The herald., 1895-06-01
LOCAL FIELD OF COMMERCE
Commission Men and the Fruit
Exchange System
BUSINESS PROPOSITION ONLY
Market Dem0ralized by COnsignments
From Europe
ises That Prosperity Shall Reign
Supreme in This Country

The following letter by the secretary of
the local fruit exchanges explains itself: /:
Office OF the Executive Board of the
Southern California Fruit Exchanges,
Phillips block.
Los ANGELES. May, 81, 1895.
Commercial Editor Herald The New
York Fruit Trade Journal, May 18th, has
an article headed, The Leaguets' Forum ;
Letters for the General Good OF Shippers
and Merchants, which should bring every
fruit grower OF California, both citrus
and deciduous, to a realizing sense OF his
duty to himself, his neighbor who has
for the good Of the state itself. in foster
ing and protecting system which prom
ises to the grower the only nope of his
continuance. Quoting from the article:
The producer recognizes, as do many
of our fruit and vegetable growers, the
value of reliable commission merchants is
as important factors i'll selling their pro.
ductions, but too many of our orange
growers know. too, that they have been
swindled by firms who claimed to be re-
putable and whose financial standing
even seemed all right. 1t is to be sim
cerely hoped that the national league will
in some way give an absolute guaran tee
of the reliability of its members, and if
possible furnish list of the unreliable,
'tin-horn' commission merchants. The
fact is that the confidence of our Calfor-
mia producers in commission merchants
has been terribly shaken and it will re-
quire substantial endorsements to renew
the former high opinion entertained of
the honesty OF the commission frater-
nifty"
This is simply business proposition.
The so-called tin horn comm isson mer-
chants caused the growers to combine in
self protection. Now tor the next para
graph of the article, which virtually ap-
plauds and condones this self same "tin-
horn" commission man, refers to his
score which he has to settle with the
California grower for his temcrity in
making an honest effort to manage his
own business in business way, and
thus ''depriving him (the Il. II. G. mani
of most profitable business.
ut is possible that the great influx of
oranges from every range growing sec
tion of the world would have been
dumped in this country, rs has been
done, upon hearing OF the Florida freeze,
even If the California crop had been con
signed to the various comm ission mer-
chants III the United States, but it is
hardly probable.
Tie merchants who handle oranges
on consignment, continues the journal,
''are in the business for business and not
for their health, and it was but natural
for them to seek other sources OF supply
when the Florida crop was cut off. Again
they had score to settle with California
orange growers on account of their ex-
change plan OF selling i. o. b., thus de-
prvlng them of a most profitable bust
ness. AS business recognized legitimate
war, the commission men fired the foreign
orange torpedo with accuracy, which blew
markets and prices. At this writing
May 1st-the smoke has not entirely
cleared away and it is hard to tell what
the result finally may be. There is no
doubt however, that if enough foreign
oranges and lemons exist that other
bombs will be fired. and as the commls-
sion men know the vulnerable points of
the orange market, they will be center
Shots"
Is this real war between the Califor-
ma Fruit Exchange and the commission
merchants, or is it one of the unforeseen
mishaps, like unto the Florida freeze,
that is always happening when least ex-
pected?
We do know that heavy advances ere
made py individual firms, members of
the Nationaal League of Commission
Merchants OF the United States to Sicily
and Valencia orange dealers, but heavy
shipments followed, and the next day
something dropped. 1t was the prices on
oranges. The remarkable thing in the
deal was the lack OF backbone in our
California fruit exchange, in not meet
ing the imported oranges with oranges,
and giving them broadside that would
have sunk the importation ships
so deep that they would not
venture soon again to try bucking
the American market. Wise heads con
cur in this idea, and it is believed that if
the thing was to be done over again that
the prettiest orange war ever conceived
would be fought to a finish.
There can be no doubt as to the
strength of the National League OF Com
mission Merchants. and the honesty of
the individual firms composing il; nor
can there be any donbt that the
firms who have handled oranges, many
of them before California oranges wer @
ever sold in the east. will continue in
sell California oranges or not.
Did the Fruit Trade journal have only
circulation among its mem Ders its
publication as the Official organ OF the
National League of Comm ,ssior Mer-
chants of the United States would be of
much more value than it otherwise
would. AS it is it makes an admission
either honestly. believing the strength OF
its position of more weight than the
growers interests, or through spirit OF
braggadocio, strengthened by years of
success in the manipulation of the pro
ducts OF Others, and still banking on the
same condition to continue.
1t remains with the intelligent grow
ers OF the state to decide once for all
whether their Investments are for them
selves and families, or for the benefit of
the commission firms 5000 miles distant,
and with no interest in the community
or their clients other than to secure at
the least possible cost and responsibility
to themselves, their stock in trade in
which they conduct "a most profitable
business" Yours truly,
Il. G. kIMBELL.
Secretary Southern California Fruit Ex-
changes.
My readers will bear me witness. ;"
says Henry Clews, in his weekly financial
review, that l was the first to sound the
death -knell to the bear mar-et. on March
9TH last, the day following the adjourn
ment of congress, when proclaimed that
the time had arrived to puy everything
and sell nothing. | then said there was
no stock dealt in on the stock exchange
SO poor that it would not advance con,
spicuously from that time forward.
gold scare was about to culm mate, because
the hunt for gold had commenced to re-
suit in increased production, the world s
output of which would amount Tor the
coming year to probably 5000, 900, 900.
with the prospect of its yearly increase
for some time to come. About $45. U00. 600
of gold will be taken cut of the African