The record-union., 1892-06-06
DEPRESSED MANUFACTURES AND
THE CAUSE.

San Francisco newspaper pretends to
quote the RECoRD-UNIoN wherein we
said of the San Francisco manufacturers
They are either insisting upon too large
profits or are conducting their business at too
great cost and an too small tolttNle. SO the
reason that San Francisco feels depression is
because 1t is behind the Eastern age in the
matter or profits and OF manufactures. The
competition with the East is direct, and it
cannot meet It, and the rates of freight trans
portation are so low that the competition
bears heavily.
The journal referred to did not print
the words in italics above, but only those
in Roman type. 1t thereupon declares
that the RECoRD-UNIoN says that San
Francisco manufacturers cannot make
any profit.
This instance of disingenuousness is
not phenomenal; very few of the San
Francisco press appear to be able to
quote truthfully; the habit of garbling
has become chronic with most of them.
The words quoted referred to a fact
which no San Francisco journal has or
dares to take up, to wit: That the South
San Francisco Improvement Company,
having large order for ironwork for its
abattoirs, took bids of San Francisco and
Of Eastern foundries, and discovered
that with the usual-normal, not special
freight across the continent added as
| cost to the Eastern bids the latter were
still 10 per cent. lower than the San
Francisco bids. On the basis of that in
disputable fact, we said
The fault then certainly is not in the freight
rate; 1t is not a barrier to home manufacture
because of its cost. The rates are low, or
reasonably low, and no complaint can be
was or is in the price at which San Francisco
establishments are willing or can afford to do
the work.
The fact is a sermon, the conclusion is
inevitable truth. From neither is it pos
sible to escape. They answer unmis-
takably the question "What is the matter
with manufactures in Californian" This
answer the RECoRD-UNIoN has over and
over again formulated, and which may
be again thus stated.
Our manufactures are menaced by we'll
known conditions that give the Eastern
manufacturer large percentage of ad-
vantage. This percentage is the result of
l. Difference between the populations
served and consequent assurance of mar
ket for exceeding large output of Eastern
manufactures at small margin of profit.
2. Lowness Of freight rates between the
East and the California buyer.
8. Lower rate of wages, less cost of ma
terial, greater number of artisans, stronger
and more favorable social, industrial,
commercial and financial conditions.
4. The policy Of the mass of Eastern
manufacturers to choke off incipient
manufactures upon this coast by selling
in this market at cost until control can
be had and a subsequent profitable mar
ket be established.
Every one who knows anything about
the conditions and is cognizant of the
facts knows these statements to be abso-
lutely correct in every detail. Every one
who knows anything about the facts
knows that a low outgoing rate on our
products, and a proportionately higher
rate of transportation upon the products
of Eastern industry seeking entry here,
is a policy indicated by the situation as
one that will confer upon us the benefits
of profitable industry.