Franco-American commerce. Statements and arguments in behalf of American industries against the proposed Franco-American commercial treaty;

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To Caleb T. Fay, Esq., Chairman of the Special Committee of the San Francisco Chamber of Commerce, having under consideration the injuries to the industries of California, which may follow the proposed Reciprocity Treaty with France.

Sir : The Chamber of Commerce of San Francisco, on the thirteenth day of June last, after hearing the argument of Mr. Leon Chotteau in favor of a proposed French Treaty, and a contrary argument from Mr. Chas. A. Wetmore, passed a series of resolutions hostile to the adoption of any sucli treaty, and a committee was appointed, with special instructions to seek out and report to the Chamber, the injurious effects such treaty would have upon the trade, industries and manufactures of our country; on behalf of the wine interest of California, I therefore submit to your consideration the following statement :

In order to understand fully the present condition of the vinicultural interest of California, and its possible great future, an outhne of its past history and present extent is necessary, which I will endeavor to draw as briefly as the subject will permit.

The vine was hrst known to be cultivated in our State, at the Mission San Gabrielle, in Los Angeles county, in the year 1771, and was first planted by the Catholic Fathers. Gradually its cultivation was extended from mission to mission, till there was not a single one which did not possess from five acres, upward. Owing to a lack of regular communication with other countries, little or none of the wine could have been exported — its entire quantity being consumed in the immediate neighborhood of its production. Its manufacture and care was also conducted in the most crude, primitive, and unscientific manner. Neither do we hear of any special reputation as to the quality of the wines of any of the Missions, excepting that of Sonoma, which is reputed to have had some slight preference. Outside of the missions very few vines were planted, and we have no reliable data whereon to base the exact number of vines cultivated before the so-called American occupation of California. Their number however, could hardly have reached half a million vines. At any rate, upon the arrival of the Americans, they found the once splendid missions unoccupied, desolate and in ruins — their wide acres of grain lands trampled down by cattle ; their orchards and vineyards unproductive and running wild for the want of the civilizing hand.

The earliest official information we find upon the subject after the arrival of the Americans, is the State Register, which places the number at one and a half million vines in 185 3; two and a quarter millions in 1857, and four millions in 1858. Previous to 1856, hardly any of the vines planted were set out with a view to making wine, nearly all being intended for the production of table grapes alone. It was about that year that public attention was more especially drawn, by numerous newspaper items, to the possibility of producing good, saleable wines in the State. Choice wine grape cuttings, which had been imported as early as 1853, came into demand, and all sorts were planted by the hundreds of thousands, year after year, till we now possess from forty to forty-five million vines in California; showing an average plantation of nearly two millions per annum for a period of twenty-two years, or nearly three thousand acres per year. And at this rate of increase in less than fifty years, we can produce one hundred million gallons of pure grape wine, and eradicate the disease of intemperance from among the American people. And one hundred million gallons of wine fifty years hence, is just ' three times as much as France exported fifty years ago (in 1829). These facts are certainly worthy of consideration. Though wine houses were established as early as 1855, still California wines were hardly offered freely on the market until 1865. Up to that date nearly all the wine was made from one variety of grape, the one first planted by the Fathers at the Missions, and which, for that reason, has since been termed the Mission grape. It was noticed that wine produced from this variety, no matter the sectionof the country, the soil, altitude or climate, possessed a characteristic taste, different from French and German wines, and which, to some consumers, seemed undesirable, and by ignorant people was erroneously termed a ground taste. It was also observed, about the year iS6o, that wine made from certain European varieties of grape, did not possess that peculiar taste found in those made from the Mission. This was justly deemed of so much importance that in 1 86 1, a commission was appointed by the Governor to promote the "improvement and growth of the grape-vine in California," and the late Colonel Agoston Haraszthy, one of the three commissioners, in the advancement of this object, visited Europe to gather vines and information.

