Los Angeles herald., 1892-02-10
THAT FRUIT TRUST.
P. B. Armstrong Outlines the
Big Enterprise.
He Says 1t Will Not Be Trust
but Cooperative.
A Conservative Estimate Places the
Capital at Fifty Millions.
Tho New York Capitalist Arrives in tn Q
City-He Makes a Comprehen-
sive Statement of His
Scheme.

P. B. Armstrong and party arrived
from New York yesterday afternoon and
have apartments at the Hollenbeck
hotel Mr.. Armstrong has been until
recently the president of the Mutual
Fire Insurance company of New York,
and is one of the syndicate of ten,
headed by Henry Morgenthau, that
purchased the Morton-Bliss property at
New York for million dollars, which
is the biggest real estate deal on record.
The syndicate cut the property up into
lots and sold it out inside OF six weeks
for tride less than a million and half
dollars.
Mr.. Armstrong on being interviewed
said:
l myself being one of the largest
growers of fruit and nuts on the coast,
having over 100, 900 acres under cultiva-
tion, comprising some 10000 trees, am
naturally interested in any plan which
could look forward to a practical system
of economy in the cost of production,
shipping marketing and collecting the
proceeds of these California products.
ga fruit trust" such as announced by
the Associated Press dispatches from
New York, however, is the most remote
thing from my mind. While one, two
or half-dozen men can agree on def
mite line of policy, still they may not
be able to arrange plans and details
which would meet with the universal
approval of so large and important an
industry as the fruit interest OF Califor-
mia. 1t might look like assumption on
my part to even suggest in the face of
ability already shown by these Califor-
MIA fruit growers, a plan whereby each
and every one of them may be advanced,
but in view Of the fact that the fruit
growers themselves in conventions
on certain points, i feel certain that
the plan have to offer, with slight mod
ifieations will meet with almost uni
versal approval.
The plan is substantially as follows:
One large corporation to own 80 much of
the fruit-growing interests as can be
profitably admitted to the company,
both large and small growers being eli
gible, provided, however, that enough
small growers in given locality come
into the corporation to make the care,
culture and handling of their products
profitable to the corporation, in which
all would be interested to the extent of
the agreed value of their properties.
Without thorough investigation of
the matter it would be impossible to de.
termine upon the amount of the capital
stock OF the corporation, but / should
think it could be conservatively esti
mated at $50, 10000 Let it be less or
more, it would be divided into shares of
500 each, and each party interested
would be entitled to subscribe in the
same proportion that the agreed value
of his property bears to the aggregate.
1t is proposed to issue a general first
mortgage bond bearing not to exceed,
say, per cent interest, of what is
known as a ten-thirty bond, that is,
redeemable at the pleasure of the corpo-
ration after ten years and payable in
thirty years, these bonds to be issued
for an amount equal TO-. say, 331s per
cent of the capital. This would place
in the hands of the fruit growers of
California between $15, 900, 900 and $780,
100000 in cash with which to further
develop the resources of this great state.
My mission here is to pledge the neces-
sary amount of money to carry out the
objects contemplated.
The corporation is to be managed by
a board OF trustees of the recognized
leaders, or rather the most successful
fruit growers of California. The
manifold benefits to be derived
from such board of trustees
would be the combined expert
ence of these men: first, in plant
ing; second, in cultivating; third, in
pruning; fourth, in packing; fifth, dry
ing; sixth canning; seventh, shipping
eighth, rates of transportation such as a
large corporation could command;
ninth, in not Cutting certain markets;
tenth, in being able to reach all markets
of the world; eleventh, the prompt and
economic collection of eastern ex-
changes, even though it be necessary to
establish a banking institution that
would appreciate the necessities of this
great industry. Another advantage of
this corporation that will be recognized
by every grower of fruit on the coast, is,
that from one cause or another certain
county or section of the state suffers
in certain years from drought, rain,
insects, or other unforeseen causes,
while the remainder of the state enjoys
come entirely if each grower shared
equally in the prosperity of the fruit
growing of the whole state.
While have pointed out in ageneral
way the benefits all interested growers
might hope derive from the combined
knowledge of these trustees, it is recog-
nized fact that each of them have their
particular strong points in certain
branches, all of which united would
make tower of strength.
1t is proposed tollist both stock and
bonds on the New York stock exchange,
by reason of which any grower who
decided to retire from active business
could at once sell his holding with as
much celebrity as other firstclass Sc
curities.