A Review of the Potato Industry of the Eastern Shore of Virginia

The Eastern Shore of Virginia district, classified as one of the intermediate sections has for a long time been an important factor in the production of early Irish potatoes. The marketing season usually runs from about June 5 to July 23, covering a period of from six to eight weeks.

In this review, which will cover a period of approximately forty years, I will show first, the developments as they took place, which I will do by periods of from five to ten years instead of annually. Secondly, I will show what was possible under a system of orderly marketing as compared with the chaotic conditions that prevail today.

In the early years of the current century potato production increased rapidly, especially in this district, which soon became the most important producing center of early potatoes in our country. Marketing was conducted on an orderly basis and the industry was prosperous.

In the late years many new developments have taken place, none of which have been conducive to the good of the industry. Some of these developments of which I will make particular mention later on have vitally affected the industry both at home and abroad.

The potato industry of this district had its beginning well back in the years of the nineteenth century, but did not begin to assume any considerable proportions until the latter years of that century. At that time a marketing proposition was being conducted at Cape Charles, the southern terminus of the N. Y. P. & N. railroad. It was fairly successful, but available only to about half of the growers of the district, therefore, not entirely satisfactory.

In the year 1899, certain prominent growers and business men of the district reckoning on increased production organized the Eastern Shore of Virginia Produce Exchange. Its objects were to operate over the entire district; to market potatoes cooperatively; to standardize the product and broaden the outlet. It began to function in the year 1900, little dreaming that in a few years with the hearty cooperation of the growers of this district, it would dominate the potato industry of the country as it did for a large number of years.

I happened to be named General Manager, with the responsibility of finding new outlets and effecting sales. I was young, active and ambitious and accepted the responsibilities with a determination to make a success, if possible. The Exchange copyrighted a trade-mark -- the Red Star -- which brand soon became well-known over our entire country.

The year 1900 happened to be a season of extremely low prices and the demand was decidedly inactive,. Many of the growers from the lack of an f. o. b. demand were obliged to market their potatoes on a consigned basis to the merchants of the nearby large terminals. The Exchange having only a limited acquaintance with the trade and practically no connections did very little business that year. However, from then on production increased rapidly, so did the activities of the Exchange.

In the year 1900 there were only two transportation companies in this district to convey potatoes to northern and western markets, namely, N. Y. P. & N. railroad, now a branch of the Pennsylvania system and the B. C. & A. Railway Co., operating a line of steamers from certain Bayside wharves, conveying potatoes to Baltimore, Md., there to be loaded in cars for distribution to other markets.

The records of the N. Y. P. & N. railroad for that year disclose the movement of potatoes, including a small tonnage from the Norfolk, Virginia district, to have been 942,896 barrels, about equally divided between Irish and sweet potatoes.

The records of the B. C. & A. Railway, which I happen not to have before me and cannot give the exact figures, possibly would show a total not to exceed 300,000 barrels, with a larger percentage of sweets than Irish potatoes.

During the period of 1900 to 1910 production increased rapidly. The growers realizing the benefits of cooperative marketing were responsive to our demands for improved grading, and the trade with whom we had made a large acquaintance and many valuable and lasting connections were appreciative of our efforts towards standardization and gave us liberally of their support, and the business of the Exchange increased rapidly.

The records for the year 1910 disclose the railroad moved from this district alone 1,606,206 barrels of Irish potatoes and 907,766 barrels of sweet potatoes, of which the Exchange, as disclosed by the same records, handled 1,030,630 barrels of sweet potatoes. The total tonnage handled that year by the Exchange, including shipments via the B. C. & A. Railway was 1,250,000 barrels of Irish potatoes and over 1,000,000 barrels of sweet potatoes.

The merchants, who at this time were giving us liberally of their support were decidedly active, pushing their activities apparently to the limit, and were seemingly prosperous. There was, of course, legitimate competition among themselves but no interference from outside influences to disturb their trading practices. Under the then existing conditions they could and did handle large quantities of our potatoes, as evidenced by figures which are being disclosed. It was then a pleasure to do business.

The period from 1910 to 1915 production continued to increase, as did the activities of the Exchange. The railroad records disclose in 1915 the movement to have been 2,783,372 barrels of Irish potatoes and 726,300 barrels of sweet potatoes, of which the Exchange handled 2,021,000 barrels of Irish potatoes and 671,379 barrels of sweet potatoes. Also, the B. C. & A. Railway showed a liberal increased tonnage, of which the Exchange handled a very large percentage.

