Globalized Fruit, Local Entrepreneurs
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Douglas Southgate. Globalized Fruit, Local Entrepreneurs
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Globalized Fruit, Local Entrepreneurs
How One Banana-Exporting Country Achieved Worldwide Reach
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Final resolution of the dispute had to wait until 1929, when the Boston Brahmins who had assumed control of United Fruit after the departure of Baker, Keith, and Preston decided to deal once and for all with the company’s pesky rival. A merger was proposed, which Zemurray accepted on being offered 300,000 shares of United Fruit stock.36 The buy-out made him the firm’s leading investor, which distressed him enormously as the value of his holdings shrank. Worth $31,500,000 (or $105 per share) when the merger was effected, in early 1930, Zemurray’s stake in United Fruit had lost more than 90 percent of its value by December 1932, when shares in the company were being bought and sold for $10.25. The stock collapse was in large measure the result of poor corporate administration, not simply a consequence of the Great Depression.
In January 1933, Sam the Banana Man traveled to Boston for one of the most storied confrontations in the annals of U.S. business. According to Mc-Cann, “Zemurray presented an incisive review of the company’s mismanagement.” The patrician chairman of the board responded by smiling thinly and drawing attention to his stockholder’s accent: “Unfortunately, Mr. Zemurray, I can’t understand a word you say.” The former immigrant stepped out of the room, but only to return a few moments later clutching the majority share of proxies he had collected beforehand. “You gentlemen have been f---ing up this business long enough,” Zemurray informed the board slowly and precisely. “I’m going to straighten it out.”37
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