The Republican. [volume] (Oakland, Md.) 1877-current, 1877-06-02
The Downfall of the Sewing Machine
Monopoly.

One of the greatest patent monopolies
the country ever knew has recently ex-
pired by the running out of the Batchel-
der continuous feed motion for sewing
machines-without which no machine
had any market value. This important
patent was controlled by combination
of the four great companies of Grover &
Baker, Wheeler & Wilson, Howe and
Singer, who fixed the scale of prices for
themselves as well as the weaker com.
panies outside the ring, who were also
obliged to pay a royalty of from three
dollars to twenty dollars on each machine
made. The combination, ii is estimated,
have made within the twenty-five years
duration of the patent a profit of no less
than S5O,O0O,OOO and naturally these
powerful companies did not let this
wealth-producing patent expire without
great effort for its extension. A cool
million, it is said, was pooled in by them
for this purpose, and patent lawyers and
lobbyists have been exercising their
utmost ingenuity at Washington in favor
of the patent, but to no purpose
1t had already been twice extended,
and the law would not allow any
more. Now the parties interested
have settled down to legitimate business
once more, confident with the advantages
at their command of still controlling the
market and making a comfortable profit
at half or less of the former prices. The
simple fact is that the margin" of
profit in the sewing machine business has
been so enormous as to allow manufact-
urers, agents and canvassers d Joint
profit of 400 to 500 per cent. on their
wares. The actual first cost of the sixty
dollar and seventy-dollar machines sold
by the leading companies is, on the con-
fession of their own officers, from eleven
dollars to fifteen dollars apiece. The
additional 500 per cent. was dis
tributed in royalties, commissions
to agents, commissions to canvass
ers, taxes, office rent and profit to the
manufacturer. The canvasser rarely
made less than twenty dollars on each
machine sold, and when, as in the case
of the Singer and other large companies,
the years sales are computed by hun
dreds of thousands, the amount which
the middle-men" receive becomes
enormous. Inc manufacturers claim
that their own share of profit is only
about 80 per cent, and that a large por.
ton of this is swallowed up in the
maintenance of their immense establish
ments, in taxes and in constant and ex-
pensive litigation which the protection
of their respective patents entails upon
them. The extent and value of the sew.
ingmachine trade may be gathered from
the fact that the Singer Company, which
last year sold over $50, 900 machines, has
from 100000 900 to $15, 900, 900 invested
in it's business. The Howe Company has
$7,000,00 to $4,000, 900, and the Vince.
Ter & Wilson and other large companies
have amounts in proportion. The COM
panies admit that the business must be
considerably revolutionized in the future.
The agency system must be relieved of
some of its extravagances, and the prac-
tice of "lease sales" has got to be either
done away with or greatly narrowed. In
short, cash basis for the business, and,
as far as may be, direct dealings with the
companies, are the necessities recognized
in the case.