Savannah morning news. [volume] (Savannah) 1868-1887, 1883-03-15
PAYING MATCH MAKING.
How a Revenue Tax of $500, 900 AT
fords Protection

tlon 10 themselves and their champions
In Congress through their prolonged and
urgent opposition to the removal of
the tax. Under the fierce glare of
public scrutiny the fact became known
and appreciated that the manufacture of
matches had for nearly two years been
monopoliZed by giant syndicate, which
had secured control of factories in various
portions Of the country east of the Missis-
sippi, and. had welded them into a corpo-
ration whose commanding position might
be seriously impaired by repeal Of the tax
on their product. The singular paradox
was presented of an internal revenue tax
serving every purpose of high protec-
tive tariff. This feature will be explained
after some facts in the history of parlor
match making shall have been related.
As long ago as 1854 a small business in
matches made without sulphur or other
unpleasant OdOr was carried on by a resi-
dent of Wilmington, named Tatnall.
The foreman of the establishment. who
possessed the secret of the chemical CON-
pound which tipped the matches, was an
Englishman named Courtney. Certain
OdOrlesS matches were at that time i'm
ported from European States at figures
which made a very narrow margin of
profit for American manufacturers, and
the commercial disturbance at the begin
ming of the war terminated the Tatnall
enue needs of the country, however,
proved the bower anchor of the firm,
swift ~ Courtney, which succeeded to
the secrets of its predecessor. Among
the articles which Congress taxed We're
matches, on each box of which one
cent revenue stamp was required to be
placed and cancelled. Parlor, otherwise
OdOrleSs matches, were an article of luXu-
ry; such light importations of foreign
matches supplied the demand that the
few importers preferred going out OF the
business rather than breaking packages
and affiXing the one cent revenue stamp
to each box. Hence, practically open
field was left to Swift & Courtney, who
pushed their product with consummate
business address, and made their matches
necessities, rather than luXuries, as they
had been.
The chemical ingredients of the match
tips were few and inexpensive, but the Sc
cret of their compromising remained in
tact for many years. They consisted of
saltpetre, chlorate of potash, anthony,
ground glass and paraffine, but no one, ex-
cepting Courtney, hit upon the proper
tiOns which produced the best results
Large profits cannot be realized long
without some efforts to share in them, and
competitors of Swift Il Courtney sprang
up, spent thousands in experiment, occa-
sI0nally made matches approaching
the Diamond State match in quail
ty, but very rarely became danger
GUS competitors. In some cases the
wOuld-be competitors found themselv
embarrassed by a discrimination which
the government kindly made in favor of
capital. Any person purchasing revenue
stamps amounting to $500 and upwards,
was given discount of 10 per cent. This
looks like a small matter, but to a strug-
Cling manufacturer it proved very ser;-
Gus, and in some cases deadly, The corr
pOration first in the market benefited by
the business efforts of each defeated
competitor, and waxed wealthy. Some,
however, OutliVed the period of
development, and ten years ago
there were twenty-five firms. and
individuals manufacturing matches
in this country, and none to speak of were
being imported. The panic Of 1878 hit the
match makers, as it did every other in
dustry. There were enough of them to
produce more matches than they were
able to sell, and the very liberal profit
which they had heretofore allowed them
selves was gradually pared down, until
only those with the most improved ma
chinery were able to pay dividends. Swift
4 Courtney still stood at the head of the
market, occasionally buying out a tired
competitor, and thus multiplying in
capacity as we'll as influence.
In 1879 the surviving match makers
took counsel together upon the best way
of controlling production, and so imprOY-
ing the price of their goods. TWENTY-FIVE
corporations and firms were represented
in the first conference. Thirteen of them
expressed themselves as already heartily
tired of fighting losing battle, and twelve
were determined to continue the contest.
1t was figured, however, that if the price
could be pegged up there was room for
good business for all. A scale Of prices
was accordingly agreed upon, and each
representative bound himself and his
firm to maintain the schedule. Matches
doomed for a few months, until it was as
certained that some of the parties were
persistently violating the contract. The
combination broke up in general disgust.
Then one of the shrewd members proposed
not combination but actual consolidation
of all well equipped concerns in a grand
joint stock company. William ii. Swift
is generally credited with having suggest
ed the scheme. He, however, denies the
Impeachment, claiming that he secuted
the proposal when it was first unfolded to
him, and only came into line after several
months deliberation. Be that as it may,
twelve companies, including all of any
prominence in the trade, consolidated
under the corporate name 'sThe Dia-
mOnd Match Company" with William
ii. Swift, of Wilmington, Presi-
dent; Joseph Swift, of New York,
Vice President; Charles Barber, of Ohio,
Treasurer, and c. II. Beecher, of New
Haven, Secretary. The capital of the
new company, after all it's constituents
had become satisfied with the share al
lOtted to each, was $2,225,000. Among
the leading firms now banded in the Dia-
mOnd Company are Swift az Courtney q
Beecher; the Gateses, of Frankfort, Her.
kimer county, n. Y; j. Emory Eaton. of
80 A
o.; Byam Il Carleton, of Boston, Mass;
d. NJ. Richardson, of Detroit; Lord &
Robinson, of Baltimore; the United States
Match Company, of Boston; and. of
course, the Chicago Match Factory be-
longing to Swift & Courtney.
The business of the concern for 1882
aggregated nearly $7,000,000, of which
almost a half was paid into the United
States Treasury for internal revenue
taxes. One of its most recent purchases
is 10000 acres of pine forest in Michigan,
large share of the timber from which |
will be consumed in matchmaking,
although some sticks will be sawed for
the general lumber trade. The financial !
strength of the combination may be in
ferred from the fact that, deeming possess |
sion of the factory of James l.. Clark, of |
Oshkosh, Wis.,, essential to their plans, |
they paid him $350,000 for his plant, and |
are now running the factory. In fact, |
they control the match manufacture of |
the country, and have fixed a schedule of |
prices that insures good profits.
Some idea of the profits of matchmak-
ing may be obtained from the following
estimates: In commercial parlance. a
gross of matches, meaning IA boxes, is |
the unit of a measure. Each single box
contains 100 matches. The pine required
costs in the rough about two and a half
cents per gross. Cutting the wood into
match splinters costs one cent gross.
The rolling costs three cents. The COM
position which tips a gross of match heads
costs twenty and a half cents and the dip
ping about two cents. Other costs of
boxes, packing, etc., aggregate about
twenty-three cents. The presumed tax of
one cent for each box of 100 would aggre-
gate IA cents per gross, but the discount
of 10 per cent. brings the tax per
gross to 81 80. To summarize, the fol-
lowing is the cost per gross:
Cents.
IullDcI ..--'.-...-.-- -'''....- .-...----. "a
Composition ..............--.... 2Ol5
Cutting lumber Observation-Disclosures. L
Rolling ...-............. ...........