TKe Joint StocK Company Plan 



J. G. Mitchell, ClarKsburg, Ont. 



FRUIT growers in this district 

 tried several times to form asso- 

 ciations, but always failed. Not 

 being discouraged, however, a few of 

 them decided to cooperate on the joint 

 stock company plan. Five growers got 

 together, subscribed $500 each, and 

 formed a company for the purpose of 

 dealing, wholesale and retail, in all 

 kinds of fruit; to build and own fruit 

 houses, cold storage plants and to own 

 and operate evaporators, canning fac- 

 tories, cider and pulp mills, factories for 

 the making of barrels, boxes, crates and 

 any other packages required in the hand- 

 ling of fruit. The name of the com- 

 pany is the Georgian Bay Fruit Growers', 

 Limited, share capital $25,000, divided 

 into 1,000 shares of $25 each. The 



the year round ; complete independence. 

 The fruit is gathered and stored for 

 higher prices; that is, put on the best 

 markets of the world in the best possible 

 way; the last cent is secured, less the 

 cost of getting the fruit to market. A 

 storage fee is charged to members of at 

 least three cents a barrel up to 100 barrels 

 a share; on over 100 barrels a share at 

 least five cents ; to non-members, at least 

 10 cents. The total fees are returned as a 

 dividend on the investment. When 

 there are more than enough to pay 6% 

 the balance is placed in the bank as 

 reserve against a light year. The stor- 

 age capacity of the building is 10,000 

 barrels and, being situated on the main 

 switch of the G.T.R., it gives the very 

 best facilities for shipping. 



A Fruit House Built by Enterprising Growers and liuilt to Last 



head office is at Thornbury, in the 

 county of Grey. The directors are J. 

 G. Mitchell, Geo. Mitchell, John Veitch, 

 Wra. Reekie and Albert Moore. 



The company applied for a charter 

 under the Ontario Act for all the above, 

 which was granted. Observe that $500 

 is one-fifth of $2,500, which is 10% of 

 the amount necessary to capitaUze at 

 $25,000. The subscribed $500 gave 

 each of the charter members 20 shares, 

 which was afterwards sold and trans- 

 ferred to others. The provisional stock 

 is all sold and also some of the general 

 stock. This provides funds to carry 

 on building operations. There are about 

 125 shareholders, holding stock from $25 

 to $125 each. 



The advantage of this plan over the 

 loose association is obvious. It is limit- 

 ed liability and a financial interest all 



The fruit is all graded and packed in 

 the fruit house by experienced men, and 

 so well is it being done, the company is 

 already outselling some of the old ship- 

 pers. The company has a banking by- 

 law, whereby warehouse receipts can be 

 issued on the security of the apples and 

 advances can be made to our members 

 as soon as the fruit is brought in. The 

 members do not have to wait until the 

 fruit is sold before realizing on it. This 

 helps the members out while the apples 

 are held in storage. 



Everything is working satisfactory. 

 There are already behind the company 

 enough orchards to produce in a good 

 year 25,000 to 30,000 barrels. The total 

 capital stock is offered for the purpose 

 of building more apple houses, cooper 

 shops, cold storage, an evaporator, etc. 

 The desired object is to have the whole 



district in one big company with several 

 fruit houses under one head office, to do 

 business on a big scale and thus reduce 

 expense of management. Already bar- 

 rels are cut from 50 to 30 cents each. 



When a member brings in a load of 

 apples he receives a ticket for the same. 

 A duplicate, which the company keeps, 

 is entered in the ledger to his credit. 

 When the fruit is packed, he is again 

 credited with the amount of No. I's 

 and No. 2's which his apples graded, 

 also the culls, if any. The average sell- 

 ing price on each variety and grade is 

 the price which all receive. 



I think the joint stock company plan 

 is far ahead of associations that have 

 no place for winter storage. Associa- 

 tions are obliged to ship in the fall, 

 when apples are cheap. A joint stock 

 company can keep its fruit till February 

 or March, if necessary. Our company has 

 no trouble in selling shares, as there are 

 people inquiring about it nearly every 

 day. A great many who had no ap- 

 ples last year are with us now. Judg- 

 ing by the experience I had in the past 

 trying to organize fruit growers' asso- 

 ciations, and by the success we are 

 having with the joint stock plan, I will 

 have nothing more to do with associa- 

 tions whatever. 



We have a large amount of stock sold 

 in other districts, besides Thornbury, 

 where branch houses will be built 

 very shortly. Soon, this company will 

 be, if not already, one of the strongest 

 apple combinations in the world, work- 

 ing on the cooperative plan. Business 

 was commenced only a year ago, August, 

 1905; now, everything is working satis- 

 factorily, and the prices realized are 

 the highest of 'any shippersjto the Brit- 

 ish market. 



Fruit Graders. — In answer to a request 

 from The Canadian Horticui^turist 

 for information regarding mechanical 

 fruit graders, Prof. W. N. Hutt, State 

 Horticulturist, Maryland Experiment 

 Station, writes: "Some of the larger 

 peach growers in Maryland make use of 

 machine graders, but the greater pro- 

 portion of the crop is packed by hand. 

 The most satisfactory machine grader 

 I have seen in operation is that made 

 by Heach & Dromgold, of York, Pa. 

 This machine will sort perfectly as to 

 size. It does not bruise the fruit. The 

 decayed or defective specimens are re- 

 moved by hand as the fruits are roll- 

 ing slowly down the chutes. This 

 machine grades much more rapidly 

 and accurately than can be done by 

 hand. One of our largest shippers uses 

 this machine, and says it gives the 

 best satisfaction." 



