The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-07-27
THOSE FRUIT COMBINES.
Grower Hatch Tells How They
Operate in Eastern
Cities.
RING METHODS REsoRTED TO.
The Close Auction-Room Is Soeeze
on Both Producer and
Retailer.

The fruit-growers of this State do not
propose to submit to the manipulations of
a few New York and Chicago merchants if
such can possibly be avoided.
1t has resolved itself in a question of
whether the Eastern market is to be con-
trolled by few middlemen or whether it
is to he an open market
The Porter Brothers Company and the
Earle Fruit Company, which ship almost
four-fifths of the fruit of California to the
East, some time ago. after score of years
of sharp lighting, concluded that the only
way to prevent the fruit rings of New York
and Chicago from taking unfair advan-
tage of the producers was to combine and
establish open auction-rooms free to all
bidders. The result is that in these two
centers of distribution they now have open
auctions, from which no buyer is barred.
This was the first step in an endeavor to
secure fairer treatment for California fruits.
The next was the effort of the California
Fruit Growers and Shippers Association
to obtain central fruit-auctiOn scheme
consolidated open auction-in New York,
to which the National Fruit Association
there refused TO agree, as President w elm
stock of the California Fruit Growers and
Shippers Association explained in The
CALL of yesterday.
The National Fruit Association had re-
peatedly expressed itself faverably toward
the idea of such consolidated auction
room, and its refusal to make the COM
promise came as a great surprise, and
seemed like a breach of good faith to the
California growers.
In Chicago the Merchants Fruit Auc-
ton Company established closed auction
room in building on the illinois Central
tracks at the foot of South Water street,
with Frank Cuneo as the president. This
auction company has only recently been
started, and its object is to bar out retailers
and peddlers.
In consequence of the refusal of the COM
mercial rings in these two cities to enter
into an equitable arrangement the ship
pers of this State are somewhat divided
between the rival auction rooms the mar
ket is demoralized and prices have suffered
a decline to the producer. though it does not
appear that the consumer has been enabled
to buy any cheaper. The middlemen have
cornered the market for their own benefit,
and in that lies the explanation OF their
opposition to open auctions. The latter
are making titanic effort to break the
power of the combines
Such is the inside information gathered
from a. T. Hatch, who is the largest fruit
grower accessible in this City, and who
ships direct to the East through the Earle
Fruit Company, with which he is Incl
dentally associated. Mr.. Hatch feels COM
petent to talk on the subject. He said
yesterday afternoon:
1t amounts to simply combination on the
part OF few merchants 20 control the market,
certainly not Tor the producers benefit. They
can get together in q caucus Just like ring poll
tcians would, and say just what the prices
shall be. Between them they can so arrange
cbpoll 1faN vagaf1N
shall bid in another line, and so on, with the
understanding that after each has bid in his
particular lot without opposition, and they
have completely cornered the market, they are
TO divide up between them all the shipments
in sight aud then charge the retailers what
ever prices they please. 1t is just as bad as
courthouse ring, and amounts to robbing
machine.
Now they say that their combination is to
keep out ''disreputable' buyers. A buyer is
reputable ii he agrees with their methods
and the prices they fix; otherwise he is dis
reputable.
Let me show you how this apparently plaus-
ible excuse of theirs, that they simply wish to
keep out retailers and peddlers, operates:
Many OF your consignments there are reported
in "bad condition" This does not mean that
the fruit is rotten but that it is too ripe TO be
sent out into the country or shipped any long
distance. To the combina ton these consign-
ments are not worth anything for country sales,
but they are just what the retailers and ped
dlers want for the city trade. II. therefore the
retailers and peddlers are Kept out from the
auction sales the merchants in combine can
buy such fruit at very low figures to them
selves and subsequently dispose of it to the re-
tailers and peddlers for the prices the retailers
and peddlers would have given US in an open
auction; in fact, the retailers and peddlers
would probably have paid even better figures.
The nice margin of profit which the merchants
in the combine are thus enabled to squeeze
out OF the producer, on the one hand and the
retailer and peddler, on the other, goes into
their own pockets, OF course.
MY reason Tor DreferriQg Union aUptfOD for
sale OF ouI fruits in Eastern markets is this:
That all OF those who desire to buy our fruits
may come together in one place and compete
Tor them. 1t matters not to me on what pier or
other place so long as there is only one place
Tor the buyers to find our goods union
auction open to all who desire to buv is what
the fruit-growers need. All who wish to buy
competing for the goods in one place means
the best results to US and will surely give less
opportunities TO dealers to form com binations
for the purpose of getting our goods for less
than their value.
But that is what is IN the cocoanut 1t seems
that the buyers prefer TO have as few OF their
mum Der present at q sale as possible, that they
may the more readily combine for the purpose
OF controlling the sales by agreements among
themselves. OF course they are not philan-
thropists-they are working to get the best of
US. 1t is our duty to ourselves, therefore to
stand firmly and pull zone for all and all for
one" Tor self-protection; then it viii not be our
FAULT II we are robbed.
There are no dealers in Chicago New York
or any other city DESTROYS that we should get
the best prices for our goods-the lower they
can buy them the better for them of course ii
we would be protected we must protect our
selves. 1t would be safe rule to antagonize
every movement of the buyers. Asitis as in
game of chess, they try to beat US at every
move. Eternal vigilance" is the price of fair
play at their hands.
Then why not watch them closely-that is
part of the business. For my part / will not
ship any fruit to city where some of the buv-
ers can say who shall have an opportunity TO
bid for it, and who shall not nor to an auction
house that.is trying to control the number of
buyers
The only large fruit man in the State
who does not look at the matter in the
same light is ]. q. Anderson of San Jose.
He is working in the interest OF the close
auction-room of the National Fruit Asso-
citation, and some Of the lesser handlers,
looking at the matter more from the point
of view of the Eastern middlemen than
from that of the California producer, are
inclined to follow Mr.. Andersons lead.
One of them, local merchant, said as
much yesterday, but for fear that his course
of action would antagonize the producers
he asked that his name be withheld from
publication.