Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1886-04-03
FRUIT GROWERS COUNCIL.
THE CONTRACT BETWEEN PORTER
BROS. AND THE FRUIT UNION.
Interesting Discussion Between Di-
rectors of the Two Fruit Or
CARNATIONS.

II
report from the Trustees of the California
Fruit Union regarding the contract the lat.
ter had entered into with Porter Bros. &
Co, who are to act as the Eastern agents OF
the corporation. The meeting was pre-.
sided over by J. A. T. Reynolds. E. II
Cowing acted as Secretary. The meeting
was large. the personality of which was
given in these columns on Wednesday
morning
The Union was represented by four Di-
rectors, viz, A. T. Hatch, President; L.
w. Buck, Manager; F. c. De Long, Treas.
urer, and Sol. Runyon. Washington Por-
ter, representing Porter Bros Il Co.. the
agents of the Union, was also present and
took part in the deliberations.
The Chairman requested Mr.. Hatch ia
read the agreement that the Trustees had
executed and delivered to Porter Bros. e Co,
THE CONTRACT.
Mr. Hatch took the floor and read as
follows:
This agreement made this 18th day of March,
A. D. 1896 between the California Fruit Union
A coruoratjon created under the law oe ~
State OF California, party Of the first part and
the Porter Bros Company. a corporation under
the laws OF the state OF Illinois, party of the
second part, witnesseth. Said party of the first
part
l. Appoint said party of the second part as its
agent Tor al towns upon the Missouri and Mis-
sissppl rivers, and all territory east of said
rivers TO the Atlantic ocean, to sell all products
which II may ship to said territory, and whose
sale II shall control.
2. II agrees to notify said agent by telegraph.
upon each shipment of said products of the
number and contents of each car, and to selid
invoice Of -ame by letter.
asaaf ]. al a,;sl ~ 1
lect TO the order Of said agent from the time
the same may be loaded on cars for shipment.
l. II agrees that upon the sale of said prod
uctS, said agent shall be entitled 10 retain ont
OF the pr0ceeds-First, all sums paid or in
CURED by said party of the second part for
irelgataGe and carriage on said products: apd
seeghaiy, Ten per cent, OF Che gross amount of
.uch safes as It's mission.
d. ~ guarantees To said party of the second
part The payment of all freightage and carriage
on AL said products shipped the proceeds of
the sale OF which shall have been insufficient
10 repay the same.
g. Il agrees during the term of this agreement
not TO reScind that certain resolution passed by
the board OF Directors on the 18th day of Feb
ruary, 1886, Of which the following is a copy i.
Al shippers through the California Fruit
Union shall pay to the Union five per cent on
the sales value Of their fruit shipped and in
case sald shippers wish also to avail themselves
OF the selling facilities Of the Union, they shall
pay hve per cent. commission on such sales"
IN consideration of the foregoing said party
OF the second part agrees
l. That 1t will act as agent of the said Cali
lorna Fruit Union upon the terms herein set
forth
. That it will appoint efficient sub-agents in
all the cities in said territory where carload
lots OF said products can be sold to advantage,
and VIII make every reasonable effort to affect
sales of such products
B. That it will accept all such products and
advance the freightage and carriage thereon
and 1t shall not be entitled to any interest on
such advances.
A. That it win pay all expenses incurred in
any way in the conduct of the business hereuu-
der, including all commissions of all sub-agents
D. That 1t Will give to said California Fruit
Union full list of all such sub-agents as they
may be appointed.
6. That upon the sale of said products it will
render an account OF such sales and will
promptly pay TO the respective shippers thereof
the amount of such sales less said freightage
carriage and ten per cent commission unless
Otherwise directed by the General Manager of
said California Fruit Union and will promptly
forward duplicates of said accounts to said last
named corporation
T. That it and all of its said sub-agents will
keep books of account showing all receipts and
sales of said products-all of which books shall
at all times be open to the inspection of the
authorized agent of said California Fruit Union.
s. That it will not purchase any other prod
ucts directly or indirectly when in the opinion
OF the General Manager of the California Fruit
Union, the sale of the same may be detrimental
TO the interests OF said California Fruit Union
and his decision in this behalf shall be final
unless reversed by the Board.
not to infringe on other prescribed territory.
1t is understood that this agreement does not
embrace citrus fruits and that it shall be in
force one year from its date
In witness whereof said partners have caused
their corporate names to be subscribed and
their corporate seals to be affixed hereunto by
their respective Presidents and Secretaries on
the day and the year first herein written.
Signed, CALIFORNIA FRUIT UNION,
By 4. T. Hatch, President.
II. A. Fairbank, Sec'y.
PORTER Bros Co,
By Washington Porter. Pres.
Nat. z. salisbury, Nice-PreS.
THEY ARISE To EXPLAIN
At tire conclusion of its reading, Mr.
Hatch said That is the contract that the
Board of Trustees of the California Fruit
Union has entered into with the Porter
Bros. Company, and we are here to-day to
answer any and all questions you may be
pleased to ask concerning it.
The Chairman stated that the five per
cent. for shipping was not clear to many
He bad been assured, however, that ten
per cent. covered all expenses. He would
like to have that more thoroughly ex-
planned.
Mr.. Hatch said: The bylaws state that
we can charge a commission for shipping
not TO exceed five per cent. We have con-
cluded this year to charge the maximum,
and also five per cent. for selling. This
ten per cent. pays Porter Bros. & Co. All
we charge the members of the Union is
Just enough 10 pay the commission of the
agents. You will get no dividend on your
dollar per share investment this season.
The Trustees will use it all this year
Next season, perhaps, we will be able to
make better terms. We will then have
acquired a standing in the East, and the
difference in the new commission and that
now guaranteed Porter Bros e Co., will
cover ell the expenses of the Union.
THE MANAGER SPEAKS.
Mr. Buck said We incorporated upon a
large scale, with $50 900 shares of stock So
far but a comparatively small proportion of
that stock has been taken. At the time of
letting the contract but II 900 shares had
been subscribed, representing Sl1, 900 The
prevailing idea was that there should be a
supervising power over all the fruit that is
shipped East. We must either send COM
petent person East to represent this great
interest or appoint some one there 10 prop
erly and Understandings represent us.
There should be a head under which the
disposition of all the fruit could be made
One market should not be glutted
while another went bare. The TrIs-
tees did not feel that they would be
justified in sending a man from the
coast. No man in California was suitable
for the place. We have done the only thing
we could do, considering the amount of
money at our back, and so we placed it
under one head, and believe that what we
have done has been for the best. We be-
lieve that what we have done will produce
the most money for the producer. The
fruit does not lose its identity, goes in the
name of the shipper, and returns are made
directly TO him. The fruit interest is a
large and vital one in this section. He be-
lieved the local growers were in earnest and
he would like to have an expression from
them all.
WORD FROM THE TREASURER.
Mr.. De Long said the question might be
asked why don we rescind the five per cent
resolution? When we first met and asked
Mr.. Porter what rate of commission he
would ask to dispose of our fruit, he re-
piled If | make a trade with you, what
guarantee can you give me that / will have
a hound of fruit to sell? You have no
signatures. How can ] 90 ahead then and
engage my sub-agents, who will, in all,
probability, have nothing TO do? If the
fruit is diverted, what can | do, and from
what source can l get my money back ~
We then adjourned until the next day, al
g u Il, s.,.I,