The sun., 1919-06-23
RESENT CRITICISM
OF UNITED FRUIT co.
Made In House by Rep
resentative Fitzgerald Re
garded as Unjust.

The criticism in the House OF Repre-
sentatives OF the United Fruit Company
by Representative Fitzgerald Of Massa-
chusetts has aroused much interest on
the Isthmus of Panama. The principal
Central American transportation Office
Of the fruit company ts In Cristobal and
its most extensive banana farms are In
the Province Of Bocas del Toro of
Panama THE Sun correspondent has
interviewed q number of the officials of
the Fruit company. as we'll an a promi-
nent business man In Cristobal who
made his fortune q good many years
ago in the banana business, before the
Fruit company obtained practically a
monopoly Of the export business There
are two sides to the question. and It
may be we'll to present that Of the Fruit
company first
The United Fruit Company before the
war had a feet Of steamships with a
tonnage designed principally to carry
the bananas raised on It's plantations
In several Central American countries.
The diversion of many Of the vessels to
the transatlantic trade during the war
on requisition by the Shipping Board
seriously handicapped the Fruit company
in taking care OF the produce of its
plantations. Millions of bananas rotted
On the stalks. The company had built
up large colonies OF West Indian la
borers on It's estates and was loath TO
let these men go. In order to keep It's
business intact and to be ready to re-
sumo operations as soon as the ships
were available the company was obliged
to charge tariffs for It's freight and pas
senKer service calculated to offset the
loss 1t had to bear in carrying Its plan
tations when the full product OF the
abandoned farms could not be marketed.
Looked Upon as Benefactor.
The general disposition In Panama is
to look upon the Fruit company as a pos
tive benefactor to the country for sew
eral reasons. II is the only large busi-
ness which has made a thoroughgoins
success In an industry which actually
develops the resources of the country
II has done this largely because the off,
Gals have understood the necessity OF a
comprehensive system Of procedure, IN
Guiding all the factors necessary to sue
cess
Originally the Fruit company started in
an effort on the part Of Minor c. Keith
to make profitable a railroad which he
was building to connect the capital OF
Costa RIGA with the Atlantic. Going &c
Costa Rica at an early age, Mr.. Keitf
found the Isolation OF San Jose In the
mountains OF that country serious dis
advantage, and managed to impress the
Government and people with the deslra-
bility OF a railway linking UP San Jose
and the interior with the sea. He en-
countered great difficulties in getting the
ca pital and in carrying out the enterprise
to a successful conclusion.
Even after the line was built II wat
found that there was hardly enough traf
| fc to keep It going. He found banana.
growing along the line of the railroad
and II occurred to him to try to sell frui
| in the United States. IT was a slow ant
| laborious process to teach Americans t
demand bananas in sufficient quantitie,
| to build up a good trade in them. Mr.
Keith found that II would also be nee
| essary for him to have ships, 80 as to b'
Independent of the tendency Of shippinl
lines to take all the profits out OF hh
| business.