The record-union., 1891-04-03
IT SUITS THE CANNERS.
An Alleged Combination Among the
Packing-Houses.
The Sacramento Cannelies are Not III
It, but the Managers Think
Well of 1t.

It's DuU the Managers In1nk
Well of 1t.
According to one of the San Francisco
papers, all the large canning establish
lnents OF the State, except one, have
formed trust, or syndicate. The Presi-
dent OF one of the canning companies is
given as authority for the assertion that
only the signing of the contract remains
to consummate the bargain and bring into
existence trust that promises to control
the canning business of California
1t is claimed that an Englishman named
II. Francis has been the active man in
bringing the Gamers together The deal,
it is said, involves sum Of 81, 500, ,0O0 No
specific figures are given ut present, as no
formal appraisoments have been made,
but the broad and general terms are said
to be these: Each Gamer sells his bust
ness to the syndicatc-not a trust, mind
you, only a harmless little syndicate-and
takes in payment two-tGirds cash and
one-thirCl stock IL the syndicate Each
cannery viii be conducted as heretofore,
that is, the brands viii remain the same,
and each firm will continue in business rs
before, with this exception, that the
profits will go into common pool and
the syndicate Will appoint the manager OF
each concern.
1t was also said that Lusk & Go. OF San
Francisco were the only large proprictors
that had not agreed to enter the oinbina-
ton, bat it was believed they would go
into it,
There are two large canning establish
ments in this city, those Of the Capital
Packing Company and the sacramento
Packing and Drying Company. \ REC
ORD I MON reporter yesterday called
upon Mr.. Il. !. Bentley. manager Of the
latter, and asked him if his company had
joined the syndicate reported TO have
been formed.
NO" replied Mr.. Bentley, mot so far
as am informed, and l am certain
would know of it. 1t would be IL good
thing, however, and believe all the can
ming companies would be in favor of it.,
tor their own protection and benefit. Still,
don't see how anything can be done in
the matter at this time. The canning
season will soon be upon us, and our ar
rangements therefor are already made in
a large degree"
When do you expect to begin opera
tions?n
''Well, we shall commence very soon
now on asparagus and such seasonable
things; gooseberries, ETC., will follow, and
then the early fruit will come along.'
What are the prospects for the fruit
crops, so far as you have been able to
learn?"
They are very good,' replied Mr.
Bentley. "Weare making arrangements
for heavy output OF canned goods this
season. Our establishment has been en-
larged and facilities increased, and we
have arranged better than ever for the
health and comfort Of the many hun
n ytrn 70, H.,
The sanitary condition Of the place has
been made perfect, and we expect to put
III ventilatorS that will keep the establish
ment cool and make it comfortable
The reporter failed to see the manager
of the Capital Packing Company, but
that gentleman is credited by a contempo-
rary with the statement that his cora-
pany will probably join such a combine
ton if it should be formed.
a CANNER's VIEWS.
A prominent San Francisco Gamer. in
an interview with Post reporter, gives
expression to the following views on the
subject:
at would be very injudicious on the
part of the new combination TO endeavor
TO force growers to accept low prices for
their fruit, even if they could do so,
which as a matter of fact they cannot. as
the frult-growerS Of this coast are to-day
in position to dispose of their product
Independent of any set of people. as
there are so many methods in which they
can dispose OF their fruit profitably ont
side of the canning business, that unless
they get reasonable figures for their fruit
they can use other methods for the dis
position of it.
I'VE do not consider that a new combi-
nation such as proposed would compel
consumers to pay higher prices for canned
goods. Prices would undoubtedly be
kept at legitimate, fair figure, and the
goods would be placed more directly to
the consumer through the medium of di-
rect brokers IN every part of the world.
WHERE THE PROFITS COME IN.
''Yo on ask where the profits would come
to such combination, and | will state
that the profits of such combination
would be very large. In the first place
nearly all fruit Gamers at the present
time do their business through the me-
dunn of commission merchants, who in
turn engage subordinate brokers in every
city in the Union. These commission
merchants in many instances receive 5
per cent. for handling the goods. The
new combination, by having their direct
agencies in all parts of the country, would
place themselves more directly in con-
tact with the trade, and would have their
business done for about l per cent. or II
per cent. You can readily see what an
enormous saving there would be in this
item alone.
Then again, in the manufacturing of
the goods the saving would be enormous
on the importation and purchase of sugar,
tin plate, fuel and many other items. OF
course, on the purchase of fruit there
would be no saving, as it would be ex-
pected that the fruit-growers would re-
ceive remunerative prices for their
product.
CANNING IS A PECULIAR BUSINESS.
But besides this the canning business
is business peculiar to itself, and there
are certain months in the year when all
the canneries operate at a loss. a syndi-
cate during the rush of the season would
operate every cannery to its full capacity.
but during the months when each can
merry operates at q loss they would be
able to close up nearly all the canneries
and allow one or two of them to do the
work.
1T can readily be seen that there would
be an enormous saving on this item, not
only on fuel, but in the running expenses
of the different factories. 1t is estimated
that the savings on the manufacturing
cost of the goods and the savings in sell
ing commission on goods alone would
amount on the canneries joining the COM
bination to AZ least $500, coo; and will
prove besides Of great benefit to the
future of the fruit interests OF this coast
Adding the above enormous savings by
combination TO the average profits of the
different companies joining, it can readily
be seen that the new corporation prom
lses TO be very successful
ADJUSTMENTS
Cleveland's minstrels drew an immense