The record-union. [volume] (Sacramento, Calif.) 1891-1903, 1899-05-17

people of the State of California If it
decides against the people in this case,
the latter will undoubtedly. have a hard
battle in prospect. If it lends what as
sistance to the people it may. their re-
lease from the ingeniOusly forged fet-
tiers of the refrigerator conspirators will
not be difficult to secure.
I move, therefore, Mr.. Chairman, as
a preliminary to the call for State
convention of frllit-growers which may
be arranged for by another motion, that
the Chairman Of this committee be re-
quested to take such steps as he may
deem most advisable, to secure from the
officials of the Southern Pacific Com
pany without delay am assurance of the
latter's assistance in the present crisis,
both as regards ventilator and also re-
frigerator service.
The motion was carried unanimously,
and Mr.. Stephens said he would reserve
to himself the naming of a committee
to accompany him.
THE MOTION CARRIED.
The committee evidently agreeing
that Mr.. Gester's motion embodied the
proper method Of procedure, it was car
ried without discussion by a unanimous
vote
| GERALDSON RECOMMENDS IN
COOPERATING.
| Gerald Geraldson, a prominent fruit
| grower of Newcastle, Placer County,
was introduced by Chairman Stephens
as one who had some pertinent sugges-
tons to offer Mr. Geraldson respond
ed with a carefully prepared paper, in
| which he urged the growers to in
| corporate, and with the proceeds of
the stock put on the market establish
| their own refrigerator line. Mr. Gerald
sons statement follows in full:
Organization would have been of adj
vantage to the fruit business of Cali
fornia years ago. 1t has been neces-
sary to the making of a reasonable
| profit for four or five years. Now it is
| necessary for the very existence OF
| the business. On these points 1 think
we are all agreed.
| Now that the box men, the paper
| men, the nail men and the men en-
| gagged in the handling and transport
| ing of our fruit have all formed COM
| bines to protect their special lines of
| business, it becomes absolutely neces-
| sary that we, too, form some sort of
| an organization to prevent ourselves
| from becoming a helpless prey to all
of them, and to place ourselves on an
equal footing with all of them for the
struggle of survival and success in the
| business world.
| The only question is as to the form
! of organization. The various expert
mentS tried throughout California dur
| ing the past few years have demon
| strated conclusively that "fruit-g grow
! ers' unions fruit growers associa-
TONS or any similar form Of organ
ization that can be voluntarily dis
solved are a failure as a means Of
remedying existing evils. They are not
compact enough, not close and strong
enough, and can never be made so.
| Nothing remains but to try some new
plan, and we have only to pick up a
daily paper to find a suggestion. We
! find that every industry throughout
the country in which any considerable
| amount of capital is invested has either
been just recently organized, or is now
preparing to organize, and we find that
the plan that has been adopted is al
most identical in every case. We fur
Their find that, wherever there has been
time for a test, this plan has proved a
remarkable success
! The plan generally adopted has been
to form a central corporation with cap
| ital ample enough to embrace all the
smaller concerns which it is desired to
combine. This stock is either exchanged
| for the stock of the smaller concern,
or for a deed for the entire plant of the
smaller concern, as the case may be.
| This forms a thoroughly strong and
permanent organization, and one that
can be managed with both efficiency and
economy, and one which Immediately
| becomes power in the business
world.
Now the plan which has been so uni
formly successful in other lines of bust
ness ought to be successful in the fruit
business as well. There is no reasonable
! argument against its adoption, except
/ the comparatively small size and the
I great number of the concerns to be
combined; and this objection could be
made with equal force to any plan
that could be presented. 1t is not a
fatal obstacle; it is only difficulty
one which can be surmounted and
which will have to be surmounted
| sooner or later.
Following out this plan, a central cor
poration could be formed, called for
| instance, THE American Fruit Com
! pany,' with a capital stock of, say
100000 shares, at an approximate
valuation of 500 each q have no
| data as to the acreage it would be
desirable to control, but I do not con-
slider that an extravagant capitaliza-
/ ton, as it is not necessary that stock
not issued should pay interest)
| Let the corporation be so organized
that it shall have the power to issue
/ bonds to a considerable amount, when
it shall have the security available
| Under the present condition of the
money market such bonds could be
readily sold. though bearing but or
per cent. interest. Now, let stock be
issued in exchange for title to orchard
property or for holders equity therein
and bonds be rendered the mortgage
when there is one. The average bank
ingh house would prefer or 5 per cent
| bonds of a solid corporation to a 10
per cent. ranch mortgage as the bust
ness stands to-day. Bonds enough could
be sold to furnish a working capital
| and to buy up mortgages that could
not be secured otherwise.
A standard system of appraisement
could readily be arranged by which all
orchards should be bought, on abe ba-
sis of an approximate value of 500
per share of stock
AS a preliminary to the formation of
this corporation, let an agreement be
circulated among growers for sigma
| Inv ,i.1I, !, l@;v Il, 1t.