The result of his labors was an ample report to the Legislature of the State, and the importation of two hundred thousand cuttinp-s and rooted vines, cataloorued under four hundred and ninety names, and comprising every procurable and known \'1lriety of grapevine. This was the first reliable large importation of foreign grapevines, and from it mainly, the entire State has since drawn its present plantations of finer varieties for wine making. These vines were not available for planting till the beginning of 1863, and in that year an immense number of new vineyards were set out, and the old ones increased in extent. Unfortunately for the reputation of the State, at that time nothing positive was known as to adaptability of variety, soil and climate, and thousands of vines were set out more for their fine-sounding names than for any known quality. It was the beginning of the experimental age. It was then thought by the enterprising, but inexperienced wine-maker, that any kind of wine could be produced from one and the same variety of grape, grown on any soil, by simpl)' modifying the method of manufacture. This incongruous theory led to the attempted production of port, sherry, hock, claret and burgundy wines, all from one vineyard, and from one quality of grape.- Of course it was a failure, but it took years to discover the tact, and some of these theorists still remain unconvinced. In 1863, upon the plantation of the imported vines, a new theory was set forth, a little niorc rational than tlic previous one, l)ut still wide of the mark. It held that the variety of grape, combined with method of manufacture, would reproduce tlic \aried qualities and characteristics of all the known wines. In this theory soil and climate were entirely lost to sight. Not until some four years ago, after long and most patient waiting, and the cost of endless experiments, have the wine-makers of the State bep^un to acknowledge that there must be a perfect adaptability of grape to soil, climate, method of manufacture, and the quality of wine desired to be produced. At this period we are only beginning to emerge from our false theories, and it will still require ten years more to pass out of our experimental age. Owing to the absolute want of knowledge, nearly all the important plantations made in 1863, 1864 and 1865, were set out more with a view of having a greater variety of grapes, than of any consistency in selection ; and hence, to-day, we often meet with vineyards of not more than thirty acres in extent, and possessing from 1 5 to 25 different varieties of vines. Of course a benefit will eventually accrue, in the discovery from actual observation of the most suitable variety to the special locality, but in the meantime the entire past has been wasted, and it will require at least from five to six years from the date of such discovery to regenerate the vineyard, and secure its complete plantation with varieties that are suitable.

These are merely some of the obstacles met with in the plantations at the outset ; combined to them, are to be considered the scarcity of capital and the ruinous rates of interest. In 1862 the vine-grower had to pay two and a half per cent, per month on his borrowed money, and compounded every ino7ith. Not until four years ago could he secure money, even upon the best of security, for less than one and a half per cent, per month. And not until five years after plantation could the vine-grower expect to realize any incomefrom his vineyard ; and even when his vineyard did bear, he only perceived that his expenses had to be suddenly doubled, for then a fermenting house and cellars had to be constructed, press and crushers built, and wine casks purchased. In 1864 and 1 865 old second-hand casks were eagerly purchased for as high as 14 cents per gallon, and new ones commanded as high as 20 cents, and even more. Unskilled labor commanded from 30 to 40 dollars per month and board. With all this there was no settled price for the wine, while very considerable quantities were gradually being thrown upon the market, with very few purchasers. To add to the difficulties of the situation, the wines produced at that period, through lack of proper knowledge and handling, both at its fermentation and at its preparation for consumption, as well as through lack of age, was often defective and proved unsatisfactory. Imoorters of foreign wines, watching with jealousy the greatly increased production of native wines, made the most of these mishaps, and upon every possible occasion assumed to deride and frown down with contempt, the possibility of ever producing a good drinking wine in California.

