their political agenda. In all likelihood,
if these individuals achieved the ends they sought, it was quite
likely that the CFGA would cease to exist even in name. MacPhee,
therefore, attempted to establish what exactly what the CFGA hoped
to achieve, to which Beich replied that one day it would operate
as an alternative to the BCFGA within existing industry structures.
The dissidents simply envisioned a two-party political system whereby
the two Associations would compete for control of the Fruit Board
and B.C. Tree Fruits. The merits of this proposal where at best
dubious, as central selling could never survive the different policy
objectives of two separate, and opposing Associations. Once orderly
marketing was dismantled to accommodate the CFGAs desire to
sell to anyone that would buy30,
it could not be easily re-instituted again. There would be no turning
back if the CFGA ever achieved any form of power within the industry,
so MacPhee tried to determine where the CFGA stood on the issue
of central selling. Of the half dozen growers representing the CFGA
that day, only one claimed outright not to support the concept,
as even Beich claimed that he supported it in theory. In light of
this seeming contradiction, MacPhee asked if any of them had ever
done any marketing of their own? Apart from admissions of illegal
bootlegging to the Coast, not a single person testified that they
had ever done any commercial marketing, and not one of them had
been growing in the Valley before 1940. This was the new vanguard
of growers opposed to central selling seated before the Commission
that day; they were, as a group, unaware of the industrys
history, and were being guided by individual opportunism. They did
not realize, or accept, that the prices they received from bootlegging
bore a direct correlation with presence of the orderly marketing
system, a system they did not understand. If the BCFGA had not been
actively regulating the flow of produce to markets on the Coast,
it is unlikely that bootlegging would have been as profitable as
it was.
The remainder
of the hearing consisted of MacPhee querying the dissidents on how
they proposed to dispose of the six million boxes of apples the
Okanagan produced annually? To each question the Dean posed, the
dissidents allowed themselves to be caught in an inconsistency with
their platform. Their inability to comprehend the costs and challenges
of erecting a marketing structure coloured the rest of the hearing.
From offering discounts to wholesale purchasers to constructing
branch warehouses, MacPhee challenged all of the dissidents
assumptions. By the end, the Dean made it clear to those assembled
before him that he expected them to make it abundantly clear to
growers exactly what it was they were proposing and the exact costs
involved.
When the
final Report was presented to the provincial government that November,
MacPhee came down strongly in favour of the industry leadership,
and the Canadian Fruit Growers Association was finished. The
Dean commented that what he saw in the fruit industry were aggressive
and progressive organizations, with no evidence of wasting or extravagance.31
The BCFGA, which MacPhee believed had borne the brunt of the growers
criticisms during the investigation, was not the undemocratic beast
it had been portrayed as, and had done much to aid the work of the
Commission.32 If there was
a centralization of power occurring under Garrish it was not something
that could be rectified through legislation, and there still remained
the fact that growers had just re-elected him for the eighth time
as President that January.33
In addition, if there were any major imbalances that had to be corrected
with the utmost haste, the reluctance of the industry leadership
to better publicize its actions on the behalf of growers was the
most pressing. The only references the Dean made to the actions
of dissidents were indirect: he identified the Creston area as a
special problem, but suggested that if those growers
were to withdraw from B.C. Tree Fruits, as Beich would have it,
they would be committing economic suicide.34
He also encouraged the Executive to deal with rumours as soon as
they started, be at it at the Local level, in the press, or at the
packinghouse.
