The Washington times., 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 outgrowth of the great CO.
operative enterprises which were Great
ed number OF years ago IN California
to secure market for the States inn
mense fruit crop When California
first discovered that II was one of the
best wheat areas In the world, II was
well-nigh barred from raising wheat
because 1t 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 were prohibitivcly
high. distances and time to markets
were too great, and it seemed that
there was no hope for the business.
Sold By Auction.
Harris Weinstock, successful bUsi-
nessman OF San Francisco and Sacra-
mento, and his partner. David Lubin.
became leaders in the effort to estsb-
Iish 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 inspirat ton
Caiifornia's fruit industry today leads
the country, and IL is "A monument to
the potency OF cooperative methods
Along with united action IN gathering
the crops together. warenousing, stand
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 il came in such bulk and today
the business turns out aoout 5000 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 m-
possible. Thus. in the orange business.
IT is stated that about 62 per cent OF
the State'S production is in the CO.
operative society. and IS Ter cent out
side.
Last winter the legislature passed a
law creating q commission market.
with state director at its head. The
legislation was made broad enough to
permit big things. and Governor John
son for time doubted IL he ought to
sign 1t. He finally did so. after he had
been assured that Mr.. Weinstock would
accept the post of director. short
time ago the appointment was made.
and Mr.. Weinstock has since been
working out his ambitious program for
IA State control of the whole fruit and
vegetable marketing business.
The idea OF Il state monopoly develop
ed in his mind, and he conferred with
the producers about it. His plan was to
ia Ike over. under the State director of
markets. the dominition 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. 1t 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-