Mckinley Tariff of 1890

[Miller Bro's]

Here is some interesting "Real Knife Lore". This concerns the Mckinley Tariff of 1890. The bill was introduced be William Mckinley in 1890 and passed into law, putting a tariff of over 49% on foreign imports! The highest ever on record.

In 1892 the New York Times printed this article about the cutlery industry and the big four knife companies at the time and the alliance they formed. It appears the tarrif did not work as planned!


M.B.


http://www.ohiohistorycentral.org/entry.php?rec=1468

[GreatScout]

Protectionism schemes seldom do work out.

What a great post and exactly the kinda thing that belongs in this forum. Excellent, MillerBros;, just excellent!

[Sauconian]

Very interesting. I wonder why N.J. was chosen as the State of incorporation ?

Perhaps Pancoast was the officer in charge of that detail ?

Miller Bros., NYK, Walden, & Ulster merged into one company, but continued to operate independently ?



Fran

[Miller Bro's]

Miller Bros., NYK, Walden, & Ulster merged into one company, but continued to operate independently ?

Fran,

According to the article they formed "United States Cutlery Co".

I have never seen a knife marked like this, this is all new information I just uncovered recently.

Very interesting stuff!

M.B.

[Sauconian]

I understand, M.B. The original 4 corporations didn't cease to exist, but formed a 5th., but it would have to have a stated purpose. I wouldn't think that purpose would just be for price fixing.

Levine lists 2 U.S. Cutlerys.One in Terre Haute, In. No other information given.
The second in St. Louis c.1900, listed as a wholesaler with the trade name Vulcan.

John Goins lists another in Belleville, N.J. c.1917 - 30 that was known for table cutlery.

Looks like you have quite a job ahead of you Dimitri. We'll be waiting for a answer soon.

Fran

[philco]

Good stuff M.B.

Looks like those cheap imported pocketknives have been a recurring problem. There really is nothing new under the sun, now is there?

Phil

[Sauconian]

I don't think they were cheap imports Phil. They were very high quality that were priced similar to the domestic product. With generations of reputation from the buyers behind them, they had to be forced into higher prices to turn the consumers to the local product.

I think Dave Anthony has explored the tariff act. Maybe he'll add information.

Fran

[RobesonsRme.com]

If Ford, GM, and Chrysler could manage to convince Congress to levy huge tariffs on imported automobiles, raising the prices of those imported vehicles to, say twice , the costs of an American made car, then Ford, GM, and Chrysler could merge into another, separate corporation and raise/fix the price of their cars to an amount just under that of the imported ones.

Would that not solve the problems of the American automotive industry?

I thought not.

Charlie Noyes

[philco]

I don't think they were cheap imports Phil. They were very high quality that were priced similar to the domestic product.
Fran

I understand that the imported knives were generally of high quality. The point I was attempting to make (and apparently failed at) was that the price of the imported knives was not sufficiently high to give the American manufacturers a competitive advantage. That's why they sought the tariff, to give themselves an advantage price wise. With the artifically elevated pricing that resulted from the tariff on the imports, the imported knives were made more expensive than the U.S. product.
Domestic manufacturers have struggled in the face of competition from overseas long before China entered the frey. That's what I was alluding to. When I used the word "cheap" I was referring to price, and it was not meant to reflect on quality in any way.
Ultimately, I think Charlie is right in that fair competition is good for business. At least it is good for the customers. Without it, we would be paying much more and getting much less IMO.

Phil

[Miller Bro's]

Fran, Phil, Charlie, All:

Let me try to explain what was said in this document.

W.F Rockwell of Miller Bro`s Knife Co. and Thomas W. Bradley of New York Knife Co. were the two men who framed the schedule in the Mckinley Tariff Act of 1890 for the cutlery industry.
In other words they were responsible for the 49% Tariff on cutlery imported into the U.S. from foreign countries.

The tariff was enacted in 1890 and by 1892 American knife companies were still losing money and not able to compete with the English knives, except for three, even with the 49% tariff!

So they came up the bright idea of banding all the American knife companies that made pocket cutlery together into one corporation, that being, The United States Cutlery Company.
Well they could not convince the rest of the knife makers so they formed "The Big Four", as I will call them. They were: Miller Bro`s Knife Co., New York knife Co., Walden Knife Co., and Dwight Divine(ulster) Knife Co. The capitol of the newly formed company was stated to be $1,600,000, which was to be divided equally between prefered and common stock. A pretty large sum of money in 1892! The article goes on to say that there were 13 pocket knife manufacturers in the U.S. in that year 1892.

