The morning call., 1894-06-19

portant change in the operations OF the
Produce Exchange was promulgated in
the commercial bulletins yesterday morn
ing.
1t came from a committee nominated
somewhat over a month ago. and headed
by a. Gerberding, with S. Anspacher and
c. R. Splivalo as associates.
According to the charter the purpose Of
the committee was TO examine the work
ings Of the margin fund and to ascertain
if its scope could be extended. The tina!
report submitted by the committee pre-
sented the following conclusions:
Your committee, appointed TO examine the
workings OF the margin fund and TO ascertain
if its scope cannot be extended, assume their
duties TO be the submission OF some plan Tor
the establishment of a commercial bank, 10 be
conducted under the auspices of the Produce
Exchange the benefits and profits thereof TO
accrue 10 the members OF The exchange. The
present management of the margin fund is so
successful and so profitable that IL offers most
valuable nucleus Tor ger ana more pronta-
bic enterprise
To effect the proposed change. it was
advised bv the committee to dissolve the
present Produce Exchange corporation
and the present Call Board Association,
and to form new corporation TO be known
as the Produce Exchange Company with
very broad and comprehensive objects, per-
uniting it TO do any and all leRitimate!busl-
ness" having capital of 100000 divided
into 200 shares, par value $1,000.
Various opinions were expressed on the
street yesterday in reference to the propO-
sition. Mr.. Gerberding was seen first, and
lie expressed himself as confident that the
project would be carried through.
at amounts 10 nothing more than an
enlargement of the usefulness Of the ex-
change" be said.
The limits placed upon its operations
frir, vol NV 10
grown Some pTOperty-in the shape of
shares in the Merchants Exchange-has
been acquired, but the constitution does
not permit any commercial tran saction by
the exchange itself
"a new building is needed, and, the
committee thinks, a bank, which will
handle the money Of the members and
yield such q profit that presently the stock
IN the exchange will become of great value.
as things now stand it is disgracefully in
valuable.
The dual government of the call board
and the exchange which are virtually one
organization, but formally separate. pro-
vOkes considerable embarrassment. They
should be consolidated. That would be
the first step toward what all commercial
men are looking forward to, namely, the
consolidation into one exchange of all the
produce interests of the State - wine,
raislns, all fruits, etc, as we'll as grain and
beans and cereals"
It was not until an interview was had
with other parties that the fact was brought
out strongly that the chief feature Of
Gerberding's project was the banking pro-
position. True the report dwelt upon that
subject mainly, but Mr.. GerbeTding's
mind seemed to be full Of the larger
thought.
% One of the biggest dealers on California
street was the first to point out. or at least
to aver, that the scheme was "bank or
nothing" Said he:
There has been an ambition among
many of the Exchange members for a long
time TO make their seats worth some
thing. At present they are an expensive
commodity, and are not marketable.
THE aim of Gerberding and his follow
e.s is to convert the Exchange into
commercial, money-making institution.
He would have it purchase a building.
That is all right. We need it. But he
would also have it start bank and begin
to accumulate funds. That would add
value to their shares and make them sale
able.
LAS the Exchange exists now it is only
q corporation formed for mutual aid; to
furnish room wherein buying and selling
from samples can be carried on. The call
board. composed of the same mem bers, is
independently organized 10 permit the
trading in options.
$50 far as my experience goes. and it has
been long one, there has been no friction
between the two. l see no need for a
change. The only alteration that is really
needed would be as Gerberdiug suggests
the consolidation of all produce interests
under one Exchange"
Another prominent member of the Ex-
change was inclined to the same opinion
but hesitated to express his opinion about
the banking scheme
ut is so absolutely unique" he said,
that II would have to be tried before
passed to judgment 1t is not practiced in
the East, or anywhere that ] am aware of.
In most large cities there is what is known
as Produce Exchange bank. but it is al
ways owned by private parties and gets its
. name only from the fact that 1t makes a
specially or produce exchange business.
In New York and Chicago the call boards
and exchanges are united, but that is under
the privilege Of the special charters, which
the California constitution prohibits.
Here we find that an Independent associa-
ton enables us to preserve better control
over the members and over the option
business.
A former president Of the exchange had
not read the committees report very care
fully, but 90 sight judgment" was in
clined TO say that If there was any actual
difficulty In the board or in the sample
room. Gerberding's suggestion would only
serve TO confuse matters.
There was, after all, the gen tleman
thought, put one consideration before the
exchange. IL was the same thing which is
receiving the attention of business men in
all lines-namely, greater consolidation OF
interests.
what is wanted" he said, "and the
only thing that is wanted, is TO bring all
lines of produce-dealers into one sample.
room. Then we will have something like
the great Chicago Board of Trade, the
New York Produce Exchange or the
famous similar organization in Hamburg
Germany. Business on the Pacific Coast
will then begin to assume some of the i'm
portance and some of the successful meth
DDS of the older communities"
The prevailing opinion was in thi:
direction. Mr. Gerberding's bank scheme
was considered secondary, but all though
that il il helped to advance the Create
Exchange the suggestion of it would no
have been idle.
MIR. Dalton Of the State Fruit Exchange
was inclined to think that the day is no
far away when his corporation at leas
would merge with the produce organiZl
tioD.
TOD NTDIT OE DDnHVDETInAI