T? 3 9^1 
 
iatc (QoUegp of Agticulture 
 
 Tit ajoinell IniuecBxtg 
 Jtljata, ». ^0. 
 
 ffiihrarg 
 
 Cornell University Library 
 HF 1755.R99 
 
 An object lesson on the tariff; wliat the 
 
 3 1924 013 921 220 
 
AN 
 
 Object Lesson on the Tariff 
 
 WHAT THE TARIFF TAXES COST A TYPICAL 
 NEW YORK TOWN. 
 
 JESSE RYDER 
 
 Sing Sing, N. Y. 
 
 NEW YORK 
 
 THE rekorm: club 
 
 12 East 33D Street 
 18S8 
 
HF\n55 
 
 3' 4^ ii ^ 7 / 
 
AN OBJECT LESSON ON THE TARIFF. 
 
 1st. — The Cost of Collection. 
 
 Sing Sing is a village on the east bank of the Hud- 
 son River, and 33 miles from the City Hall in the city of 
 New York. The number of inhabitants is estimated at 
 7000. It is situate in the town of Ossining, in the countj- 
 of "Westchester. The town, including the village, has a 
 population of about 9000, exclusive of the inmates of 
 the State Prison. 
 
 There are but few male citizens who are not in active 
 employment as business or working men. The greater 
 part are very economical in their expenditures, apparently 
 more from necessity than choice. A good many are 
 doing business in the city, which requires daily inter- 
 course therewith. The village is, comparatively speak- 
 ing, a thriving one. There is a full stock of laboring 
 men whose average daily wages, taken by the j'ear, does 
 not exceed one dollar per day. It is generally the case 
 that they do without a great many articles which would 
 add to the comfort and well-being of the household for 
 the want of means to purchase them. For much the 
 greater part of the laboring men it is a dangerous experi- 
 ment to buy a low-priced lot and put thereon an unpreten- 
 tious house for a residence, their wages being so much im- 
 paired by the tariff system of robbery. It is too often the 
 case that they are obliged to mortgage the premises and 
 
4 AN OBJECT LESSON ON THE TARIFF. 
 
 become involved in the payment of interest-money. To 
 succeed requires the utmost frugality and self-denial. 
 The greatest hindrance (which they do not seem to under- 
 stand), is in the taxes, to them unseen, which involve 
 the employer and employed— the never-ending tariff taxes 
 on the necessaries of life. Many are scantily clad from 
 no fault of their own, and would hail with delight a re- 
 duction in the price of woolen goods. 
 
 To aid in such reductions I shall endeavor to expose 
 the enormity and the iniquity of the tariff taxes on such 
 goods, which are in good part maintained by the votes 
 of those who are the greatest sufferers, for the want of 
 money to buy them with. 
 
 I will bring the matter right home to be looked at as 
 an object-lesson in the light of daily observation. The 
 town of Ossining, with a small district of country adjacent, 
 forms a compac tbody of land, well calculated for an exhibit 
 of this kind, where the farmers do their marketing, and the 
 inhabitants purchase about nine-tenths of their woolen goods 
 in Sing Sing, and the remaining tenth (a fully proportion- 
 ate share) in New York City. The outlying district con- 
 tains about 3500 inhabitants. It will simplify matters to 
 deduct one-tenth from the whole number indicated, and 
 proceed with the remaining nine-tenths, who are supposed 
 to number 10,350— not having been enumerated since 1880. 
 The amount paid at the present period by the retail mer- 
 chants of Sing Sing for woolen goods is estimated by the 
 leading dealers of the trade to be in excess of $100,000 a 
 year (to be on the safe side I will take the sum mentioned), 
 of which they reckon fully two-thirds are of American man- 
 ufacture. 
 
 For the purpose of this showing we will say that the im- 
 ported goods cost the retail mei-chants 133,000, and those 
 of home manufacture $67,000 ; and that the latter are pur- 
 chased at 10 per cent, less price than like goods imported. 
 
THE COST OF COLLECTION. 5 
 
 To find and separate the costs and charges from the orig- 
 inal cost of the goods, we will take imported goods to 
 the value abroad, at the place of shipment, of $1.00 
 
 Average rate of duty 67 per ct. 
 
