The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1896-01-19
Peculiar Business Methods of
Chicago Commission
Merchants.
HOW RENTS AFFECT RETURNS.
Rejection of ConSignmeDts En- Route
Upon a Falling Market Is
Common Trick.

and shipper, owing 10 their system OF con-
signments, are paying the rent of the
South Water-street commission man OF
that city to an extent that is as unwar-
rantable as it is startling.
Quoting one of the most prominent COM
mission merchants in the street the dis
patch says:
1t is fact too well known to be denied, many
commission houses do not give exact returns
TO shippers. The last two years have been es-
pecially trying to the streets honesty. While
the commissions asked atpresentar lower than
ever before, business is dull; competition for
trade never before was so sharp, and rents
are being exacted more vigorously than at any
previous time.
| Instead of d reduction commensurate with
| the scale of business, landlords in South Water
street are continually putting on the jack
| screws.
| The complaint against the rents has become
| so serious that mass NEE ting of South Water
street commission merchants is called for next
| Saturday afternoon at the Produce Exchange.
| a secret meeting was held there yesterday
| afternoon and representatives OF nearly every
| prominent house in the street were present.
A committee OF twelve was appointed to devise
! plans for either moving or securing a reduc-
! zion OF rents The names OF the committee
men were kept secret.
This is truly an honest confession that
ought to be good for the souls of these
apparently but not really dishonest COM
] mission men. Because the rents are
| high III South Water street Chicago, to
quote literally the words of another penitent
in the same dispatch, the market does
not give the grower the best of the deal"
The 'iackscrews" which the landlords
put on the merchant in the East squeezes,
| by these peculiar business methods, the
grower in the West.
| For some time the fruit men of this State
have been complaining bitterly OF unsatis-
| factory Chicago returns, especially from
orange consignments. An unreasonable
number of cars have been reported in bad
conditions false reports of selling prices
are made, and the owner is called upon for
expenses sometimes exceeding the value
| OF the conslgnments. To these com plants
the commission man answers thai all this
lis due entirely TO high rents exacted by
South Water-street property owners"
las well might the Chicago man use
| the excuse that the price of ink has adj
vanced, or that he has been obliged to
raise the salary of his typewriter" said a
prominent Fruit Exchange man Yesterday.
| When 1t becomes apparent that a GER
tain number of real estate owners shall
dictate 10 the South Water street commits
sion man the expenses at which the latter
shall make his returns to the producer,
has not the time arrived when the Califor-
! MA grower and shipper should unite, call
a halt, and have a little something TO saw
as to the terms on which his goods shall be
/ marketed? How long is the producer to shut
the door, and that through his own insJru-
! mentality he IS making the South Water
street commission man rich, while he is
! not only raging Their rent, but is often
! called on for expenses, sometimes exceed
/ ing the value OF the consignment, while he
| himself is often glad if he can get enough
| out of his last years crop to insure the
cultivation OF the next years crop in the
vain hope of better times-which Will never
arrive until there is radical change in his
manner of doing business.
There must certainly be q remedy for
this state OF affairs, and the very first step
| to be taken in this direction is for the
grower to meet the shipper and endeavor
| to combine for each others interest, for
the grower needs the shipper, who is a
man Of commercial experience which can
not always be said of the grower; Just as
much as the shipper needs the practical
| grower, which cannot be claimed for all
I the shippers. Let them clasp hands and
trust each other in California. Let every
| one stop, and stop at once, the pernicious
| system OF promiscuous consignments and
! the California producer ana shipper will
be a bic TO show a reasonable balance on
the right side OF his ledger. 1t is no longer
question of how long the California
| grower Is going to submit to the extortion
of the South Water street commission
man; it is a self-eyident fact that unless
he takes the means at hand and combines
WIN the shipper at once, ana CenterS all
the fruit interest IN direction to the end
that Californians shall benefit to a reason
able extent with the Eastern buyer, his
orchards Will be plastered to such an eX-
tent that foreclosure and ruin will follow. }"
THE California fruit man indeed gets
the worst OF the DEAL said Secretary T.
5. Taylor of the San Francisco Fruit Ex-
change Yesterday. "Often big consign-
ment will be sent East contracted for by
sample, and before the carloads have got
beyond the Missouri River they will be re-
jected by the Chicago man. Not even an
excuse will be made; the goods will sim
ply be rejected. That is Chicago way Of
handling consignments when the market
has dropped a little or the rent has been
raised.
What can the shipper do? His fruit is
rolling on to its destination. and when it
gets there it is 5000 miles away from him.
SO the South Water street man sells it and
suits himself about the returns.
1.-THE San Francisco Fruit Exchange was
organized two years ago to protect all the
fruit men of this State against Just SUCH
extortion, and to establish an understand
ing between buyer and seller that will pro-
tect both. Look at the Alaska Packing
Association anC its business method.
The salmon is purchased here and the
buyer abdes by the terms of the contract
and there are no rejected carloads of fish
when the consignment reaches its destina-
ton.
The Fruit Exchange proposes to have
sales made f. o. B. common shipping
point free on board and not cash on
arrival after inspection at destination,
whereby goods may be elected on a fall
ing market Inspectors will be provided
at the principal shipping points under
bonds and authorized to inspect and
certify as to condition and grade of the
consignment Bills of lading will be for
warded with inspectOr's certificate at
tached, and it Will soon dawn upon the
consignees that payment will be expected
upon receipt of these documents. The
arbitration committee OF the exchange
will take care of all disputed questions
regarding quality of fruits shipped, and
there will DE no more haphazard way of
doing the commission business between
California and the Eastern market. Then
the fruit-grower on the Pacific Coast will
not be in the hands of the rapacious land
lords of South Water street, Chicago"