Macon beacon. [volume] (Macon, Miss.) 1859-1995, 1892-01-16
DISCOUNTS EoR EXPORT.


which entered the trust, said in an
interview in the New York Tribune;
IAN investigation will show that this
same combination Is now selling, or
offering to. sell, machinery in Russia,
Australia aud other w~heat-growing
countries at a lower figure than they
do in this country" That this system
of selling cheaper to foreigners than to
our own farmers is ad 'pted by other
manufacturers of farm implements is
shown by Mr.. A. Z. Farquhar, of York,
Pa, one of the largest manufacturers
of agricultural machinery and imple-
ments in the United States. In May
last Nh. Farquhar, in replying to a let
ter of inquiry written to him by the
Home Market club OF Boston, said:
in reply to your favor of the 10th
inst. | have to acknowledge that our
firm sells implements and machinery
through Mexico, South America and
Africa at prices from five to ten per
cent less than they are sold for in this
country"
This system of favoritism to foreign
ers is characteristic of the trusts in this
country. Trusts are formed by manu-
facturers in the same industry for two
purposes. First-To limit and control
productions, and second-To control
prices and thus prevent competition.
The ultimate aim, to accomplish which
trusts are organized, is toincrease profits.
Whenever they fail to gauge the extent
Of the home demand and have on han
more of their products than the home
market will take at the high and arbi-
trary prices they fix, the trusts resort
to expor tation to dispose of their sur,
plus. In foreign markets they must
meet the prices at which their COM
petitors in other countries are willing
to dispose of their productions. Since
the prices which prevail here under our
tariff are higher than in other oun
tries for the same products, the trusts
give what is known as special export
discounts on home prices to foreign
buyers. These extra discounts are in
most cases a combination of two forms.
In order to prevent the foreign buyers
from selling their goods in this country
again, the trusts pa the freight to and
put the goods on board ship at the port
of expectation. This of itself is equiv.
alent in most cases to a liberal dis
count In addition to this they also
give a special discount on home prices
varying all the way from FIVE to twenty.
five per cent,
In some cases the trusts 90 further
and agree to lay the goods down at the
wharyes in the foreign port, paying all
the freight. This is the system adopt
ed by the glass trusts.
How the trusts operate to keep up
prices here and to sell their surplus
abroad, so that it will not interfere
with their home trade, is well illus
trated by the history of the American
Ak and Tool Co, commonly known rs
the FAX trust" The first meeting of
the manufacturers of axes was held in
February, 1899, At a subsequent meet.
ing in March the trust completed its
organization,
AS soon as the trust was organized it
raised prices, as the following from the
Iron Age for March ~, 1890, shows:
1.-THE general feeling among the trade
is that the lawmakers have formed a
very strong association and have
complete control of the market, or so
nearly so that the outside makers will
have scarcely any appreciable effect on
the prices. 1t is found that scarcely
any orders can be placed with outside
manufacturers who are not under the
control of the American AK and Tool
Co. The trade will do well to note the
changed condition in this line of goods
as regards the higherprices now ruling,
and the strong probability of their
maintenance for some time TO come.
On first quality goods an advance is
now made of S1.75 to 81 % per dozen"
This advance has been we'll main
tanned. Before the trust was formed
plain axes of the best brands were sell
ing at S5.25 per dozen. They now sell
at 81 per dozen.
So far as concerns the home market
the trust has been successful in that il
is able to get at least Sl.75 more for a
dozen axes than the manufacturers who
formed it were able to get before. 1t
has been able to do this by its complete
control over production here.
And nov as to the way it disposes of
its surplus abroad. In its foreign trade
the trust is represented by branch
houses in Few York. Thus the branch
which exports its products to the Span.
ish countries of South America is under
the charge of G. p. Maleza.
The makes of axes known to the
trade as the Ohio" Yankee" and
Kentucky" which the trust sells in
this country for 81 per dozen, are
offered by Maleza for export for SO
per dozen, delivered on board ship.
Other brands and shapes are sold at
similarly low prices.
By putting their products on board
ship, and getting the bill OF lading, the
trust is able to prevent home buyers |
from taking advantage Of its low prices
to foreigners.
What is true of the manufacturers of
all classes Of agricultural implements, |
and the AK trust, is true of other trusts
on the tariff for their exist
ence, and using the protection thus
given them to swell their profits by
high prices at home.
Doubtless the great apostle of high
p~rotectionism, ex-Congressml IN R. G..
Hoar, who is employed by the New
York Tribune to tell the farmers how
good a thing the Mckinley tariff i, for
them, will say of this as he did Of the
of Mr.. Farquhar that it is an
'abominable free trade falsehood."
Starch Trust Profits.
What profits starch manufacturers
must be milking! When the manufact-
trarS fntnntnna Il, LIN f-