Heredia
American Steam merchant
Name Heredia
Type: Steam merchant
Tonnage 4,732 tons
Completed 1908 - Workman, Clark & Co Ltd, Belfast
Owner United Fruit SS Co, New York
Homeport New York
Date of attack 19 May 1942 Nationality: American
Fate Sunk by U-506 (Erich Würdemann)
Position 28° 53'N, 91° 03'W - Grid DA 9197
Complement 62 (36 dead and 26 survivors).
Convoy
Route Puerto Barrios, Guatemala - Corpus Christi - New Orleans
Cargo 1500 tons of bananas and coffee
History
Completed in July 1908 as Heredia for Tropical Fruit SS Co Ltd (United Fruit), Glasgow. 1914 transferred to US flag. 1933 renamed General Pershing for States SS Co, San Francisco CA. 1937 returned to United Fruit SS Co and renamed Heredia.
Notes on event
At 08.56 hours on 19 May 1942 the unescorted Heredia (Master Erwin F. Colburn) was hit by three torpedoes from U-506 two miles southeast of the Ship Shoal Buoy, while proceeding on a nonevasive course at 13.5 knots. The first and second torpedoes struck the port quarter aft at the #3 and #4 holds. The third torpedo struck amidships on the starboard side, causing her to sink within three minutes. The explosions blew the decks up, stopped the engines and destroyed two lifeboats and two rafts. The survivors of the eleven officers, 37 crewmen, eight passengers and six armed guards (the ship was armed with one 3in and two .30cal guns) had no time to launch boats and only two rafts got away. 23 survivors were picked up by the shrimp trawlers Papa Joe (1), Conquest (2), J. Edwin Treakle (10) and Shellwater (10) and landed at Morgan City, Louisiana. A seaplane picked up three other survivors and landed them at New Orleans. Six officers, 24 crewmen, one passenger and five armed guards were lost.
The Type R ship is a United States Maritime Administration (MARAD) designation for World War II refrigerated cargo ship, also called a reefer ship. The R type ship was used in World War II, Korean War, Vietnam War and the Cold War. Type R ships were used to transport perishable commodities which require temperature-controlled transportation, such as fruit, meat, fish, vegetables, dairy products and other foods. The US Maritime Commission ordered 41 new refrigerated ships for the US Navy. Because of the difficulty of building refrigerated ships only two were delivered in 1944, and just 26 were delivered in 1945 and the remainder in 1946–48. The 41 R type ships were built in four groups. Two of design types were modified type C1 ships and two were modified type C2 ships. The United Fruit Company operated many of the R type ships in World War II. The type R2-S-BV1 became the US Navy Alstede-class stores ship and the type R1-M-AV3 became the US Navy Adria-class stores ship.
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The United Fruit Company, now Chiquita Brands International, was an American corporation that traded in tropical fruit (primarily bananas) grown on Latin American plantations and sold in the United States and Europe. The company was formed in 1899, from the merger of Minor C. Keith's banana-trading concerns with Andrew W. Preston's Boston Fruit Company. It flourished in the early and mid-20th century, and it came to control vast territories and transportation networks in Central America, the Caribbean coast of Colombia and the West Indies. Though it competed with the Standard Fruit Company (later Dole Food Company) for dominance in the international banana trade, it maintained a virtual monopoly in certain regions, some of which came to be called banana republics, such as Costa Rica, Honduras, and Guatemala.
United Fruit had a deep and long-lasting impact on the economic and political development of several Latin American countries. Critics often accused it of exploitative neocolonialism, and described it as the archetypal example of the influence of a multinational corporation on the internal politics of the so-called banana republics. After a period of financial decline, United Fruit was merged with Eli M. Black's AMK in 1970, to become the United Brands Company. In 1984, Carl Lindner, Jr. transformed United Brands into the present-day Chiquita Brands International.
Corporate history
Early history
In 1871, U.S. railroad entrepreneur Henry Meiggs signed a contract with the government of Costa Rica to build a railroad connecting the capital city of San Jose to the port of Limon in the Caribbean. Meiggs was assisted in the project by his young nephew Minor C. Keith, who took over Meiggs's business concerns in Costa Rica after his death in 1877. Keith began experimenting with the planting of bananas as a cheap source of food for his workers.
When the Costa Rican government defaulted on its payments in 1882, Keith had to borrow £1.2 million from London banks and from private investors to continue the difficult engineering project. In exchange for this and for renegotiating Costa Rica's own debt, in 1884, the administration of President Prospero Fernandez Oreamuno agreed to give Keith 800,000 acres (3,200 km2) of tax-free land along the railroad, plus a 99-year lease on the operation of the train route. The railroad was completed in 1890, but the flow of passengers proved insufficient to finance Keith's debt. However, the sale of bananas grown in his lands and transported first by train to Limon, then by ship to the United States, proved very lucrative. Keith eventually came to dominate the banana trade in Central America and along the Caribbean coast of Colombia.
