The Hood River glacier. (Hood River, Or.) 1889-1933, 1912-02-29


American Exchange had l06 branches
or selling agencies and that the ser
vices Of this system included the eX-
elusive use Of these log agencies. The
expression "a perfect selling machine
may not have been used, but we were
certainly led to believe that the plan
included an exclusive service Of rare
merit Free use was made of the
prices received by the Northwestern
Fruit Exchange for the 1871 crop in a
way that would lead the eausal ob-
server TO believe that the returns
through this system were much larger
than through any other agency.
After the meeting the attention of
| the committee was repeatedly called TO
/ the rumor that the North American
Fruit Exchange was controlled by
Crutchield & Voolfolk, a commission
house of Pittsburg. Our attention was
naturally directed TO these three
points: First, the efficiency of the
machine; second. the prices it obtained
as compared with other returns and
third as to whether the machine was
controlled by Crutchfeld 4 Voolfolk
or not.
For general information we selected
| 80 of the LOG agencies In various parts
of the United States and addressed a
letter TO bank in each of the towns
where the agencies were located, re-
questing information in a general way
and with especial reference to the lines
/ along which we were conducting our
investigations. The replies from hall
dnzen Of these letters will serve To
show that there is a very general opin-
ion at the selling end of the machine
that is controlled by Crutchfeld &
Voolfolk.
We Quote
A bank in Virginia says "The agent
refereed to is in the general brokerage
business and does not cuniine himself
to representing the North American
Fruit Exchange. He is on commits
sion basis and also represents Crutch-
| field x Voolfolk and advises that he
would handle apples from other
sources.
A bank in Pennsylvania says. "As
representative of the North American
Exchange receives only salary and
no commission and whatever business
he may on commission basis, he does
! strictly on his own responsibility, Ii
is supposed that he represents Crutch-
field q Voolfolk in this market, who
in turn are regarded as controlling the
Exchange. lie is. believed to be honest
/ and is hard worker but the market
in this city for box apples is very linn
tied as the local trade is contrei
largely to barrel apples.
A bank in Canada says: We beg
to advise that although the agent men
toned is representative of the North
American Fruit Exchange, he also acts
as agent for several other concerns
which we understand he runs on strict
ly a brokerage basis Although repre-.
seutng the above mentioned Exchange
and also Messrs. Crutchield II Wool
folk, we understand that he would be
perfectly willing to handle apples from
any other source.
At the very first of our work il was
apparent that many of these agencies
would take business through other
channels than the Northwestern Fruit
! Exchange, so we asked the manage
ment of the union to ascertain for US
lust how many of ttem were IN the
market for business through other
sources and we found they were al
ready getting this information for
themselves. We felt Justified in TAX
ing this course through the invitation
of the officers of the Northwestern
Fruit Exchange to make tile closest
investigation of their organization.
Before le lies could be ICc-.Ytd The
North American Fruit Exchange
learned of the Investigations which
were being made and wired presumably
all of the branches substantially as
follows: "Do not answer Hood River
inquiries, refer all letters to us
This, of course, made it difficult for US
to get all the information we wanteC
and only AZ replies were received. Out
of these, seven advised that they were
agents for the North American Fruit
Exchange and could not accept bus
ness through other channels, II gave
evasive or conditional replies and q
out of the 43 Internationally statet
that they were out for business from
any source and would be glad to handle
Hood River apples direct.
Copies of the various letters received
were read by Mr.. Butler.
Mr.. Davidson then took up the com
parative prices received on the pas
years crop as between the Exchange
and the Union. 1t was shown thai
except in two varieties. in which th'
Exchange had secured a few mof'
cents per box, the net average price O
the Union to the grower had beer
materially greater than that of The
Exchange. At first glance, reading
from the Exchanges bulletins, it ap
pears that its prices are greater thar
the Uaion's. However, it must bt
remembered that to bring the price,
to an equalized basis, from the printed
prices of the Exchange 10 cents mus
be deducted for the charge of the Ex
change and 10 cents added for th'
charge of the Union for handling tht
apples.
A paragraph of the committee
summary stated. In rebuttal, th'
officers Of the Exchange may show yol
that all of the capital stock OF th'
North American Fruit Exchange i
held and owned by the officers ant
uiTGClOIb VI Nilt Oblilphlil wy tAi''s
even tell you if all of the stock Of tn
North American Exchange were oWnet
by the Pittsburgh firm with whlel
its name has been connected, 1t woul'
not affect the efficiency of the machine
We will not attempt to meet this argu
ment and would simply ask you t
weigh all the information you hav
from any source and draw your ow
conclusion. They may tell you thel
machine has only been in operation
two years and that it is as good as yo
could reasonably expect it to be unde
the circumstances and that whereye
2 they find an agent who is not doing hi
, duty they will get man in his place
Granted, out we are dealing with
condition, not a theory"
r K. S. Miller. Of Medford, who pre-
posed the Rogue River plan, an
a w. F. Gwin, manager of the Portlan
5 agency, were present. Both addresse
: the meeting. Mr.. Miller said
! have not come to reopen the matte
[ of the Rogue River plan, and onl
! ( h