Rensselaer Union, Volume 7, Number 28, Rensselaer, Jasper County, 1 April 1875 — AN INTERESTING GRANGE ADDRESS. [ARTICLE]

AN INTERESTING GRANGE ADDRESS.

Important Facts and Statistics-Why Granges Should Be Organized * and Encouraged. [From the Northern Grange.] We make the following lengthy extract from an address delivered by Hon. John Kisor, of Nevada, Ohio, delivered at a Grange mass-meeting on the fair-ground in Upper Sandusky, and we ask for it a careful perusal, believing it to be one of the very best Grange documents we have met with. After a lengthy and spirited opening, in which the subject of organization generally, and the objects of the Grange particularly, were handsomely and eloquently discussed,Brother Kisor went on to say:

Fellow-farmers, you are aware that every class of interest outside of farming is run by a combination of men, associated together for their own special benefit, all feeding to some extent upon your labor. You pay royalty for everything you purchase. audyet you do not know why it is so. Capital is centralizing and men are getting rich everywhere by speculating upon your hard earnings. You are taxed to keep up legislative rings, Congressional rings, whisky rings, wool rings, wheat rings and all kinds of corruption and monopoly rings, and yet very few know how these rings and monopolies manage to get the advantage of labor. We propose not to discuss all of these rings or combinations, but only to take up a few of the prominent industries of our country and show from statistics given bv their own statements the percentage realized from capital invested. In using the statistics we wish to be understood that we are not making war upon any industry, but merely to show how well they are doing in comparison with agriculture. We believe that all industries should harmonize and cooperate with agriculture, and in proportion as they all prosper so prosper the people. Fifteen years ago the price of flour was regulated by the price of wheat; to-day the price of wheat is regulated by the price of flour. Then five bushels of wheat bought one barrel of flour; now one barrel of flour buys six bushel and a peck of wheat. For the correctness of our statement we refer you to the price lists of the city papers of 1860 and 1874. Of course there are honorable exceptions; and we feel proud to say that some of the millers of our country do not avail themselves of the advantage. But why should millers hold conventions? Why in 1873 hold two National Conventions, one at Chicago, and one at Cleveland? Will some one please to be kind enough to give a reason? The answer is plain. The annual average crop of wheat in the United States is about 335,000,0X1 bushels, of which 320,000,000 bushels are annually floured in the mills of our country. Thus you see that the great body of wheat is purchased by the millers, who control the market, and, having no competition, they have the whole thing in their own hands, and to make it profitable it is necessary’ for them to have an understandig with each other. Hence they hold N ational Conventions, to fix the price of wheat by the price of flour, so as to increase the percentage on net income from 15 to 41 per cent., or in place of buying flour at five dollars per barrel you pay $6.40, or in the place of giving van $1.25 per bushel for your wheat, you only get one dollar per bushel. Permit us now to examine the statistics of Ohio for a short time, and see how they will agree with our statement. We refer you to Ninth Census. Vol. 111., p. 599:

Number of flouring mills, 1,400; capital invested, $11,500,000; number hands employed, 4,000; wages paid, $965,000; material used, $26,500,n00; total expense, $27,465,000; entire products, $32,000,000; net profit. $4,535,000, netting 40 per cent. No. of bushels floured, 15,000,000; No. of barrels of flour manufactured, 3,000,000. Thus, in 1870 the 1,400 mill establishments of Ohio floured 15,000,000 bushels of wheat, manufacturing therefrom 3,000,000 barrels of flour. The advance price of one dollar per barrel foots up to the nice sum of $3,000,000, which they gain by organization. But why permit this noble little band of millers to take advantage of you? is because you cannot help it. They are organized, and you are not. They are moneyed men, and the most of you are in debt and compelled to sell. They act in a body, and you do not. Hence they have the advantage of you, and the result is, that not only the farmers, but everyone that eats bread, helps to pay the royalty of $3,000,000 to enrich the millers of Ohio. But this is not all. We will now show what the millers of the United States gain by organization: (See Vol. 111., p. 598.) Number of flouring mills, 23,000; capital invested, $152,000,000; number hands employed, 58,000; wages paid, $15,000,000; material used, $367,000,000; tax paid, $3,000,000; total expenses, $385,000,000; entire product, $445.000,100; net profit, $60,100,000, netting 35 per cent. Here, again, we discover that the 23,000 mill proprietors of the United States manage, through combination, to get $32,000,000 annually, outside of 15 per cent, on capital invested, which rightfully belongs to the consumers of bread. Of course the farmers do not lose all of it, but the mechanic, the day-laborer, the merchant, and all classes of people help to pay this large amount of money. The minister of the Gospel, with a family of eight persons, who consume annually ten barrels of flour, is compelled to hand over ten dollars out of the benevolent fund given him by the members of his congregation. This ought not to be so, and it belongs to the farmers to see that this error is corrected.