United Fruit (1899–1970)
In 1899, Keith lost $1.5 million when Hoadley and Co., a New York City broker, went bankrupt. He then traveled to Boston, Massachusetts, to participate in the merger of his banana trading company, Tropical Trading and Transport Company, with the rival Boston Fruit Company. Boston Fruit had been established by Lorenzo Dow Baker, a sailor who, in 1870, had bought his first bananas in Jamaica, and by Andrew W. Preston. Preston's lawyer, Bradley Palmer, had devised a scheme for the solution of the participants' cash flow problems and was in the process of implementing it. The merger formed the United Fruit Company, based in Boston, with Preston as president and Keith as vice-president. Palmer became a permanent member of the executive committee and for long periods of time the director. From a business point of view, Bradley Palmer was United Fruit. Preston brought to the partnership his plantations in the West Indies, a fleet of steamships, and his market in the U.S. Northeast. Keith brought his plantations and railroads in Central America and his market in the U.S. South and Southeast. At its founding, United Fruit was capitalized at $11.23 million. The company at Palmer's direction proceeded to buy, or buy a share in, 14 competitors, assuring them of 80% of the banana import business in the United States, then their main source of income. The company catapulted into financial success. Bradley Palmer overnight became a much-sought-after expert in business law, as well as a wealthy man. He later became a consultant to presidents and an adviser to Congress.
In 1900, the United Fruit Company produced The Golden Caribbean: A Winter Visit to the Republics of Colombia, Costa Rica, Spanish Honduras, Belize and the Spanish Main – via Boston and New Orleans written and illustrated by Henry R. Blaney. The travel book featured landscapes and portraits of the inhabitants pertaining to the regions where the United Fruit Company possessed land. It also described the voyage of the United Fruit Company's steamer, and Blaney's descriptions and encounters of his travels.
In 1901, the government of Guatemala hired the United Fruit Company to manage the country's postal service, and in 1913 the United Fruit Company created the Tropical Radio and Telegraph Company. By 1930, it had absorbed more than 20 rival firms, acquiring a capital of $215 million and becoming the largest employer in Central America. In 1930, Sam Zemurray (nicknamed "Sam the Banana Man") sold his Cuyamel Fruit Company to United Fruit and retired from the fruit business. By then, the company held a major role in the national economies of several countries and eventually became a symbol of the exploitative export economy. This led to serious labor disputes by the Costa Rican peasants, involving more than 30 separate unions and 100,000 workers, in the 1934 Great Banana Strike, one of the most significant actions of the era by trade unions in Costa Rica.
By the 1930s the company owned 3.5 million acres (14,000 km2) of land in Central America and the Caribbean and was the single largest land owner in Guatemala. Such holdings gave it great power over the governments of small countries. That was one of the factors that led to the coining of the phrase "banana republic".
In 1933, concerned that the company was mismanaged and that its market value had plunged, Zemurray staged a hostile takeover. Zemurray moved the company's headquarters to New Orleans, Louisiana, where he was based. United Fruit went on to prosper under Zemurray's management; Zemurray resigned as president of the company in 1951.
In addition to many other labor actions, the company faced two major strikes of workers in South and Central America, in Colombia in 1928 and the Great Banana Strike of 1934 in Costa Rica. The latter was an important step that would eventually lead to the formation of effective trade unions in Costa Rica since the company was required to sign a collective agreement with its workers in 1938. Labor laws in most banana production countries began to be tightened in the 1930s. United Fruit Company saw itself as being specifically targeted by the reforms, and often refused to negotiate with strikers, despite frequently being in violation of the new laws.
In 1952, the government of Guatemala began expropriating unused United Fruit Company land to landless peasants. The company responded by intensively lobbying the U.S. government to intervene and mounting a misinformation campaign to portray the Guatemalan government as communist. In 1954, the U.S. Central Intelligence Agency deposed the government of Guatemala, elected in 1950, elected in and installed a pro-business military dictatorship.
In 1967, it acquired the A&W Restaurants.
United Brands (1970–1984)
Corporate raider Eli M. Black bought 733,000 shares of United Fruit in 1968, becoming the company's largest shareholder. In June 1970, Black merged United Fruit with his own public company, AMK (owner of meat packer John Morrell), to create the United Brands Company. United Fruit had far less cash than Black had counted on, and Black's mismanagement led to United Brands becoming crippled with debt. The company's losses were exacerbated by Hurricane Fifi in 1974, which destroyed many banana plantations in Honduras. On February 3, 1975, Black committed suicide by jumping out of his office on the 44th floor of the Pan Am Building in New York City. Later that year, the U.S. Securities and Exchange Commission exposed a scheme by United Brands (dubbed Bananagate) to bribe Honduran President Oswaldo Lopez Arellano with $1.25 million, plus the promise of another $1.25 million upon the reduction of certain export taxes. Trading in United Brands stock was halted, and Lopez was ousted in a military coup.