Los Angeles daily herald., 1889-09-23
AN IMPORTANT STEP.
The Reorganization of the
Produce Exchange.
1T BEGINS ITS CALLS TODAY.
The Nature Of the InstitutiOn-GOed
Work Which it Will Accomplish,
Its Value to the Farmers.

This morning at II O'Clock the Pro-
duce Exchange will meet in the rooms
of the Board of Trade and resume calls.
The institution is several years Of age,
and prior to the event of the boom was
in very fourishing condition. Its
books still show balance of nearly $500
to it's credit, with no liabilities. At the
time the boom was at it's fercest the Ex-
change had forty-five members. A great
many of these abandoned the regular
daily calls to 60 into the real estate bust
ness, and in the unsettled condition of
the markets which prevailed at that
time, owing to the sudden and extraor-
binary increase in population, the re-
naming members found that they could
do very satisfactory business without
relying upon the calls. For that reason
the Exchange fell into state of innocu-
GUS desuetude.
The effort to resume calls, which prac-
tically means the reorganization of the
Exchange, has at last been successful.
During the period while the Exchange
was dormant, a number Of efforts were
made to revive it, but in each instance
they failed. A good deal of credit at
taches to the President, General John
R. Mathews, and the small committee
that aided him, for the work which they
have accomplished in bringing in new
members and srousing the old. The
organization begins work today with
membership of seventy.six. which it is
very probable will soon swell to hun
dred. 1t contains all the principal
commission produce dealers and whole
sale houses that handle agri-
cultural articles, as we'll as several banks
and q number of individuals doing mis-
cellaneous business or acting as agents
| for houses at distance. General John
R. Mathews will continue to act as
President and T. Fl. Ward, the Secretary
of the Board of Trade, will act as
Secretary.
The meetings will be held every bust
ness day in the week at II O'Clock in the
morning, and the calls will consume
about half an hour. Large blackboards
have been prepared covering the walls
of the room, on which the highest prices
asked and offered for various articles of
produce will be recorded. Unlike many
of the organizations of similar charac-
ter in the great cities, the Produce Ex-
change does not deal in futures, and for
that reason cannot be used for injurious
speculation, nor to effect corners. All
calls are for delivery within twenty-four
hours. A committee of arbitration set
ties all disputes as to the terms of con-
tract and the quality of the produce sold,
and in this way puch litigation is
avoided.
The prime great advantage in the ex-
istence of this Exchange-an advantage
which will be shared not only by it's
members and the farmers who have pro-
duce to sell, but also by the
entire community-will be the es-
tablshment of definite market quo
tations for all articles produced
in this vicinity. For some time past the
local produce market has been in la
mentable state of chaos. The daily
newspapers regularly present to their
readers what purport to be the QUOTA
tions obtained from local dealers. Some
of the papers have been in the habit of
obtaining all Of their quotations in any
one line of produce from single firm.
In many cases this fact is acknowledged
in the column of local reports. The
HERALD has made an effort to obtain
fairer estimates by interviewing num-
Der of rival dealers. Whichever method
is used the result is very unsatisfactory,
as frequent complaints prove. However
honest dealer may be in his in
tentions, he will naturally quote,
not at true general mar
ket price, but merely at the figure
which he at the time happens to be
willing to give. Producers at distance,
who depend upon these reports, are apt
to find themselves sadly misled. Gases
are numerous where farmers coming in
town with produce which they had
hoped to sell at the figure they had seen
quoted, have spent the best part of the
day in hunting for some one who stands
ready to buy at that figure, and have
then been compelled to dispose of their
goods as best they might.
With the establishment of daily regular
calls, from which definite quotations are
obtained, the whole matter is simplifed
for the producer, the commission
man and the retail dealer. The
producer has in advance a figure
which he can depend upon; if,
owing to changes during the day, he can
improve upon it, he is just that much
ahead. The commission merchant keeps
himself informed as to the condition of
the market, and can both buy and sell to
better advantage. The retail dealer,
also, has basis upon which he can
figure. In business transactions of this
character, organization is of advantage
to every one along the line. from the
original producer to the final consumer.
One Of the reasons why the calls
ceased several years ago was that agri.
cultural production in this vicinity had
considerably fallen off. The awakening
of the Exchange will Immediately bring
to life the fact that during the last year
the farmers have been getting down to
work again, and that, except in very few
lines, such as butter, eggs and chickens,
this section is producing enough for its
own needs. With proper distribution
of all produce, through the medium of
this Exchange, it is very probable that
a considerable residuum will be found
available for export. During the spring
of the year, for example, this county
ships considerable quantity of potatoes,
cauliflower and other vegetables to Ari-
IONA. With better organization of the
local market these shipments
can be increased and a con-
siderable gain made in other lines.
The prospect is, therefore, that while the
organization of the Produce Exchange
will not increase prices to the consumer,
it will occasion better demand, which
is to the advantage Of the farmer.
The impression is very common among