Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1915-08-21
A Case in Point.

printing, wooden and silk dyeing. and
in various bleaching processes. es-
pecially the bleaching Of straw for
hats and bonnets. The laundries also
use nearly 5000. 900 pounds year in
whitening shirts and collars. From
eight to ten million pounds are an
nually consumed in this country, and
prior to 1903 it all came from Ger
many, England, Norway, Belgium. and
Austria, which countries had COM
bined to form a syndicate to control
the price all over the world. Prices to
the United States at that time ranged
from to II cents pound. The
syndicate was controlled by Germany.
from which came three fourths of the
acid.
In 1903 the manufacture Of oxalic
acid was undertaken on a small scale.
experimentally, in this country, the
plant being located in Pennsylvania.
No sooner did the construction of this
plant come to the attention of the
syndicate than prices dropped. in 1908
to 4.7c; 1904, 4.6c; 1905, 4.7c: 1905.
SIC. This sort Of price-cutting
knocked the American company out
Of the ring. and Immediately the
oxalic syndicate raised the price to
TIC. and in 1907 to &c. In 1908 the
American company made another
start, and the syndicate dropped the
price to SIC.
The Republican revision Of the
tariff was up about that time. and the
American company presented figures
which induced Congress to give a
protective duty Of &c pound on
oxalic acid. This duty was based
solely on the difference in cost Of
common labor at home and abroad.
per pound of product, and did not
take into account the overhead
charges and selling costs. When this
duty went into effect the foreign
price went to TIC, where it remained
through 1910, 1911, 1912. BY some
pretty close figuring the American
company was able to operate at
profit, and it acted as a check on the
foreign syndicate methods Of price
controlling. A large share Of the an
nual consumption was being manu-
featured in the United States. the
only money going abroad was for the
purchase of potash, the raw material:
American labor was being employees
at wages which enabled the men to
be good customers Of the clothier and
the food producer and the country
was the possessor Of a new industry,
which would, If properly fostered,
render us wholly independent of Ger
many.
Then came the destructive tariff
legislation of the Democratic party,
which sneaked into the Capitol
through a crack in the protective
party wall. The duty on oxalic acid
was cut 25 per cent. This was too
low for protection, but it gave the
foreign syndicate the opportunity it
sought to dump oxalic acid on this
market. and they lost no time in TAX
ing advantage of it. The first quar-
ter of the fiscal year 1914. under BE-
publican law. 100000 pounds were
imported; the second quarter, when
the Underwood law took effect, 1,720,-
26O came in; the third quarter, $780,
600; the fourth quarter, 2,S5O,0O0
pounds. Then came the war, acting
as high tariff and the American
company is now recovering from the
shock Even yet, however. the i'm
portations for the ten months ending
April, 1915, amounted to 100000
pounds. If that cent and a half duty
remains in the law when the war has
ended, Germany will hand the Ameri-
can company side inder from
which it will never recover, and
another skeleton will be found lying
alongside the nemocratic trail