The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1916-01-10

Necessary legislation looking to the
inauguration OF the big project was
passed by the California Legislature
last winter. At that time, however, the
scheme was not definitely formulated
on any such ambitious scale as 1t has
now developed.
The plan for a State-directed monop-
oily Is the outgFowth OF the great CO.
operative enterprises which were Great
ed number OF years ago in California
TO secure a market for the States inn
mense fruit crop. When California
fret discovered that IL was one of the
best wheat areas in the world, II was
well-nlgh barred from raising wheat
because II was so far from markets.
That difficulty was corrected In time.
The State later developed the begin
nings of its fruit industry, and faced a
still more difficult situation. The
transportation rates we're prohibitivcly
high, distances and time to markets
were too great. and II reemed that
there was no hope for the business.
Sold BY Auction.
Harris Weinstock, successful bust
nessman Of San Francisco and Sacra-
mento, and his partner. David Lubin.
became leaders I'm the effort to estab-
fish cooperative marketing associa-
tions to handle both grain and fruits.
The greatest OF these cooperative as
sociations, the California Fruit Grow
ers' Association, came from efforts IN
which these men were the inspiration
CALIFORNIA; fruit industry today leads
the country, and II il a monument TO
the potency OF cooperative methods.
Along with united action in gathering
ardizing and shipping them in train
load lots. these organizations develop
ed the system OF selling by auction in
the great market centers of the coun-
try. Lower rates were made possible
by reason of the system of handling
immense quantities: the railroads were
glad to provide fast express trains of
refrigerator cars to move the business
when it came in such bulk; and today
the business turns out aoout $1,000 car
loads of freight for them annually.
An Ambitious Program.
But, successful as has been the sys-
TEN Of private cooperation. California
is not entirely satisfied. There are still
many producers who do not unite, and
these make unified management inn
possible. Thus. i'm the orange business,
1t is stated that about 81 per cent OF
the StateS production is in the CO.
N~N-NNsf N@
side.
Last winter the legislature passed a
law creating a commission market.
with a state director at its head. The
legislation was made broad enough to
permit big things, and Governor John
son for a time doubted II he ought to
sign 1t. He finally did so. after he had
been assured that Mr.. Weinstock would
accept the post of director. A short
time ago the appointment was made.
and Mr.. Weinstock has since been
working out his ambitious program for
a State control of the whole fruit and
vegetable marketing business.
The idea OF State monopoly develop
ed in his mind. and he conferred with
the producers about II. His plan was to
take over. under the State director of
markets, the dominion and centraliza-
ton of the entire marketing, function. 1t
must be voluntary on the part of the
producers. otherwise there would be
danger of legal irregularlty. II soon
developed that they were in accord with
his plans, and Mr.. Weinstock convinced
himself that he was going to be able
TO get approximately 100 per cent con-
troll of the states production.
Then came the question of law. Would
the State OF California be regarded as
q violator of the Sherman antitrust
act II 1t undertook so huge a propo-