Rock Island daily Argus. (Rock Island, Ill.) 1886-1893, 1891-04-17
THE GREAT HAT TRUST,
1T HAS BEEN ORGANIZED TO Ell.
JOY M'KINLEYISM.

"A monopoly OF the Wool Hat Bushes ,.
High Duties to Protect the Trust-N o
Outside Competition to BE Allowed I'm
der Any Circumstances.
We have one more Mckinley trust 1t
has just been announced that all the
leading wool hat manufacturers of the
country have formed trust with CAPT
tai of 81, 100000.
The purpose of the trust is to lease all
the principal factories for five years, with
the privilege of renewal for another FIVE
years, and thus to control practically the
entire product of wool hats in this coun
try for ten years. A preliminary meet
ing for the purpose of forming this trus5
was held in New York city, and more re
Gently at another meeting held in Read
ing, Pa, the trust was organized and
plans for action adopted.
The new trust will control nearly
100000 dozen wool hats a year, the en-
tire production of the country being only
slightly above that figure.
When Mckinley raised the duty on
wool hats it was expected that trust
would soon be organized to take the full
est possible advantage of the favorable
opportunity offered the manufacturers.
The Mckinley duties on wool hats
show a sharp increase upon the old rates.
The duties in both the old law and in the
present law are so called compound duties
that's, there is specific duty of so much
per pound and an ad valorem duty in addi-
ton. Thus on hats valued at 80 cents
pound or less the old duty was 10 cents
a pound and 35 per cent. ad valorem,
the compound duty being equal to an
ad valorem duty of 6S per cent The
corresponding Mckinley duty is 49, cents
per pound and so per cent, the two
duties here being equivalent to an ad
valorem duty of S. per cent.
Hats of the next class are those valued
at more than 30 and not more than 40
cents a pound. The old duty on this
grade was equivalent to IS per cent and
the Mckinley duty 80.
The next grade of hats under the old
law was that valued at between 40 and
go cents pound. The Mckinley law
adds a class covering those between 80
and 60 cents per pound. Thus under the
old law hats in the class between 40 and
90 bore an equivalent ad valorem duty
of II per cent. and under the Mckinley
law the equivalent ad valorem is 101
per cent. On hats worth between 80
and go cents the equivalent in the old
law was GS per cent; in the Mckinley
law 1t is 112 per cent.
The next class in both laws extends
from 60 to so cents pound-the ad
valorem equivalent being 70 per cent,
and the Mckinley al valorem 100 per
cent
The last class in both laws covers hats
valued at above so cents pound The
old tariff levied a duty here which was
equal to 60 per cent; and Mckinley
made only slight advance in this high
est class of hats, his equivalent ad valorem
being Il per cent. Having gotten above
the range of the poorer class of buyers
duty very much.
The equivalent ad valorem duties here
given are obtained by combining the
pound duty and the al valorem rate and
calculating them upon the value of hats
imported. Very few wool hats, how
ever. We're imported under the old law,
the rates under it being almost prohib-
itory. Hats are not mentioned at all in
the treasury reports of imports. Under
the Mckinley law importation may be
expected to cease entirely.
L Co. - L I
most complete control of the home mar.
ket for years. Even so long ago as 1892
when the tariff commission was taking
the testimony from the manufacturers
upon which the tariff law of 1888 wa:
constructed, a representative of the
twenty-seven wool hat manufacturers in
Reading, Pa, appeared before that com
mission and said, I'VE do not favor any
high duty on hats" He admitted that
the manufacturers had mo trouble with
the wool hats imported into this country
at all"
This manufacturer came before the
commission for another purpose than &c
plead fer higher duties. I'VE would
rather see hats come in free" he sail
''if we could have our raw material free
We can, we think. on the labor question
compete with them (the Canadian man.
ufacture1s)." Tho manufacturers were
satisfied even then with the hat duties
and it was pointed out to the commits
sion that only $500 worth o: wool hats
came into the country.
The commission recommended consid
cradle reductions in the duties on hats
and these reductions were partly carried
out in the tariff law of 1888. Mckinley
however, took hold of the tariff mill last
year and went to grinding out dutie:
with no regard to whether they were
needed or not. and in this way the d1
ties on wool hats were increased as jus
described, although no hat manufacture
came before him, so far as the published
reports show, to ask for higher duties.
But the higher duties We're given al
the same, and now we have one NOR
Mckinley trust. Let the people now ex