Previous to this time I had been obliged to call for help in the Sales Department of the Exchange, and I have always felt that I was fortunate in the selection of my assistants -- Mr. C. R. Waters and Mr. C. M Dunton -- two young men, both of whom are well known to the trade today. Together we worked long and faithfully and almost daily during our active marketing periods we were called upon to sell from three to five hundred carloads of potatoes, and sometimes even more. I recall one period of 11 consecutive days in which we sold over 4500 cars of potatoes. This was possible only because we were then permitted to operate under a most orderly system of marketing. Mr. Waters severed his connections with us a few years ago and Mr. C. M. Dunton is today Sales Manager of the Exchange.

In the year 1920, although a season of extremely high prices business was seriously handicapped. The railroad company then operating under Government control did not -- perhaps could not -- furnish sufficient equipment to move the Irish potatoes promptly and a considerable quantity went to waste. I was ambitious during that season of high prices that the Exchange sales in a single day would equal a million dollars. I failed not because the opportunity was lacking but because equipment to move the goods was not available. We did, however, reach well up toward the mark at which I was aiming. The sales of the Exchange for that year reached well over 19,000,000.

Following the war period the growers enthused by the favorable prices then prevailing began largely to increase production, and this occurred practically all over our country and it was soon evident that too many potatoes were being produced. This district reached its peak in the year 1928 when the railroad movement was 4,045,966 barrels of Irish potatoes, of which the Exchange handled 2,642,000 barrels, also largely increased shipments from the Bayside wharves. During this period many new developments were taking place.

In referring to these developments I have no desire to be over-critical towards those who gave sanction to or engaged in them. However, I will state the facts as I have seen them and the effects produced by these developments.

Some of the Fertilizer companies at that time seeking to increase their business adopted what is known as the "trade plan," furnishing fertilizer in exchange for potatoes. This system had a tendency to increase production; whereas, the effects of over production were already being felt. Some growers becoming possessed of a spirit of individualism began to market their potatoes individually instead of cooperatively; other growers began to manifest a desire for and gave their support to the creation of additional selling agencies, and many new agencies were created. As a result of the creation of these numerous new agencies confusion became rampant both at home and abroad. Interest of the buyers began to wane; orderly marketing was seriously interfered with and that confidence which should always exist between the buyer and seller no longer prevails.

The truck peddlers also began to operate at about that time and have steadily increased their activities until today in their ramifications they reach not only the nearby large terminals but invade many of the smaller and more distant interior markets -- a practice that is seriously interfering with legitimate dealers. Many of the growers also, especially those who happen to own trucks as soon as their produce is ready to harvest, industriously engage in hauling it to the nearby large markets to be sold for our account, and not being compelled to make deliveries to any specified terminal scatter their goods promiscuously over the markets, by which methods the receivers can get no definite or accurate information as to the total receipts whereby to gauge the markets. It has apparently forced the receivers to adopt a slogan -- "To sell and sell quickly, the sooner the better." This system of deliveries certainly must be disturbing to the dealers and not advantageous to the growers. It should not exist.

I notice, also, coming from many sources, the Government, in its efforts to help the unemployed and needy, through its system of buying and distribution of the necessary supplies, is seriously interfering with legitimate dealers and therefore is being severely and perhaps justly criticized. To follow a system of "Robbing Peter to pay Paul" is, in no sense, commendable. I, at least, hope the system can be corrected to as not to interfere. I am unalterably opposed to any practice, whether by the Government or by individuals, that in the least degree interferes with the legitimate dealers -- those who are called upon to pay their license fee, taxes and rentals -- and it should not be allowed.

What the remedy is for these late developments, I do not know, but I am thoroughly convinced unless a more orderly system of marketing can prevail that that which prevails today the potato industry neither nationally nor locally can ever be as successful again as it was at one time.

At the close of the season of 1928, realizing that under existing marketing conditions both this district and the country at large were producing too many potatoes, I became an advocate for curtailment and still am imbued with that idea. For a long time in this district we planted from 65,000 to 75,000 acres to potatoes; last year we planted only 35,000 acres and likely the same this year.

In most of the early producing districts, especially in this, production costs are high and I fail to see any justification for an individual or a community to produce potatoes, or any other commodity, to sell at less than cost of production as has been the case with potatoes for the last few years.

In conclusion, Mr. Editor, I would be glad to mention the names of some of the many potato dealers who have so liberally given me their support during all these years, but lack of space forbids. It would require a book to enroll them. I will say, however, that nothing affords me more pleasure than to recall the pleasant business relations that I have had for so long a time with many of the potato dealers of our country. Let us hope for the future and for the good of the industry that confidence may again be restored; that those disturbing practices which have crept in may at least be controlled, if not eliminated; and that we may again be permitted to operate under an orderly system of marketing.