Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1882-08-18
ROBBING THE PEOPLE.

ROBBING THE PEOPLE.
One of the first fruits of the successful
Democratic opposition in Congress to the Re-
publican measure for reducing the taxes is
the increase in the price of matches, an
nounced last week. 1t goes without saying
that when tax is put upon any article or its
price is in any way increased, the loss is al
ways TO the consumer. The manufacturer
makes the wholesale dealer pay him the
amount of the tax, the wholesale dealer ex-
acts II from the retailer and the retailer takes
it out of the aboring mans pocket by putting
up his prices. Now matches are universal
necessity and are in universal use aud hence
tax upon them bears equally upon rich and
poor Last year, matches were selling by
the gross for $l.3O. At that time, as al pres
ent and for ten years past, ajax of $l.44 less
ten per cent, or $780, was imposed, so that
the actual cost of making matches, together
with fair profit, which is always necessary
to maintain business, was but fifty cents. In
other words, matches could have been sold
for filty-five cents per gross and at that
price a profit Of at least ten per
cent be assured The tax Is levied In
the form Of stamps and it has had
the same effect on small manufacturers that
the like method with tobacc, had on small
manufacturers of that article--it has effect
ually eliminated them, To carry on either
business required SO large an investment in
stamps that the small concerns could not sur
vive Several years ago the project was
conceived by some of the larger firms in the
trade of uniting all the manufactures into
one concern. conception that speedily was
realized, and the Diamond Match Company
was organiAed-a concern which now monop-
oizes the business as eifectually as the Stand
ard oil company monopolizes the kerosene
trade. 1t secured patents on all machinery
used in the processes; it destroyed all that it
could not use itself in order to control the
supply it gave notice to wholesale dealers
that its matches must be sold or none, a no.
tice that it had the power 10 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 stead
ily risen from s1.e0 in 1881 to S2.70, the
rate determined by last weeks manifesto.
Under this circular, wholesale dealers have
advanced the price from l5a cents per box to
II cents and retail dealers must follow in
their course. 1t is to be remembered that I'M.
der the tax of $3.50 per gross, with the price
at $270, there remains for cost of IN anufac
ture and profit $1.40 and that the actual
cost of manufacture with fair profit of 10
per cent is not more than 90 cents. The bal.
ance OF so cents per gross, therefore, is sim.
ply robbery of the people under legal forms
and is robbery directly attributable to the
Democrats in Congress, who fought agains,
the abolition of the tax upon matches, which
would have opened free field to all com
petition. AS to the extent of the robbery
it is estimated that the annual production oil
the Diamond Match Company Is about 1000.
QUO gross, which at 80 cents per gross amounts
to 81 800 900 extra profit per annum-and
moreover the match monopolists have the
further advantage that while being able tc
buy their tax stamps on go days credit they
sell to dealers on ten days credit, thus max
ing the dealers pay the tax so long before the
money is due the Government that fifty days
interest goes into the pockets Of the maui
facturers; and the income of the company
| from this interest account is said to be q,
great AS the profit on the matches exclusive
OF the stamp consideration. Were the ia,
removed match factories would spring W
oil over the country, their products would
compete on fair basis, and the people woult
pay only reasonable price for these indis
pensable articles. AS it Is, the whole pub
lie Is laid under tribute by an extortionat,
monopoly.