 Profit on the duty, say 10 per cent 06 7-10 
 
 Cost of importing 10 per ct. 
 
 Importer's profit 10 per ct. 
 
 The Sing Sing merchants pay |1.93 7-10 
 
 for the foreign article which costs .^. . . 1.00 
 
 For the aggregate first cost of the goods divide 133,000 00 
 
 by $1.93 7-10 cents and find quotient 17,036 65 
 
 Deducted from $33, 000 leaves for duties, costs and charges, $15, 963 35 
 
 This extra cost is made up as follows : 
 
 The duty levied on first cost, at 67 per cent $11,414 56 
 
 Profit on the duty, at 10 per cent 1, 141 46 
 
 Ocean freight, insurance, etc., at 10 per cent 1,703 67 
 
 Importer's profit on first cost, 10 per cent 1,703 66 
 
 Total duties, costs, and charges $15,963 35 
 
 Without the tariff, the importerls entitled to the first cost 
 
 of the goods $17,036 65 
 
 To 10 per cent, profit on the goods 1,703 66 
 
 To the cost of importing, at 10 per cent 1,703 67 
 
 Making a total of -. $30,448 98 
 
 The Sing Sing merchants paid. $83,000 00 
 
 Oh what would cost without the tariff 30,443 98 
 
 Duty and profit on the duty. $13,556 03 
 
 The Sing Sing merchants on the duties and profits on the 
 
 duties charge -30 per cent 3,511 30 
 
 Amount of tariff additions $15,067 33 
 
 It is said to cost the Government to collect the duties a 
 little over 3 per cent., which> taken from the 111,414.56, 
 leaves $11,073.13. How much does it cost the consumers 
 of the imported goods for collecting- the net sum received 
 by the Government of $11,073.12 ? 
 
6 AN OBJECT LESSON ON THE TARIFF. 
 
 The retail merchants buy the imported goods with the 
 duty and the profit on the duty added to the price, making- 
 $12,556.02, and as we have seen, the retail merchant's profit 
 on the same at 20 per cent, brings up the cost of the tariff 
 to the consumers to $15,067.22. Take from that the net 
 sum received by the Government of $11,073.12, and it leaves 
 $3,995.10, or a little over a6 per cent., as the cost of collec- 
 tion to the consumers; whereas the cost of collecting a 
 direct tax in jTew York State is but little more than one per 
 cent. 
 
 But a far greater evil of the tariff taxes on woolen goods 
 is where the Government gets nothing, and the consumers 
 pay the taxes to the home manufacturers., 
 
 2d. — The Home-Market Cost of Protection. 
 
 Having shown that the Government method of raising a ^ 
 revenue from customs is very expensive and unbusiness- 
 like, to say nothing of its being very unfair and unjust, it 
 remains to be shown that a far greater evil of the tariff is 
 in cases where the Government gets nothing, and consumers 
 pay the taxes to the home manufacturers. 
 
 To find the extra cost to the consumer of -wjoolen goods 
 of American manufacture for which the retail merchants of 
 Sing Sing pay $67,000, and which are sold to them under 
 cover of the tariff laws, to be rightlj'- understood, requires 
 some preliminary observations. 
 
 The price of American woolen goods, when placed upon 
 the market, is an assumed, arbitrary, and composite sum, 
 made up of the cost abroad of the imported goods, with so 
 much of the taxes, costs, and charges added by the im- 
 porter as will give a ready Sfile and the control of the home 
 market. All of which additional taxes, costs, and charges. 
 
THE HOME-MARKET COST OF PROTECTION. 7 
 
 including the importer's profit on the goods, become tariff 
 protection to the domestic manufacturers. 
 
 In the case of imported goods I have shown that if 
 the importer pays for goods at the place of shipment 
 the sum of ¥1.00 
 
 And adds for the cost of importing 10 per ct. 
 
 And the Government tariff tax 67 " " 
 
 And the profit on the tax at 10 per cent .06 70-lOOcts 
 
 And the importer's profit on first cost 10 per ct. 
 
