The San Francisco call., 1910-06-05
VEGETABLEM men
NFLURRY over
THEGRANDJ JURY
Books of the Trust Show Fines
for Members Who Cut
Prices
Optimistic View of Secretary
Fails to AIIay the Fear
of Prosecution

The Protective Society of Gardeners
and Ranchers. as the vegetable trust
calls itself. held two meetings yester-
day morning 10 prepare against indict-
1nent by the grand jury One was an
executive session of the board of
directors, the other a general meeting
Of members behind closed doors. The
principal question raised by the men
was in regard 10 appearing before the
grand jury in their own defense. This
was decided negatively.
we have done nothing to violate the
Cartwright law said Secretary Seal
manini afterward, "as this law allows
growers TO combine to secure a rea-
sonable profit. The grand jury has all
OF our books. We feel sure these will
prove TO the jurors that the growers or
Ranized for mutual protection only. So
we don't look for indictments"
EXCITEMENT RUNS EIGH
From what is learned about the gen
eral meeting the secretary had some
dif6culty in winning the men over TO
his cheerful view Of the situation. EN-
citement ran high when the Colombo
market swung open its gates before
dawn yesterday to receive the market
wa Zons as they came in from the penln-
sula gardens. The men had a confused
idea as to what the grand jury is doing.
but were assured at the meeting that
their defense viii hold.
The position Of the truck gardeners
Sc that the retail men are the ones who
have forced up the price Of their prod
ucts. They will. therefore, rely on
the Ioophole in the antitrust law re-
lating to justifiable combinations. But
they have no explanation TO offer for
their system Of fining or blacklisting
members who sell under their price.
The society's books, now with Dis
trict Attorney Fickert, give direct evi-
dence that members were fined for cut
ting on the weekly price schedule is
sued by the directors. The bylaws dis
tinctly authorize such methods.
In section 5, article 8 of the consti-
tuition, the directors are empowered:
ca TO fix the salary Of the secretary;
(b) TO fix the dues Of members; (c) to
Ucts Of the ranches of the members, at
a meeting TO be held each Saturday,
and to notify members Of any varia-
tions Of price through a printed list.
FINE. SUSPEND OR EXPEL
In the following section the directors
are given authority TO investigate the
cases OF members accused of violating
rules, and 10 examine the books Of
such members. Power to fine, suspend
or expel is appended. 1t is elsewhere
stated that all members must abide by
the prices set by the board
Article 6 Of the constitution sets the
rate of fine at not less than So or more
than 500 for each offense. Failure to
pay results in suspension or expulsion.
The blacklist circular against T
Narni & Co. which is among the evi-
dence obtained by District Attorney
Fickert, was brought under article 6
y-y-F aF7 Tf,,er
He later paid his fine and was restored
TO membership. What happened to
Narni during his period Of suspension
IS explained by section of article !
OF the bylaws This section declares
that the secretary must notify the
members OF any person in arrears. SO
that such offenders may be denied
credit and cut off from business rela-
tions with their fellows in good stand
ing.
TRIALS OF MEMBERS
The directors minute book, kept by
Secretary Sea almanini, show numerous
instances of trials of members. Some
OF the cases within this year are:
April ? A. Armanini and L. Ferrogia
were fined IS each for selling spinach
under the list price.
NJ Lagomarsini was tried March Is
for cutting the price of green stuff. Hi:
defense that his stuff was old did no-
save him from IS fine.
F. Mutto. s. Solari. /. Seratto, z
Stagnaro and Antonio Giusto were each
fined IS at the meeting Of March II
Mutto was held guilty Of selling frs
class vegetables at the price set for the
inferior. Giusto, In spite Of his denials
was convicted Of selling No. / lettuct
al the price Of the inferior.
March resulted in IS penalties fol
T. Ferrsri, L. Chiappari. James Warn
and J. DIVA. all for underselling.
The officers Of the society, which Il
composed Of 50 growers in San Fran.
cisco and San Mateo counties, are: z
Maggi. president. G. Ferroggiaro. vic,
president; T. Armenia, treasurer. Seal
rnanini holds the clerical position O.
secretary as sn outsider. He is not Z
grower.
In spite OF Scalmanini's denial o.
guilt, District Attorney Fickert, As
sistant District Attorney Brennan anC
Foreman Goldman OF the grand jur!
think the boycott and fine clauses ar,
directly in constraint of trade.
Scalmanini, however, has q plausibl,
excuse for paying s4oo a month for tn,