The morning call., 1894-07-19
SOUND SHOWING.
The Produce Exchange in
Annual Session.
EX PRESIDENTS ADDRESS.
Status of the Institution and Its
AnneXeS.
EX = PRESIDENTS ADDRESS.
A NEW BUILDING IN PROSPECT.
Value of the Members Seats-The
Questions of Incorporation and
Margins Discussed.

members. Among them were the new Off
GERS of the exchange as follows: w. A.
HOlcomb, president; D. w. Sperry, treas
nrer; L. Kaufman, Louis Steller, Il. c.
Ellis, Ii. Erlanger, a. Gerberding. S. Ans
pacher and r. ID. Girvin, directors.
PresidenU-elect Holcomb was formally
introduced TO the members, and made
brief address eulogizing the action of the
retiring board. which subsequently re-
ceived vote of thanks.
After the retiring treasurer had pre-
scented his report, which was adopted.
Henry Sinsheimer, the retiring president,
delivered his annual report. He said
To the Members Of the San Francisco Pro d.
ace Exchanged ENTLEMEN: In compliance
with the requirements Of The bylaws, l have
the honor to submit my annual report Of the
affairs OF your exchange.
During the past twelve months twenty-seven
new members we're elec ed. We record with
sorrow the death Of four members-W. 5. Tay
Tor, Julius Baum, George Morrow and f. No
vella.
on the books being balanced at the end OF
your fiscal year S6373 81 ware passed 10 the
credit OF the stock account, but this amount
by no means shows the earnings OF your eX-
change. -Four thousand dollars, in addition,
was paid to the Call Board Association,
and that association as result OF The
general gsd Of SUBS and ID grain e inspec
ton fund of S52S9 CO. so that the gross earn
iugs of both Institutions is IN round numbers
Sl72OO, which amount, decreased by your
subscription 10 the Midwinter FAIR of $4,000,
ana for The benefit of the unemployed OF this
city of $500, leave net credit balance of
$1,000, and this IN the face OF several Items
of extraordinary EXPENSES incurred during the
year, among 9th RS S6S7 for making an exhibit
al the MidWinler air.
Your board of directors purchased eight
shares of the capital stock OF the Merchants
Exchange Association at 500 per share,
making your total holdings OF this STOCK 1926
shares, out OF total Of 2430. The earning
capacity of the Merchants Exchange AsSncia-
ton has been considerably reduced, owing 10
a number Of offices in the building remaining
vacant
Once more must l call to your attention the
uufitness Of the present building, not only for
the purposes OF our exchange but also for office
PURPOSES generally. We are financially IN
position to own lot ana place suitable build
ing thereon aud means TO that end should re-
ceve the careful attention OF the incoming
board or directors
A report of a special committee on the gen
eraI status of your exchange was mailed TO all
OF you, and on the 26th Of June a special
meeting OF the exchange was held to consider
the same.
At that meeting the whole matter was re-
feried 10 your board Of directors. The main
suggestion contained in the report was that
this exchange should di.inc0rporate and that
new Incorporation, Tor profit, with wider
articles OF incorporation, be formed The
sample and future business 10 be conducted
under the auspices OF an association similar TO
The Call Board Association. L nave consulted
with the attorneys OF the exchange on the
matter, and their opinion. is that any incor-
pOratIon for profit would be a vital blow
10 the general welfare ana purposes of
your exchange. The San Francisco Produce
Exchange, in company with similar eX-
changes throughout the world, is simply for
the convenience of its members and not
the least benefit thereby derived is the
control 1t exercises over its members IN
the enforcement Of just ana equitable
nF doin lOpn "a
exchange is constituted as 1t Is at present IL
has full control over the action OF its members
and can enforce its DEGREES, as has been deter
mined 10 TWO instances by he courts OF this
city. But the moment your exchange becomes
an Incorporation for profit this prerogative
ceases and your members are free TO disregard
The provisions Of its bylaws without fear of
losing their tangible interest In the incorDora-
ton, which interest is now virtually held by the
exchange itself for the benefit of all its MEN,
beTS.
The courts have upheld the action OF your
boa of directors in suspr ndug members nj
in apptOpriattng tn-lr memberships for the
benefit of members of his exchange when the
delinquents failed 10 live up 10 the provisions
of It's bylaws, and this power is TO my mind
too valuable to be lost by what would be at
best but an experiment
AS 10 the earning powers OF your exchange
/ have only to refer you TO the treasurer's re-
ports End 10 what l have alTe ady said about
our income. In my opinion we are so pros
porous that We had better leave we'll enough
alone and stand by the OLD Incorporation.
The figures at which our member ships have
been selling have been constant topic Of dis
cussion. | do not think their value should in
any way be connected with the value of the
assets of the corporation. but should be, and,
in fact are, governed by the value Of the priyi-
leges bestowed by the exchange on its mem
hers ANY one buying a certificate simply on
its property value. really should have no place
among us. Ii should be our duty TO attract
members and retain them by the power of beue-
fits offered and privileges conferred.
About Unity days ago The Supreme Court of
this State HANDED down a decision caring
that The seats in our exchange were not assess
able for the purpose OF taxation; so 1 can con-
graduate you on the termination of the many
petty suits brought against all Of you, aud
which had become constant source of vexa-
tOn
A firm, suspended over ten years ago for
failure to comply with the decision of your
arbitration committee brought suit against the
exchange for alleged damages caused by such
suspension. TIL case was recently tried In the
Superior Court of this city and judgment given
for the exchange on all points at issue.
special committee was appointed by your
board of directors 10 examine into the FEAST
billty OF paying a benefit on the death of a
member. The committee examined the matter
very carefully and unanimously reported In
favor OF a scheme for a life insurance, bun were
unable to suggest definite plan TO put the
scheme in operation on account OF the bylaws
AZ they now exist | would therefore refer
the matter 10 the incoming board of directors
for their consideration.
must congratulate the members of the Call
BDal0
perous wear the Institution has enjoyed since
1891 and this notwithstanding The financial
depression and stagnatiOn Of business that has
surrounded u.s.
The wear WAS noteworthy for the PUTTING I'm
force for the first time since the Call BOarc was
in exis ence of that portion Of its rules fixing a
value for marginal purposes. mere was, as
Won will remember, considerable difference OF
opinion as 10 the exact definition and applica-
ton OF he rules affecting the case, but l feel
contident that The action Of the board OF direct
ors was for the best interests OF the association
aud of It's members.
The actual delivery of grain Is intended on
your contracts, and proper penalties for any
failure TO fulfill contract are amply provided
for in your rules. And, moreover, the contract
being for actual grain, such contract is fully
protected by rule IL, which was but recently
put In force, from any undue imitation and
N npulafion.
To eradicate any misapprehenSiOn as TO the
exact meaning OF this all-importanI rule and TO
thoroughly systemic all tie rules a committee
was appointed by your board OF directors, and
Will be ready to report in few days.
| would recommend that the term OF office of
the members of your DO I'd OF directors be for
two years, four or five of the board 10 be elected
each year. This would enable members OF
the board to become more thoroughly CONVEX
SAINT win the affairs OF the institution.
For The past twelve months values OF agricu
tuTal products throughout the world and more
especially of wheal, have ruled at lower figures
than were ever before known. In the case
OF wheat this is due to oVer-production
as well as the general financial depression that
has everywhere existed. STILL the future is not