The Hawaiian gazette., 1916-09-05
merger OF CANNING
INDUSTRIES APPEARS
NEARLY COMPLETED
Representative Of Corporations
Has Gone To New York City ,
49,. To Close Deal
Hawaiian Pineapple and Hawai-
ian Preserving Companies Are
In Great Combination

Further details concerning the pro,
posed merger of canning industries with
the salmon packers of Alaska have
besm receiped from the mainland. Ac.
cording to the information IT is posi-
BILE that the Hawaiian Preserving Com
pany, as well as the Hawaiian Pine.
apple Company, will be absorbed in the
new combine which includes the Cali
fornia Fruit Gamers Association, Cen.
trail California Canneries' COMPANY
Griffin & Skelly and J. X Armsby Com
pany.
As announced in The Advertiser last
week one of the purposes of the mcr
ger will be to eliminate unnpccssar,
| organizations for the distributions OF
the products of the concerns involved
A representative of the industries
discussed, who departed from the Coast
for New York recently. in order e.
consummate the deal with big capitalists
in the metropolis, announced that he
had approximately seventy per cent of
the stock Of the Alaska Packers asso
citation assured for the merger and that
he hoped to control not less than nine
ty percent of the packers stock before
the final papers are signed.
Stock Closely Held
On arrival in New York, this repre-.
sentative will meet the bond and fnan
cial house of William Salomon & Co
Through this concern the papers viii.
pass, the new stock will issue and tn,
| new company be inaugurated.
The stock Of the Alaska Packers anC
the California Fruit Gamers will be
taken over at $l545O. The price Of
the stock of Griffin Skcllv and tn.
Central California Cannerios has never
been given out. This stock has AWAY,
been closely held.
At the Indicated price the Fruit
Gamers will be taken over for A.
| $4,000. The Alaska Packers will
represent $685., 900. The price of tn,
other companies will bring the total t.
more than $l5,000,OOO.
The combination will have a marpir
If $l0OOO,OO0 in stock with which t,
buy other properties.
The reason that this deal has beer
nending for such a long time has beer
the unwillingness of one element in tho
Alaska Packers to part with any stock
demand was made by some Of tn,
larger stockholders for an inventory o.
lthR property prior to any deal ,bein,
made. Constant negotiations, supple
mented by some buying of the stool
outright has been necessary for thu
new combination to get twb-thirds con
| troll of the Packers.
Executive Committee Formed
Those making the combination sa,
that for the present it will, be, NOR.
OF defensive trade organization thai
anything else. Because Libby, Mcneil
q Libby, a Swift concern, is not only
In the fruit business, but II, recent,
bought the North Alaska Salmon Com
pany, the fruit Gamers Of CaIffornir
took alarm at the possible flevelor
ments.
The outcome has been the Formation
Of this fruit and fish corporation I,
meet the Eastern packers on equo
terms.
The business organization of the new
company will be founded on the plar
Of the Standard Oil Company. The
business will be managed by an execu
tive committee, consisting of the head
Of the various departments, such a.
salmon, canned fruit, dried fruit anr
so on. This committee will be tn,
working heart of the organization.
While William Solomon & Co. ar,
the fiscal agents of the combination
the idea Of the merger is understood t,
have originated with William Fries
president of the Fruit Gamers Asso
citation. He is to be president of thu
new company. Ralfour, Guthrie & Co
ND tn" Armsbvs are heavily interested
New Methods Used
The new company will handle the
feet of the Alaska Packers Associa
ton differently from what has been the
| case in past years. II is understo oL
that the deep-water feet of about
twenty ships and barks will no longer
spend the winter in Oakland creek, but
will be used in carving Alaska and
California products direct to England
and New York through the canal. The
company vessels, which make I'D the
largest feet under one ownership under
! the American flag, are thus to be kept
constantly employed.