Unfortunately, these interested importers found no lack of ignorant people to ape their assumed condemnation; to assist in creating a prejudice wherG none should have existed; and wasfe a bitter waras^ainst the wine interest of the State. Now the tables have all changed — not through a kinder feeling from the inporters; not through any renewed protection from the government ; not through any less continued condemnation from the prejudiced ignorant; but solely through the intelligent, patient, untiring labors of the vine-grower and the enterprise of the California wine dealer. Four years ago the wine importers of the whole Union demanded and secured the present tariff of forty cents per gallon. We then had their sneers ; we now have their supplications to Congress for a reduction to one-half the present tariff, to enable them to compete with us. Then, we were belittled, as was the quality of our productions; and to do this successfully they relied upon the ignorance of the public, and the assumed quality of their own importations. But the public is no longer ignorant ; the scales have fallen from its eyes, and the spurious quality of the bulk of French wines coming into the United States has been amply shown by Mr. Wetmore's several letters from Bordeaux, Marseilles and Cette, and which I append. The wine exporters of France see that their best days will have ceased in our country, unless they can devise some means to prevent American people from drinking American wines. To them there is but one visible preventive, and that is the enactment of a treaty, ratified by Congress, reducing the present tariff. And it is safe to say, that should such a treaty be enacted, the exporters of F'rance will have accomplished their purpose, and compl^etely ruined the wine interests of the whole United States. It is to be hoped that every patriotic American will lift his voice against the execution of so serious a calamity to one of our greatest future agricultural interests.

I have now shown tlie difficulties encountered, step by step, by the California wine-maker in his endeavors to plant his vineyard and produce a good, pure, saleable article of wine: I have followed him in his patient industry, through costly experiment^ i6

covering the best years of his manhood ; I have shown him struggling for want of capital, with ruinous rates of interest, high rates of labor, and against a selfish, bitter prejudice. We have followed him from the time the State had less than two million vines till the present day, when it points with pride to its forty-five millions. And now that he is about to reap the benefit of his life-long sacrifices and untiring energies, it is sought to wrench the golden prize from his grasp, and lay him and the result of his labors forever in the dust by a so-called Reciprocity Treaty with France — a scheme devised in the interest of the French compounder of wines. But I will now give a more detailed account of the present extent and actual value of the wine interest of this State, which this proposed treaty, if carried into effect, would entirely destroy.

The latest official sources put the number of vines now in the State at forty-five millions, or about 60,000 acres. These are owned by over four thousand proprietors, and it is computed that ten thousand people in the State, and all of them adults and voters, earn their livelihood and support their families through this one pursuit. The capital invested in vines, lands, animals, tools, appliances, casks, dwellings, cellars and their contents, amounts to thirty million dollars. When our present vineyards are in full bearing, which will be in three years hence, our possible production could reach twenty million gallons of wine, not allowing for grapes locally consumed or made into raisins and brandy.

Our exports from the State by land and sea in i878aniounted to two million gallons of wine, of which a little more than one-half went by sea, and the rest by rail. The value of these wines reached one million three hundred thousand dollars. The State consumption of our wines is estimated to exceed two and a half million gallons. For four years preceding 1879, the estimated value of the wine consumed in the State at forty cents per gallon, amounts to one million dollars ; that exported to one million three hundred thousand dollars; giving a total value for 1878 of two million three hundred thousand dollars saved, earned, and kept within the State by its wine makers. In these figures no allowance was made for the value of two hundred thousand gallons of brandy made, and a surplus stock of one million and a half gallons of wine not exported or consumed. And this is but the beginning of the development of this gigantic industry.

