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Six full-size sticks (instead of four) in every King-Size package

because it's

WHIPPED!

Whipping does wonderful things for other foods-and now it does wonderful things for margarine. Because it's whipped, Miracle Margarine is pleasingly light in texture. It melts instantly on your tongue. Full flavor is released immediately.

And it spreads evenly and easily with almost no pressure from your knife. You can spread far more slices of bread with every pound.

Pick up a King Size package of Miracle Margarina -the new margarine made by Kraft. Each pound

contains 6 full size sticks instead of 4. Look for Miracle Marporino in your grocer's refrigerator case.

In

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Mr. ANFUSO. Dr. Crow has a very interesting study, the famous Stanford Study of the New York Market. He has a prepared statement. He was kind enough to introduce that into the record, and in order to close today's hearing properly, as my learned colleague from Alabama said, he is going to illustrate and give us a representation of that Stanford Study on the things we have been talking about. Dr. Crow.

a

STATEMENT OF WILLIAM C. CROW, MARKETING RESEARCH DIVI

SION, AMS, UNITED STATES DEPARTMENT OF AGRICULTURE

Mr. Crow. I was asked to point out how food, especially fresh fruits and vegetables, is handled within the New York City markets. In pointing out just the highlights of this information I would like to call your attention, first, to the map that you see over here of the metropolitan area of New York City. The five boroughs, Brooklyn, Queens, The Bronx, Manhattan, and Richmond, make up New York City proper, and the Long Island area, and the area toward the north of the map and west in New Jersey constitute the remainder of the metropolitan area. The market which we visited last night, as you know, is the largest market for fresh fruits and vegetables in the world.

Excluding the bananas that merely flow through this port, the fresh fruits and vegetables that are handled in the area in a year, total about 165,000 carloads. These products come from 46 States and 37 foreign countries. If we were to put that quantity of fruits and vegetables into a railroad train that train would reach halfway across the United States, which gives us a good idea as to the volume.

In terms of dollars at the wholesale prices in New York that is $350 million worth of fresh fruits and vegetables handled here each year.

The cost of transporting these products from producing areas that are often thousands of miles away is an important part of the price that the consumer pays in New York, as has been pointed out already today.

These commodities arrive by rail, by truck, by air, and by boat. Due to perishability of the product, speed, refrigeration, and careful handling are, of course, very important.

About 85 percent of the quantity brought into this city is consumed within the metropolitan area. The remainder goes outside to places not too far away.

We have here on this first chart a map that shows the location of the markets through which these products move. The area marked "No. 1” at the lower end of Manhattan is the market we visited last evening. The other rectangular marks on the map are other jobbing markets through which these products pass. Those other markets receive a large portion of their supplies from the market that we visited last night. The round dots are chainstore warehouses. Over to the right of this map of the lower Manhattan market area are the wholesale stores that handle fresh fruits and vegetables. To the left are the piers that jut out into the river. Here is a picture of this market area which shows how it is located right in the skyscraper district of New York City. Washington Street is in the middle of the picture. The piers are to the right.

This next picture shows a larger portion of this section of Manhattan. The Washington Street market is in the center of that skyscraper district.

The only point in bringing forth these pictures is to show that this market obviously is on high-priced land where it is very difficult to widen streets, bring in railroad tracks, and provide for the efficient handling of products on a one-floor level.

With that much background as to what this market looks like, let us turn next to the flow of these products through the market.

Stanford Research Institute has made for us a study of the flow of these products through the market. Of the 165,000 carloads that come in here each year, about 111,000 move through this lower Manhattan market district, consisting of the piers, and those stores that we visited last night.

The remaining 55,000 move directly to these other markets and chainstore warehouses without entering this congested lower Manhattan area.

It is interesting to note as you look at that chart, which traces the complicated flow of these products through the city, that the major portion of fresh fruits and vegetables in this city moves through two wholesale establishments, between the time they reach the city limits and their arrival at the retail stores. Part of the products move through as many as three wholesale establishments.

Of the 111,000 cars handled in the lower Manhattan district, only 23,000 are sold directly to retail outlets. The remainder of that 111,000 goes to another wholesaler or jobber located in lower Manhattan, elsewhere in the city, or just outside the city, in the metropolitan area or its environs.