Here is what they wanted to do, and I quote "The promoters of the present combination intend to run the price of penknives made in this country up to that of english made penknives". And here is the real kicker: "As it is now American pocket cutlery is sold for somewhat less than the best English cutlery and is inferior to the imported goods"
Well I personally disagree with that last statement about American cutlery of that era being inferior by those manufacturers!

What we have today is just the reverse, knives from China and other imported goods, They have the INFERIOR product that costs less than American made goods, just examine China made knives and you will agree. It is an absolute reversal from 1892!

The article goes on to say: "One of the reasons the scheme failed was that for the last ten years there have been but three or four cutlers who have made money"

I think that is just incredible. It goes to prove you cannot control a market, you need competition from here and abroad. We all have seen how Russian Communism worked out, check out their knives from the cold war years!

Hope this answers some questions about this article posted here.

Dimitri

[philco]

I don't think they were cheap imports Phil. They were very high quality that were priced similar to the domestic product. With generations of reputation from the buyers behind them, they had to be forced into higher prices to turn the consumers to the local product.

I think Dave Anthony has explored the tariff act. Maybe he'll add information.

Fran

Fran and everyone else,

Apparently David Anthony has explored the Tarriff Act quite extensively. The September issue of Knife World features the lead story "The Cutlery Tariff" by David L. Anthony. It is a very well written, well researched article with a lot of very interesting history for the knife collector to savor. I hope all will get a copy of this fine piece of work and hope you'll enjoy reading it as much as I just have.

Great Job David!!!

Phil

[PA Knives]

Thank you Philco for the kind words. KW was concerned that many would find this not very interesting. I hope that is not the case as it has a lot to do with our hobby even today. I throughly enjoyed the research and hope that others might want to learn more about the tariff hearings that happend a few years later. If you do, please contact KW knifepub@knifeworld.com and let them know you thoughts.

Keep watching

[rangerbluedog]

a followup to the McKinley Tariff from the 1908 Tariff hearings. See if your favorite brand is in here:

TARIFF HEARINGS BEFORE THE COMMITTEE ON WAYS AND MEANS
OF THE HOUSE OF REPRESENTATIVES
SIXTIETH CONGRESS. 1908

HON. THOMAS W. BRADLEY, M. C., FILES LETTER RELATIVE TO EVASIONS OF SECTION 8, ACT OF 1897.
Washington, D. C., December 19,1908. Hon. Sereno E. Payne,
Chairman Committee an Ways and Means,
House of Representatives, Washington, D. C.
My Dear Mr. Chairman : In response to your suggestion that I file a written brief regarding alleged outrageous evasion of section 8, tariff law of 1897, in connection with imports of articles named in paragraph 153 of said tariff law, I have the honor to submit, as such brief, annexed herewith, a copy of my letter to the honorable Secretary of the Treasury, under even date; and if you deem it consistent to request that all this matter be made a part of the printed tariff hearings, so that in case any material statement be promptly questioned, I may invoke the power of the Ways and Means Committee to summon witnesses and compel sworn testimony. With best wishes, Very respectfully,
T. W. BRADLEY.