During the first six months of the present year we exported from the State, one million one hundred and twenty-four thousand gallons, being a gain of two hundred and sixty thousand gallons over the same six months of the previous )ear (1878). Should this proportionate increase hold good for the remainino- six months, our exports of wine this year, will run over two million six hundred thousand gallons, or one hundred thousand gallons more than was received in the entire United States from France in 1877. And to-day, California alone consumes more wine of her own production than the whole amount sent by France to all the States of the Union combined. Yet in the face of such facts, it is generally asserted that Californians do not drink their own wines; it may be that they do not drink them — as California wines. It is well known by the better informed, that our best grades of wines are almost invariably labeled with French and German labels, by retailers who have in view their own immediate profit, rather than regard for the future welfare of this great interest. But in this they only follow the pernicious example taught them by their competitors in Cette and in Bordeaux, as fully shown by Mr. Wetmore's letters. But I am glad to say that the attempted imitation does not go farther than the label: we have not yet been compelled to resort to those very questionable practices of the Bordeaux cheap wine exporter — that is, mixing, fixing, flavoring, perfuming, coloring, waterino" and the adding of alcohol: we have not yet reached that state of perfection and scientific skill that is required to produce the Vhi dc Cargaison, sent to the United States by the millions of gallons, to contaminate our taste and vitiate our palates. We have, under the guise of fictitious labels, been lead to suppose that we were drinking fine Bordeaux wines, whereas, in fact, we were nicrely drinking trash, compounded at Cette, Bordeaux or Marseilles, and have been the laughing stock of the French wine exporter, whose pockets we filled through our ignorance, and our vanity. We have not \et attempted such imitations, but have confined ourselves to placing upon the market, pure, genuine wines n^adc from the juice of the grape alone, without addition of water, sugar, alcohol, coloring matter, or flavoring essences of any kind. Such qualities as our wines have attained are purely natural, and acquired without i8

adventitious aid of any substance other than grape juice. And it is to be hoped that our efforts to furnish the American people with a pure and wholesome wine, will be fully appreciated by our legislators. But though we may not have followed the foreign wine exporter in his skillful adulterations, we certainly excel him in our mechanical contrivances for the production of wine, the crushing and handling of grapes, and the storage of their product. We point with pride to our stone walled press houses; to our California invented hydraulic presses; to our steam crushers and stemmers; to our magnificent casks, such as are not found in the whole of Trance. These have all been built, created and invented by the genius of our own citizens, under all manner of trials, and for the sole purpose of making wine. Nowhere in our State do you see the filthy habit of crushing the grapes with the naked fee*", as is the almost invariable practice in France- -nor do you ever see any nude men enter our fermenting tanks, as they do in France, waist deep, to trample down the grapes in the manufacture of their claret. And )et such practices are alrnost universal in France, Spain, Portugal and Italy. I cannot see how any American woman can touch a glass of French claret to her lips without loathing.

As to our presses, one man can create a pressure of 40 tons per square inch with our California Hydraulic Press, and it occupies less than one quarter the space of the cumbersome European invention of not one-third the power. Then note our steam stemmer and crusher, which crushes and stems from 10 to 12 tons of grapes per hour. Where in the whole of Europe will you find a single equal ? While our large oaken casks, all made in our State, and varying from one to twelve thousand gallons, are marvels of strength, symmetry and beauty. Nor are they possessed by one, two or three in a cellar, but by the fifties and by the hundred. All this we liave accomplished unaided, alone, and against the most determined opposition of the importers, as well as the ignorant prejudice of the masses.

But now let us examine the comparative qualities of the wines we have finally produced.

The white wines or hocks, have been conceded to be fair in quality from the start; and have of late years improved so much, by better care, earlier gathering of the grape at the vintage, and by plantation of the most reputed foreign grapevines, that the French and German cheap white wines have been driven almost entirely from the market.

Our greatest difficulty, however, was our unsuccessful attempts to produce a good claret from the beginning. The mission grape after years of trial, in every soil, climate and method of manufacture proved itself unfit. Only within the last few years, have the proper claret producing qualities been discovered in the Zinfandel, the Black Burgundy and the Grenache, singly or combined in various proportions, and grown upon certain soils. Within the last three years our claret wines have made immense strides towards perfection; and now a good cheap ordinary California claret is the rule, instead of the exception, as heretofore; and there are many wine districts in France that cannot make the same boast.

Such in fact, has been our progress, that even Mr. Chotteau in an interview with a World reporter on the ninth of July last, is reported to have said, that " the American consumer can procure California wine, the quality of which it must be admitted, is preferable to that of our French cargo wines," and further on, that "the jobbing and retail merchants enlarge with California wines, the little French wine that they import, to such a degree, that there are consumed certainly ten barrels of native wine, to one from the vineyards of France." We thank Mr. Chotteau for his candid admissions. I also refer in testimony to the very able and pointed official report of Mr. Poorest, Consul General of France, at San Francisco, and which will be found in the appendix.