 It brings up the price of the imported article, which cost 
 abroad $1, to the retail merchants of Sing- Sing to. . . . 1.93 70-lOOcls 
 
 And to the consumers 3.33 44-lOOcls 
 
 And the first cost abroad of $67,000 worth of imported 
 goods sold in Sing Sing is found, by dividing that sum by 
 $1.93 70-100 cents, to be $34,589.57. 
 
 And the tariff additions, costs, and charges on the same 
 are the complement of the aforesaid sum, or $32,410.43. 
 
 The American manufacturer having appropriated but 
 74 33-100 per cent, of the 93 70-100 per cent, of protection, 
 by reducing the price of his goods to 10 per cent, below 
 the price of imported goods, will get the amount of the 
 tariff' additions, costs, and charges which he desires to 
 add to the price of the home-made goods, by dividing 
 $67,000 by $1.74 33-100 cents, which gives $38,432.80. 
 
 That sum, taken from $67,000 for these additions grow- 
 ing out of the tariff tax, gives $28,567.20. And the 
 consumers have nominally gained the difference between 
 $32,410.43, and $28,567.20, which amounts to $3,843.28, sub- 
 ject, however, to a considerable drawback from the gen- 
 eral inferiority of the American to the English goods, grow- 
 ing out of the absurd tariff tax on imported wool, which is 
 needed for an admixture with American wool for many 
 articles. 
 
 The Sing Sing merchant's profits of 20 per cent, on the 
 $28,567 of tariff additions amount to $5,713.43. 
 
8 AN OBJECT LESSON ON .THE TARIFF. 
 
 Summary of the extra cost to the consumers of woolen goods sold by 
 the merchants of Sing Sing, in one year, because of the tariff : 
 
 First— The cost to the Government of 3 per cent, for collect- 
 ing by the Custom-house a tariff tax of |11,4U.56 $343 44 
 
 Second — For duties and charges growing out of tariff taxes 
 on imported woollen goods 15,067 32 
 
 Third — Home manufacturers' charges under cover of the 
 tariff, which the consumers pay, and no part of which goes 
 to the Government 38,516 15 
 
 FouHh—The usual profit of 30 per cent, to the retail mer- 
 chants of Sing Sing on the tariff additions, cosls, and char- 
 ges added to the price of the home made-goods 5,713 48 
 
 Making a total of 149,639 34 
 
 Thus we see that the Government's protective tariff of 
 67 per cent, on imported woolen goods becomes 93 70-100 
 cents, whereof the American manufacturer uses TO per cent. 
 less than the importer's selling price on 74 33-100 per cent, 
 to secure the market for his goods and has that much 
 advantage over his foreign competitor. 
 
 3d. — A Comparison ivith Other Taxes. 
 
 Thus it costs nine-tenths, who number 10,350 inhabit- 
 ants of Sing Sing and its vicinity, $49,639 a year, because 
 of the present taxes on woolen goods sold in Sing Sing, to 
 pay the net sum of $11,072 for the use of the Government, 
 or 450 per cent, on the amount received, being a dead loss 
 of $38,742 to the consumers. The sum of $4.50 is paid to 
 get $1 for the Treasury. 
 
 If we include the woolen tax that is paid by the one-tenth 
 of the population who trade in New York City, we must 
 add one-ninth to the $49,639, equal to $55,154, all told. 
 Abohsh such rate of taxation on the necessaries of life 
 to the extent of the internal revenue tax on tobacco of 
 
A COMPARISON WITH OTHER TAXES. ^ 9 
 
 $28,000,000 a year, and it will relieve the taxpayers to the 
 extent of $136,000,000 a year. 
 
 In reducing- the present . revenue surplus of 1100,000,000 
 a year to the wants of the Government economically ad- 
 ministered, a g'lorious. opportunity is afforded for relieving 
 the toiling millions of at least $200,000,000 more, which is 
 added to the cost of the home-made goods, on^ which the 
 "taxes should be reduced at the present time, and which is 
 now obtained by a few thousands of individual tax-gather- 
 ers from the necessaries of life, b^' taxing their own goods 
 ■of like kinds in competition with the Government tax on 
 foreign goods. This would relieve and increase the re- 
 wards of American industry to the extent of $300,000,000 a 
 year. The choice lays with the taxpayers to save the 
 smaller or the larger sum. 
 
