Democratic Sentinel, Volume 15, Number 19, Rensselaer, Jasper County, 22 May 1891 — A SOAP BUBBLE BURST. [ARTICLE]

A SOAP BUBBLE BURST.

TRICK OF A PROTECTIONIST PAPER EXPOSED. The Chicago Bigli Tariff Organ Tries to Prove the Tariff Is Not a Tax—Pears’ Soap Sold as an Advertisement A Xiberal Offer Not Accepted—A Tariff Kditor in a Bole. The protectionist organs are hard pressed to prove that the tariff is not a tax. One wouid suppose that the fall of two cents a pound on sugar the very -day when the duty was removed would -silence them forever. But the old song -still goes on, “The tariff is not a tax. ” These organs even try to get what they call proofs that the consumer does not nay the tariff tax. The proofs they -print are extremely ridiculous, and they Are often tripped up on the spot The -Chicago inter Ocean has recently suffered this f-ate. Everybody knows that large retail dry-goods stores often sell some article far below cost in order to advertise their -business and attract custom. The tariff editor of the Intel • Ocean not long ago found some merchant doing thi3 with Pears’ soap, and instantly ho uncorked his ink-bottle and wrote a paragraph to 9how how the foreigner pays the tax. This paragraph made a choice pin-hook bait with which to delude the ignorant, and it was extensively copied into the protection organs 6f the country. In the meantime this morsel came to the notice of Messrs. Gaunt & Janvier, of New York, who handle every pound of Pears’ soap imported into the United States. At once they sent the following letter to tho Inter Ocean: Chicago Inter Ocean, Chicago, Ill.: Dear Sirs— Our attention has been called to a cutting from your editorial of March 31, in which you say that “Pears’ soap, English made, and sold in England at 12 cents per cake, pays 20 per cent, duty for admission to tho American market, and is sold there regularly at 10 cents and occasionally at 5 cents. Hence, ‘the* tariff duty has not added to the price. ’ ” So intelligent a paper as yours will surely want to be put right on several misstatements made in tho above. Tho soap is not sold in England at 12 cents a cake, but generally from 7 to 8 cents. The soap does not pay 20 per cent, duty for admission, but 15 cents per pound specific. It is net sold regularly in the American market at 10 cents. You evidently have assumed that the marked retail price, 6d., is the price at which the unsccnted soap is sold in London. It Is cut there as well as here to near cost price. We sell to jobbers here at precisely the English price plus duty and shipping charges. See price list inclosed. We have yet to find Importers who do not add to their Imported goods the actual duty which they pay the United States government, and which, of course, the people have to pay back to tne importer. The net price of the unscented soap In London Is about 78 cents United States money; one dozen soap weighs 3% pounds, and upon this the United States government assesses t 5 cents per pound, or 'S'&% cents. This Is added to the cost of the soap, and in addition there is also added the cost of the United States consul fees la London, arid the cost of clearance from the custom house in landing here. These, together with the freight, make $1.16, at which price we sell to jobbers. We have known Pears* soap to be sold in Chicago at 2 cents per cake, or 48 cents per dozen, for which the purchaser paid us in New York $1.16 per dozen, hei himself paying the freight to Chicago; he therefore sold the goods at much less than half the cost to him, and he seemed to think this was good advertising. It seems to us that yon have taken an unfortunate example to Illustrate your argument. The tariff is unquestionably a tax. and is just as surely added to the cost of the goods as the freight is added to the beef in New York when brought from Chicago, or grain from Chicago, or oranges which are brought from California. You must know that tho selling price of an altlcle at a certain point Is based, first upon the selling price at the place of production or manufacture, plus transportation and other charges. People, of course, may sell a certain article for less than cost, but that the great bulk of business is not done in this way goes without saying. We are, gentlemen, respectfully yours. Gaunt .& Janvier. The Inter Ocean's tariff man replied to this letter as follows: Messrs. Gaunt & Janvier, 365-307 Canal street, New York; Gentlemen —Your favor of date 6th of April has been referred to me; The firm mentioned by the Inter Ocean as selling Pears’ soap at 5 cents a cake assures me that it did not sell at a loss; that it does not buy from Pears’ New York agency; that it purchases surplus lots of all sorts cf goods. Pears’ soap included, at nominal rates. Tariff very seldom, very seldom, indeed, is added to cost. The Welsh tinplate makers, who have given assurance of their willingness to supply American dealers with jlates at old rates under an increased duty, will enlighten you on this point. Respectfully, John W. Tindall, Tariff Editor. Mr. Gaunt replied to tho above in the following “put-up-or-shut-up” style: Mr. John W. Tindall. Tariff Editor Chicago Inter Ocean, Chicago, Ill.: Dear Sir—l am in receipt of your letter addressed to Gaunt & Janvier. Iu our private letter I called your attention to the fact that the three statements which you made in regard to Pears’ soap were not true, and that the Inferences you drew are false. In your letter of April 10 you evade tho issue, but I assume that you have been imposed upon. YoU say that the firm sells Pears’ soap at 5 cents per cake, and that it did not Sell at a loss. Now, I will buy- twenty-five thousand dollars’ ($25,000) worth at 6 cents per cake; this will then afford the firm $5,000 profit. Further, when this purchase is made, I will give such an order for advertising to the Inter Ocean as shall make It worth while to have started the discussion. If the source of information upon which you make your assertion that the “Tariff very seldom, very seldom, indeed, is added to the cost,” be as inaccurate as the source of information about Pears’ soap, it is without the pale of discussion, and it is hardly worth while to go to Wales until we have settled the present. Respectfully, James Gaunt, Of the firm of Gaunt & Janivor. No answer has been made to Mr. Gaunt’s liberal offsr; and it can safely be assumed that the Inter Ocean man “feels like a fool.” Meantime the country press of the protectionist persuasion go on repeating his lib as a part of protection’s gospel. A lie travels with “sevenleague boots.”