Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1896-07-24
PROFITS TOO SMALL.
GREEDY NAIL TRUST WANTS
MORE PROTECTION.

Keg Less in Foreign Than fl
, Home Markets-Chenper to Bu,
In Germany and Pay Frelgh
Twice Across the Ocean.
Kansas City Times.
In speaking of the exports recently
the Times remarked tha. American
made nails were selling abroad at ST. ,
keg cheaper than at home. 1t is gen
orally known that the iron and stee
trust has succeeded in raising til,
price of nails, or rather continuing
the raise. For since last May the
nail monopoly has been steadily a,
work.
The Iron trust has raised the price
OF Bessemer pig iron from Sill in May
1893, to $l3 in May, 1896. The Nail
trust, however, has carried the price oil
cut nails up from 20 cents to $3.50 q
keg and Of wire nails from IS cents to
$2.53-that is, while raw material has
been advanced Is per cent. in price
wire nails have been advanced 200
per cent. Snd cut nails 22S per cent!
The exports of nails from this
country have been large. Even un-
der the Mckinley act in 1898 we ex-
ported 17,9O4,S4S pounds. In the
years under the Wilson act we have
increased our exports enormously.
In 1894 they were 19,97O,419 pounds,
in 1895, 81 ,262, ,G95 pounds, and if we
Judge 1896 by the exports of 1913, ,2SO
in February, we shall this year sell
the foreigners 35,G79,36O pounds Of
nails.
In view of the rise in price, this
large export trade is remarkable.
The explanation, however, is furnished,
by the protectionists themselves.
For, says the Pittsburg Commercial
| Gazette:
The long and short of it is, &C.
cording to the present prices of the
nail pool, that man using American
nails in Germany can buy them al
most 81 cheaper than he can buy the
same nails with which to build a
house in Pittsburg where the nails are
made.
Gas a natural result, American
wholesalers began to find it cheaper
to buy American nails in Germany,
pay the freight back home and resell
them here.
The scheme was operated as fol-
lows: The New York firm would
ship the nails to Hamburg hardware
company or to some other foreign
port. Instead of being unloaded the
cargo remained intact and was sent
back to Baltimore, Philadelphia or
Boston, consigned to a jobbing i'm.
porter. He would then dispose OF the
nails to American wholesalers at a
price below that asked for nails for do
mestic use. As the nails were made
by American factories, and bulk had
not been broken on the other side, no
tariff was collected when they we're
brought back.
Wire nails are quoted in the Ger.
man markets at $l.54 to $I.6O at the
mills, and the freight to the seaport
would make them higher there.
American nails were sold to the
exporter for $l.45 tprice now to people
OF the United States, $3.50, and it
costs 70 cents to send them across the
Atlantic and 20 cents to return them.
They were landed back in America for
$l.S5 per keg. Allowing for stevedore
charges, they probably cost about
$l.@ net. Had the nails been bought
for domestic use they would have cost
$245 Uhe price is now 1855 at Pitts.
burg and $2.70 at New York; which
gave the exporter a margin OF 55
cents"
This is not the first time such a
thing has happened in this country.
In 1869 Congress raised the duty on
copper ore. The mines on Lake Su-
perior were the richest in the world
and could easily have supplied the
United States more cheaply and
abundantly than any other country.
AS a result OF the protection" :"
however, the companies which con-
trolled the copper mines formed a
combination and put up prices out
rageously. At the same time they
shipped copper abroad at prices far be-
low what they charged at home. In
deed. the combine occasionally found
competition in their own product re.
turning from abroad. Their profits
were enormous, and the people had
ample justification for regretting that
the mines were not in Europe instead
Of in America.
The case Of the nail trust is similar.
1t fixes home prices at 81 keg above
it's prices to foreigners. 1t finds its
own products returning from Europe
and underselling it. Its profits are
enormous, one concern making profits
OF 27t per cent. on capital OF $4, ,0OO,-
600 in 1895 and 80 per cent. this year.
But these profits are not enough for
the greedy trust. 1t wants moro
protection" 1t must have more
protection or it will fail to make so
lper cent. on its money. 1t sent