Democratic Sentinel, Volume 15, Number 49, Rensselaer, Jasper County, 25 December 1891 — CHEAP TO FOREIGNERS. [ARTICLE]

CHEAP TO FOREIGNERS.

TRUSTS SEND THEIR SURPLUS ABROAD. Another Wage Reduction In a Protected Industry—Kll Perkins and the American Economist—Proposed Tariff Reform High Prices at Home. How Prices Are Kept Up. When the manufacturers of harvesters were 1 oldlng meetings for the purpose of considering the best ways and means of consolidating their interests In the form of a “trust* J. R. Kusk, the Secretary of Agriculture, who is a stockholder in one df the companies which entered the “trust,” said in an interview In the New York Tribune: “An investigation will show that this same combination Is now selling, or offering to sell I machinery in Russia, Australia and other j wheat-crowing countries at a lower figure than they do in this country." That this system of selling cheaper to foreigners than to our own farmers is adopted by other manufacturers of farm Implements, is shown by Mr. A. B. Farquharof York, Fa., one of the largest manufacturers of agricultural machin-! ery and implements in the United States. In May last, Mr. Farquhar, in replying to a letter*of inquiry written to him by the Home Market Club of Boston, said: “In reply to your favor of the 16th inst, j I have to acknowledge that our firm sells | Implements and machinery through ! Mexico, b'outh America and Africa at I prices from five to ten per cent less than they are so d for in this country.”

This system of favoritism to foreigners is characteristic of the trusts in this country. Trusts are formed by manufacturers in the same industry for two purposes. 1. To limit and control productions, and 2. To control prices, and thus prevent competition. The ultimate aim, to accomplish which trusts are organized, is to increase profits. Whenever they fail to gauge the extent Of the home demand and have on hand more of their products than the homo market will take at the high and arbitrary prices they fix, the trusts resort to exportatun to dispose of their surplus. Jn foreign markets they must meet the prices at which their competitors in (thcr countries arc willing to dispose of their productions Since the prices which prevail here under our tariff are higher than in other countries for the same products, the trusts give what is known as special export discounts on home prices to foreign buyers. These extra discounts are in most cases a combination of two forms. In order to prevent tlio foreign buyers from selling their goo is in this country again, the trusts pay the freight to and put the goods on board ship at the port of exportatii n. This of itself is equivalent in most cases to a liberal discount In addition to this they also give a special discount on homo prices varying all the way from live to twenty-live per cent. In some cases the trusts go further, and agree to lay the goods down at the wharvos in the foreign port, paying all the freight. This is the system adopted by the glass trusts. How the trusts operate to keep up prices here and to sell their surplus abroad, so that It will not interfere with their home trade, is well illustrated by the history of the American Ax and Tool Company, commonly known as the “ax. trust” The first meeting of the manufacturers of axes was held in Buffalo in February, 1890. At a subsequent meeting In March the trust completed its organization. The trust is composed of the following companies: Hubbard & Co , Pittsburg, Ta. Douglas Ax Manufacturing Company, East Douglas, Mass. William Mann s Ax Works, Lewiston, Pa. Johnsnnville Ax Manufacturing Company, Johnsonville, N. Y. H. Knickerbocker’s Works, Ballston Spa, N. Y. Peeress Tool Company, Cleveland, Ohio. Romer Bros. Manufacturing Company, Gowanda, N. Y, Lippineott & Co., Pittsburg. Pa. Underhill Edge Tool Company, Nashua, N. H. The Globo Ax Company, Boston, Mass, Carpenter & Co , Jamestown, N. Y. The Buffalo Ax Works, owned by G. W. Francis—in all twelve companies,

As as the trust was orgauized it raised prices, as the following from the | Iron Ago for March 27, 1890, shows: “The general feeling among the trade is that tne ax-makors have formed a very strong •association,’ and havo complete control of the market, or so nearly so that the outside makers will have scarcely any appreciable effect on the prices. It is found that scarcely any orders can ' be placed with outside manufacturers j who are not under the control of tho | American Ax and Tool Company. The j trade will do well to note tho changed | condition la this lino of goods as regards the higher prices now ruling, and the strong probability of their ma ntenance for some time to come. On first quality goods an advanco is now made of 81.75 to $2.25 per dozen. ” This advance has been well maintained. Before the trust was formed plain axes of the best brands weie selling at $5.25 per dozen. They now -sell at $7 per dozen. So far as concerns the home market tho trust has been successful in that it Is able to get at least $1.75 more for a dozen axes than the manufacturers who formed it were able to get before. It has been able to do this by its complete control over production here. And now as to the way it disposes of its surplus abroad. In its foreign trade the trust is represented by branch houses in New York. Thus the branch which exports its products to the Spanish countries of South America is under the charge of G. P. Maleza.

The makes of axes known to the trade as the “Ohio,” “Yankee,” and “Kentucky,” which the trust sells In this country for 87.00 per dozen, are offered by Maleza for export for 80.00 dozen delivered ou board ship Other brands and shapes are sold at similarly low prices. By putting their products on board ship, and geting the bi 1 of lading, the trust is able to prevent home buyers from, taking advantage of its low prices to foreigners What is true of the manufacturers of all classes of agricultural imolements, and the ax trust is true of other trusts depending on the tariff for their existence. and u ing the protection thus given them to swell their profits by high prices at home. Doubtless that apostle of high protectionism. Mr. R. G. Horr, who is employed by the New York Tribune to tell the farmers how good a thing the McKinley tariff is for them, wi 1 say of this, as he did of the statement of Mr. Farquhar, that it 's “au abominable free trade falsehood. *