The record-union. [volume] (Sacramento, Calif.) 1891-1903, 1892-04-16
A CASE IN POINT.

S<AoE In
= In another column we print the letter
of correspondent of the Prairie Farmer
of Illinois, upon the question of railway
freights upon California products east
bound. We invite attention to the article
because it is calm, sensible exposure of
much entertained error. He shows that
the complaint made, especially in par
ticular instance, that the rates prevent
the producer from reaping profit, is not
true, but that there is some other cause.
and while it is not mentioned it is clear
that the correspondent means the middle
handler of the products.
1t is the middleman evidently who, he
means to say, absorbs the margin of pro-
lit, and not the carrier. For instance, in
the case treated, dried apricots sell at the
East from 10 to Is cents pound, but in
Santa Clara Valley for five and half
cents, leaving from ten and half to
twelve and half cents margin of differ
ence. The producer does not get even a
minimum of this, and hence he turns
upon the railway carrier as the most
prominent target, and charges the failure
to it. But the fact is said the Farmers
correspondent, that the railway charge
but 81 40 for carrying 100 pounds of the
dried fruit more than 5000 miles to the
East, SO that there is to be added only
lao cents per pound to the San Jose
price, making it $50 cents per pound,
and leaving from nine to eleven cents to
be accounted for between the price OBJ
tanned at San Jose and the selling price at
the East.
1t is not reasonable to suppose that the
Eastern retailer makes it all. If he has
so high profit as two cents pound on
his sales, there is still margin of from
about seven to nine cents to be accounted
for. Just where this goes the correspond
ent suggests to the producer to find out.
Certainly the railroad does not get it,
since, as he says, the rate it does receive
is lower than was ever made anywhere
else in the world on freight of similar
value.
Not long ago Nicolaus fruit and hop
grower determined to go to the East and
ascertain for himself why his dried fruit
would not sell in the East so as to afford
him the profit he should have. He tells
Us that he has discovered two facts. The
Eastern retailer prefers to introduce to
the consumer the local product first;
next, the middlemen will not permit him
to receive the California dried fruits at a.
rate that will afford him fair profit and
speedy sales. This producer discovered
that If he could ship so as to avoid the
middleman he could received third more
for his product, and sell it in the Western
markets for less than the present quota
tions. In other words, Mr.. Carroll dis
covered that it is not the railroad freight
rate that stands between himself and
profitable market. The same was true of
hops, he says, and he succeeded in ar
ranging in st. Louis and other cities to
sell by sample, and ship his hops direct to
the consumers there, they expressing
desire to receive them without the inter-
vent1on of the middleman. All he re-
quires here, he adds, is cooperation of
sufficient number of growers to enable
the shipments TO be made in large lots.
AS to the dried fruits, Mr.. Carroll tells
us that the necessity is to bring them to
the attention of the consumer that a de-
mand may be created, and then groups of
fruit-growers, he thinks, may ship their
dried products to meet the demand with
out the lions share of the price being alb
sorbed by middle handling. A letter
from Mr.. Carroll will be found in another
column.
Referring again to the P1ai74e FIdrnaer
correspondent, we call attention to the
emphasis he puts upon the exposure of
the error that leads shippers and pro-
ducers to believe that the carrier must
guarantee profit to the producer. no
matter for how low figure the pro-
duct is disposed of. The railroads are en-
titled to reasonable rate, and beyond
that nothing more ought to be asked of
them. As matter Of fact, however, the
carriers often take out products at a
nominal rate. one that does not pay for
the haul, in order that the product may
move, that production may not be Grip
pied and discouraged. But for this it is
not of record that the anti-railroad press
ever gives to the carrier interests one
word of credit.