Los Angeles herald., 1906-06-02
CELERY GROWERS
DEMAND REBATES
RECENT DISCLOSURES STIR
ASSOCIATION
AIIeae California Vegetable Union,
Said to Be an Armour Concern,
Is Getting All Benefit
From Practices

Members Of the Celery Growers as
ISOLATION have been stirred by disclos-
ures which have been made regarding
the payment Of rebates on shipments
or their products to the eastern markets.
The trouble does not appear to be due
so much to the charge that rebates are
being paid as to the knowledge that
the growers are not receiving them.
The men who produce the celery insisG
that If any rebates are being paid the
money should come to them, and there
Is talk of court proceedings to enforcs
this claim.
The California Vegetable Union is
supposed to have been the principal
beneficiary Of this alleged rebate sys-
TEN. This organization acts as the SELL
ing agent for the Celery Growers as
ISOLATION, together with number of
fruit associations All of the celery
produced by the Celery Growers as
socia tion is marketed through the Vege-
table Union, and any rebates which
may have been paid by the private car
lines naturally would have come
through this channel. Likewise any
such rebates which may have been paid
got no farther than that organization
treasury.
Have No Redress
The growers apparently have no re-
dress against the private car lines in
this matter, for according to the de-
cision of the courts tn = giving of re-
bates by such lines is not illegal. The
railroads are held accountable for such
practices, but the private car lines APP
parently are In position to dodge that
provision of the law. But the growers
are seeking to recover from the Vege-
table Union any money which the lat
ter organization may have received in
the shape Of goods shipped for the
growers account.
At recent meeting of the directors
of the Celery Growers association this
matter was brought up and an effort
was made to induce the board to take
steps to institute proceedings in the
courts to compel an accounting on the
part of the Vegetable Union. The di-
rectors' however, postponed action on
the ground that no direct evidence of
the giving of rebates had been pro-
duced, and furthermore, that if such
rebates had been paid they did not
properly belong to the growers.
stirs Up Wrath
This action on the part of the direc-
tors has stirred up the wrath of a num-
ber of the leading growers in this part
of the state. They point out that the
contract between the two associat tons
merely makes the Vebetable Union the
selling agent of the Celery Growers as
sociation and provides that the Vege-
table Union shall market the celery at
the risk and for the account of the
grower. On this ground it is insisted
that all the advantages accruing from
the transaction belong properly to the
grower, and not to his agent An effort
doubtless will be made to induce the
directors to reconsider their action, as
leading growers declare they do not
propose to allow 1t to rest at its present
stage.
Meantime the officers of the Vegetable
Union, which is popularity supposed TO
be an Armour organization, is said to
be welding a club over the heads of
individual growers in the shape of a
threat that If suits oflthis kind are be-
gun the organization probably will be
disrupted and a big fight for control
of the market will be precipita ted.
This threat seems to have had some
effect, but several of the largest grow
ers say they are not worried by the out
look.
Use Old Argument
one well informed celery grower dis
cussing this phase of the situation,
said:
This isthe same argument that was
made in the case of the orange growers
when an attempt was made to hold
them together in the citrus fruit agency,
sbout which there was so much COM
plant. 1t was predicted that if the
agency was dissolved the open competI-
ton would gut the markets and cause
low prices. The dissolution occurred
and free open competition of the Wild est
kind has prevailed in oranges, with the
result that the last two years have been
among the best in the history of the
Grange industry. / do not want cornpe-
tition in selling celery but there are
more dangers in stihed combination
when such things as this occur 1t
might be said that oranges possibly
could have done better if the agency
combination had been maintained but
j doubt this 1t would be impossible to
attain greater success with ora nges
than has been achieved this veal. Ill N der