The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-01-22
CHEAP VINE IN NEW ORLEANS.
California Producers Trying to Increase tho
Prevailing Low Rates.

California PRODUCERS Trying to increase the
Prevailing Low Rates.
NEW ORLEANS. Jan. 19.-The California Wine
Growers Association. which controls 80 per
cent. OF the wine output OF the Pacific coast,
has finally decided to make a stand against
New Orleans and force this city to pay as much
for the California product as the rest OF the
country. Heretofore. this wine has been sell
ing in New Orleans for from three to Ave cents
less than in any other American city. and the
producers have besn losing from $3.50 to $3.50
q barrel. They have succeeded in greatly in
creasing their sales in Louisiana, completely
driving out French claret. formerly consumed
in large quantities here. and even in Gripping
the brewery interests but as there is no profit
In the sales they have gained q Pyrrhlc victory.
One-ffth or one-sixth OF the entire California
wine product Is consumed to-day in Louisiana.
Wine. especially claret. is served at all meals
in New Orleans, and the Creole takes to IL as
naturally as his French ancestors. Before the
development Of the California industry tho
wine drunk here was mainly imported from
France. New Orleans being then one of the
largest importers and containing some of the
best connoisseur5 in this country. When the
California product came into competition with
that OF Bordeaux It had to be sold very
cheap in order to find a market here.
and It was generally sold below cost. The
price of California claret was so depressed by
this competition and by the competition
among the producers that 1t fell to IA cents a
gallon. at which price 1t opened the present
season. This low price affected not only the
Bordeaux wines, but also beer. which costs %
cents a gallon to manufacture hero, and COM
plant was made to the City Council a few
months ago that the California claret sold here
must be fraudulent and doctored. as decent
wine could not be sold at such a price. Coun-
Ni1pn nm StArv introduced NJ. rJ;no-- ltn.atol
at the cheap wine. proposing to have It ex-
amined and Analysed. and other restrictive
measures intended to drive it out OF the city
were planned. AS it now is. even the cheaper
restaurants and eating houses can afford to
give a bottle OF wine with a 10 or20 cent meal
The complaint made that wine could not be
sold here at the price prevailing Is to this ex-
tent true that it could not be sold with a profit
at that price. New Orleans consumes about
100000 gallons OF California claret a year.
and the rest Of Louisiana will run the quantity
up to a total OF 100000 gallons. For the city
the consumption is twenty gallons for each in
habitant. including men. women and children.
a year. Formerly the freight charge on wine
from California was seven cents a gallon, but
competition forced down rates. and it is now
only four cents. Being directly on the South
ern Pacific. that road can bring the wine
straight through to New Orleans without q
change or transfer. and, therefore. very
cheaply: but even with a freight rate of four
cents a gallon. it left the California producer
only 10 cents. and he loses money on it.
Some six months ago the California Wine
Growers Association. finding that the pro-
ducers were losing probably S250,O00 a year
on their New Orleans trade. sent an agent
here to try to arrange matters. Believing
that the low price paid for the California
wine was due to the middlemen. he re-
solved to escape their clutches. and sell direct
to consumers. 1t was determined, there |
fore. to sell the wine at auction at the New
Orleans Auction Exchange. not more than five
barrels to be sold to any single purchaser: and
the price brought at these auctions to become
the market price at which the wine was to be
sold. Whether the dealers and middlemen
or not and formed a club to obtain
the wine at low rates, certain it Is that it sold
lower than ever before. and came down to IA
cents a gallon. |
AS the grapes range from SO to SIC a ton !
and each ton produces an average Of 125 gal |
Ions. it can be seen that there is no money in
selling the wine at a rate equivalent to 10 cents
a gallon in California: and the auction scheme
made the situation worse. A new agent
has accordingly been sent to New Orleans to
overlook the field and see the remedy. The
Wine Growers Association viii ad-
vance the price to 22h cents a gallon at San
Francisco. which will make the wine in New
Orleans cost 26H cents. What effect that will
have in cutting down the consumption Of this
vine remains to be seen. but it will have an
lndoubted tendency to drive New Orleans to
beer or some other drink.