Democratic Sentinel, Volume 13, Number 29, Rensselaer, Jasper County, 9 August 1889 — FLEECING UNCLE SAM. [ARTICLE]

FLEECING UNCLE SAM.

IHE DUTIES ON CARPET WOOLS IMPROPERLY REDUCED. The People Robbed to Recoup Philadelphia Carpet Manufacturer* for a Big Corruption Fund Contributed to Aid in the Election of Harrison. [Washington special.] The Philadelphia manufacturers who contributed through Wanamaker to that $400,000 corruption fund on the promise of the chairman of the National Republican Committee that they should not lose anything by it are discovering that their confidence was not misplaced. Mr. Quay knows what he is about. One of the first appointments asked by him was that of Mr. Leach to be Appraiser of the Port at Philadelphia. Leach is a brother of Frank Leach, Quay’s private secretary, and, of course, a serviceable and controllable official. One of the first things Leach did after taking possession of his office was to ask the Secretary of the Treasury for permission to classify woolens and worsteds together. Leach prepared the data at the Philadelphia end of the line, and Quay says that there was no hitch at this end. The change of classification was of great help to the carpet manufacturers of Philadelphia, who were among the most liberal contributors to the $400,000 fund.

Within the last few days another scheme, still more important, has been pushed through by the efforts of Leach and Quay. At Leach’s suggestion the Treasury appraisers have decided to admit English wool waste at 10 cents per pound, instead of 30 or 60 cents. According to law, the duty on plain wool waste is 10 cents a pound; on scoured wool 20 to 30 cents a pound, and on scoured wool which has been subjected to further process of preparation, 60 cents a pound. Here was a loophole which the manufacturers on this side of the water and the exporters on the other decided to take advantage of. On account of the high rate of duty on scoured wools and noils, the latter being the short fibers, knots, broken fleeces, and tangled fibers combed from scoured wool, the expedient was devised of running this stuff through a garneting machine. Large quantities of garnet waste are now turned out in England for export to America. The machine tears and ravels out the twist in thread, thus reducing it back to the original purified wool by reason of taking out the twist which is originally given to the wool to make it yarn or thread. In the process of spinning yarn or thread from wool a percentage of this yarn becomes tangled, and is called thread waste. By running it through a garnet machine the stock is restored to the original condition of wool, all the twist being taken out of the yarn, leaving the wool which composes it in a condition of unspun wool top. It is capable of being used for any purpose for which unmanufactured scoured wool can be used. It can be either combed or carded, and can be spun into worsted or woolen yarn. To make a salable article noils and other scoured wools were run through the machines with the other waste for the purpose of disguising the mixture.

The material thus produced was a highly purified article of wool, useful to carpet manufacturers, yarnmakers and others, and yet it was brought to this country under the guise of waste. The Cleveland administration, caring more for a faithful execution of the revenue laws than, for the profits of Philadelphia carpet manufacturers, refused to let this article in under its false colors, and collected the lawful duty of 30 cents a pound. It had actually become so profitable to import this so-called waste and cheat the revenue that in England for a time the price of the article was raised above the price of scoured wool, frqm which it was made. Scoured wool could not be sent to the Unifed States because of the 30 per pound duty, while the same article, under the name of garneted waste, could be admitted at only 10 cents per pound duty. Quay and Leach have succeeded in having the old rule restored.

Again this bogus waste, made of highly purified and workable wool, conies in at a rate of duty which defrauds the revenues, and the Philadelphia J>anufacturers are in a fair way to get a return of the money which they invested in Harrison’-s election through Wanamaker. The duties on carpet wools imported during the fiscal year amounted to the snug sum of $2,377,000. The American wool grower is one of the lambs that will be plucked by this fraud. The Quay party has cheated him sadly. In the last campaign the Ohio and other Western wool growers joined hands with the manufacturers in electing Harrison under a compact which was to protect the interests of both. The manufacturers were to have the benefit of an identical classification of woolens and worsteds, and the wool-growers were to be satisfied with a ruling that would put a stop to the importation of scoured wool disguised as waste at the low rate of duty. An effort was made to carry out the terms of the compact. Secretary Windom had a decision ready that would shut out all the bogus waste, as it declared the garneted stuff scoured wool which had been subjected to a further process of preparation, and therefore subject to a duty of 60 cents per pound. At the last moment the influence of Quay was brought to bear, the bargain with the wool-growers was repu--diated, and the Philadelphia manufacturers are now in protectum clover.

They gain at both ends, securing cheaper raw material from abroad and higher f rices for their manufactured goods to be worked off the protectionloving public.