The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1892-03-18
PRODUCE EXCHANGE.
Meeting Of Members to Act On a
Financial Question.
Ownership in the Merchants Exchange Build
ing Cause Of Friction-some Person
alities-A Compromise.

II tluhl WAVE OF excitement arose IN the
San Francisco Produce Exchange yesterday
afternoon and subsidized without doing any
damage to either those who directed its
course or to those who received its impact.
One hundred and six of the 200 members
| assembled at l O'clock in response to a call
to determine whether they should instruct
the directors to sell the shares of stock in
the Merchants Exchange building owned
by the Produce Exchange.
DIVIDEND WANTED.
The argument for this action is embodied
in the following postal-csrd sent to each
member of the Produce Exchange:
A special meeting OF the members Of the San
Francisco Produce Exchange has been called
for the 18th day Of March. 1892, at l O clock
I, NJ. for The purpose OF con Sideriag the advsa-
Dlilty OF dlsp0sing OF the stock OF tile Merchants
Exchange now owned by The San Francisco
Produce Exchange, and dividing the proceeds of
such sale among It's members. which. Il Is
slaled, VIII amount 10 some hing over $1,000
! each. Such sale aud the proposed dividend viii
! 10 no way affect the present value OF the PRIV.
! leges OF The members. nor interfere IN any way
/ with the fuIthelance OF their business on
! Change lie proposition Is one OF great i'm
! portance to all members as il Will insure TO Them
| the $1,000 dividend, which at the present time,
together Win all the privileges Of the exchange
| Is worth but $3.50. Every member should be
present ar the meeting person and vote intei-
f. " EATON,
Member San Francisco Produce Exchange.
| The official call for the meeting, however,
was not signed by Mr.. Eaton. II came as
| matter of form from the directors. and was
! more formal in tone.
By O'Clock the seats were all filled, while
| a semicircle three deep occupied Standing
room only behind the chairc.
Mr. Eaton, the signer of the pOstal-card.
was on his feet the instant the president of
the Produce Exchange, c. b. Stone, an
nOunced that the meeting was ready for
! business. he desired that the question as
! TO what constituted a quorum should be set
| tied first. The president informed him that
he had been advised by the attorney of the
| organization that tile members present con-
| Stltuted quorum, whether one or a were
| in ATTENDANCE, and he so ruled. Argument
from Mr.. Eaton on this point was of no
avail. and, as President Stone ruled that
any action taken by the meeting would he
! OF an advisory character only, MT. Eaton
/ gracefully sLccumbed, aud set in motion the
tldal-waye by Offering tile following Tesolu-
! ton:
NR. EAToN's RESOLUTION.
! ResOlUed. That The board oidirectors be and
| they hereby authorized aud instructed 10
| sell the 1850 shares OF the stock of the Aler-
chants Exchange Association now owned by
! THIS exchange al value equivalent TO its pro
rata OF he properly Il ~ presents and place the
| proceeds thereof in tile treasury OF this ex-
Change subject to further action OF the members.
Mr.. Eaton followed with a speech in sup
| ever, that he appeared not so much in his
( own behalf as he did to represent the senti-
! ments OF those who were dissatisfied with
! the action of the board. He contended
! that neither the by-laws, nor the laws
! governing corporations of both CLASSES to
| which the Produce Exchange belonged,
! authorized the institution 10 invest its
| funds, except for the erection Of building
! Tor lis exclusive use or for the rental OF a
| building. He said that the directors wer
| therefore individually and jointly liabl g
| for any losses by reason of their action in
| placing $50, eco of the funds in the stock t
the Merchants Exchange Association.
AN INDIvIsIBLE ESTATE,
AS personal property 1t could be sold as
| readily as the chairs and tables. The wealth
| In Its present form was not divisible among
| the members IN The event Of their ins0l-
| yency or death. He thought equity and
| justice required that it should be so placed
that its rlghtfnl owners could secure it
| The creditors, wives and children Of these
| owners were denied their rights by the in
vestment as it stood. What Mr.. Eaton
! claimed was sale OF the stock aud a
| division OF the proceeds If the sale among
the members. He concluded with the asser-
| ton that he himself would be satisfied with
any course which would meet the approva
! Of the majority Of the mem bers. When Mr.
| Eaton resumed his seat tie applause wa
loud and continued tor some time.
J. w. II. Campbell followed with an argu-
| Merchants Exchange building was a very
valuable investment. He predicted that
within seven years time it would be worth
S1,7J0, GOO, and that seats in the Produce
Exchange would in time be worth S500t
each.
Mr.. Eaton replied that be did not think
any member with available funds OF his
own would put them in an investment re-
turning only or per cent when they
could get per cent fo1 their money.
GEORGE P. MORROW IN REPLY.
George z. Morrow. who defended the
action Of The board of directors, of which
he was one, delivered vigorous speech
seasoned with personalities and said that
though Mr.. Eaton was a very clever mau
his animus, as disclosed by his pOstal-card
" as dictated by the selfish motive OF secur-
ing dividend. He denounced him as one
! of the kind Of members who never come 10
meeting except when an election was to
be held or row was in prospect. He also
spoke OF Eaton as a member " no transacted
| very little business IN the exchange He
| attributed the depreciation in the value OF
seats TO the fact that every line of business
IN San Francisco was depressed. There
| would be, be said, revival some time, when
there would be heard no complaints.
Az HISTORICAL EPISODE.
| He referred TO the history of the Produce
Exchange and to the time when most of its
members dTI not want to leave the Davis
street location, and seeding, set up ri val
| exchange, which in due time c0lapsing. the
seceders returned TO the Old exchange. They
retuTUed because the original Produce Ex-
change had building at its back. He con.
cluded by placing Mr.. Eaton among the
! class known as wreckers.
At these words there was an upr0ar Mr..
Eaton objected TO personalities. As he had
been very courteous in his remarks the ma
jority showed their sympathy by loudly
appiauding him. Then followed emphatic
calls for the question.
OIL UPON TROUBLED WATERS.
Mr.. Baifour Of the firm of Bllfour, Guth-
RE & Co. made speech which threw oil on
the troubled waters, and ended by Offering
the following resolution as a substitute for
Mr.. Eatans:
ResoIred. That Mr.. Eaton appoint a committee
OF thee members TO confer win the board OF di
| whereby tile value Of seats and membership
privileges In this exchange may be brought ul
| 10 he approximate value OF The aggregate o
| property interests held by The organization.
Mr.. Eaton accepted the compromise, with
drew his resolution and Mr. Balfour's wa.
adopted with only two dissenting votes.
Dir. Eaton named as the committee Mr.
Balfour, MI. Kaufman and himself where
upon the tidal wave OF excitement subsideC
and the meeting adjourned.
| Another meeting will be held next weel
to ascertain the sentiment of tie member
| in regard to the action of the directors in ex
| GLIDING the public from the meetings of tin
| call board.