The Tariff in Our TimesTarbell, Ida M. (Ida Minerva)
History
The Tariff in Our Times
Tarbell, Ida M. (Ida Minerva)
Tariff -- United States -- History
In the meantime the Michigan salt-works were growing rapidly. Their
output which in 1860 had been but 4000 barrels became over a half
million in 1864! But the same thing happened there as in Syracuse—too
many companies. Sixty-six were operating there by 1866, and combination
was applied, and the Michigan companies were soon consolidated into two.
But the end of the war loosened the Southern works and competition was
in danger of being restored. The New York and Michigan companies
hastened to prevent such a disaster. They entered into negotiations with
the Ohio River Company to limit the output, and the latter to make
itself firmer leased the Kanawha, Virginia, Salt Springs for $75,000 a
year and shut them down. Simultaneously with this campaign for making
salt scarce at home, the industry began one to make it still dearer, an
agitation for more duty—18 and 24 cents a hundred pounds were not
enough, they wanted 30 and 42 cents, and this in spite of the fact that
the internal revenue tax had been removed from salt. If the copper and
wool men could get special bills through, why not they? There seemed no
good reason to the House of Representatives—and they actually passed the
measure—though the Senate did not concur, for lack of time, and the bill
never became a law.
This interesting combination had not only succeeded through the tariff
in making salt scarce and dear, but they had, as all such combinations
do, given the lie to their claim that they could not produce it at a
cost which would enable them to sell it cheaper, by exporting in 1868
some 500,000 bushels, which they had sold in competition with foreign
salt, and by offering the New England fishermen who were allowed to
import salt without duty, prices as low as those abroad; that is, they
had one price for the land and another for the sea, one for Canada and
another for the United States.
Mr. Wells’s evidence on the salt monopoly was complete—it had made a
necessity of life dear through a tariff much higher than the internal
tax and the higher wage of American labor called for. The greater part
of the extra price the consumers were paying was going not into the
pockets of the laborers, but into those of the operators.
Public-domain text, read in full here on John Shaqi.
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