The morning call., 1892-04-26
HIDES TOO DEAR.
California Tanneries. Threaten to
Shut Down for a Month.
Depression In the Leather I dustry Through
out the Worid-The Enormous Production
Of Beef Responsible

Time was when the phrase Nothing Ike
leather" stood for the ideal industrial in
vestment The millionaires of a not very
remote age in the United States became so
because they dealt in hides or converted
hides into marketable leather. AS many
fortunes in New Bedford were coined out
of sperm oil, so in Boston were fortunes
coined ou. of leather. The leather and
| hide business, however, is still great one,
employs a great amount of capital, and
gives employment to a vast army of work
ingmen. In the United States alone 1887
tanneries and about 5000 morocco manu-
factories are engaged in the production of
leather in its various forms. But the in
dustrY Is not as profitable or as certain in
| It's returns as it once was, or as the old
phrase would indicate. The milionares
of to-day owe their wealth to other sources
such as railroads, coal, petroleum, rea! es-
tate and patented inventions. Leather as a
profit leaDer has taken back seat.
DEPRESSION IN THE TRADE.
The depression in the leather trade is
world wide. Not in 40 years have prices of
hides and manufactured leather been so low
as 1t is to-day. California has always been
great leather exporter and the tanneries
In San francisco and its vicinity have pros
pered with the steady development of the
industry. The best hem0ck leather in the
world is made in this State, and San Fran
cisco dealers in this staple have always been
able to command higher price for their
product than the Eastern tanneries. About
400 carloads of manufactured leather are
yearly shipped East from San Francisco, q
portion OF il finding its way to Europe. All
the hides in the local market have been
absorbed by the home tanneries as well as
those consigned hither from Mexican ports.
Fully four ifths Of the California leather
product are shipped to Eastern cities, The
local demand being, as shown by these
hgureS, not very extensive. The depres-
sion, therefore, in the Eastern market is
seriously affecting this city and State, and
the quotations for both hides and leather
steadily continue 10 decline. As against
the former prices of 912 TO 10 cents a pound
for the best hides only to ~ cents are
offered to-day.
Tie butchers, refusing to recognize the
sunken figures, are beginning to decline to
sell unless paid cents a pound. The tan
ners are showing an equal persistence
ID refusing TO pay price that promises no
profit 10 them, and the result Is that the sit
uation between these two Interests is some
what strained at the present moment.
TANNERIEs TO SHUT DOWN.
To relieve their end of the strain move
ment Is on loot among the local tanneries
10 stop working on new hides for month
so as TO cause accumulation of raw material
and thus bring about further decline Of
hides. This action would throw a large
number OF men out OF work during tile
period OF suspension. 1t would still how
ever, be necessary to keep the tanneTies at
work on stock already in the vats a need
which would keep about one-thlrd the recu-
lar force employed. The Southern Pacific
Railroad Company in this article of freight,
as in raisins and all other exports. do not
care how much the market prices fall. II
charges the same rate for leather as when
1t sold for cents pound higher IN the
Eastern markets. An allowance for the
decline in value of the product by similar
reduction IN the rates of freight might en-
able the de-buyers to meet the butchers
figures. But the railroad octopus has its
tentacles glued on this California industry
as well as on all others
THE FALL IN HIDES.
The fall in the price of hides and leather
throughout the world is attributed by a
prominent leather merchant 10 the remark
able development of the cattle trade and a
consequent Increased supply of beef in all
cattle-graZiug lands. This in turn has been
stimulated by the modern economical pro-
cesSes Of Strengthening cattle. dressing beef
and shipping 1t to centers of population ia
refrigerating cars and steamer The gentle
man is of the opinion that thereis more
beef consumed to-day than ever before in
the history of the world, and that, nOtwith-.
standing the cry Of hard times, people are
better and more cheaply fed than ever be-
fore. Those eat beef who never ate beef
before, and those who ate before now eat
the more. This Increased supply of beef
has increased the worlds stock of hides.
and, on the principle of supply and demand
the product OF leather being greater than its
consumption, the price of hides aud leather
has gone down.