﻿468 
  REPORT 
  OF 
  COMMISSIONER 
  OF 
  FISH 
  AND 
  FISHERIES. 
  

  

  has 
  been 
  more 
  largely 
  in 
  material 
  than 
  in 
  labor, 
  the 
  cost 
  of 
  material 
  in 
  

   1895 
  being 
  nearly 
  50 
  per 
  cent 
  less 
  than 
  in 
  1886, 
  while 
  that 
  of 
  labor 
  was 
  

   only 
  21^ 
  per 
  cent 
  less 
  .» 
  Of 
  the 
  total 
  difference, 
  85 
  per 
  cent 
  is 
  in 
  mate- 
  

   rial 
  and 
  15 
  per 
  cent 
  in 
  labor. 
  Prior 
  to 
  1886 
  the 
  cost 
  of 
  manufacturing 
  

   sardines 
  was 
  somewhat 
  greater 
  than 
  it 
  has 
  been 
  at 
  any 
  time 
  since, 
  but 
  

   it 
  was 
  probably 
  never 
  more 
  than 
  about 
  $7 
  per 
  case. 
  The 
  price 
  of 
  the 
  

   products 
  has 
  therefore 
  fallen 
  much 
  more 
  rapidly 
  than 
  the 
  cost 
  of 
  pro- 
  

   duction, 
  and 
  consequently 
  the 
  profits 
  have 
  been 
  constautly 
  diminishing. 
  

   It 
  was 
  not 
  until 
  after 
  1880 
  that 
  the 
  cheapening 
  of 
  the 
  cost 
  of 
  the 
  

   products 
  became 
  an 
  imperative 
  necessity. 
  

  

  Overproduction. 
  — 
  The 
  enormous 
  decline 
  which 
  has 
  taken 
  place 
  in 
  the 
  

   price 
  of 
  sardines 
  can 
  not 
  be 
  wholly 
  attributed 
  to 
  any 
  one 
  cause. 
  On 
  

   the 
  contrary 
  there 
  are 
  a 
  number 
  of 
  agencies 
  which 
  have 
  exercised 
  more 
  

   or 
  less 
  influence 
  in 
  producing 
  this 
  result. 
  It 
  seems 
  not 
  improbable, 
  

   however, 
  that 
  the 
  overstocking 
  of 
  the 
  market 
  was 
  largely 
  responsible 
  

   for 
  the 
  decline 
  in 
  prices 
  until 
  after 
  1880, 
  and 
  has 
  continued 
  to 
  be 
  an 
  

   important 
  factor 
  ever 
  since 
  that 
  time. 
  As 
  early 
  as 
  1881, 
  when 
  the 
  

   capacity 
  of 
  the 
  canneries 
  at 
  Eastport 
  began 
  to 
  be 
  greatly 
  increased 
  and 
  

   many 
  new 
  establishments 
  were 
  being 
  built, 
  both 
  in 
  that 
  section 
  and 
  

   along 
  the 
  coast 
  westward, 
  the 
  danger 
  of 
  overproduction 
  became 
  i^lainly 
  

   apparent. 
  In 
  fact 
  there 
  was 
  then 
  a 
  surplus 
  of 
  stock 
  on 
  hand. 
  The 
  fol- 
  

   lowing 
  extract,* 
  from 
  the 
  pen 
  of 
  Mr. 
  Henry 
  Sellmann, 
  one 
  of 
  the 
  pioneers 
  

   in 
  the 
  business, 
  illustrates 
  the 
  condition 
  of 
  the 
  industry 
  at 
  that 
  time 
  : 
  

  

  There 
  is 
  much 
  danger 
  that 
  the 
  business 
  maybe 
  greatly 
  overdone. 
  A 
  considerable 
  

   portion 
  of 
  the 
  goods 
  put 
  up 
  in 
  1880 
  remained 
  unsold 
  on 
  January 
  1, 
  1881, 
  and 
  the 
  com- 
  

   bined 
  capacity 
  of 
  the 
  various 
  canneries 
  is 
  already 
  much 
  greater 
  than 
  the 
  present 
  

   demand. 
  Under 
  the 
  strong 
  competition 
  that 
  must 
  necessarily 
  follow 
  many 
  of 
  the 
  

   smaller 
  firms 
  must 
  go 
  under; 
  margins 
  of 
  profit 
  will 
  be 
  reduced 
  to 
  a 
  minimum, 
  while 
  

   the 
  investment 
  of 
  capital 
  under 
  an 
  accumulation 
  of 
  stock 
  will 
  involve 
  much 
  risk. 
  

   As 
  a 
  result 
  of 
  this 
  condition 
  the 
  standard 
  of 
  excellence 
  will 
  be 
  lowered, 
  and 
  many 
  

   worthless 
  goods 
  will 
  be 
  placed 
  on 
  the 
  market 
  at 
  a 
  low 
  figure, 
  and 
  it 
  will 
  become 
  

   simply 
  a 
  question 
  of 
  the 
  brands 
  of 
  one 
  cannery 
  over 
  another. 
  

  

  This 
  prediction 
  has 
  been 
  fulfilled 
  in 
  nearly 
  every 
  particular, 
  though 
  

   competition 
  between 
  different 
  brands 
  has 
  not 
  developed 
  to 
  any 
  appre- 
  

   ciable 
  extent. 
  Had 
  this 
  ensued 
  the 
  result 
  would 
  have 
  been 
  less 
  disas- 
  

   trous 
  than 
  it 
  has 
  been. 
  Unfortunately 
  all 
  brands 
  have 
  been 
  reduced 
  

   to 
  practically 
  the 
  same 
  standard 
  on 
  the 
  market, 
  and 
  the 
  cheaper 
  grades 
  

   have, 
  with 
  occasional 
  exceptions, 
  set 
  the 
  price 
  for 
  those 
  of 
  better 
  quality. 
  

  

  Since 
  1880 
  there 
  has 
  scarcely 
  been 
  a 
  season 
  in 
  which 
  a 
  considerable 
  

   surplus 
  of 
  stock 
  has 
  not 
  been 
  carried 
  over 
  to 
  the 
  next 
  year. 
  In 
  1885 
  

   there 
  were 
  about 
  140,000 
  cases 
  on 
  hand, 
  worth 
  upwards 
  of 
  $640,000, 
  

   and 
  in 
  1886 
  there 
  were 
  about 
  40,000 
  cases 
  or 
  more 
  unsold 
  on 
  January 
  

   1, 
  worth 
  not 
  less 
  than 
  $160,000. 
  Since 
  that 
  time 
  the 
  market 
  has 
  been 
  

   overstocked 
  almost 
  constantly. 
  In 
  1895 
  a 
  large 
  part 
  of 
  the 
  pack 
  was 
  

   carried 
  over, 
  and 
  the 
  highest 
  prices 
  quoted 
  for 
  domestic 
  quarter-oils, 
  

   in 
  the 
  best 
  condition, 
  through 
  January, 
  February, 
  and 
  March 
  of 
  1896, 
  

  

  *The 
  Fisheries 
  and 
  Fishery 
  Industries 
  of 
  the 
  United 
  States, 
  sec. 
  v, 
  vol. 
  1, 
  p. 
  521. 
  

  

  