The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1892-12-10
TAFFY IN TRUST.
Candy=rIakers to Form a
Combine.
TEN FIRrlS ARE INCLUDED.
A Scheme to Lower the Price of
rlateriai and the Cost of rlan-
ufacture.

For some time past the FIVE principal
candy manufacturing firms in the city have
been considering the pro and con OF trust
to Include their several concerns and 10 be
managed by their present owners.
The matter has been under consideration
for several months, and a further agita-
tion of the subject as soon as the pres
ent holiday rush of business is at an
end has been decided upon. Those who
are In the business. with some excep-
tions, seem to regard the prospect of ulti-
mate success with considerable assurance.
1t is contended that by a union of their
interests great saving can be effected in
the purchase Of material, as when goods are
bought In large quantities a reduction in
rates is usually offered. In sugar a frac-
tional reduction on the pound means a con-
siderable percentage additional to the
profit, as the candy business is one that de-
ponds on small profits.
AS saving could be effected In sugar
when bought IN large lots, so also upon
every other material that enters into the
manufacture Of sweets. Itlis also contended
that great saving could be effected ia the
matter of expensive help, as less superin-
teDdents, b0OkkeepeTs and clerks would be
required fer one corporation than for sew
eral Individual concerns.
SO also in the way of expenditure for
travelling agents. At present each concern
has its own representatives on the road
and the expense OF maintenance for this
class of help is a serious matter. With
combination this Item OF expense could be
greatly reduced.
Another matter OF importance In which II
Is thought that great saving could be made
Is credits and collections.
Until recently" SO one of the larger
houses explained, there has been but little
esprit de corps among the candy mann
Fa1
business without consulting with its rivals.
with the result that some dishonest persons
taking advantage of that fact, have secured
full amount of credit from each manu.
1acturer when they were only entitled to
that of one.
This condition of affairs compelled a
joint action on the part of the whole trade,
and this abuse has been remeded. There
Is now also mutual and satisfactory
arrangement in the trade in regard to credit
reports. and this mas been very satisfactory
TO all concerned"
1t was stated that the success of this
small measure of combination for the good
OF the trade had sensibly weakened the op-
position to the idea of a close co-ope ration.
and. further. that but for the Discrimination
OF one manufacturer the trust would have
been successfully launched.
The opposing firm was that of A. Hro-
mazda Of ODD Battery street. and when inter.
viewed by a CALL representative Mr.
HrOmada admitted that the idea of a trust
among the candy manufacturers was being
considered. Mr.. Hromada stated that he
bad refused TO join. for the reason that he
had heretofore conducted his business sue
eessfuly. aud did not bslieye that any one
else could &c it any better than he could
himself
Mr.. Kohn of Messrs. Saroni g. Co. courte-
ously denled that any trust WAS in contem-
plation beyond a mutual arrangement for
general protection against dishonest Gus
toners.
Mr.. Rothschild Of Rothschtld & Ehren-
pfort stated that the idea of a trust among
the manufacturers of sweets was being con-
sldered. but that nothing would be done
until after the holiday season was over.
And maybe" he answered, systematically,
mot then, but wait and see."
The 1rms constituting the proposed trust
are:
Adolph Hromada. 222 Battery street;
RothscEild d EhTeD pforf, 1I8 Front; Louis
Saroni 6 Co.. 50S Front: W. a. Grade &
Co, 533 Washington; j. Seidl 81 Co.. $50
Stevenson, and De Martini & Co.
These six firms employ a capital Of about
$4,000, and their sales Of manufactured
candy are close on 10 81, 250, coo per annum.
They are the controlling power in the candy
business in the State. II is also in cOntem-
plation to include the firms of ii. Fisher 81
Co. and W. Z. Peterson of Sacramento, and
Bishop & Co. and j. NJ. Smith & Co. of Los
Angeles, making altogether a combination
of tee large firms, who practically control
the business in California, Nevada and
Arizona, and partially so in Oregon and
Washington.
1t is stated that stock would be Issued to
tie six firms of this city to the amount of
$4,000, and that the amount to be allotted
the outside firms should be adjusted accord
ing to the value of the plant OF each, so that
the total capital stock Of the trust would be
brought up to $3.50. 600, with an annual bust
ness to start with of s., COO 600.
With the exception Of the one firm re-
ferred to the idea Of the trust seemed to be
regarded with favor. The improved pros
pect of business in consequence of railroad
and steamship competition that is promised
impresses the candy manufacturer as a
hopeful indication that this city may re-
cover its lost-trade, and that with reduced
expenses the formation Of trust seemed
to assure, and a wider outlet for business
on account of low freights, a promising
future seemed to be certain contingency.