 I will now institute a comparison of the amount of taxes 
 paid on woolen goods per year in the town of Ossining, a 
 political organization within definite metes and bounds, 
 "with the amount of the State, county, and school tax, and 
 the audited town bills for the year 1886 : 
 
 The proportion of the woolen tax on the goods sold in 
 Sing Sing for tliat year would be for the town of Ossin- 
 ing 143,930.51 out of f49,639. . Fully one-ninth of woolens 
 for the same year are to be added for. purchases made 
 by privg,te parties in New York City tor tbeir own use, 
 equal to $4796 of tax, which., added to ,143,930.51 makes 
 
 for the town $48,811 68 
 
 The amount of assessed taxation for purposes 
 
 indicated was' for the State ' $8,863 34 
 
 For the county 15,S00 65 
 
 For school purposes 5,503 33 
 
 For audited town bills,. 8,334 45 
 
 Totalof town taxes>,... 37,80157 
 
 Excess of the woolen tax over the assessed taxes of the 
 
 , town ; ;. $11,010 11 
 
10 AN OBJECT LESSON ON THE TARIFF. 
 
 For the same year the total of tariff additions to the price 
 of woolen goods of American manufacture consumed in 
 Ossining, allowing that one-tenth of the inhabitants who 
 purchase in New York City use a proportionate share, 
 would be 133,541 12 
 
 We have already found that the Government derives a net 
 revenue of $11,072 from the sale of $100,000 worth of woolen 
 goods purchased for the Sing Sing market in one year at a 
 cost to the consumers of the goods of 450 per cent. 
 
 That looks very had for the consnmers, hut it is a very 
 good showing for the Government in Sing Sing when com- 
 pared with tlVe revenue derived from the iron trade. 
 
 ith. — The Taxes on Iron and Steel. 
 
 On iron and steel the average rate of duty appears to be- 
 not less than 45 per cent. 
 
 To find and separate the costs and charges from the 
 original cost of the goods we will take of imported 
 iron and steel that costs abroad at the place of ship- 
 ment $1.00 
 
 The rate of duty 45 " 
 
 The profit on the duty 04}^ 
 
 The cost of importing .10 per ct, 
 
 And the profit on first cost .10 per ct. 
 
 And the Sing Sing merchants pay $1 .69J^ 
 
 And the consumers pay 20 per cent, more 3.03| 
 
 For the imported article which cost 1 . 00 
 
 The amount paid per year by the Sing Sing merchants 
 
 is rated at present at $37, 500 00> 
 
 Not more than five per cent, is imported 1, 875 00 
 
 For average cost of the imported goods divide $1875 
 by $1.69 50-100, and find quotient 1, 106 19 
 
 deducted from $1,875, leaves for costs and charges. . . $768 81 
 
THE TAXES OiV IRON AND STEEL. 11 
 
 Made up of duties levied on first cost |497 79 
 
 Profit on tiie duty at 10 per cent 49 78 
 
 Cost of importiog, 10 per cent 110 62 
 
 Importer's profits on first cost 110 62 
 
 Totals $768 81 
 
 Without a tariff the importer is entitled to first cost of 
 
 the goods $1,106 19 
 
 To the cost of importing say 10 per cent 110 63 
 
 And 10 per cent, profit on first cost 1 10 63 
 
 Makinga total of $1,327 43 
 
 The cost with the tariff is $1,875 00 
 
 Deduct the cost without the tariff , 1,337 43 
 
 Shows the duty and profit on the duty $547 57 
 
 The Sing Sing merchants' charge on the duties and 
 
 profit on the duties, 20 per cent 109 51 
 
 Amount of tariff additions to price paid by importers $657 08 
 
 It costs the Government 3 per cent, to collect the 
 
 duties, which reduces the amount received, of $497 79 
 
 By 14 93 
 
 Leaving a net sum of $483 86 
 
 How much does it cost the consumers of the imported 
 goods for coUectiug the net sum received bj' the Govern- 
 ment of $482.86 ? 
 
