The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1891-06-03
An Illustration of sIcKinleyism.

MAJ. MCAINLEY, In some OF his recent
speeches, laid particular stress upon the
provision of the Mckinley law which al
lows manufacturers drawback of 80 per
cent. of the duties paid by them upon
imported materials used in articles made
for the export trade.
As we have repeatedly pointed out, this
provision, in so far as it amounts to any
thing, is an unjust discrimination in favor
of foreign consumers OF American goods as
against home consumers. But, in q great
majority of instances, manufacturers are
unable to avail themselves OF it because
of the practical impossibility of identity
ing the imported materials used by them
in the fabrication of articles for export.
A striking illustration of this fact is af-
forded by the recent experience of the
American screw company.
This is an old and wealthy cor
poration, which has for many years
practically controlled the screw business
OF the country. 1t owns the patents con-
trolling the construction of automatic
screw-making neutrality-suspicious. patents
to those which JOSEPH CHAMBERLAIN con-
trolls in England, and by virtue of which he
monopolizes the screw trade of that coun-
try. CHAMBERLAIN has had an advantage
over the American company in the mat
ter of the cost of raw materials. The lat
ter, although literally protected" by the
tariff, has only been able ESQ it is said to
keep CHAMBERLAIN out OF the American
market by paying him handsome bonus.
The American screw company. in order
to capture some foreign trade, has recently
determined to remove part of its plant
to Leeds, England, and contemplates the
establishment of a factory in Germany.
President ANGEL of the screw company
says the principal reason for these
foreign ventures is the utter worth
lessness of the drawback clause of
the Mckinley bill. In order to
take advantage of the drawback on goods
made OF imported raw materials on which
duty has been paid, the manufacturer
must make sworn declaration, stating
the grade or quality of material-iron in
this instance-and the name of the
steamer in which the material was i'm
ported, together with the date of importa-
ton. The signature of the captain or
mate of the vessel in which the goods are
exported and the foreign consignee also
are necessary before the documents can
be taken to Washington and put in the
course of passage through the proper
channel.
"In our case" said Mr.. ANGEL, call
this is practically impossible, because we
foreign countries, and to keep track of all
the different kinds, with the dates and
places, would involve endless work and
trouble. All the goods the company will
make abroad and all now made in Canada
could be made in Rhode Island better and
cheaper If it were not for the fiscal policy
of the government. Wages are higher here
than in England, but under the American
system each mechanic does more work"
The assistant superintendent of the COM
pany is now upon the ocean with plans
for the Leeds establishment, which will
be built at once. The factory buildings
will cover an acre and half of ground,
and will be operated on the American sys-
TEN, with men sent out from Providence
as heads OF departments and English fac
tory help. Most of the screw-cutting ma
chinery in the Providence mills of the
company has been idle for weeks, the
mills making wire nails, coach screws and
the rougher class OF work. The cutting
machinery from this mill will be sent to
Leeds and the English mill will have a ca
pacity of about seven thousand five hun
dred gross of screws per day.
Here we have an important industry
driven from this country by the very law
which, it was promised, would build up
American industries. 1t is, indeed, q strik-
ing illustration of the practical workings
of McKinleyism.