We will next examine the statistics of the manufacture of agricultural implements in Ohio: (Ninth Census, Vol. 111., p. f 88.) Number agricultural establishments, 219; capital invested, $7,509,090; wages paid, $2,800,000; price of material, $5,200,000; tax, $200,000; total outlay, $8,2 0,000; entire product, $11,900,000; net profit, $3,700,000, or 52 per cent. The foregoing figures show' that 219 manufacturing establishments of Ohio, with a capital of $7,500,000 invested, are realizing 52 per cent, net profit, and in addition to this you pay their agents from 25 to 40 per cent, for ordering your machinery, which adds an additional cost of over sl,000,000 annually. But it is said that the manufacturer will not deal with the farmer. Why not? What gives a man a more contemptible idea of humanity than to be told when desiring to buy directly of the manufacturer: '‘My dear sir, we sell through our agent at your place. Mr. Johnson is our agent at your town, and has the exclusive right to sell in your county; buy of him.’’ In a case of this kind the manufacturer benefits—whom? Himself and his agent. For what purpose? To enrich himself and agent at the expense of the farmer. Fellow-farmers, this way of doing business is about playeq out. The Grange movement will correct this grave error, and the manufacturer will learn that it is to his interest to deal directly with the farmer. But we must hasten on to another important industry, viz.: the manufacture of wagons and carriages in Ohio: (See Secretary’s report of 1872, p. 418.) Number of establishments. 1,127: capital invested, $3,000,000; price of material u>ed, $1,500,000; wages paid, $1,6(0,010: tax, $110,000; total outlay, $3,200,000; entire product. s'-,000,000; net profit, $1,800,900, netting 60 per cent.

Here again we find that the carriage and wagon makers of Ohio are doing 8 per cent, better than the manufacturers of farm implements. But 60 per cent, is too much when compared with the small profit of the farmer. Fifteen years ago a good wagon cqst sixty dollars, and the manufacturer made a profit of 20 per cent. To-day a good wagon costs sllo—4o per cent, more than in 1860. But wagon and carriage makers tell us that they have the iron monopoly imposing a heavy tariff upon them for the use 61 iron. ’ That isafl very true, and of course the iron manufacturer could not realize 50 per cent, on his capital without imposing a heavy tariff on wagon and carriage manufacturers. But take out ten dollars royalty paid to the iron manufacturers for the privilege of using the iron necessary for the finishing of one wagon, and the manufacturer could afford to sell wagons at seventy dollars and realize 20 per cent, on his capital. But the price of w agons and carriages is kept up by a price fixed, by the large establishments and all the smaller avail themselves of the advantage. Hence we see the power of organization. We will now examine the statistics of Ohio, on furniture: (See Secretary's report of 1872. Page 421 J

Number of establishments, 470; capital invested. $5,400,0 0; wages paid. $2,400,000; material used. $2,000.00-': tax, $100,900; total outlay, $4,500,‘ 00; value of all products, $6,660,000; net profit. S2,KX),OiX>, or 40 per cent. Here, agaih, we see by figures a centralization of capital driving’the small manufacturers of furniture from villages and small towns to large cities and commercial centers. la 1850 you had 1.500 cabinet shops in Ohio, manufacturing furniture in every village, town and city in the State, selling bureaus at from ten-to fifteen dollars apiece, realizing 2, per cent, on capital invested. To-day 470 large establishments in your State have swallowed unall the smaller ones, and, for the sake of compromise, have turned them into commission shops, selling bureaus at from twenty to thirty dollars apiece, at a commision of 25 per cent, in addition to the 40 per cent, on capital invested by the manufacturer. And the result is that not only the farmers, but the townsman, and every one that buys furniture, pays five dollars outof every twenty, and freight and drayage, for the privilege of buying from an agent. This is not as it shohld be; it is an imposition upon labor: and itis to the interest of al! classes to see that it be corrected. Let us next look at the six prominent inddstries of Ohio, as reported by the Secretary of State, viz.: iron,agricultural implements.carriages and wagons, flouring mills, furniture, boots and shoes. Secretary's report of 1872, page 424: Number of establishments; 2,900; capital invested, $48,000,000; materials used, $52,(Xk.000; repairs, 10 per cent.,54,800,000; wages paid. $16,0)5,800; tax, s9t®,ooo: total outlay, $73,760,000;

