Democratic Sentinel, Volume 15, Number 18, Rensselaer, Jasper County, 15 May 1891 — THE TWINE TRUST. [ARTICLE]

THE TWINE TRUST.

THE MANUFACTURE OF BINDER TWINE STILL INCREASES. Opening of an Immense Factory In Brooklyn, N. I, —Lower Duties Have Not Hurt the Twine-Makers False Representations to Get Higher Unties. The following item has recently appeared in a New York trade journal: “The American Manufacturing Co, which consists of the various mills comprising the jute trust, has just completed and will in a few days begin to operate its new mill at Brooklyn, N. Y. Its capacity is said to be 860,000,000 pounds annually of rope, binder twine and bagging- ” Here we have the binder-twine industry flourishing like a green bay tree, although the twine men wero filling the air with prophecies of blue ruin last year when the reduction of duty was proposed. The original McKinley bill passed the House of Representatives and was sent to the Senate on May 21. On the 26th of May the following statement was sent to the Senate Finance Committee by the binder-twine manufacturers: Sir— The cordage and blnder-twlne manufacturers of the United States beg that your honorable committee will amend that clause In the tarltf bill which relates to our business. It places a duty of IJ4 cents per pound binder twine. Should this become a law' it will close our mills. We ask for 1 % cents per pound, an increase of onohalf cent. In September came the effort to put binder twine on the free list, which was at first successful in the Senate by reason of the Northwestern Republican Sentors voting with the Democrats. When, however, the bill was in conference committee, the trust made a determined light for the restoration of the duty, la this fight the trust was strongly supported by the high tariff New York TrUmne , which spoke of the effort to put twine on the free list “in the interest of the farmer, ” as being “as shallow and indecent a pretext for a raid upon a legitimate industry as was ever made by political bushwhackers of either party.” This foolish defense of tho trust was made by the high tariff organ, notwithstanding the fact that Senator Davis of Minnesota had shown in his speech in the Senate that the trust was squeezing profits of 40 per cent, a year out of tho farmers. In the face of this fact tho organ went on to say that “to put binder twine on the free list is so probably out of harmony with aH the principles of protection as to be almost an absurdity in tho ponding bill. ” Another organ which came to the aid of the Tribune in defending tho trust was the Manufacturer, tho mouthpiece of tho powerful protectionist organization in Philadelphia known as the Manufacturers’ Club. As the result of this squabble over binder-twine a compromise was made by the Republicans in the conference committee. Twine made of istle, Tampico fiber, sisal grass or sunn boro a duty under the old law of 3% cents per pound, and that made of manila a duty of 2% cents. These duties were respectively equal to 27 and 22 per cent, ad valorem. The duty on both classes was made 7-10 of I Cent per pound. Tho old duty on jute twine was 35 per cent; this was reduced to 1% cents per pound. The cordage trust had said that the duty of 1 M cents per pound would close their mills and asked for cents. They did not get it, but got only 7-10 of a cent on manila and sisal twine Did tho trust then close their mills? On the contrary, within a week or two after the McKinley law went into operation*, it issued a prospectus which was advertised in many of the loading newspapers,) in which it was said tnat—“The annual aggregate profits of the several concerns for tho past ten ye.ars have been more than enough to pay iho annual dividend on the preferred stock and leave a very large surplus, notwithstanding the fact that during some of that period the interests now consolidated were in competition of a character now avoided. “Tho committee further certifies that at no time within the past twenty-five years have the aggregate annual profits of the several concerns been insufficient to pay the 8 per cent dividend on the preferred stock, although the consumption of cordage at the beginning of that period was only one-quarter what it is to-day. ” And now comes the report of the completion of the jute trust’s enormous factory at Brooklyn. It seems clear that when ah industry says that lower duties will ruin it and close its factories, its statements are to be looked upon with suspicion.