The wines must certainly have some qualities, or over two and a half million gallons would not be consumed in our State, neither would there be two millions more exported. And the demand for export has increased, with very slight liuctuations, from the very beginning as the following figures will show.

WINK AND BRANDY E.XPOKTS BY SEA AND KAIL.

YEARS. SEA. KAIL. TOTALS.

In the above figures the wine and brandy are put together, there having been no separate account kept of them at the C. P. Railroad offices till the year 1875.

WIXE EXPORTS BY SEA AND RAIL.

ye^RS SEA. RAIL. TOTALS.

Now, upon examination, the first six months of 1879 show an increased exportation over the same six months in 1878, of 250,723 gallons by sea, and 48.773 gallons by rail; that is, a total increase of 299,496 gallons. By again looking at the figures, it will be seen that this increase for six months is almost equal to the increase of the entire year 1878 over that of 1S77.

Our brandy exports from 1875 by Sea and Rail are as follows:

YEARS. SEA. RAIL. TOTALS.

To say the least, this must be considered encouraging in view of the existing dull times in every part of our continent.

In referring again to the above figures, it will be observed that there has been a steady increase in our exports of wine from the year 1875, without a single fluctuation, and that our export for the first six months of the present year was greater than the entire export of 1876. Comparing these results to those in the importation of French wines into our Port, we find that France sent us in

In bottle 51,800 "

Total 801,800 gals.

In botde 15,900 "

Total 385,900 gals.

Decreased importation into this Port after 4 years 495,900 gals

This decrease in the importation of French wines to the Port of San Francisco, remarkable as it may seem, is nevertheless surpassed by the decreased P^rcnch wine importation for the whole

United States, as a scrutiny ot" the amounts for 187^. and 1.77 \v..i show in the following figures taken from the official French Customs reports.

WINES IMPORTED FROM FRANCE IXTO THE UNITED STATES, IN WOOD AND GLASS, REDUCED

TO AMERICAN WINE GALLONS.

1869 5,904,000 "

1871 6,200,000 "

1872 7,080,000 "

1873 5,511,000 "

1874 5,207,000 "

1875 3,263,000 •'

1876 2,757,000 "

1877 2,486,000 "

This very notable reduction may be ascribed, first, to the cheapness and progressive good quality of our own wines, and secondly, to the change in tariff which took place on the 8th of February, 1875. Previous to that date the United States had a mixed tariff, that is, a specific and ad valorem combined, the workings of which was so objectionable as to cause the " Wine and Spirit Traders' Society of the United States," to use their best efforts to have it changed to the present purely specific tariff of 40 cents per gallon, on all wines regardless of value. The present system though it may have tended to diminish the amount of wines imported, has on the other hand undoubtedly increased the importation o^ a better quality, for where as under the ad valorem duty, the average value of the wine imported was 40.75 cents per gallon, under the specific they averaged 62.35 cents, showing that we now recieve much finer grades of wines than formerly. But I cannot do better here than quote from a statement emanating from the above mentioned "Wine and Spirit Traders' Society," dated F'ebruary, 1878.

It must be borne in mind that the following table shows importations, not from France alone, but from all other wine sources as well. I quote, as follows:

"STATISTICS TAKEN FROM THE OFFICIAL LIST OF THE BUREAU OF STATISTICS IN WASHINGTON.

Statement of the Quantity, Value, Rate and Amount of Duty received from Foreign Wines, during- the fiscal years 1872 /^ 1877.

Average

Average

Year.

Gallons.

Value

Rate of Duty.

Duty.

Value

Duty

per gal.

per gal.

GTS.

CTS,

9.135.771

$3,430,975

"j Value under 40c. pr gal., 25c. pr gal.

Over 40c. and under $1, 60c. " '" Over Si $1 and 25 per ct.

