'Cbe Conservative.
Americau producers and the European
syndicate , under which the former were
to bo left in possession of the home mar
ket , provided they agreed to keep out of
the foreign markets. Outside compe
tition abroad , however , made it possi
ble for goods to be imported. Under
the circumstances , what is to prevent
the Americau producers exporting goods ,
and thus enlarging their markets and
general sphere of usefulness , from a
material standpoint. "
On February , 4 , 1895 , the same jour
nal said :
"The Pacific Coast Borax Company ,
finding the results of its efforts to
place borax within the reach of all at
reduced figures to have been so satis
factory , has issued another circular
announcing still lower prices for the
current month , and which are lower
than borax can be imported for or pro
duced here , except under the most
favorable conditions. "
On October 21 , 1895 , the same author
ity said :
"In the years that have passed large
profits were made , and it may be neces
sary to out into them , if the competition
now in progress is of long duration. At
the same time there is reason for believ
ing that the California producers are
making money under existing con
ditions. * * *
"There is no danger of any further
competition with the foreign article.
* * * The manufacturers in Eng
land have not renewed the syndicate
agreement , and there does not appear to
be any liklihood of their doing so. "
Dliiglcy 1)111 FrifOfi.
The articles on borax in the Oil , Paint
& Drug Reporter tell a different story
under the Diugley law , which took
effect July 24 , 1897.
On August 80 , 1897 , the Reporter
said :
"The new tariff has materially altered
the situation in borax in this country.
* * * There is now no possibility
of any competition being feared from
Europe , with the duty on refined five
cents per pound , as against two cents
under the act of 1894 , and the domestic
market is left entirely to the home
refiners. * * *
"Under the low prices which were
made necessary by the two cents duty
in the act of 1894 , the demand has been
largely increased and it is possible that
any material advance would check the
consumption. * * * Refiners may
be trusted not to make a move that will
restrict their production.
"Perhaps the most important element
in the situation is the increase in the
duty on borate of lime from 1 % cents
per pound to 4 cents , where the impor
tation co a tains over 36 per cent of
anhydrous boraoio acid , and 3 cents
where less. This will effectively shut
out all importations so long as the price
of the refined article does not go too
high. "
On January 17,1898 , this journal said :
"The advance in the rate of duty of
borax in the act of 1897 , from 2 cents
per pound to 5 cents , has caused a rise
in the price here from 5 % cents in car
loads , which was the market quotation
when the tariff became operative , to
0 % cents. * * *
' 'It is evidently the determination of
refiners to raise the price by slow and
easy stages until they shall reap the full
increase of benefit which the new act
gives them. It would not have been
good policy to advance the price 8 cents
per pound as soon as the tariff bill
became a law , as it might have aroused
the ire of consumers of borax. "
These quotations from this great trade
journal make it clear that the duty
enables the trust to purloin money from
the pockets of the people.
IJorux Exported to Europe.
That no duty is necessar ? to preserve
our borax industry is evident from the
fact that our output increased greatly
during the Wilson bill period and that
wo have always exported borax and sold
it in England , except when an agree
ment , offensive and defensive , between
our own and foreign producers kept our
product at home. A few more quota
tions will throw light on this subject.
On November 25 , 1895 , after discussing
the heavy imports of borate of lime
(4,105,765 ( Ibs. ) in 1894-5 , at an import
price of 2 1-5 cents per pound , the Oil ,
Paint & Drug Reporter said :
"Another feature of the situation is
the exports of American borate of lime
to England lately. Since October 14 ,
11,558 bags have been shipped , at a
valuation of $22,939. The average price
per pound was two cents. "
July 18 , 1896 , the Reporter said :
"A foreign outlet for California crude
was sought , and largo quantities were
exported to Liverpool last autumn.
They were sold at a profit of about two
cents per pound. The sales of the
American Company for the seven months
ending March 81 , last , were at the rate
of 11,000,000 pounds per annum ,
over 1,000,000 pounds having been ex
ported to England. The actual exports
to July 1 , 1896 , from last autumn ,
amount to 20,420 bags , valued at $40,018.
Notwithstanding the fact that California
borate of lime was sold in England at 2
cents per pound , there were imported
into New York for the fiscal year end
ing June 80 , 1896 , 4,227,947 pounds of
foreign borate , valued at $102,732 , as
against 4,165,765 pounds the previous
year , valued at $95,784. * * *
"From a glance at the condition of
affairs in the borax industry , it appears
that the California producers hold the
key to the situation. They have suc
ceeded in underselling the South Ameri
can and Asiatic borate of lime in the
English market and have thus affected
the profits of the Borax Company , Ltd. ,
the concern which owns the Asiatic
deposits. The annual report of this
company stated that had it not been for
the French works ( protected ) of the
company , no profit would have been
made , owing to the competition with
the California borato. "
On August 80 , 1897 , the Oil , Paint &
Drug Reporter unintentionally illus
trated the difference between trusts in
protected and unprotected countries :
' The Borax Union of Great Britain
collapsed some two months ago , duo ,
possibly , to competition with borax
from American borato. The price is
now 14 per ton , or about 8 cents per
pound , the lowest price on record.
"The Sooiote Lyonnaise , which con
trols its own deposits of crude in Asia
Minor , and is protected on its refined in
Franco , is also doing well , but a careful
analysis of the situation cannot but re
veal the commanding position occupied
by the California producers in the mar
kets of the world under the new condi
tions , which have been partially created
by the new tariff , and in great measure
by the development of the Pacific
Slope. "
In September , 1897 , the British and
Colonial Druggist , of England , ex
plained the ability of the American pro
ducers to compete in the markets of the
world , by saying that to the "natural
advantages in the matter of deposits of
pure borax" was added an extremely
heavy duty on borax which "practically
bars foreign product from entry into
the states. " It said :
"We can put this advantage in a
startling way by saying that if Ameri
can manufacturers obtained for their
borax sold at home the present price of
the article in this country plus the duty
in America , they would be in a position
to give away one and a half times as
much borax as they sold at home , and
yet receive a return per pound on the
whole higher than the present English
price per pound. "
This condition should prove more
"startling" to Americans than to
foreigners , however. In 1898 , 46,118
bags ( about 2,000 tons ) of borax was
exported to England out of a total pro
duction in America of about 12,000 tons.
If this was exported to England at a
profit , then our protective tariff simply
helped the trust to outrageous profits on
the borax sold here. If it was not sold
at a profit then the tariff made Ameri
cans pay the trust two profits on the
borax they consumed , while Englishmen
paid no profit.
xlmerican warfare from behind pro
tected tariff walls made the borax
industry unprofitable in unprotected
countries , depreciated the value of
foreign plants and mines and made it
easy for our government-supported trust
to buy up its foreign competitors and to
form a world trust. This it has done.
SES
.
Si "