 The retail merchants buy the imported goods with the 
 duty and the profit on the duty added to the price, which 
 makes $547.57. And, as we have seen, the retail mer- 
 chants' profits on the same bring up the cost of the tariff 
 to the consumers of imported goods to $657.08. Take from 
 that the net sum received by the Government of $482. 8%, 
 and it leaves $174.22, or 36 per cent., as the cost of collec- 
 tion to the consumers. 
 
 The hardware merchants of Sing Sing purchase of im- 
 ported iron and steel products but 5 per cent, of $37,500 
 worth purchased in all, which gives for imported iron 
 $1875 ; and for American product $35,625 worth per year, 
 
12 AN OBJECT LESSON ON THE TARIFF. 
 
 To find the extra cost to the consumers of iron and steel 
 of American manufacture, for whicli the retail merchants] 
 of Sing Sing pay $35,625, which is sold to them under cover 
 of the tariff laws, to be rightly understood, requires the 
 sam'e preliminary observations accorded to woolen goods. 
 
 The price of the American product of iron and steel, 
 when placed • upon the market, is an assumed, arbitrary, 
 and composite sum, made up of the cost abroad of the 
 imported goods, with the tariff taxes, costs, and charges 
 added by the importer, excepting so much reduction there- 
 from as will give" a readj'- sale, and the control of the home 
 marketj such reduction being rated herein at 5 per cent, 
 of the importer's selling price, which is but a small part of 
 the duties, costs, and charges which inhere in the importedj 
 goods, all of which, including the importer's profit, be- 
 comes tariff protection to the home manufacturers. I 
 deem that the American manufacturers of iron and steel 
 sold in Sing Sing feel so well assured of the market that 
 they do not need to undersell the importers for that pur-> 
 pose, and have hot allowed an average reduction of more 
 _than 5 per cent., and they still have the advantage of the 
 importers in 61 per cent, of protection out of 69 50-100 per 
 cent., which I have shown to be the amount reached by 
 the tariff additions, costs, and charges. 
 
 In the case of imported goods I have shown that if the 
 importer pays for goods at the place of shipment. . . . $1 00 
 
 And adds for cost of importing 10 per ct. 
 
 And the tariff tax of 45 per ct. 
 
 itad 10 per cent, profit on the tax 043^ 
 
 And the profit on first cost 10 per ct. 
 
 It brings up the price of the article which cost 11.00 to. $1 69i^ 
 To the retail merchants of Sing Sing, and to the con- 
 sumers with 30 per cent, added to $3 03| 
 
 And the first cost abroad of $35,625 worth of iron and 
 steel is found by dividing that sum by $1.69 50-100 cents, 
 
■CONCLUDING REMARKS. 13 
 
 to be $31,017.70. And the tariff additions, costs, and 
 charges on the same are the complement of the aforesaid 
 sum, or $14,637.30. 
 
 The American manufacturer, having appropriated but 
 61 per cent, of the 69 50-100 per cent, of protection, by 
 reducing' the price of his goods 5 per cent, below the price of 
 imported goods, ^yill get the amount of the tariff additions, 
 costs, and charges, which he desires to add to the price of 
 the home-made, goods, by dividing $35,625 by $1.61 cents, 
 which gives $22,137.33. And the tariff additions, costs, 
 and charges-are the complement of the aforesaid sum, or, 
 $13,497.67. And the consumers have gained the difference 
 between $14,607.30 and $13,497.67, which amounts to 
 $1109.63. 
 
 Summary of the extra cost to the consumers of iron and steel sold 
 
 in Sing Sing in one year by the retail merchants, 
 
 because of the tariff: 
 
 First — The cost to the Government of 3 per cent, for col- 
 lecting by the custom-house a tariff tax of $482.86 $14 93 
 
 Second — For duties and charges growing out of the tariff 
 taxes on imported iron and steel 657 08 
 
 Third — Home manufacturers charges under cover of the 
 tariff, which the consumers pay and no part of which 
 goes to the Government 13,497 68 
 
 Fourth — 30 per cent, profit to the retail merchants of 
 Sing Sing on tlie tariff additions, costs, and charges 
 added to the price of home-made goods 3,699 53 
 
 Taxes collected by the Sing Sing merchants $16,869 33 
 
 6th. — Concluding Remarks. 
 
