Evening capital. (Annapolis, Md.) 1884-1910, 1892-10-08
The, corroN-rle TAX.

s'NFN'
Southern Farmers Robbed Nv tho Monopoly
isenehciaries OF the Mckinley Tarln.
Until twelve or fifteen years ago raw
cotton was secured in compressed bales
by hempen rope, but it was found tina,
narrow, light iron strap, with sim.
pie clasp or buckle at the ends. was far
more convenient, cheaper and efiicien,
than rope. Under such circumstances
the use of rope for baling cotton was
rapidly discontinued. The Pennsyl.
vania iron-masters soon found out that
with the aid of q 20 per cent rate OF
tariff on the import of foreign made
ties, they would be in no danger from
any foreign importations, and that
monopoly of supplying the wants Of
American cotton-growers, at a cores
ponding advanced rate, would be se-
cured to them. Accordingly they in
sisted that 20 per cent duty should
be levied upon all such ties. But after
time the consumers concluded that
80 per cent and not 20 per cent was
the rate fixed by law and they. secured
decision to that effect from the Treas
ury Department. Even this duty was
very much in excess of the rate imposed
on these importations from 1856 to
1851, when the domestic iron manufac-
ture was much more of an infant indus
try, and was amply sufficient to keep
out all foreign importations. so that the
entire revenue from such imports In
1878 amounted to only Sl,227, not
enough to pay the cost of collection.
Thus the manufacturers already had
the entire market to themselves. Their
only dissatisfaction arose from the fact
that under the 35 per cent tariff duty
they could not increase the price of
sheir goods to American consumers
without thereby running the chance Of
increasing the importation of foreign
manufactures in competition with them
selves.
But when the Mckinley bill was un-
der consideration the iron-hoop manu-
facturers secured an advance of the
duties from 30 per cent to a rate which
she Senate Committee on Finance re-
ported would be equivalent to 103.71
per cent al valorem the specific duty
adopted of 1.3 cents per pound varying
in its ad valorem relations as the market
price of iron rises or falls When this
matter was before the Senate, Senator
Allison conceded that the change in the
luties was an increase equivalent to 100
per cent on the duty then existing.
Cotton ties are sold in bundles con-
tanning 80 ties each, and weighing from
so to So pounds. Six ties, at least, are
Used on each bale of cotton, or 10 to IL
pounds. The cotton ties imported in
1890 were ,inyoiced at an average value
af / 40 cents per pound On this
basis the new duty was equal to 90 per
cent. On merely nominal import in
The last fiscal year, 1891 -92, the Treasury
reports the specific duty collected as
equivalent to 8S.05 per cent. Those
rates have been practically probibitiye
If all importations of ties of foreign
manufacture. The old rate of 80 per
cent ad valorem amounted to a tax OF
39-100 cents per bale. The new duty
is equal to tax of ID $40 cents per
bale on the basis that IL pounds of ties
are used per bale /; which estimate, it
will be noted, agrees very closely with
The statement of Senator Allison and
39-100 equal 13 39100 cents.
The cotton tie tax is burden i'm
posed upon q single important industry
under the false claim of protection to
another industry. The Southern farm
srs must now pay tax of IA $40 cents
| per bale in order to enable the iron
manufacturers of Pennsylvania and
Ohio to make cotton ties and sell them
10 the planters for 88 $40 per cent
more than other people would be glad
TO furnish them.
A IA $40 cents tax on single bale is
not much but IA 80 cents tax on
the estimated crop of 1891, snpposing
ell the cotton to be baled with iron
ties, as it mainly is, amounts to over
one million two hundred thousand dol
lars f$1, 200, ,O00t. And this approx
imately represents the sum which the
representatives of one of the smallest
branches Of the domestic iron industry
asked and had given to them by Re-
publican Congress as a reward for pros,
ecuting a business which has no more
claim on the country for support or
gratuity than has the digging of pota-
Toes, the shelling of corn, the driving of
, hackney coach, or the shaving of
| mems faces.
A reference to the Commerce and
Navigation Report of the United States
Treasury" for 1891 would have
shown that on the comparatively small
quantity of ties imported 1891 80. the
Com4ammaa, an Yes, pmmm