Democratic Sentinel, Volume 6, Number 6, Rensselaer, Jasper County, 10 March 1882 — WHO POCKETS PROTECTION? [ARTICLE]

WHO POCKETS PROTECTION?

How Much the Workman «ctaWageb and the Tarlff-Thc Iron and Steel Manufacture. To the Editor of the New York Evening Poet: I have been solicited from most influential quarters to give, in a short anti lucid manner, the actual percentage of wages contained in the amount of goods produced. In my review of Senator Morrill’s ultra tariff speech I have shown that in woolen manufactures the workingman is interested to the extent of about 18 per cent. That is to say, the workingmen in the mills were paid about $lB for every SIOO worth of finished woolen goods produced. I shall, to-day, for the benefit of my friends who so urgently demand more light on this subject, show to what extent the workingmen are interested in the greatest of our manufactured production—that of iron and steel. In the first place, I must say that the country may well be proud of this enormous industry, which has but one superior, that of Great Britain, and no other equal in the world. With this remark, of which more hereafter, I shall present the following figures taken from the census returns : 1. There were in 1880 1,005 establishments in the United States working iron and steel. 2. There was an invested capital of $230,971,884 (real and personal) in the business. 3. There were employed 140,978 hands in the manufacture of iron and 4. These 140,978 hands received $55,476,785 in wages. • 5. The total value of the whole production was $296,557,685. Now the $55,476,785 total wages paid on the $296,557,685 worth of finished product represent a trifle less than $18.75 wages on every SIOO finished goods. In other words, if we deduct the $55,476,785 wages from the finished product of $296,557,685, we get a sum of $241,880,900. Now, a simple protection of 23 per cent, on the above amount would yield the sum of $55,458,607, or only SIB,OOO less than the whole wages paid. In short, if there is any truth in figures, it must be clearly seen that such an enhancement of 23 per cent, on the manufactured product gives the American iron and steel producers the advantage of paying for the whole labor. But, as it might be objected that the price of the American goods is not enhanced to anything like the extent of the tariff, let us look at one of the largest of the metal productions—namely, steel rails. In 1880 we paid $1,478,658 duty on 52,809 tons of steel rails, which was S2B per ton. The cost in England of tiiese 52,809 tons of steel rails was $1,643,700, which is, as near as possible, $31.37} per ton. Thus the duty of S2B a ton added brings the price up to $59.37}, without freight or charges. The average price of steel rails in 1880 was over S6O. Hence, the full pound of flesh as to the tariff was obtained, and, what is still more, the average duty on steel rails was, if calculated ad valorem, 90 per cent. All these official figures as to the price of steel rails abroad, the duty collected and percentage, can be verified from “ Commerce and Navigation” of 1880, page 632. Now, as to bar iron, there is before me a London circular Jan. 6, 1882, which quotes Staffordshire bars at £7 ss. to £7 15s. in Liverpool. Taking the outside price at £7 155., and the sovereign at $4.90, a ton of Staffordshire iron in Liverpool costs S3B. The duty on bar iron, not extra sizes, is 1 cent per pound, or $22.40. If we add this duty to the price of bar iron in Liverpool it amounts to $60.37} per ton. Let us now turn to the American price of bar iron. A New York wholesale price current now before me, dated Jan. 5, 1882, quotes the price for common bar iron at 2.7 cents per pound, which is exactly $60.48 per ton. Thus we again see that the full pound of flesh is exacted, but with this difference, that the price in New York does not allow the importer for freight, insurance or commission. From the Census Bureau it will be found that in 1870 there were 808 establishments engaged in manufacturing iron and steel throughout the Union, and that in 1880 there were 1,005, or an increase of 24.38 per cent. When in 1870 the invested capital was $121,772,074, in 1880 it was $230,971,884, an increase of 90 per cent. Now, a curious fact is at once developed. In the decade from 1870 to 1880 those familiar with the trade know that these seven years were the worst that ever befell the iron and steel inte#sts of the country. Referring then to this increase of capital during the ten years the question arises, From whence did this mpney come which, invested in the making of iron and steel, is so largely in excess of that used in 1870 ? It could not have been put into the business by persons engaged in other pursuits. A certain familiarity with iron and steel, it is supposable, induced only .those in the trade to venture a large stake in the business. It is then in the highest degree probable that the major portion of the additional money placed in these special industries during the last ten years was derived from the profits made during the decade in addition to the large dividends paid to the stockholders. These figures are simply given to convince the American consumers of iron that the price of iron and steel is enhanced by the tariff in the most important cases to the full extent of the duty. This duty on common bar iron averages 521 per cent.; whereas, as I have shown, a protection or an enhancement of 23 per cent, is equivalent to the cost of the labor on the finished product. It would be well for the legislators who represent the great agricultural interest of this country to study and apply the foregoing figures. They may perhaps come to the conclusion that the great farmer booby is the innocent victim who has to pay a tax to the manufacturing oligarchy, and the workmen are the catspaw that pull roasted chestnuts out of the hot ashes. They may further conclude that it is about time to modify this villainous monster of protection by cutting its vulture claws.

J. S. MOORE.