The Portland daily press., 1882-08-15
A Giant SWlndle.
[Albany Journal.l


Long suffering and patient in the enduring
of heavy taxes as the American people have
proved themselves, the circular of the Diamond
Match monopoly, putting up the price of
matches, has aroused sulphurous storm of
indignation against not only the mo-
nopoly itself bat also against the Democratic
obstructionists in Congress who killed the bill
that would have wiped out the outrage. Yes
terday some of the details of the method by
which this robbery is carried on were publish
ed in these columns, but the further the mat
ter is probed the greater are the evidences of
the extent of the imposition. The Diamond
Match Company itself treats the matter very
fippantly, and with the hsrdihood, born of So
curity, with Tweed-like nonchalance asks:
"What are you going to do about it?"
OF all articles OF consumption, matches are,
perhaps, the most general and tax upon them
the most unjust because it bears With equal
weight upon the rich and the poor, for it raust
be borne in mind that when a tax is put upon
any article or its price is in any way increased,
the money loss is alwa. S to the consumer,
never to the dealers. The manufacturer
makes the wholesale dealer pay him the
amount of the tax, the wholesale dealer
exacts it from the retailer and the retailer
takes it out of the laboring mans pocket by
patting up his prices the manager OF the
match monopoly to the contrary notwithstand-
ing Yesterday the amount OF direct robbery
was put at So, ,268, 600. Some idea OF the indi-
rect can be cleaned from the history OF the mo-
nopoly itself. In 1881 matches were selling by
the gross for $3.50. AT the same time, as at
| present, tax of S A less 10 per cent, or
Isl 80 was imposed, SO that the actual cost of
| making matches, together with a fair profit
| which is always necessary to maintain business,
was only 80 cents. 1t is safe to say that match
| es coulI have been sold for 55 cents per gross
| and at that price profit of at least ten per
| cent. be assured. At that time Messrs. Smith
and Courtney conceived the project OF uniting
| all the manufactures into one concern, con-
| ception that speedily was realized and the
| Diamond Match Company sprang into being
i It secured patents on all machinery used In the
processes; it destroyed all that it could not use
1 itself in order to control the supply; it gave
| notice to wholesale dealers that its matches
1 must be sold or none, notice that it had the
| power to enforce, and it drove firms out OF the
| business that refused to submit to its arrogant
| dictation 1t even established price below
| which dealers must not sell their goods, and
this price has steadily risen from ST. 80 in 1881
| to $40, the rate determined by the late man
| ifeste. Under this circular, wholesale dealers
| in this city to-day advance the price from
| 10 1-2 cents per box to IL cents, and retail
| dealers must follow in their course
| Very true, two cents a box seems small sum,
| but the aggregate figures tell the tale. Even un-
| der the tax of $1.30 per gross, there remains
| for cost of manufacture and profit $1.40. The
| actual cost of manufacture with fair profit
of 10 per cent. was at the outside 60 cents
in 1881, and it is no greater today. The bal
ance of so cents per gross is nothing less than
| robbery, legalized and maintained by the efforts
of the Democratic party in Congress, and es-
pecially by its great and spotless leader, Sem
ator Bayard, who fought with all his power
l and ability the Tax Reduction bill as a
| whole, and the abolition of taxes on
| matches in particular. The annual produc-
| ton of the Diamond Match Company is esti-
mated at about 100000 gross, which at 80
! cents per gross amounts to $1,600O00 extra
| profit per annum-a profit that is not secured
| by the exercise of ingenuity or honest hard
| work but is purely gift out OF the peoples
| pockets from Congress to the monopoly Is 1t
| any wonder that t. Diamond Match Compa-
| ny could afford to send its officers to Washing
| ton to lobby against the Republican bill? Is it
| any wonder that eUery Democratic Senator
who voted on July 26th (there were 20 of them)
| voted to kill the bill which would have killed
| the monopoly?
| Every man has the right to make as much
money as he honestly can by his own labor,
| and within reasonable limits has the right to
| the exclusive enjoyment of the fruits OF his
feres and robs US all for the benefit of a few, It
| becomes the business OF the people to inquire
| into big profits. The bill which Mr.. Cox, Dem
ocrat, called 'humbug," and which Mr.. Gar
land, Democrat said "ought not to take up
the time of Congress when the thermometer
stood at 94o, in this single item would have
| abolished tax direct and indirect of nearly
| S5,0OO,0OO. How did the Diamond Match
| company know that 20 Democratic Senators
would kill this bill? The company did know
| it, for OF Q hour after Congress had adjourned
| its circulars were in the mails!