 I have before estimated that the number of inhabitants 
 whose natural trading and market place is Sing Sing is 
 11,500. And that in the case of woolen goods one-tenth 
 part are purchased by the consumers in New York City. 
 
14 AN OBJECT LESSON ON THE TARIFF. ) 
 
 But in respect to iron and steel we may say that the trade 
 is confined to- Sing Sing. ■ 
 
 We have seen that the hardware merchants of Sing 
 Sing collect tariff taxes aild costs and charges growing 
 out of the tariff taxes on iron and steel to the amount of 
 116,669.33, of which the Government gets for import duties 
 but $482.86, at a cost to the consumers of 3452 per cent. ^ 
 And that the portion paid by the town of Ossining, with 
 9000 inhabitants, and including the village of Sing Sing, 
 is $377.89. j 
 
 And that the town pays of the $16,669.22 $13,198.08. 
 And it pays of the woolen tax collected of the consumers 
 by the Sing Sing merchants, as previously shown, $43,930.- 
 51. Add the one-ninth as much for trading done by con- 
 sumers in New York City, $4896, and it makes $48,811.68 
 that the Government may obtain $9821 at the custom- 
 house from the town. 
 
 To summarize : 
 
 The consumers in the town of Ossining pay a tax of $63,034 69 
 
 Tliat the Government may get 10,198 89 
 
 Total taxes paid by the town because of the duties on 
 woolens, iron, and steel $73,323 58 
 
 Total amount paid which the people lose and the Govern- 
 ment does not get $51,8-25 80 
 
 at a cost to the taxpayers of 608 per cent., and the people in want of 
 clothes. 
 
 The taxes paid by the 9000 inhabitants of the town of 
 Ossining, which the Government does not get, as herein 
 set forth, are in excess of the taxes paid by the town in 
 1886, for State, county, and school purposes, and audited 
 town bills, by the sum of $24,212. The assessed taxes of 
 the town being, as I have already stated, $37. 801, which 
 are principally collected at the legal charge of 1 per cent. 
 
 This is a lesson for protectionists to study, who imagine 
 
CONCLUDING REMARKS. 15 
 
 the3' can get rich by paying taxes. We will now do a sum 
 by the rule of three, to extend their gratification. 
 
 If it costs the people of the town of Ossining to pay 
 $10,198 for the use of the Government the sum of $62,014, 
 what would it cost at the same ratio to collect the town 
 tax of Ossining of $37,801 ? I make the answer to be 
 $229,904, equal to 608 per cent., instead of $378, or, one per 
 cent., as provided for by State enactment. As an economic 
 proposition, the latter is just as sensible as the former. 
 
 A protective tariff may be defined, "robbery made 
 legal." 
 
 The Government holds the victim, while the protected 
 go throug'h his pockets. 
 
 I think that fully 15 per cent, of the wages received by 
 laboring men is taken from them by the enhanced price of 
 store goods, which in Sing Sing is equivalent to forty- five 
 days' wages per year, and all under the pretence of pro- 
 tecting American industry. The laborers lose still more 
 by the inability of the agriculturists of the country, who 
 make the price for common labor to pay more than three- 
 fourths the amount for wages which free trade would 
 enable them to pay. 
 
 Probably more than $75 per year is cut off from the 
 receipts of the iaboring man that he does not get at all. 
 Add that to the enhanced price of store goods, and we find 
 that the protective tariff tax injures the common laborer 
 to the extent of $120 per year. 
 
 The difference is that between living in a hired shanty 
 or having a house and garden of his own and money 
 enough to pay for the necessaries of life. 
 
 This concludes my object lesson for protectionists to 
 study, and to point out any errors in my calculations as 
 deducible from the data furnished by the merchants of 
 Sing Sing. The enormity and the iniquity of the present 
 system of taxation almost defies comprehension. 
 
Makers 
 Syracuse, N. Y. 
 
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