Democratic Sentinel, Volume 16, Number 28, Rensselaer, Jasper County, 29 July 1892 — The Great Ax Trust [ARTICLE]

The Great Ax Trust

Includes all edged tools. Tariff, 45 per cent. 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 qpmpany, commonly known as the “ax trust.” The first meeting of the manufacturers of axes was held in Buffalo in 1890. At a subsequent meeting in March the trust completed its organization. The trust is composed of the following companies: Hubbard & Company, Pittsburg. Douglas Ax Manufacturing company, East Douglas, Mass. William Mann’s Ax works, Lewiston, Pennsylvania. Johnsonville Ax Manufacturing company, Johnsonville, N. Y. H. Knickerbocker’s works, Ballston Spa, N. Y. Peerless Tool company, Cleveland. Romer Brothers Manufacturing company, Gowanda, N. Y. Lippincott & company, Pittsburg. Underhill Edge Tool company, Nashua, N. H. The Globe Ax company, Boston. Carpenter & Company, Jamestown, New York.

The Buffalo ax works, owned by G. W. Francis—in all, twelve companies. As soon as the trust was organized it raised prices, as the following from The Iron Age for March 26, 1890, shows: ‘•The general feeling among the trade is that the ax-makers have formed a very strong ‘assciation’ and have 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 who are not under the control of the American Ax and Tool company. The trade will do well to note the changed condition in this line of goods as regards the higher prices now ruling, and the strong probability of their maintenance for some time to come. On first quality goods an advance is now made of $1.75 to $2.25 per dozen.” This advance has been well maintained. Before the trust was formed plain axes of the best brands were selling at $5.25 per dozen. The now sell at $7 per dozen. So far as concerns the home markets the 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 in South America is under the charge of G. P. Maleza, The make of axes kawro to the trade as the “Ohio,” “YaakM,” ahd “Kentucky,” which the trust sells in this country for $7 per dozen are offered by Maleza for eqport for $6 per dozen delivered on board ship. Other brands and shapes are sold at similarly low prices.

By putting shipments on board ship and getting the bill of lading, the trust is able to prevent some buyers from taking advantage of its low prices to foreigners. In a circular to retail dealers to explain the cause of higher prices, Foster, Stevens & Company, hardware merchants of Grand Rapids, Mich., said in September, 1890: “There is but one ax company in the United States, and that is called the American Ax and Tool company, with headquarters at Pittsburg. This company has purchased outright every ax factory in the country of any importance, and by thus controlling the product, has advanced prices on an average $2 par dozen. This company also controls the manufacture of ax poles (or the heads of axes), the machinery for which is patented, and this enables them to keep the price of poles so high that no one else can afford to make axes.”

This is another protection physic for snr Republican friends who argue “protection to American labor.” This is one of the many reasons why honest Grover Cleveland will be elected dext November by the largest majority of apy president since Grant.—Starke County Democrat.

Besides the Carnegie strike there were seven other strikes of more or less importance in William McKinley’s “protected” industries.—Rockville Tribune.