Of the 111,000 cars handled each year, in that market, that we visited, 30,000 cars are floated across the river to the railroad piers, another 30,000 are trucked to the Washington Street area from team tracks located at various points in New Jersey and in New York City proper; 5,800 are brought in by boat, and moved from the various boat piers into the lower Manhattan market; 44 carlots are brought in from airports and 44,000 carlots are received in the lower Manhattan market each year by truck directly from producing areas. There are about 200 cars that are hauled from the farmers' markets in other sections of the city.

Of this total volume, 32,000 cars are sold at the auctions, located on the piers. The remaining 89,000 are sold in the store area and on West Street that we visited last night.

More than 10,000 cars are handled both at the auction and in the store area, and more than 12,000 cars are handled in 2 stores in the Washington Street area. That means then that of the 111,000 carloads handled in the lower Manhattan market district, 22,000 are handled twice in that one area, to say nothing of the quantity handled again somewhere else in the city.

From lower Manhattan market 58,000 carloads of fresh fruits and vegetables move to jobbers located in the metropolitan area; 9,400 to chainstore warehouses; 20,000 to dealers outside the metropolitan area; and the 23,000 I referred to a moment ago directly to the retailers.

It is interesting to note that of the 44,000 carlots arriving by truck in this market, 14,000 arrive in trucks too large to go into Washington Street. So they are stopped on West Street, the wide street with the elevated highway, where they must be reloaded in smaller trucks and carried to Washington Street.

Another principal market is the Bronx Terminal Market located right on the southern end of the Bronx. There are 14,000 carlots handled there each year. While the majority of these are brought directly from out of town, nearly half are purchased in lower Manhattan. The Bronx Terminal Market supplies largely retailers located in the vicinity of that market.

Mr. COOLEY. You say about half of the volume of the Bronx market consists of fruits and vegetables and perishable commodities that are purchased in the Washington Street market and taken out to the Bronx market?

Mr. Crow. That is correct. The same thing is true with the Brooklyn Terminal Market which operates in the same manner. More than half of the total volume handled there is purchased in this lower Manhattan area. The remainder is received direct by rail and truck from producing areas.

Mr. McINTIRE. Is that true primarily due to arriving on the west side of the river and, also, arriving imports that come in being unloaded there? Is that the origin of this half that goes over to the Bronx and Brooklyn?

Mr. Crow. Yes; but that isn't the whole reason because a large number of the dealers operating in the Bronx and Brooklyn markets need smaller than carlot amounts. They pick up these smaller purchases in the lower Manhattan area. Those two sources, the one you mentioned and the other, account for most of their supplies.

I think it is interesting to note as I hurry through this flow of these products where the products wind up, where the consumers are, or where they are eaten.

Hence we have here next another map of the area which shows the distribution of all fresh fruits and vegetables from the standpoint of the retail stores where they finally come to rest.

You will note on this map that less than 19 percent of all fresh fruits and vegetables moving through marketing facilities in New York is sold to the retail outlets on Manhattan Island. Thus Manhattan Island lacks a great deal of being all of New York City. 19.6 percent moves over to Brooklyn; 11.5 percent to Queens; 13 percent to the Bronx; and 1 percent to the Borough of Richmond, making a total of 63.6 percent of this total volume that is handled in retail stores in New Ỹork City proper.

Of the remaining roughly one-third that moves outside of the city limits, nearly 10 percent moves to consumers on Long Island, about 8 percent to metropolitan and upstate New York, about 10 percent to the metropolitan area in New Jersey, and 9 percent to other out-oftown points.

It is also interesting to note that during the past 18 years the volume sold by retail outlets in Manhattan has declined from 42,000 carloads to 30,000 carloads. In percentage that is a decline from 24.4 percent of the total consumed in Manhattan 18 years ago to 18.5 percent consumed in Manhattan now. The percentage going to Brooklyn, to Queens, Bronx, and Richmond is essentially the same now as it was 18 years ago. There has been a small decline in the percentages going to New Jersey and to metropolitan and upstate New

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