* ' *
Conservative *
THE UORAX TRUST.
A World Trust But Still u Tariff Trust.
The bornx trust is one of the best ex
amples of the evils of tariff "protection. "
Unearned and undeserved profits , en
hanced prices , restricted production ,
limited consumption , employment of
foreign labor at low wages , lower prices
to foreigners than to Americans , false
and hypocritical plea that free borax
would destroy the borax industry these
are some of the results of the unneces
sary and unjust duties on borax and
boracic acid.
While the borax industry is not one of
our great industries the total product
selling for only about § 1,500,000 it is
yet of considerable importance because
borax is an almost essential article in
every household and is a most useful
article in many industries. It is used
largely in the packing of pork and other
meats , butter , etc. , and is most useful
in the arts , manufactures and mines.
It is a flux for all metals enabling them
to melt at a lower temperature. It is
used largely in the manufacture of soap
and leather. It is a bleach , an emollient ,
an [ antiseptic , a cleanser and purifier
and a medicine. The extent of its use
in many industries depends largely upon
its price.
The principal borax mines or deposits
of the world are in California and
Nevada , in Asia Minor , Peru and Chili.
Mines .or deposits exist in Italy , Turkey
and other countries , but the cost of pro
ducing in them is too great to make
them of commercial importance.
The largest , most easily worked and
most productive mines of the world are
those in California. These were dis
covered in 1850 , but were not much
worked until about i878.
Tarl IV Duties.
Previous to 1888 there was no duty on
borate of lime and crude borate. The
tariff of 1888 made the duty on refined
borax and on pure boracic acid 5 cents
per pound , on commercial boracic acid 4
cents , and on borate of lime and crude
borax 8 cents. The tariff of 1890 made
the duty on all boracio acid 5 cents.
The tariff of 1894 reduced the duty on
all borax to 2 cents per pound ; on boracic
acid to 8 cents and on borate of lime to
1 } cents. The tariff of 1897 made the
duty on borax and boracic acid 5 cents
and the duty on borates containing
more than 80 per cent of anhydrous
boracic acid 4 cents , and less than 80
per cent of acid 8 cents. The object
lesson resulting from these changes of
duties is most interesting , not only to
our own citizens but to the people of
the entire world.
Controlled by Trusts.
Because of the limited area in which
the mines are found and the difficulty
of reaching and of operating them , it
seems but natural that these mines or
deposits should fall into few hands and
that the few owners should combine to
prevent competition and to bring about
high prices. As early as 1878 an agree
ment was entered into between the
California producers by which pro
duction was to bo curtailed. A more
formal combination was formed in 1879.
In 1885 the "Borax Board" was
organized. It included about all of the
producers upon the Pacific Slope. A
more perfect combination was formed
in 1888 , and in November , 1890 , the
Pacific Coast Borax Co. absorbed nearly
all of the producers. It has always been
the policy of Mr. F. M. Smith , the head
of this company , to gobble up all of the
new deposits which might prove of
commercial value. He has usually
worked but one or two of the 10 or 12
mines which his company owns and
today is working only the Colemanite
mine at Dagget , California , and is hold
ing idle such important deposits as those
in Death's Valley and San Bernardino ,
California , and those in Nevada. One
or two small deposits , such as those at
Columbus , Nevada , may be worked on
shares , but the product of these small
properties all passes through the hands
of the Pacific Coast Borax Co. and no
crude borax is obtainable except from
this company.
A World Trust.
Prior to the latter part of 1894 the
foreign market was in the hands of a
European syndicate which had a virtual
monopoly. This foreign syndicate had
an understanding with the Pacific Coast
Co. through which the latter was left
to the enjoyment of the American mar
ket. Soon after the reduction of duties
in 1894 and the low price at which our
trust was compelled to sell , our producers
began an aggressive warfare on the
foreign monopoly. In June , 1896 , the
Pacific Borax & Redwood's Chemical
Works , Limited , was incorporated in
England with a capital of $2,550,000 and
$500,000 of bonds. It took over the
businesses and properties of the Pacific
Coast Borax Co. and of Redwood &
Sons , chemical manufacturers in Eng
land. Mr. F. M. Smith became the
managing director in the United States.
