Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-05-19
CONTROLS THE GROWERS
POWER OF THE CALIFORNIA
FRUIT DISTRIBUTORS.
Statement Submitted by Russell D.
Stephens to the Interstate Com
merce Commission.

Mr. Russell D. Stephens, delegate from
the fruit growers of California, has SUBJ
mitted a statement to the interstate COM
merce commission. He said in part:
"In order that you may have more COM
plete and definite understanding as to the
conditions under which California fresh
delicious fruit shipments are made and
marketed. I will explain the terms and con-
ditions. as l understand them. under which
the shippers who constitute the combina-
ton of shippers known as the California
Fruit Distributors was organized In 1862
Agreement of the Members.
ITO become member the applicant had
to stipulate and agree that he, the COM
pany or corporation, as the case might be,
would not do any greater portion of the
business for which they were organized
than the relative per cent of the whole of
such business that he. the company or cor
poration, did during the season of 1901. In
other words. no member had right under
the terms of the compact, to build up and
Increase its business. and that, in the event
of any member, through any cause increas-
ing its business beyond the limit thus placed
upon it, it can then be made to forfeit all
profits made by such business to the
other members of the combination. to be di-
vided between them. in proportion to the
per cent of business which they are entitled
to under the terms of this compact made
and entered into at the time they became
members of the Distributors
The rules governing and the obliga tons
imposed upon the members of the 'Distribu-
ters when taken in connection with the
fact that the Armour Company, through
the contract made by it with the Southern
Pacific Company has a monopoly of carry
ing all fresh fruit shipments over the lines
under the control of the Southern Pacific
Company. are such as to give to them COM
nf hp tarr,
markets in which Cs-.ornia fruit is sold.
Then it can be easily seen that the Ar
mour Company. by virtue of this contract,
giving to it this MONOPOLY is afforded an
opportunity of discrimina ton and favor
itism sufficient to drive out of the ma rket-
ing business at any time that in the judg-
ment of the company good business policy
would permit. all those whom it may re-
gard as being inimical to its own interests,
Power Over Fruit Growers.
Under the present method of transporta-
ton and marketing of California fresh
frult shipments it is possible for the Ar
mour Company to SO favor and protect
members of the California Fruit Distributors
as to afford them an opportunity of making
possible profit of 5000 car or more
while at the same time the growers of the
fruit will receive for their product but lit
Tie. II anything, more than the actual cost
of production.
IL liie VI SdHlZ1tIOn commonly calied the
California Fruit Distributors is not a trust
in the fullest sense of the term. then what
Is it? What power does it lack to make 1t
such? Its management claims that it has
absolute control over the distribution of all
fruit shipped by and through it's members
and that 1t controls about So 80 per cent
of all fruit shipped. What more power
could real up-to-date trust ask for when
consideration is given to the fact of the
very delicate and perishable nature of the
products it is handling, and still more i'm
portant is the fact that its members can
force any proportion of the business it is
handling into consignment which propor-
ton can be used at any time it may be
deemed necessary and prudent. to destroy
all competition. by causing heavy losses to
be made by any and all who might presume
to go into the fruit shipping and market
ing business, in competition with those of
its members who are engaged In the f. o. b.
business.
mo other combination or trust in the
world possesses the power to destroy COM
petition as do members of the distributors
for the reason that it can force shipments
of consigned goods of such delicate nature
by simply refusing to buy them at any
price