The Sun.
London, England, 1870-01-20 00:00:00

PIG IRON PLUNDER.

The average expenditure requisite to produce a ton of
pig iron in the United States at the present time, includ-
ing a liberal interest upon the capital invested, and a fair
allowance for repairs and incidentals, may be fairly esti-
mated at from $24 to $26, currency ; and as confirmatory
of this estimate, the commissioner submits the following
evidence :—ln a letter of September 2, 1869, George T.
Lewis, of Clarksville, Tenn., one of the most experienced
iron manufacturers of the south- west, says : —On the line
of the Nashville and Chattanooga Railroad pig iron can
be made and delivered in Nashville at a cost of $l9 per
ton, currency. In the city of Nashville itself, Mr. Lewis
states the present cost, including interest on capital and
incidentals, at $22.60, currency, per ton. At Carondelet,
Missouri, Mr. S. Waterhouse, of St. Louis, in a letter
under date of February 20, 1869, states the cost of making
pig ircn, including an allowance of $1.50 per ton for in-
terest, taxes, and insurance, at $25, currency, per ton ;
and adds, this "is not an estimate, but an exhibit copied
from the books of the company." The distance of Caron-
delet from St. Louis, a central market, is six and a quar-
ter miles. An estimate furnished by one of the largest
ironworkaat Pittsburg, Pennsylvania, gives $27.98 as the
cost per ton when ore of sixty-six per cent. is used, and an
allowance made of eighty cents per ton for interest, and
twenty-five cents per ton for repairs and incidentals. In
the valley of the Cumberland, and in the anthracite dis-
tricts of Pennsylvania, and at Scranton, the commissioner
is informed by those conversant with the business that
the average cost of manufacture in the case of furnaces
favourably situated, under good management, and with
coal at ordinary prices, is not in excess of from $24 to
$26 per ton, and in some instances is much less than this
figure. Those estimates include a liberal interest on the
capital invested, which is turned on an average from
two to three times per annum. The mean market price
of pig iron in Great Britain for the year 1867-68,
taking Welch pig (the best quality) as a standard,
was £4 Bs. 3d. ($20.39) or (with gold at 133) $27.12.
The everage price of all the varieties of pig iron
in the principal markets of the United States, for
the past year, is estimated by the secretary of the Ameri-
can Iron and Steel Association at $35.25 per net ton.
Other recognized authorities report a higher average to
the Commissioner —viz., from $36 to $36.50, and $37.50
as a fair average in New York City. The average value
at the furnaces of the Lehigh Valley, during the past year,
has been about $3B for No. 1, $36 for No. 2, and $34 for
No. 3. It is therefore obvious that, adopting the minimum
market price, and allowing for the cost of one hundred
miles of railroad transportation, the price of pig iron to
the American consumers has been unnecessarily enhanced
during the past year to an average of from eight to ten
dollars per ton. '

SPECIFIC REDUCTIONS RECOMMENDED.
The Commissioner renews the reco►rimendations of his
previous Report for the übaten3ent of the duties on iron
and salt, and the entire removal of the duties on coal and
on manufactured lumber. He also advocates a removal of
all duties on the importation of foreign wools and dye-
stuffs, and a general reduction of the whole duties on
manufactured woollen fabrics of every description to 25
per cent. ad valorem. On this basis the most experienced
woollen manufacturers of the country assure the Com-

missioner that they can at once extend, diversify, and
secure prosperity to their business.
He would lay on pig iron a duty of $3 per ton; the
present duty is $9, and the amount of revenue derived'
from the same during the fiscal year 1867-68 was 1,011,109
dollars. On scrap iron a duty of $3 per ton ; present duty
$8 per ton ; amount of revenue received in 1867-68,
$640,294. On salt in bulk, 9 cents per 100 pounds ;on salt
in bags, 12 cents per 100 pounds ; present duty, 18 and 24
cents respectively; amount of revenue received, 1867-68,
on salt in bulk, $395,955 ; in bags, $740,270 ; total,
$1,136,225. On firewood an entire removal of all duty;
present duty, 20 per cent. ; revenue received in 1867-68,
$42,605. The Commissioner is assured that the removal of
the duty on this article of import would greatly fa-
vour the manufacture of salt in Michigan, and prove a great
boon to consumers upon all the frontier states, where
the consumption is rapidly increasing, while the local
supply is rapidly diminishing. On copper ore, an en-
tire removal of all the duty; present duty, three cents
per pound on each pound of pure copper contained
therein. and the import at present, substantially pro-
hlbited. On hides and undressed skins of every descrip-

