Spirit of Jefferson. [volume] (Charles Town, Va. [W. Va.]) 1844-1948, 1892-09-27
NEW SERIES, YoL.xXyII, NO. 50

4 IGlCeS ana piOuCS. "A low months ago
four of the largest firms agreed to com
bine under the name of the United
| States Cutlery company, with u capital
of $I,eo0, goo. Their prospectus said,
'sThe business of these companies oman.
| featuring 65 per cent. of all the pocket
cutlery made here has steadily Increased
! year by year, and the netprotits of these
Companies for a period of over three
years are largely in excess OF the sum
necessary to have paid 8 per. cent. ,divi-
dends upon $500, 900 preferred stock. .
1t is also claimed that the new company
could pay dividends of s per cent. on
100000 and 10 per cent on the other
$500, 600.
According to the testimony given in
1890 before the ways and means COM
mittee the combined investment of these
four companies was only $4O0, 600. The
manufacturers then put on long faces
and tried to make the committee believe
that the pocket cutlery industry was
about to expire under a so per cent.
duty, 1t now appears that they were
then making largely in excess of 16
per cent. upon their actual capital
(S400, ,000l, and that they are now in
shape to make 46 per cent. on this same
amount. They add in their prospectus
that :'prices upon cutlery have never
yet reached those which could have been
asked by the increased rate of tariff, :"
That their claims are not extravagant is
evident from the announcement in The
House Furnishing Goods Weekly of
Aug. 4, 1892, that 'the Southington
Cutlery company, of Southington, Conn,
has declared quarterly dividend of s
per cent, :" It is clear that the increased
duty was obtained under false pre-
lenses, if not by actual fraud. And
these are the class of men who reap the
benefits of McKinleyis,n.
[ Notice now how these spoils are di.
yided between the manufacturers and
their employees. The Republican press
points with pride to three compalies-
the Canastota Knife company, the New
York Knife company and the Thomaston
Knife company, employing altogether
about 400 hands-that have advanced
wages about 10 per cent. 1t is true that
since 1890 about three-f6urths OF the
employees in these factories have OBJ
tanned advances. that will average be.
tween and 10 per cent. These advances
have been secured only because the en-.
ployees were organized and struck or
threatened to strike for higher wages.
Strikes are now on in three other fac
tories. But suppose that all of these
400 employees have had their wages ad-
vanced 10 per cent. and that they earn
an ayerageiof $500 each year (the ac,
;tual averageis much less) Their total
benefit from the. new tariff (admitting
that it made the advance possible) would
thus be less than $e4,00 Tie yearly
product of all the factories is worth from
81, 500, 900 to So, ,0OO, 600. The 80 per cent.
advance in prices then increases the
profits of the manufacturers bout $780,
600. That is. the manufacturers have
retained 95 Iper cent. of the spoils and
grudgingly yielded up per cent. to the
wage earners.
The American user of pocketknives
has taken $5oO,0O0 out of one pocket and
made it a present to these foreigners for
the privilege of carrying an .iAmerican
knife" in another pocket, and this in
addition to a similar amount bestowed
upon the same foreigners under the 90
per cent. duty prior to 1890. If this be
the best that Mckinley can do for us it
is time we were finding it out. It will
be money in our pockets some day.