Albuquerque citizen., 1907-09-12
FRUIT TRUST DRIVES
COMPETITORS
TO RUIN
FreeZe.Out Game Will End
In High Prices on Another
Generally Used
Food.
COMPANY IS USING
OIL TRUST METHOD
Buys Bananas at Twice Their
Worth to Head OF Independent
Buyers and Sells at Usual
PriCe---Whdt 1t
Means.

New York, Sept. 12.-In its inves-
tigation into the cost of living, the
bureau of statistics of the United
States government has encountered
charges that the United Fruit COM
pany not content with controlling the
great bulk of the banana business, is
| engaged in an open attempt to freeze
out all its competitors and create
complete monopoly which will allow
it to charge the American people
higher prices
The government officials have be-
come interested and an investigation
along the line of the present inquiry
on high prices of food products will
follow.
The United Fruit company oper-
ates under a New JERSEY charter, Dut
is owned principally in Boston. An
drew w. Preston is president. The
company was chartered in 1899 to
grow and distribute tropical fruits
and products. 1t was organized by
the consolidation of 10 fruit and land
companies and one steamship COM
pany The combine paid for all these
concerns $11,219,500 in cash.
Since that time the company has
| been steadily increasing its influence
until few Independent companies re-
main in the field.
In its latest public statement the
company set forth that the capital
| SlOCh lSSutu dlilOuHlcu " 9ltsHoutVeV
and the net earnings for the year
were $1,617,721. In Its surplus fund.
which might be called its war chest
was $S,622,965. The cash on hand
amounted to $2,461,6T7.
Hides Behind Another Company.
! Independents charge that in order
to hide its huge profits the combine
organized the Fruit Dispatch COM
| pany, which sells the products
brought here by the United Fruit
company. Five years ago the sales
of the Fruit Dispatch company in
| the United States and Canada
amounted to $s.O00,000. and 1t is said
| that that record has since been in
creased by many millions.
1t is charged that the combine is
| trying to corner bananas by paying
growers from two to four times the
this big bonus is conditioned on tho
! planter agreeing not to sell in the
| future TO Independent companies.
Pay Much. Sell Cheap.
Independents say that 35 cents is
fair price for a bunch Of bananas,
where grown. About two weeks ago
planters who had not contracted to
sell to any particular company sud-
| denly received offers of 40 cents a
bunch from the combine. Within a
week offers scared in some instances
to $1.25 a bunch.
| ido pNtl lO illOAtdot III lAAG
selling price in this country. Ba-
nanas bought at the gilt-edge prices
represented by some Of these offers
can only be marketed at a loss
This means" say the indepepd-
ents, that the combine is willing -
stand temporary loss IL thereby It
can drive the Independent companies
out of the business. 1t has plenty Of
money. If 1t can corner the supply,
the people will learn something more
in the line of increased food prices.
'In this country bananas are sold
for from $3.50 TO $225 a bunch. In
England, where there is no competi-
ton. they are sold for $5 a bunch.
What do you reckon win happen here
II competition is destroyed"