In the end,
the Canadian Fruit Growers Association would appear to be
nothing more than a footnote within the broader history of the Okanagan
fruit industry; an organization hardly worthy of mention other than
as a minor irritant during a period of economic volatility in the
lives of many growers. In light of later events, however, the CFGAs
importance can be found in its role of a cautionary tale for the
Okanagan fruit industry. As the BCFGA entered a new decade, it would
face renewed challenges from urbanization, and the fruit industry
would endure a repetition of the events that defined the grower
unrest of the 1950s. A significant freeze occurred in 1964-65 to
be followed in quick succession by another freeze in 1969 and as
the economic plight of growers again deteriorated, demands for some
form of investigation began to be raised. Seeking to exploit the
discontent, dissidents and rebels again appeared on the scene, this
time under the name of organizations such as the United Fruit Growers
of British Columbia. And, once again, the province would commission
an economic study to evaluate the efficiency of the fruit industry
in 1973. In what was becoming a well-established precedent, the
Hudson Report reaffirmed that the single-desk and orderly marketing
met the needs of Okanagan growers better than anything else that
had been proposed. Unfortunately, where the Canadian Fruit Growers
Association had failed in the 1950s, dissidents would achieve success
in 1973-74, as the provincial government abandoned its responsibilities
to the fruit industry in enforcing the principles of the system
of central selling. The CFGA demonstrated how a small minority of
growers could wield influence far in excess of their numbers. Their
accomplishments are reflected, in part, by the declining prospects
of the fruit industry today where there had once been 3,600
growers registered with the BCFGA, today there are no more than
800 at best.
______________________________________________________________________________________
Partial
Footnotes:
1.
British Columbia. Department of Agriculture. Report of the Royal
Commission on the Tree-Fruit Industry of British Columbia. Dean
E.D. MacPhee (Commissioner). Victoria: Queens Printer, 1958.
2. Arthur Garrish, quoted in MacPhee, Ibid.
3. MacPherson, Ian., "Creating Stability Amid
Degrees of Marginality: Divisions in the Struggle for Orderly Marketing
in British Columbia 1900-1940." Canadian Papers in Rural
History. Volume (VII), Gananoque, Langdale Press, 1990.
4. Dendy, David., A Fruitful Century: The British
Columbia Fruit Growers Association 1889-1989. Kelowna:
BCFGA, 1989.
5. Arthur Garrish to Dean MacPhee, Proceedings
of the Royal Commission Investigating the Tree-Fruit Industry of
British Columbia, March 13, 1958, Box 5, File #15. Provincial
Archives of British Columbia.
6. Ibid.
7. Ibid.
8. Gordie Wight to Dean MacPhee, Proceedings
of the Royal Commission Investigating the Tree-Fruit Industry of
British Columbia, March 13, 1958. Box 5, File #16. Provncial
Archives of British Columbia.
9. Gordon DesBrisay to Dean MacPhee, Proceedings
of the Royal Commission Investigating the Tree-Fruit Industry of
British Columbia,
10. March 13, 1958, Box 5, File #17.
11. Oliver Chronicle, February 27, 1958.
12. Joan Lang, "A History of the Fruit Growing
Industry in the West Kootenay District of British Columbia 1905-1950",
Unpublished M.A.
Thesis, University of Victoria, September 1996.
13. Ibid.
14. Oliver Chronicle, February 27, 1958.
Editorial Wally Smith.
15. Garrish to MacPhee, March 13, 1958.
16. Garrish to MacPhee, March 13, 1958.
17. Oliver Chronicle, March 6, 1958.
18. MacPhee to DesBrisay, March 13, 1958.
19. MacPhee to DesBrisay, March 13, 1958.
20. Wight to MacPhee, March 13, 1958.
21. Garrish to MacPhee, March 13, 1958.
22. Wight to MacPhee, March 13, 1958.
23. Garrish to MacPhee, March 13, 1958.
24. DesBrisay to MacPhee, March 13, 1958.
25. DesBrisay to MacPhee, March 13, 1958.
26. DesBrisay to MacPhee, March 13, 1958.
27. Herb Corbishley to Dean MacPhee. Proceedings
of the Royal Commission Investigating the Tree-Fruit Industry of
British Columbia, Feb 27, 1958. Box 5, File #13. Provncial Archives
of British Columbia.
28. Corbishely to MacPhee, Feb 27, 1958.
29. Garrish to MacPhee, March 13, 1958.
30. A.C. Carter, at a meeting with MacPhee and
Garrish, March 13, 1958.
31. Canadian Fruit Growers' Association, Proceedings
of the Royal Commission Investigating the Tree-Fruit Industry of
British Columbia, June, 1958. Box #6, File #6. Provincial Archives
of British Columbia.
32. CFGA, June 1958.
33. MacPhee.
34. Ibid.
©
Copyright Christopher John Garrish. All rights reserved.
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