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

done they will have solved the question
| This is a meeting of the Committee on
Transportation, but there We're many
| fruit growers present and he was glad
| to see the interest that their presence
| indicated. While it was desired to get
the views of the members of the COM
| mittee, after that was done, he would
| be glad to hear from any of the grow
| ers who wished to speak.
w. B. GESTER'S PLAN.
W. B. Gester of Newcastle, Placer
County, a committeeman who evidently
had given the matter considerable
thought, followed Mr. Stephens. He
read the following prepared statement,
supplemented by the motion following
it:
The recently completed arrangement
between the three refrigerator car lines
doing the immense refrigerated carry
ing trade Of California can hardly as
we'll be termed a combination or trust
formation as it may a conspiracy-a
conspiracy in it's effects exceedingly
harmful to every individual engaged in
the production of fruit in this State.
1t is true that the new refrigerator
tariff comes to the grower gilded with
an apparent or transparent reduction
of from nothing to $40 per car, but
this exceedingly attractive feature does
not successfully disguise the danger and
the menace to the California fruit
grower which it was intended to cover.
The immediate menacing danger
which confronts us arises from the fact
that each of the refrigerator car lines
is virtually controller of, or is con-
I fro Iad Nv
Virtually an individual in each case
engaged as dealer in California
fruits.
The outrageously exorbitant profits Of
refrigeration enable these dealers by
certain agreements between themselves
to drive out of business competition all
the other dealers in the State whose
business requires the use of refrigera-
tor cars.
The fact that few dealers may not
find themselves so driven to the wall
this year is due to exceptional favor on
the part of the two great dealers, and
the few SO exceptionally favored have
no warrant that sch favor will be per-
manently extended. All without one ex-
ception are at the mercy of the two
fruit refrigerator kings
To the mere fruit-grower this means
death to competition. And it therefore
means vassalage to one or the other Of
the two great kings during all the long
expected and finally arrived period of
business buoyancy. It means that the
bulk from now until the conspiracy is
checked is to be diverted from the pos
session of the proper custodians Of such
profit, the growers themselves. into the
coners of two men who can because of
their conspiracy compel it to go there
! The system of promiscuous rebate al
lowances by the refrigerator lines which
mas obtained for a number of years
| was a vicious one. Investigation and
certain proofs now readily secured, may
prove that it was also illegal But the
fact that it was promiscuous and gen
eral was its redeeming feature. 1t y-ss
a system of discrimination, but the
favors being in a measure general in
their distribution, a greater number of
dealers We're enabled by their greater
profits to compete as buyers to the ad-
vantage of the growers.
With large number of buyers in the
| field, the limit of prices offered was
fixed by fair competition 1t was i'm
possible while peach trees were in bloom
in California and whole orchards were
being destroyed by frost in Michigan,
to fix the purchasing price of peaches
in California for the ensuing season at
40 cents and less. With the conspiracy
for want of a better term) in operation.
this seems to have been thought quite
possible. Any statement of the seri-
Gus nature of the existing condition Of
. q hnr ie-
it is serious is very generally recog-
nized
A return of the old system of rebate
giving by the refrigerator lines is hard Y
TO be commended. There is a question
as to its legality. 1t is manifestly i'm
possible to force a disruption of the
ties that bind the only great refrigerator
lines doing business in this State to the
great fruit handling companies. Just
sc long as this very intimate connec-
ton exists between them, competition
on the part of dealers who are not re-
frigerator owners is impossible.
Competition on the part of buyers is
what the grower needs most. To secure
this competition, buyers must have fair
conditions, a free open field to purchase
and equal facilities as regards carriage
If these statements are not at fault
the conclusion is inevitable. The in
terests of the fruit-growers of Cali
fornia require at least one line of re-
frigerator cars. other than those at
present doing business in the State. a
line that will furnish adequate service
at fair rates without discrimination.
If the railroad companies themselves
could be induced to furnish the re-
quired facilities the best solution Of the
question would undoubtedly be arrived
/. at.
partial measure of relief it will I'M
doubtedly be possible for the railroad to
furnish, viz: plentiful supply of ven
tilator cars and an expedited service to
Chicago This relief if only partial will
be extremely valuable and the question
should be taken up with the railroad
company without delay. An impression
prevails that the railroad will refuse to
! permit another refrigerator car line to
enter the field as a competitor in the
/ California fruit business.
This is question: that must be taken
up with the railroad company at once.
A definite answer from the railroad
company in reference to both these
questions should be ready to present
to the State convention Of fruit-growers
which it is expected this committee will
! call.