The record-union., 1892-08-16
NO MORE AUCTIONS.
Opposition and a GIutted Market the
Cause.
River Fruit VIII be Sold in the Old
Manner-The Plan May be Re-
sumed Next Spring.

1t was only few days ago that the lead
ing fruit-growers along the Lower Sacra-
mento River held meeting and resolved
that they would continue to have their
fruit sold in San Francisco by the auction
plan; but now comes word from San
Francisco that the local fruit auctions
will be discontinued at once. Last even
ing's Post has the following on the SUBJ
ject:
Many of the local commission mer-
chants, upon opening their mail this
morning, found the following circular:
SAN FRANCISCO, August 18TH
DEAR SIR: beg to inform you that have,
much against my wishes, concluded 10 aDan-
don, for the present, the auction sale of mutt
and produce
My reasons for doing this are these.
First-The determined and vicious oppo-
slt1on of certain commission merchants, who
nave used every means in their power 10 de-
feat tins method OF disposng of fruit, etc.
Second--Several cannetS have absolutely re-
fused TO attend sales, for reasons best known
TO themselves.
Thrd-rhe lack of support received from
ruit-groWerS.
Unuer these circumstances can see that it
would be impossible 10 hanule oar Dro0uce
to advantage. ana rather than have you make
any sacrthccS by supporting the auction, J.
deem it but justice, To yoI, DIS wen as To my
self, that l discontinue befOre any harm mas
been done.
Notwithstanding all this, 1 still contend that
the auction system IS the proper way o. dis
posing of perlShable goods, but III order o
make 1t Il success must have the support OF
the majority Of tine frultgrowers.
Hoping that in the near future Will see Il
concerted move iii this direction, ana thagll-
ing you for your support ant, confidence, /
ain, yours truly, Z. SFaIN,IIAGEN.
Judging by the opinion expressed by
many OF the commission men this MORN
ing, the failure OF the auction PLAZA was
not surprise. Many o. them had ex-
pected, so they said, that tile scheme would
tall through after Il brief trial, While otii
ers stated that they had anticipated its col
lapse at an earlier date.
Kunors were rife in fruit-commission
circles This morning that the cessation OF
the sales by auction had been brought
about by a row between Stelnhagen am
the firm Of McDonough 4 johnson, which
was backing him. 1t was said tlat angry
words had Dean heard in the office o the
firm on Saturday night, ana tie appear
ance of the circular this morning was be-
lleVed to have had some connection with
the alleged quarrel.
At the Office OF McDouough & johnson
this morning, however, il wasannounced
that there had not been dispute OF any
kind whatever and that the relations be-
tween Mr. Steinhagen and the firm were
as cordial as ever.
In speaking of the outcome of Steinha-
gems latest venture, prominent trUit
merchant SAID this morning: There were
many goOd reasons why the auction sys-
tenn dld not work well i'll this city. The
plan Is nicely carried out in the East. but
different conditions prevail there. In The
Eastern markets, only certain grades Of
fruit are sent to the seller and they are
readily disposed or.
Out here, however, the growers dump
everything they raise into the market
and as result only the choice stock was
bought, while the poorer stuff was allowed
to stay on the wharves, where il would
rot unless sacrificed to peddlers.
The plan would work smoothly
enough if there was reasonable limit 10
the supply, but when the shipments be-
gin 10 pour in at a lively rate the auction
eer, in the language OF the street, found
that he had bitten Oft more than he could
chew"
Mr.. Steinhagen, in his circular, speaks
OF determined and vicious opposition
among certain commission merchants. ,
Was there such Oppostion?''
Il do not know that there was any
vicious opposition," replied the mer-
chant, but there was undoubt a
very determined movement against al
lowing the auctions to be successful. And
why not? If certain stories are true, the
oSiOlIiC dtCG ny W EcIOlHIlStSCtl
was nothing less than an attempt, back ed
by clique, to get control of the river
product. Then, again, the auction sales
cut into the commissions of the con-
signees. L Go not say that Mr.. Stein
hagen willfully or maliciously attempted
to hurt the business OF the merchants.
believe that he was actuated by praise
worthy motive, yet, at the same time. he
was injuring their receipts, and they
promptly resolved to fight back in such
a tizzle.
Another cause for the failure was that
in disposing of the fruit in the manner
mentioned, everybody, including hotel
men, boardlng-houSe keepers, restaurant
men and even street peddIers, Were al
lowed to bid for consignments, and this
i'll tiiue would have seriously affected the
trade Of the jobbers.''
Mr.. Steinhagen, when Iseen, said that
his circular contained all of the informa-
ton he desired to give regarding the
non-success Of his auctions. He said
that he had forwarded copy Of his letter
to truIt-growers throughout the State.
Mr.. Johnson Of McDonough d John
son said that while he was satisfied
that the auction plan was good one he
thought that it had been brought out be-
fore the time was ripe for it. He stated
that the sales ran along nicely until the
closing days Of last week, when a variety
OF causes tended to bring about it's col
lapse. The main reason was that the
river boats were late and did not get their
cargoes on the wharves until nearly
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