The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-03-16
THE COST OF Wine
HAS NOT ADVANCED.
EASTERN CONSUMERS WILL Not
Be AFFECTED BY ASSOCI-
ALTON PRICES.
MR.. CARPY ANSWERS THESUN
The PRODUCERS ONLY WANT TO
GET = FAIR SHARE OF THE
PROFITS.

C. Carpy, president and general man
ager Of the California Wine Association,
yesterday made reply TO the recently ut
tered warning Of the New y ork Sun, that
q California combination to raise the
price of wines was very grave mistake,
which might forfeit the Eastern market to
this State.
Editor Dana statement is absurd bah
bling and shows that the writer knows
nothing about our wine business, re-
marked Mr.. Carpy. 1.-THE first thing TO be
said is that while the prices paid TO the
producers here have been advanced so per
cent, the cost of wine to Eastern con-
sumers has not advanced and is not likely
to be advanced. In the reimbursement Of
prices that has followed the recent organi-
cations, the producer has simply been en-
abled TO get a fair share of the profits
which were before absorbed by middle
men, while the consumer gets his wine at
the same price.
Tine California Wine Association has at
heart the interests of the wine industry Of
California, which was fast going 10 pieces.
1t has underworld TO uphold the business
and give II new life. We are now paying
and are going to pay living prices to the
growers, enabling them TO take better care
of their vineyards and to make better
wines, because they are assured of a good
market beforehand.
by putting ON the market q better
quality OF wine we hope to create demand
Tor California wines among the American
people who have not before been in the
habit OF drinking wine and among people
who have been demanding foreign wines
For these purposes this association and
the organization OF producers are in accord.
1--WE have killed here the prejudice
against California wines; now we must do
the same work in the East by proving
that our wines are pure and as good as i'm
ported wines. We shall IN the future
encourage the planting of more vineyards
Just now We have sufficient grapes for
actual demands.
The effect Of our dealers organization
Will be only to give us fair profit on our
capital and at the same time enable the
grower to live, free himself from his mort
gage and make his industry a prosperous
and healthy one. A year ago the dealers
were losing money. The producer is now
receiving 50 per cent more than year ago,
and at that is not getting an eXorbitant
price for his wine. A year ago sound
ordinary wines were being sold al and 6
cents a gallon. Similar wines command
to-day II and L cents.
In estimating fair wholesale selling
price there should be added to these prices
cents Tor cooperage, from 8 to 4 cents for
handling, maturing and marketing. and
we should be entitled to make q dealer 8
profit OF 5 cents q gallon. Therefore, the
wlne-grOwer receiving 121a cents sound
ordinary wines should be sold TO Eastern
dealers at Is cents, I. 0. b., at San Fran
cisco Freight TO New York costs from 8
TO cents a gallon, according TO route aud
method of shipment. Therefore, the price
should be about 30 sents in New York
THE specific duty Of 80 cents gallon on
foreign wines is q regulating factor, and
freight from Europe TO New York costs
but ! % TO cents q gallon. New Y ork sell
the figure mentioned. The actual selling
price to-day fob. at San Francisco is %
cents III large quantities. 4 year ago ii was
II and u cents. These prices include
cooperage. To-day IN New York the
actual cost to wholesale dealers of sound
ordinary California wines is % to 81 cents.
A year ago it was about 15 cents, cooper
age included.
1.-THE prices to consumers in New York
remain the same and viii not be advanced.
That price remains at from 40 TO go cents a
gallon. Under the former ruinous prices
the retailing middlemen made all the
profits, the producers selling at less than
cost and the wholesalers here and in the
East making or cents q gallon.
Though the Eastern retailer paws a few
cents more gallon he cannot wei advance
his prices and retain his trade, and he still
has 8 large margin for profit. The New
7 ork restaurateur who sells half-bottle
of California wine for 10 or Is cents now
pays 80 cents gallon and still gets good
profit. The organizations of dealers and
producers here but equalize the profits and
have not and viii not advance the price to
Eastern consumers. The results of the
combinations are, then, to give the pro
ducers living prices, the dealers fair but
small profits and the consumers better
wines at the same price"
PuENTv of rivals Try to comnete with DR.