The morning call., 1891-03-21
FRUIT CANNERIES.
A Combination of Interests Seems
Likely.
Thirteen Canneries Will Be Bought by Syn
dicate Next Monday if the Valua-
ton Can Be Agreed On.

About two months back an English syndi-
cate, looking round for field of investment,
turned its attention to the canning estab-
lshments of the State A few inquiries
were made and the matter, SO far as the En-
glish capital was concerned, was dropped.
Some two weeks later an attempt to COM
bine the canning establishments was made
in a new form. syndicate proposed to
buy out the canneres on the following
terms: The canneries were to make Yalu-
alton, and, if satisfactory terms could be ar
ranged, were to take two-thirds of the agreed
sum in cash and one-third in stock of the
combination,
Then came hitch in the negotiations.
The system of valuation which had been
agreed upon was found to make settlement
difficult, and a committee was appointed to
value the canneries and adjust conflicting
interests. Contracts we're then furnished
to the canneries owners who showed dis
position favorable to the scheme.
FURTHER DIFFERENCES,
The terms of these contracts could not be
learned, but they led TO further differences
of opinion and renewed obstacles. The con-
tracts were returned, with various sugges-
tions and amendments written in by the
owners, and it was found difficult to or
ganiZe order out Of the chaos of views. The
obstacles, however. have been gradually
removed. A meeting is to be held next
week, at which final arrangements will, it is
expected, be concluded.
Great secrecy has been observed as to the
capitalists behind the undertaking. They
have been represented in all the negotia-
lions by II. Francis of 405 California street.
1t is alleged that the combination has
capital of S5,000,000.
There are about twenty large fruit and
vegetable canneries in the State. Nine of
these are situated in San Francisco, three in
San Jose, while others are at Sacramento,
Marysville, Santa Rosa, Petaluma and Los
Angeles. The promoters are fairly SAN
guine that twelve or thirteen of these will
be bought out by the combination, the only
question now being the important one of
price.
ADVANTAGES CLAIMED.
The promoters of the scheme claim that
consolidation of the cannerles Will give the
following advantages: The combination
will be able TO purchase fruit on better
terms and prevent ruinous prices being
eXacted by the farmers at times when 1ruit
is scarce Last year the Gamers say that
fruit was so scarce that competition drove
the prices up beyond the margin of profit.
The combination will also, it is expected,
regulate the amount of output, with view
to preventing the Cutting OF the market, and
limit particular eanneries to special lines OF
WOTk. mere Is SdIu 10 D6 no udilBtI lildt q
monopoly will be created. The principal
market for California canned fruit lies in
the East, Europe and Australia, and there
will always be enough of local competition
in those places to keep prices reasonable.
One cannery-owner said yesterday that
canned fruits are principally bought by
middle-class people, and that an increase in
price always meant q noticeable falling oil
in the demand.
The same gentleman said further that the
farmers need look with no suspicion ON the
trust 1t will be TO the interest of the can
neries to have as large number of orchards
to draw from as possible, and they will be
obliged in self-protection to make fruit
growing profitable.
THE FARMER ALL RIGHT
From the cannery-ownerS' account the
farmer is not easily overreached. The bucolic
holding its own against the reputed keen
city man.
If 1 have contract with farmer at IL
cents a pound" said one Gamer, "and
month later fruit goes up to IA cents
pound, and say the Cutting Packing Com
pany forms a contract with a neighbOr OF
my man at that figure, curious thing hap
pens. Providence has taken the neighbor
under its special favor and he gets not only
the larger price, but a wonderful crop and
the mau that sold to ME poor one.
I'VE always find that man that gets a
good contract gets an awful lot of fruit to
the acre. Then there's divyy among the
ueighbors on the deal. If You talk of trusts
we have to look out for farmers trust"