tion--an eutiro removal of all duties ; present duty, ten
per cent ; revenue received, 1867-68, 5977,325. On leather
of all descriptions, except morocco, japanned and patent
leather—au entire removal of all duties ; present duties,
twenty-five and thirty-five per cent.; revenue received,
1867-68, 51,363,-181. On hemlock, oak, and all other barks
used for the tanning of leather—an entire removal of all
duties: present duty, ten per cent.
lie also recommends a remission of duties on barley,
crude sulphur, Dutch metal, and several other articles, and
a reduction on gunny bags to a cent a pound. The abate-
ment or entire removal of the duties thus recommended
would, as nearly as can be estimated, reduce the revenue
derived from Customs to the extent of about 12 millions.
On the other band, the direct relief experienced by the
community through the abatement of prices whi!h would

follow the removal or abatement of the taxes in qaestion
would, in the opinion of the Commissioner, be not less
than 60 million dollars ; while the indirect gain, and the
value of the stimulus afforded thereby to domestic in-
dustry, must be represented by a much larger figure.
He suggests other abatements to the amount of some
$2,000,000 more, and then gives a schedule, showing in
what manner a new tariff might be constructed, with the
primary object of obtaining from the smallest number of
articles, and without excessive duties, an annual revenue
of one hundred and fifty millions, and which at the same
time would not expose the branches of industry which
have been stimulated by protectfon to any danger of col-
lapse ; it being sssumed that the relief to be experienced
by manufacturers from the abatement of taxes upon their
raw materials would, to a large extent, compensate for the
reduction of duties upon their product; thus enabling
them, through a reduction of cost, to extend their mar-
kets, increase consumption, and resume expoi•ts.

MR. WELLS' PLAN FOR A TARIFF OF REVENUE AND PRO-

TECTION.
Class I.—Articles of food and drink.

Revenue esti-
mated on the
basis of re-
ceipts.lB6B'69
$250,000
100,000

Beer, ale, and porter ...
Chocolate and cocoa ... •••
Dried fruits at 2 cents per pound, and green
fruits at 10 por cent. ad valorem, with no
allowance for damage ... 3,000,000
Cigars, at $2 per pound 5,900,000
Tobacco, unmanufactured, at 25 cents per

... 12;00000

pound ...
Coffee and substitutes for coffee,
Molasses and melado
Sugars ...
Tea
Spirits, at $2 per proof gallon ... ...
Wines, other than sparkling, at 50 cents per
gallon ...
Sparkling wines, at $6 per dozen
Rice ... ...
Sardines, meats, preserves, &c.
Nuts
Pickles, sauces; vermicelli, macaroni, sago, &e

1.250,000

Total

5,000,000

... 33,000;000

10,000,000
4,000,000

4,000,000

1,000,000

2 000,000

1;15000

150,000
430,000
150,000

$82,500,000

Class 2.—Textile fabrics and wares. Duties to be in spe-
cific form as far as possible, but at the specific amount
represented by the rates named in the following list :
Silks, at 35 per cent., this being the highest
rate which it is easy or possible to collect
without great loss from smuggling... $10,000,000
Wool and worsted manufactures, 15 to 35 per
cent., averaging 25 per cent., specific ... 10,000,000
Cotton manufactures, 15. to 35 per cent., ave-
raging 25 per cent., specific... ...
Flax manufactures, 15 to 30 per cent., averag-
ing 25 per cent., specific •..
Hemp and jute manufactures, 15 to 35 per
cent., averaging 25 per cant., specific ...
Gloves, hats, and bonnets .
Paper and manufactures of paper, 10 per

5,000,000

5,000,000

2,000,000
1,000,000

500,000
500,000

cent.
Furs and manufactures of furs •.• •• •
Earthen, stone, china, and glass, 25 per cent.,
specific... ... 4,000,000

Total $88.000,000

Class 3.—Metals.
Iron, steel, lead, tin, and manufactures of
same, at such specific rates as shall amount
to 25 per cent... 815,000,000

Class 4.—Fancy goods, at such specific rates as shall be
equivalent to 35 per cent. ad valorem.
Clocks, watches, embroideries, toys, musical
instruments, pipes, perfumes, ornaments,
feathers, fire- crackers, Sic. $4,000,000
Laces, braids, and fancy webbing ... 1,000,000
Class s.—Drugs and chemicals.
Liquorice, opium, oils, preparations contain-
ing spirits, and patent medicines ... 81,500,000
Class 6.—Miscellaneous, at such specific rates as shall
be equivalent-to from 15 to 35 per cent. ad valorem.
Brooms, brushes, mats, millinery, manufac-
tures of Indiarubber, marble, cork, and hair,
soap, hops, &c. $2,000,000

Grand total

... $144,000,000

To this may be added the sum accruing from fines,
penaltiei, and forfeitures—say $1,000,000—making a total
of $145,000,000 ; still further also the amount which re-
presents tha elasticity of the customs revenue, arising from
the rapid increase of the country in wealth and population,
which cannot be fairly estimated at less than $5,000,000
per annum, on an average ; and this sum, it is to be remem-
bered, would also represent the amount which, after the
first year, would be annually applicable for the reduction
of the rates upon tea, coffee, sugar, or such other articles as
might be deemed desirable.