The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1893-01-13
A JUMP BACKWARD.
The Call Board ReviveS Old
Methods.
Trouble Over the Settling Committee
Plan, Recently Abolished and
Now Renewed.

What the progressive members Of the San
Francisco Produce Exchange Call Board
Association characterize as step back
ward has been taken by the board. by the
revival of the old settling committee. to
which was always referred the matter oil
compensation TO dealers who were injured
by failures of other dealers to make deliy-
cries when promised.
1t is reported that some designations have
resulted from this going back to old prin-
eipIes. and that others will follow.
There were lively times ON Change yes
terday when 1t was known that the settling
committee had been voted into existence
again.
A number of the members of the call
board of directors were interviewed on the
subject.
P. E. BowIes, lce-president of the board,
remarked:
al never heard Of such a thing as this
settling committee outside of San Fran
cisco. 1t Is supposed TO be safeguard
against individuals or cliques who might try
to force up prices. or the opposite. In
theory the idea is excellent, but in practice
it doesn't work. We went into the matter
very thoroughly before taking action TO
abolish this settling committee. which we
did on November % of last year 1t was
unanimously voted against by the board of
directors who formed their opinions after
consulting with our members, the majority
of whom considered the system hinderaDee
to business.
81 was not present at to-day's meeting,
and until have consulted with the other
directors would rather not say yes or no TO
question OF resignng from the board"
L. j. Parsons, another member CT the
hoard WAS very muPh disguised.
81 am dead against the re-establlshment
of the settling committee" said he.
I'VE spent six months over this question
and canvassed matters thoroughly.
II dent think many of to-day's voters In
favor of re-establishmeDt can have known
what they had met for. Several of them
were those most emphatic against the COM
mittee's existence when we consulted them
last year. Many brokers complained to us
OF a loss of customers, who claimed that a
ring inside the exchange manipulated rises
to its advantage and then took advantage OF
the settling committee to prevent loss when
the scale turned the other way.
81 don't know if settling committees are
In existence anywhere outside of this city,
but / know they are not in existence in
many great grain centers which l am tamil
lar with. | have not yet resigned from the
board, bur feel in favor of doing so and
probably will"
'"rhe settling committee is nonsensieal
institution" said f. w. Eaton, another
member of thu board.
There are three processes in our bust
ness. One, where man sells in the ware
house; secondly, when he sells what he ex-
perts TO get. These two are legitimate
business. The third is gamble. lie sells
in the air without knowing If he will ever
be able to get what he is selling Well,
these people want to gamble. Granted that
there is nothing to prevent them let them
HauPp III n nav ba
piper. But here comes the absuTdity of IT,
They want TO dance without paying the
piper.
E''The theory of the settling committee Is
that they will manipulate matters between
buyers and sellers. But how are we going
TO guard against settling committees being
manipulated themselves?
In the famous Dresbach case four years
ago wheat was forced So or s9higher in San
Francisco than il stood anywhere else in
the world.
Where were our safeguards, thenP
They shut up the exchange for fortnight
so that we couldn't even get into the build
ing to meet and discuss.
''kesign! Certainly not. Members can
not vote down rule passed by the direc-
tors. Let them meet again and vote us
out of office. That's the proper way to do
business. / never heard of a settling COM
miltee outside of this city"
A. 9. Paulseil WAS at Stockton. but 1t was
ascertained that bis views were as decided
as those OF his brother directors.
j. w. Spe rry, member of the Produce
Exchange Board, laughed at the situation.
Half of them don't know what they
voted about. We have 200 members; out
Of these sixty-one attended and the major
ity vote was FIVE.
-Four directors were absent who would
have reduced that majority to one If they
had had the least idea Of wha. was going
to happen. We know from former can
vases that the majority of our members
are against the settling committee. OF
course. am dead against the plan"