The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-05-10
The Cohoes industries.

The Cohoes Industries.
The correspondent sent by the HERALD to
inquire into the business of manufacturing
towns having completed the circuit OF New
England, is paying visit to the thriving
city Of Cohoes, eight miles or so north OF
Albany, and one of the most interesting
and growing manufacturing towns in the
country. 1t is situate at the Cohoes Falls,
and, like the New England manufacturing
towns, it depends on water power We are
not competent to judge whether the abund-
ant water power supplied by the de-
scending streams of this country gives
our manufacturers any considerable
to do SO, Notwithstanding the cheapness of
English coal Still, it costs good deal to
construct the dams, sluices, &C., by which
water power is utilized, and it is sometimes
owned and let out. At Cohoes, for exam
pie, the water power is owned by the Co
hoes Company and the mills pay an annual
rent for the use of the water. We once
heard distinguished Now England cotton
manufacturer express the opinion that we
possess no real advantage over England III
the fact that our mills are run by water in
stead of steam-an opinion which surprised
US at the time and still staggers u.s. But
when the water power. that free gilt of ma
ture, has been bought up in any locality
and has become monopoly it may be al
most as expensive as steam.
Our correspondent represents Cohoes as
more prosperous than any Of the New Eng
land towns which he has been visiting.
Instead of running on three-quarters time
its mills are turning out goods to the full
extent Of their capacity, although at barely
nominal profits. Their ability to keep
running on full time is attributed to the
excellence of their improved machinery,
especially in that particular branch Of in
dustry in which Cohoes takes the lead Of all
other American towns-namely, the manu-
facture Of knit goods Cohoes excels even
Nottingham, in England. in the production
Of undershirts, drawers and hosiery. Il is
rapidly rising to q complete control of the
American market in this species of goods,
and its supremacy is not owing to the pro-
tective tariff, but to the excellence of the
labor saving machinery in use ct Cohoes.
If revenue necessities permitted the total
abolition of tariff we have no doubt that
the peerless inventive genius of our people
would, within ten years, render all foreign
competition hopeless But SO long rs our
manufacturers lean upon tariff crutches
they arc less likely to learn to walk alone
One Of the gentlemen with whom our
correspondent conversed expressed just
opinion as to the depressing effect on our
manufactures of heavy local taxation. 1t
is not merely blind and foolish tariffs that
fetter American industry. Excessive local
taxes are also crippling impeachment. We
can illustrate this by reference to the effect
the average rate is about four per cent, and
in this country seven per cent. This gives
the English manufacturer an important ad-
vantage. If instead Of seven per cent
the American rate were ten per cent,
so great difference would enable the
English to undersell US in every foreign
market. Bet three per cent local taxation
would have the same effect. II the Ameri-
can manufacturer pays seven per cent for
the use Of money and three per cent in
local taxes the effect on his business is the
same as If he had to pay ten per cent for the
use of money, o rate which no steady, set
tied business can bear. While We are ex-
posing the ruinous effect of an exorbitant
tariff we must not overlook the similar effect
of exorbitant local taxation.