Washington, D. C., December 19, 1908, Hon. George B. Cortelyou,
Secretary of the Treasury, Washington, D, C.
Mr Dear Mr. Secretary: In connection with outrageous evasion of section 8, tariff law of 1897,1 have the honor to file complaint and charges, as follows:
The law providing that all. imported goods shall bear the name of the country of origin was first passed in connection with the McKinley tariff, and was based on a copy of the English law submitted by me to the Ways and Means Committee.
At the time our law was framed and until about 1900 the only method of stamping the firm name, trade-mark, and county of origin on pocket knives and razors was by a steel stamp or die driven deep into the tang of the blade.
It is a matter of record that subsequent to October 9, 1890, imports of German knives were, in some cases, held up until the importer had caused the word " Germany " to be stamped with a steel die on the blade tang of each knife, and this at the appraiser's stores, under the supervision of a customs employee; all this at the importer's expense. I mention this to show that stamping deep with a steel die was the manner in which German and English knives and razors were " usually and ordinarily marked." both as to the name of country of origin, trade-mark, and firm name, and that the department enforced the real intent of the law as covered by section 8 of the tariff law of 1897.
For some time, how long I can not state, but for more than a year past German knives and razors have been passed through the port of New York with the name of the country of origin " wash stamped " instead of stamped with steel die, and have also been passed with the word " Germany " in " light etching " so shallow as to be easily buffed off. The " wash stamped " name of " Germany " being merely a composition easily wiped off with a cloth moistened with benzine. Even the firm name on front or " mark " side of blade tang is treated in same manner, so that both the name of country of origin and firm name may be easily removed and the knives and razors be then steel die stamped in this country with a name representing the product to be of American manufacture. The entire proceeding is a deliberate and carefully though-out scheme for evading the true intent of section 8. and of placing on the American market an inferior grade of German manufacture under the guise of a reputable American product.
Five hundred thousand dollars is a low estimate, in my judgment, of the amount of German " wash stamped " product imported, and evading the intent of section 8, during the year 1908. It can readily be understood that a continuance of this practice will steadily depreciate and eventually ruin the high standing of reputable American production.
Based on information and belief, I submit the following list of importers in New York City that, in my opinion, have been and still are engaged in the practice above clearly explained:
Adolph Kastor & Bros., 109 Duane street; A. L. Silberstein. 476 Broadway; F. A. Clauberg. 27 Park Place; Alex Witte, 91 Warren street; Krusius Brothers, 296 Broadway; Westre Brothers, 148 Chambers street: Max Klass, 298 Broadway; Borgfeldt & Co., Washington Square.
Both in Newark. N. J., and in New York City are workrooms to which importers send German knives and razors to have the wash stamped " Germany " buffed off, and. in some cases, to have the wash stamped name of German maker or importer buffed off and a name similar to that of some reputable American trade-mark steel stamped in lieu thereof. Bleeker and West Eleventh street, Xew York City, formerly conducted by J. W. Murray, is one place where this work has been and may now be done; 298 Broadway another.
Several importers of German knives and razors have manufacturing plants in this country or close connection with such plants, and also have close connection with manufacturing plants in Germany. The firm of Adolph Kastor & Bros., with a small factory at Camillus. N. Y., and a brother conducting or interested in a large cutlery plant in Solingen. Germany, may be referred to. Hermann Boker & Co., Duane street, New York City, have a knife factory at Newark. N. J., and are closely connected with a large cutlery manufactory in Germany; but this house, with Wiebush and Hilger, of New York City, jealous of the reputation of the goods they import, would be more likely to condemn this "wash stamp " practice than to engage in it.
Several small manufacturers of American knives and razors seek to make profit at the expense of reputation out of this "wash-stamp" practice, and either import direct or through such houses as F. A. Clauberg, 27 Park place. New York City, and Borgfeldt & Co., Washington square, New York City, or others; and removing at their factories the name of the country of origin from foreign product, offer the same, with their own American name or trade-mark stamped thereon, in common with the product of their American factories.
In my judgment, based on information and belief, the following American manufacturers do this or have recently done it:
Schatt & Morgan, Titusville, Pa., and Gowanda, N. Y.
Tidioute Razor Company, Tidioute, Pa.
Case Brothers, Little Valley, N. Y.
Cattaraugus Cutlery Company, or Champlin & Co., Little Valley, N. Y.
Some manufacturers of table cutlery, shears, and other cutlery run side lines of pocketknives and razors, as the Wiss Company, manufacturers of high-grade shears, Newark, X. J., and A. F. Bannister & Co., Newark, N. J., both of whom are familiar with the " wash-stamp " practice. In fact, it is safe to state that the country of origin, wash stamped, or steel-die stamped, is steadily buffed out, or even ground out, as a matter of course, in the Newark factory of A. F. Bannister & Co.
I have not a dollar of interest in any manufacturing industry; but in my home town of Walden, N. Y., are three manufacturing plants, producing about 50 per cent of the American output of pen and pocket knives. The people of my town depend on this industry, and I am deeply concerned for the welfare of these pocketknife operatives, whose highly skilled trade will be discredited and probably ruined if this nefarious evasion of the true intent of section 8 is permitted to continue. I therefore most earnestly request, as follows:
1. That the attention of the appraiser at every United States port of entry be called to this evasion of section 8, tariff law of 1897, and instructed to refuse entry to all imported articles named in paragraph 153 of said law that do not strictly conform to the true intent of said section 8.
2. That appraisers be instructed to rule that the true intent of section 8, " Usually and ordinarily marked, stamped,", etc., means stamped by steel die deep into the blade tang, and refers not only to the stamp of the name of the country of origin, but to the name of individual, firm, or corporation or trade-mark thereon.
3. If a department ruling in relation to section 8. as affecting all articles named in paragraph 153, has not been issued, that such ruling issue as promptly as practicable.
4. That, if the department can consistently do so, I be given a legal opinion as to the erasing of foreign stamps, the restamping with intention to misrepresent and deceive, all as above referred to. and whether there be any federal statute under which persons can be proceeded against, whether amendment to the interstate-commerce law might be made to cover such cases, or whether action under the common law is the only recourse for the consumer or manufacturer injured by the kind of deception herein complained of.
Through the consideration of Hon. Sereno E. Payne, chairman. 1 am permitted to submit all points here mentioned to Mr. Thomas J. Doherty, assistant counsel. United States Treasury Department, assigned to the Committee on Ways and Means, with a view of amending section 8, and protecting, so far as practicable, reputable American makers of pen and pocket knives and razors, and have submitted to Mr. Doherty certain exhibits of "wash-stamped" pocket knives. Such exhibits I can submit to the department, if desired. Very respectfully,
Thos. W. Bradley.

