The herald., 1894-10-19
FRUIT TO Be SOLD At AUCTION
The Plan Again to Be Followed
This Season.
Commission Brokers Are Pledged to
Retaliate.
Ffuit Growers by Co-opsrstion Ars
Beginning to Got Better
Prices for tho Orange
Crop.

Ab tuo auJourucu MeotiuB Vi tho oAuO'
utive committee of the Southern Cali
fornia Fruit exchange. held yesterday
morning, there was quite lively dis
cuseion on several points which affect
the fruit growers very closely.
The most important was concerning
the advisability of continuing the
auction sales at San Francisco during
the coming season, as last year. or re-
epond to the overtures made by the
commission houses OF San francisco,
and follow out what is known as the
fob, or free ON board, system. Several
very nice points were involved in the
settlement OF this much debated
question. but the executive board, after
much discussion, finally decided to fol-
low the precedent established q year
ago and have regular auction sales in
San Francisco. The question is one
which has aroused some little feeling
on the part OF the growers and also the
northern commission men, and the lat
ter have been represented before the
executive committee by l.. Scatena and
J. Wood OF Wood, Grsy & Co., both
men prominent as commission mer-
chants.
The case of the commission men was
embodied in statement submitted to
the executive committee and signed by
80 OF the most prominent houses of
San Francisco. This statement was as
ollows:
GENTLEMEN We, the undersigned.
commission merchants and produce deal.
era OF the city and county Of San Fran
cisco, state OF California, believe, from
the results Of the efforts made by the
auction company of San Francisco during
the past season to dispose of the orange
crop of our state by the auction system,
was not then. and will not be in the fu.
ture if continued, the most advantageous
to the shipper or to the merchants here :
end We further believe the market can
be better regulated, the supply con-
trolled and higher prices maintained by
direct dealing between the legitimate
dealers of this city and the exchanges Of
the eouth; and, furthermore, that we
would be in a better position to avert
any serious gluts that might occur
and we are firmly of the opinion
that the auction system is q great
injury and an injustice to the merchants
of San Francisco, from the fact that
when they make direct purchases OF
oranges from the associations in the
south the game goods are put in the
auction in competition against them /;
hence, to cay the least, it ia very dis
couraging for the dealers to purchase
direct under these circumstances but If
O. +. o. b. system be adopted. we, the
undersigned, are willing to supply al
our wants by direct purchases from the
different exchanges OF the south, pro.
vided, OF course, we are assured protec-
tion. Furthermore, the above methods
would be much preferable to the under.
signed. "a we can never depend upon
q regular supply OF the varie-
ties and qualities desired through
the auction system. and we here
with present to your honorable Rssocia'
tions this expression OF our opinion,
and we respectfully request that you
consider the came, and we believe the
adoption OF the suggestions contained
herein would result to our mutual ad-
vantage. Respectfully, yours.
(Signed) l.. Scatena & Co., Gould &
Jaudin, Wood, Gray q Co.. Antimanch
& Fine, Garcia & Maggini. A. ]. and B.
Inmel & Co., McDough d Runyon, B.
Bisgi & Co., T. Steinhagen & Co., Tro-
& Welbanks, O. Lippi & Co.. Connor &
vich, VIM. F. Mitchell. Stewart & Co..
Levaggi q Barpieri, Campodonico 4
Doleguy. John &. Wetmore. secretary,
D. G. Csmarinos & Co.,, Morgan &
Check, Geo. w. Tindal, Chuda & Flsch.
At first glgnCe the facts set out in the
above statement appear to be perfectly
valid, but it seems there lie another side
to the question. All the local exch anges
are perfectly willing to adopt the I. O.
for them. They, through the commit
castiron contract to the San Francisco
commission men that there will be
neither auction sales nor oonsignments
OF fruits from Southern California. but
in return they demand that aB they are
willing, through sslf.interest. it is true,
| to protect the commission men, they in
| turn must protect the grower. This can
only be effected by their refusing to
handle the small consignmentn which
may be made by growers not connected
in any way with any OF the exchanges.
This may seem an arbitrary proceed
| ing, bat it is only so in appearing. First
Of all, say the exchange men, il has been
absolutely demonstrated that tho eetab.
lishment OF theee exchanges haa effected
large saving to the grower. Thus,
the cost of packing and remarketing
tine orange crop at Ontario was As cents
per box, clear saving OF 20 to 25 cents
per box over ths old com mmission ystem.
The Redlands growers, knowing that
their fruit ranked in the first class, took
an independent atand and refused to
join in the exchange. The consequences
was, Judging from the returns jus: com
pleted OF last years crop, that to them
the cost of packing. commissions, etc.
was 81 cents per box. In other words,
the growers in that section paid $18 per
car above the exchange growers for the
privilege OF not belonging to the associa-
tion.
Furthermore, say the exchange grow
ers, it has also been demonstrated to
our cost that a car lot of fruit strung in
now and then will break the fob. ays.
tenn and dsmoralize the trade. Al
though 80 per cent of the growers are in
the exchange, the outsiders can make
our contracts practically non-etfective,
and for that reason we have demanded
protecting clause, which the commits
sion men have denied.
One prominent commission house in
San Francisco handled over 200 cars of
the 1882 crop, while last year. when
the auction sales were established. they
handled only 20 cars. Briefly, that ex-
plaina the aituatiou Sailing consicp-