The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1884-01-09
"A GREAT WALLPAPER POOL.
The Trade Of the United States Con-
trOIled by twenty-five Firms.
An IrOn-Clad Combination Which Dictates
Terms to Employees and to Merchants
Who Sell the Goods.
lillian Hosea Ballou, in the Continent.

William Hosea Balou, in the Continent.
While the eyes of the nation are turned to-
ward the tariff not merely as a bone of eonten-
ton between parties, but as a matter requiring
the most careful and conscientious statesman
ship so to adjust its burdens that they may fall
where they will be most easily borne and its
benefits where they will certainly accrue to the
public good, it may not be unwise to consider
with care some of the pooling arrangements by
which powerful combinations have sought to con
troll various lines of trade by means of certain
agreements entered into by the leading manufac
turers and prominent dealers. There were in the
United States, in $780, by the returns of the
census, nearly nine million dwelling houses, in
five-sixths of which it is probable that wall
paper is used to a greater or less ex-
tent From the same authority we learn that
there are twenty-five firms, manufacturers
of this material, who conformity produce more
than six and quarter million dollars worth of
paperhangings every year. Of the amount i'm
ported it is not easy to obtain authoritative fig
ures, nor is it necessary that we should do so in
order to understand the machinery which gov
ems this branch of trade. Of course, the power
to levy taxes on this important article of con
sumption is very serious thing and should only
be exercised by the representatives of the people
after the most careful scrutiny of all the attend
ant circumstances. A tax of one cent per square
yard would constitute most onerous exaction
and 40 doubt overthrow party which should
levy it directly upon the manufactured article
as certainly the tax on stamped paper overturned
British power in the colonies. Yet it would
seem that the power to tax to an almost unlm
tied extent, is reposed not in the officers of the
government, but in voluntary, oath hound as
ISOLATION of manufacturers and dealers, whose
only limit of extortionary demand is the measure
of the endurance of the people. By thus band
ing together the chief dealers as well as the max
ers, competition is excluded. The aggregated
power of such combination is greater than any
producer or dealer can alone successfully resist
For twenty-siX years one has been able sue
cessfully to start new mandatory OF wall
paper in America, and the reason is easily found
in the iron-clad rule of this formidable manufac
turing pool Merchants who handle the product
are compelled, under forfeiture of heavy bond,
not to buy of any outside manufacturer in this
country. Should any one violate his contract
from the heavy dealer who is able to furnish the
required bond, down to the ''srnall fish who
purchase of the middle-men, he is compelled.
among other penalties to pay maximum prices
on which there is no possible profit. The sales
men are required to make oath not to violate the
employers contract in any particular, and the
penalty is discharge and ineligblty to a similar
position with any wallpaper firm Although the
tariff on the imported article at % per cent, is
so low as to make large profits importatons
surety, at much lower prices than prevail on
American goods, yet, under the impositions of
the monopoly, foreign and home prices are Or
dered by the pool to remain equal thereby pre-
venting outside competition. The penalty for
underselling American goods is the forfeiture of
bond. One Chicago dealer, who imports
50per cent of the foreign article entering the ports
of the United States is placed under $50 900 bonds
annually. He is obliged to give this bond in
der to obtain any wall paper of American make,
NVbI hall of hich Y1e
are fiftyfour firms III the United States which
annually pay 81 600 each, to get 10 per cent. dis
count on regular prices. This total amount of
$l06,OOO pays the salaries of the commissioner
and other officers, besides the expenses of peri
odical banquets at Delmonicos.
''The American Wall paper Manufacturers
Association" was formally organized into mo-
nopoly five years ago Prior to that time it
was pool in form. as the manufacturers annu
ally entered into combination almost as iron
clad as that which makes them subject to the
present monarchical rule. The word is used ad
visedly, as the commissioner is absolute, and
from whose decision there is appeal The
present capital of the pool is $40, 100000 Nearly
all the firms composing it are located in New
York and vincnity and in Philadelphia.
The pool proper comprises thirteen names, de
spite the superstition attached to that number.
Besides these are ten manufacturing firms which
acquesce, that is, agree to all the conditions of
the pool in order to secure its prices and commits
sioners rulings without sharing its pro rata of
profit and expense. One of the acquiescing firms
has not turned a wheel since the pool was formed.
being paid heavy sum annually not to manu-
facture particle of wallpaper. 1t is impossible
TO ascertain the amount of profit on the capital
invested, but it may be safely estimated at %
per cent or two and one-haf millions annually.
Inc present pooling arrangement Is to last till
June, 1885, when, usual in that month, it will
no doubt reorganize on basis more iron-clad
than before.
The fifty-four merchants who give heavy bonds
and 50, 900 each for permission to handle wall
paper are allowed to enter into the following
agreement with the monopoly:
John Smith agrees that during the continu
ance of the pool he will not buy, deal in, use
in his business, any wallpaper of American
make, except that of the above-named manufac
turers.
'Tl'hat during the continuance of this privilege,
he will not sell machine-made wallpaper specified
in his bond at lower prices, or on better terms,
than may from time to time be fixed by the com
missioner who may effect any change in current
rates at his own option,
John Smith will require each and every deal
or buying goods from him to sign an agreement
similar to his own, with the pool. He will not
sell any goods of the specifedcasses at less than
maximum rates to any dealer who has violated
the conditions of his agreement.
John Smith will require all statesmen in his
employ to sign and swear to his agreements, and
If any salesman shall violate them, he shall at
once he discharged.
''If, at the time of violation of this agree
ment, John Smith shall have any unful6lled con
tracts with any of the above-named manufacture
CTS lor Ule PurOnaSo Vi SoouS dO illilinuin Prcesi
nothing shall be delivered him except at maxi
mum prices"
These maximum prices" are often higher than
an ordinary customer is charged at retail prices.
If the above not enough to convince an
American citizen. that every time he makes a
purchase of wallpaper he is victimized, then the
following extraordinary form of OATH which is
imposed on statesmen, ought to enlighten him:
Richard Blank, ''being first duly sworn, prom
Uses on his oath and sacred honor that until he is
released from his engagement by the written re
lease of the Commissioner of the American
Wallpaper Manufacturers Association, he will
not sell OF offer for sale any wallpapers of the
character specified in the exhibit l, annexed