This new English-American combina
tion carried on such an aggressive and
expensive warfare in Europe that in
January , 1899 , the foreign manufactur
ers capitulated and sold their interests
to a new combination , dictated by the
California producers. This new combi
nation is the Borax Consolidated Works ,
Limited , with a capital of § 7,000,000. It
is an amalgamation of the 12 principal
borax producers and refiners of the
world , viz :
"The Pacific Borax & Redwood's
Chemical Works , Ltd. ; Mear & Green ,
Ltd. , Kidsgrove , Staffordshire , England ;
Borax Company , Ltd. , London ; Societe
Lyonnaise des Mines et Usines de Borax
of Lyons , France ; Empresa de Ascotan
Company , Chili ; Sociedad Boratera de
Carcoto , near Ascotau , Chili ; Boratera
de Cosapilla , near Tacua , Chili ; Boratera
de Chilicolpa , near Tacua , Chili ; Coin-
pania Boratera de Arequipa , Pern , in
cluding the deposits formerly owned by
Senors Pena and Caballero ; Compania
Boratera de Ubinas , Arequipa , Peru ;
that part of the Pintados deposit former
ly the property of the Products Distri
bution Co. , Ltd. , Iquique , Chili , and
7,142 out of 110,000 shares of the San
Bernardino Borax Mining Co. , of Cali
fornia. "
These are not all the mines and sources
of production in the world , but , accord
ing to the Oil , Paint & Drug Reporter
of January 80 , 1899 , nearly the whole
supply of the world has been obtained
from them.
This brief description of the borax
industry and of the tariff rates and
trusts connected with it will enable the
reader to understand and appreciate the
effect of tariffs upon trusts and trust
prices as exemplified by this industry.
Lack of space will prevent the statement
of more than a few of the most salient
effects.
Tariff Prices ami Profits.
Four days after the McKinley bill
became effective , in October , 1890 , the
California trust raised the price of borax
( which had been 8 } to 8 % cents in
August and September of 1890) ) to 9 % to
9 % cents per pound. The following
table gives the dates of some of the more
important changes in prices :
Prices of Refined Borax In New York.
( Wholesale prices per pound. )
DATE. CF.NTS.
Oct. 20 , 1891
Oct. 20 , 1892
Jan. 0 , 1893
Oct. 20 , 1893
Jan. 0. 1894
Aug. 27,1894 8
Sopt.S , 1894 7
Oct. 29 , 1894 6 %
Jan. 0 , 1895 $4
Mar. 4. 1895 0
June 17,1895 51
Aug. 1.1895 5' '
Jan. 0 , 1890 0
DATE. CENTS.
Feb. 10,1890 5 ? .
Oct. 19 , 1890 6
Nov. 0 , 1890 5
Feb. 22 , 1897 5V
Aug. 9 , 1897 5V
Oct. 18 , 1897 0
Nov. 29,1897 0V
Dec. 27,1897 05
Jan. 8 , 1893 0 ?
Feb. 7. 1898 7
Jan. 23 , 1899 7V
Nov. 20,1899 7 >
The Wilson bill took effect on August
28 , 1894. The following comment is
from the Oil , Paint & Drug Reporter of
December 81 , 1894 :
"The sweeping cut in the price of
borax , which we announce in another
column , to take effect January 1 , 1895 ,
will be a great surprise to the trade , as
the impression has become current that
no further reduction would be necessary
to enable the Americans to keep out the
foreign and retain complete control of
the home markets. * * * The net
decline in the price since the new tariff
came into operation is 2 % cents per
pound on crystals and powdered , and
2 } cents per pound on refined in bags. "
It closed with the following sugges
tive statement :
"It has been generally understood
that an agreement exists between the