entire product, $87,000,000; net profit, $18,210,000, netting 28 per cent. Here we learn from the Secretary’s report that the six prominent industries, with a capital of $18,000,000 invested, after deducting 10 per cent, therefrom for repairs, realize 28 per cent, on their capital; 0r513,000,000 over 10 per eent., which ought to belong to those that use the manufactured articles. The annual average product earned by each laborer for the manufacturer is about $995; from this subtract $470, being the average amount paid to laborers and it leaves, a net profit of $525 to the manufacturer; or, in other words, each laborer nets to the manufacturer annually $525. We would call your attention to this point as we desire to compare it in the third place with the net profit of agricultural labor. Permit us next to call your attention to the manufacture of musical instruments. , Ninth Census, Vol. 3, page 616: Number of establish ments in the United States, 340; capital Invested, $9,500,000; wages paid, $5,100,000; material used, $4,800,00t>; tax, $150,000-: total outlay, $10,100,000; entire product T $15,500,000; net profit, $5,400,000, netting 53 per cent The statistics show that the average price of melodeons is seventy-seven dollars, ana house organs SIOO at the shop. We put the question to this large meeting of farmers, and especially to the young ladies, who use melodeons and organs more than any other class. What have you been paying for organs and melodeons? Have you been buying them at seventy-seven or one hundred dollars apiece? Oh, no! The average price of melodeons sold to you is about $169 ana house organs S2OO. Thus you see that agents are making a nice thing of it. Y’ou are paying them about as much for selling to you as the melodeons and organ's are worth at the shop. There are about 3,00>> agents and sub-agents selling musical instruments to the people, netting to each agent annually, on an average, $1,600. Can any reason be assigned why the young lady who makes her money by working at two dollars and a half per week should labor thirty weeks to get money to pay the agent in addition to paying the price of the melodeon at the shop?

Farmers, is it not time that you look into this matter and see that you are not imposed upon by extravagant rates to keep up agents? We think the time has come we can do so by direct co-operation with the manufacturer. We will next call your attention to the statistics of sewing machines: (See Ninth Census, Vol. 3, page 623.) Number of establishments, forty-nine; number of machines manufactured, 578,919; average price at shop, twenty-four dollars; capital invested, $8,800,000; material need, $3,055,000; wages paid, $5,142,000: tax, $133,000; total outlay, $8,330,000; entire product, $14,100,000; net profit, $5,770,000, netting 65 per cent. Of all these industries the sewing-machine manufacturers are doing the best, realiz/mg 65 per cent, on capital invested. Forty-nine establishments have about 5,000 agents and sub-agents employed in selling sewing machines all over the country at enormous rates. The average price of sewing-machines sold by agents is not less than fifty dollars. I know that some have been sold in your county for eighty dollars, and yet the statistics show that the average price of machines at the shop is only twenty-four dollars, netting the manufacturer 65 per cent. But suppose you allow the manufacturer 20 per cent, profit on his machine at the shop, it would bring the average price of machines down to thirteen dollars; add ten dollars freight and drayage and the average price of machines would be twenty-three dollars. Then why pay fifty dollars ? Why compel the widow, who earns her money by washing, to pay 100 per cent, to an agent in order to obtain a sewing machine? It is because it has become a monopoly. Forty-nine establishments through the combination with their agents, all acting in concert, are feeding at extravagant rates upon the labor of the widow and tailor who are compelled to make every dollar by hard work. But we must hasten on. Allow us, in the last place, to look at all industries enumerated together, as reported in the Ninth Census, Vol. 3, page 392:

Number of establishments, 253,000; number of hands employed, 2,000,000; capital invested, $2,118,000,0()0; repairs, 10 per cent., $211,800,000; value of all material, $2,488,000,010; wages paid, $775,000,000; tax, $42,300,000; total outlay, $3;517.’00,000; entire product, $4,233,000,000; net profit, $715,900,000 —netting 33% per cent. Here again the statistics show that 253,000 establishments, employing 2,000,000 laborers, producing $4,233(000,000 of wealth annually, and, after paying all expenses, netting the manufacturers of our country $715,900,000, or 33 per cent, on capital invested, all of which goes to show that the foregoing tables and figures presented by us approximate very near the truth. We would here say that it is not our purpose to discourage any of the industries of our country, but merely to ask them to co-operate directly with the farmers, all working in unison, aiding each other in building up all the various industries of our country, bringing them all upon the common level, to the benefit and interest of an entire people. We have now said all we desire to say on this part of our subject and will hasten, in the third place, to compare agriculture with other industries and show the necessity of its organization. We will now examine the farming interest of Ohio, and compare it with the six prominent industries of our State. You will notice that we added the amount of tax paid by the manufacturer, and 10 per cent, for repairs of machinery to the expenditures of the six prominent industries, so we add the tax paid by fanners, and 10 per cent, for repairs of farms to the expenditures of agriculture, although it is an admitted fact that the wear and tear and the wastes and decays caused by the exposure to rains and atmospheric influence upon out-buildings, barns, fences and'fenediposts, which require renewal ejery ten years, the painting, re-roofing of buildings, replacing of worn-out plows and keeping up machinery, are comparatively much greater with the farmer than the manufacturer. But we have concluded as those repairs are not products, neither capital invested, that they should be enumerated with the outlay, or expense of production. Let us now examine the statistics of Ohio on agriculture: (See Ninth Census, Vol. 111., page 81 ■) Number of farms, 197,000; value of farms, sl,054,500,000; value of farm implements, $25,500,000; value of livestock, $120,000,000; total valuation, $1,200,000,000; wages paid for labor, $16,500,'00; repairs, at 10 per cent., $120,OOOjJOO; tax, $14,000,000; total outlay, $150,500,000; entire product, $198,000,000; net profit, $47,500,000; netting 3 9-10 per cent.

