The record-union., 1891-11-30
COMMON SENSE AND THE TRAF-
FIC ASSOCIATION.

Lne exercise OF 1ILtle common sense.
The Stockton Mail says:
The aims of the Traffic Association of San
Francisco are represented embracing all
that pertains 10 the welfare of the State,
whereas the benefit to the members of the
association is the only purpose in view. The
importers of merchandise are going 10 get
lower freight rates, II they can; but are they
going to sell theif goods for any less price on
that account?
There is world of good common sense
In this suggestion, and the answer to the
MdiPs question is found in the fact that
the merchants do not now sell their goods
for less, notwithstanding freight rates on
merchandise have been declining for
many years. The customer who purchases
apa1r OF shoes never knows the difference
between freight rates, and he is not per-
mItted to know. When the rate on shoes
was So per hundred pounds, shoes sold at
about the same figure they do now, when
the rate is about 81 80 or 81 rs per hun
dred. But still more important feature
OF this relates to east-bound freight, that
is. the products of California. There has
been for long time an unfair profit to
the merchandising side of the account on
California products. For illustration, the
wine merchants are building magnificent
cellars, palatial private residences and
stupendous fortunes out of the wine
business of this State, while the grape
grower is growing poorer every year.
The wine merchant complains that he
pays high freight on his east-bound
freight. He gsts the sympathy of all
persons interested in wine growing in the
State, but if the freight rate was made one
half what it is to-day, he would pay the
grape-grower no higher price for his
grapes. The reduction of freight would
operate to increase the profit of the wine
merchant and not the price to the grower
for his grapes. This is equally true of
fruits.l The fruit-dealer wants a lower
rate. There is a sense in which a lower
rate would reduce the risk on shipment
and thereby create market for fruit,
but there is no sense in which a reduction
OF present rate would add anything to
the price paid to the grower.
The Traffic Association, claiming TO act
for the whole State of California, proposes
to confer general benefit. Now, Sec
onding the suggestion of the Mail, I'VE
propose that statement shall be made
OF the rate at which all species of mer-
chandise is carried; that when any ad-
Justment isreached between the Trans
continental Association and the Traffic
Association new statement shall be
made showing the reductions that have
been accomplished. Accompanying the
first statement there shall be published
the present price of merchandise, and
accompanying the second statement
another price list of merchandise. The
comparison of these will show the pro-
portionate reduction to the customer of
the price Of goods consequent on the re-
duction Of the freight rates. This will
measure the extent to which the mer-
chant takes the consumer into partner
ship with him. In some way let COM
parisons be instituted between the re-
duction on east-bound freight and the
price paid to the orchardist. In short.
let such investigation be instituted as will
clearly show the extent to which the peo-
pie of California, that is, the producers
and consumers of California, are bene-
fitted by low freight rates.
A still further suggestion; and this is
for the benefit of our high protection
friends. The infant industries of Califor
MIA need protection from the Eastern
States. where manufactures are already
established, worse than from foreign
countries. If the doctrine of protection
has any value, it relates to communities
as well as to nations. We therefore sug-
gest that the freight rates as bearing upon
the prosperity of the manufacturing in
terests of the State be duly considered by
the Traffic Association. The manufac-
turer wants cheap material, upon which
labor may be expended, because the
cheaper the material the larger the value
added to it by skill and labor. The manu-
tacturer wants good price for wares.
Now since it is impossible in a territorial
area governed by the same civil polity to
have protection between different parts
OF the country, the only protection ac-
corded to the manufacturing interests of
California is that accorded by the freight
rates. What high protective tariff does
for the manufacturers of America, high
rate on manufactured wares will do for
California, if there is any sound reason
ing underlying the policy of protection.
we therefore suggest the propriety of adj
justing the freight rates in such way as
will give US cheap material upon which
to expend skill and labor and high price
on the wares. If there is anything ridic-
ulous or absurd in this proposition, the
whole policy of a protective tariff is
equally ridiculous and absurd. The doc
trine of protection proceeds upon the
theory that, notwithstanding tariff may
be an excessive tax, its benefits overbal-
ance its evils by the protection it affords.
This should be equally true of freight
rates, and it does not lie in the mouth of
any Republican, at least, to contradict it..
TIE FUTURE OF OAKLAND.
1t is very popular error to suppose
that all the opportunities for making for
fupaS bv Spaaulation in o;txz ,.oo1 ,-4a4 !.