$2,822,250

37-55

30.89

3,711.137

2,840,321

39-99

30.45

9,000,335

3,736,796

2,662,000

41-51

29-57

6,459.303

(1,464,727 1 763,327

4,589,025

2,776,274

y Went into effect day of passage. ) 40c. per gal., specific.

2,027,928

60.49

4,406,279

2,562,944

1,931,266

58.16

"It will be seen from the above, that under the ad valorem duty, which it is proposed to reinstate, the average value of wines imported was 40,^0^0 cents per gallon, whereas under the specific, they average 62,^^^ cents, showing that the public received a finer grade under the latter.

"As an illustration of the benefit to the Government of the specific duty, we call your attention to the comparative importations of 1873, under the ad valorem duties, and in 1877, under the specific, by which it will be seen, than in 1877, on an importation of less than half the quantity of 1873, the Government collected more than two-thirds of the revenue of that year.

"It is claimed by the Trade, that the specific duty has been a perfect success, for notwithstanding the great falling off in the quantity imported, the revenue has decreased less in proportion than on any other goods belonging to this class, as per following statistics:

STILL WINES.

MALT LIQUORS.

Sparkling Wines.

SPIRITS.

Gallons.

Duty.

Gallons. | Duty.

Doz.

Duty.

Gallons.

Duty.

9,278,311 9,000,335

$1,421,199

1,239,346

11,859,71

954.581

820,513

Proportion of decrease of revenue on Wines 32 per cent.

Do do. do.- Malt Liquors ... . 53 100 "

Do. do. do. Sparkling Wines . 42i^„'i "

Do. do. do. Spirits ^^Z "

"The importation of wine lias materially decreased, in consequence of the large production of American wines since 1874, as there is now an annual production of about fifteen niillion gallons.

"It is a well known fact, that under the ad valorem duties, the crude ^ u7idevelopcd and poor Wines (unsaleable in European markets and the rest of the world) are made up and shipped to this country, as they are the only grades which can be entered under the lowest rate of duty. In explanation of this we give you the particulars of the importation of 1874, (the last year of the ad valorem duty:)

"One of the great advantages of a specific duty is its simplicity and decrease of cost of collection. Increase of revenue in propor tion to quantity imported. General satisfaction to the trade of the working of a specific duty. No suits by the Government for claimed undervaluation since the specific duty was adopted.

"The present specific duty of 40 cents per gallon has given satisfaction to the Treasury Department, the Anierican wine growers and the importers of wines. The change from the ad valorem and specific system in 1875, to the purely specific duty of 40 cents per gallon, was really an advance in the rate of duty ot 30 per cent., as the average duty per gallon on all still wines imported during the years 1871 to 1875, was 33.66 cents. In conscque7icc of this i)icrcase, the /lai^d times, and the fact that a large quantity of the cheap wine formerly imported is now supplied by the American wine growers, the importations have decreased over 50 per cent.

"The pure specific duty puts all importers upon an equal looting, whereas under the combined ad valorem and specific system, the honest merchant is at the mercy of the unprincipled dealer, who imports in small lots and undervalues his wines. This feature was one of the strongest inducements the importers had in advocating the advance from 30.66 cents to 40 cents duty.

"The specific duty on wine is the only practical one, and we can get no better evidence of this fact than England adopting it after having experimented with the ad valorem system and finding it did not work. The first tariff made under the Constitution of the United States (July 4th, 1789). put a specific duty of 18 cents per gallon on Madeira wine and 10 cents per gallon on all others. We apply the specific rates to brandies and sparkling wines, which vary quite as much in quality as still wines, and if the theory is correct and has worked well on these, why should the latter be exempt?

"The value of wine is different from any other article which is imported, as it changes every year with the quality, increase or decrease of the crop, and therefore what might be a fair standard one year would not be the next.

"The average value per gallon of all the still wines imported in 1877 was 58.16 cents, which shows that the bulk of the wines were the low and medium grades."