The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1891-05-20
THE GAMERS TRUST.

The organization of the fruit-canning
trust, which was begun by the filing Of arti-
cles of Incorporation on Monday, was fur
Their advanced by yesterdays meeting, OF
which some mention will be found in an
other column. 1t appears that the leading
Gamers of the State are in the movement
only n few Of the thirty-siX firms engaged in
the business remaining out Should 1t sue
coed and lead to the formation of a east
iron combination it will be well for parties
whose interests would conflict with the
creation of a monopoly TO consider what
rights are left to them under the law.
The purpose Of all such combinations is
the same-to diminish supply and reduce
cost of production by artificial means. The
first act of the Eastern Sugar Trust was to
dictate the price which refinerS were to pay
for raw sugar. And the first proceeding Of
our cOnfedeTated cannerS-if their trust goes
into effect-will he TO specify a figure which
they will hereafter pay for fruit, and
quantity which they are prepared to con-
sumo. The grower will be at their mercy.
He must either sell TO them or not sell at
all. 1t will be idle for him to point out that
by using energy in extending their markets
and skill In improving the quality of their
product they might buy more fruit and pay
a better price for il. That is a matter OF
which they will be the judges. They viii
figure what is the least sum that will Tequite
the grower for cultivation and picking, and
they viii pay him that and no more. And
they will reckon up how much canned fruit
they are sure to be able to market and they
viii can so much and no more.
Thus far the advantage in the coming
flTf+h Ia ffgn IL am n
pears to be all on the side of the latter. But
tie grower viii have his innings when the
trust attempts to enforce the rules of its or
ganizati0n. Attempts TO destroy trusts by
special legislation or by direct attack based
On the common law have thus far failed.
But no trust has ever been able to enforce a
contract in the courts Of law. Judges have
uniformly held that trust, being c0mbi-
nation in restraint OF trade and contrary to
public policy, had no standing in court and
could not seek relief when its members re-
fused TO live up to their contracts or its
debtors refused to pay. In the supreme
Court OF Illinois, a few days ago, the fnan-
cial hacker OF a corn trust was thrown
out Of court when he tried to collect
a balance due him by the trust; and an
agreement by which a manufacturing con-
Germ which sold out to a trust under an
agreement not TO resume business 0n Its
own account has just been pronounced void
by the United States court in Missouri
The principles on which these decisions were
made, which are strictly in line with
the doctrines of the common law,
may be summed up in the single sentence
that when two or more individuals engage
in an unlawful enterprise the courts will
not undertake to apD0Ition among them any
gains or losses incurred.
Applying this doctrine to the case Of the
Gamers trust in California, it appears that
if any member of the trust violates his
agreement with his cOnfederates he cannot
be held for damages. lie may agree only
to put up so much fruit and afterward con-
clude to put UP double the quantity; his
partners in the trust have no recourse
against him. He may agree to sell at a fixed
price, and may afterwaTd decide to sell at
lower price; his associates are without rem
edy. The fundamental compact on which
the trust Is based is an agreement which in
law binds nobody. To say that under such
circumstances twenty or thirty rival pro-
dUcers Will all live up TO their agreement,
when there is money 10 be made By eYading
it, IS to assert a seli-evident absurdity.
The Gamers say that there is no money in
the business. Then why are thiTty-SiX can
neries engaged in it? How does il happen
that some OF them DO not drop out? 1t is
probably true that the canned-goods market
is at times oyerstoeked, and that it is hard
to make money by supplying a market that
is 2500 miles from San Francisco and only
1000 miles from other canning centers. But
it is feared that the real reason why there
is not more money in canning fruit in this
State is because our Gamers have grown
neg gent in their processes, and are not
making as good goods as they form eTly did
The remedy is not in combinations against
the fruit-growers, but in Improvements ia