From the foregoing statements and figures we learn that, with a capital of $1,200,000,000 invested, 197,000-farmers with the additional help of 200,100 laborers produce $47,500,000 net profit; or an average gain to each farmer of $220, netting him 3 9-10 per cent, on capital invested, or $24.000,000 less than 6 per cent., while, on the other hand, the six prominent industries of Ohio, with a * capital of $48,000,000 invested, and wj>tn the aid of 34,000 laborers, earn to the 2.900 manufacturers a net profit of $13,240,000; each laborer netting to the manufacturer $3 6,,-giy.ing the manufacturer 28 per cent, profit', or $8,640,000 more than 10 per cent, on capital invested. Why this unequal distribution of wealth and interest! It is because the manufacturers ol Ohio understand each other; they fix their prices and you are compelled to pay them their price for the article and the agents for selling to you. Where on the other hand you do not understand each other.each one of you acts independently and for himself. You lack system of business and become trading stock for speculators. Hence all other industries and interests feed upon your labor, and you are compelled to sell your produce for just what they choose to give you. Thus you wilj see the force and importance of the Grange movement. Through its organization the farmers will be able to understand • each other and educate themselves up to a regular system of businees—dealing directly with the manufacturer and consuming classes—study economy and how to increase the product of the soil with less labor and in unity strengthen each other bv bringing up the agricultural interest to an equal level with all other industries But we must hasten on. Permit us to trespass upon your patience once more by calling your attention to the agricultural statistics of the United States: (Ninth Census, Vol. 3, page 81.) Number of farms, 2.800,000; number of hands employed, 3,200.000; value of farms, $9,300,000,000; value of farm implements, $360,000,000;.va1ue of live stock, $1,525,000,000; entire capital* favested. $11,161.(XX),000; repairs, 10 per cent.. sl,161.000,000; wages paid, $310,000,000; tax, $283,000.000; total outlay, $1,694,000,000; entire product, $2,447,000,000; net profit, $753,000,000, ’ netting 6 6-10 per cent. Fellow-farmers, ‘ in looking over these figures we discover that 6.090.000 laborers employed in agriculture produce $2,417,000,000 of wealth, while. $4.233,000,000 of wealth are produced by 2,000,000 laborers who are employed by the 253,000 manufacturing establishments; or, while the average product of each person employed by the manufacturing interest is $2,116, the average product of each form laborer is only S4OB. But again, the annual average price of wages paid to the laborer employed by the manufacturer U $387, while the annual average price of the farm laborer is only $97. Thus we see thtrt labor is not too well paid. The figures further show that the manufacturing industries of the United Stares realizes net profit of $487,000,000 over 10 per cent, on capital invested; while, on the other hand, the agricultural interegt. is $388,000,000 less than 10 per cent, on capital invested.

We have now compared the varftsus industries of our country with tnat of agriculture, and from this comparison we learn that the manufacturing industries are doing well and becoming rich, while agriculture is depressed aud in a deplorable condition. It is therefore high time that the farmers look to their own interest. Why, sirs, the tinauces of your country depend upon the success of the farmer. Increase the exportation of agricultural products and you increase the importation of gold. In the place 'i>f your imports exceeding your exports and enlarging our indebtedness to Europe, your export of farm products ought to exceed your imports * Jd',ooo,( 00 and in six years you would bring back sl, : . 01.000.000 of Government no nds held against you in Europe. But we feel that we are tres-

passing upon your time, and more especially upon the time that ought to be occupied try Bro. Beltz, your honorable Senator from Seneca County. Permit tu in eonclnaion to say that the spirit of the Grange is a spirit of reform, of improvement, of economy and of Christian benevolence. The cau»e and interest of agricnlture, upon which so much of the welfare and happineee of the entire people, nay, upon which the very life and existence of your country, depends, must keep f'ace with the progressive movement of the age. t becomes the duty of all, as lovers of our country, in our responsibility to God, to engage and energetically promote its advancement and elevate its laborers to that rank and dignity to which the importance and utility of their vocation entitle them. The Grange, properly managed, will do thia. Then build ft up—rearing this great Internet of agricultural association—inviting all to aid in its construction; and in the evening of time, when we shall have finished our course here below, may we be enabled to exclaim that we contributed our mites to its interest, thanking God that we too were tillers of the soil.