Washington, D. C., December 7.9,1908. Hon. Sereno E. Payne,
Chairman Committee on Ways and Means,
House of Representatives, Washington, D. C.
My Dear Mr. Chairman : Since the year 1900, or thereabouts, pen and pocket knives have been imported in assembled but unfinished condition. At first the knives were sent here in a very rough, unfinished state; but after the invoice value had passed the United States appraiser and become accepted, as a matter of course more finish wa8 gradually added to subsequent importations, until there remained no finishing to be done outside of color buffing, edge setting, cleaning, wrapping, and boxing.
As labor of the character required to complete the finishing of these knives in Solingen is not more than two-fifths the rate of wages paid to finishers in the United States, the chief incentive is now, and has been, to escape payment of full duties to the United State-.
There certainly is no more fertile field for undervaluation than thi? practice has thus far afforded.
This system has enlarged until importers like F. A. Glaubers, 27 Park place, and Borgfeldt mfc'Co., Washington square, New York 'City, may offer to deliver certain unfinished "wash stamped" patterns to American manufacturers at about 40 per cent less than factory cost in the United States; and business has been solicited on this basis by an importer with a view of encouraging the American manufacturer to buff off the " wash stamped " name of country of origin, etc., and, stamping in lieu thereof some American name, market the goods as an American product; thus unfairly depriving American workmen. In my judgment this unfinished business is and has been a scheme for gross undervaluation. The possibility of it was miforeseen when the tariffs of 1890, 1894, and 1897 were framed.
While I have not one penny of investment in any kind of manufacture, and have not had since first elected to Congress, my previous half century of expert acquaintance with cutlery manufacture at home and abroad has led reputable American manufacturers of pocketknives and their employees to suggest that I frame and submit to your committee an amendment to paragraph 153 that may check the undervaluation above referred to.
I therefore submit the proposed amendment on sheet annexed hereto.
Very respectfully, Thos. W. Bradley,

[philco]

Cool stuff Blue. Somehow puts me in mind of the easily removed "China" stamps seen on the tangs of many of today's imported knives............at least for a while.

Phil

[ratlesnake75]

Just Awesome information!!! thanks everyone for sharing such true history!!!---thx Mark

[peanut740]

Here's an interesting little pearl New York Knife Co that kind of fits in this old thread.Etched McKinley & Roosevelt. This would have been 1900 campaign. Wonder if Mr.Bradley of NYKC was returning a favor to McKinley?

[FRJ]

That's a beautiful little knife, Roger.

[LongBlade]

Roger - Not only a really nice knife with great etch but a cool historical connection .. I became interested in the McKinley Tariff when I was researching out the Pocket Knife Blade Grinders and Finishers Union in that time frame - really interesting times for the cutleries.. Thanks for showing that one

[RobesonsRme.com]

Roger's knife, which is fantastic by the way, reminds of a mint, candle-end, four blade pearl handled lobster, I bought off Ebay several years ago.

I have actually forgotten the maker, but it was probably Schrade.

Master blade, a spear, was very nicely etched "HERBERT HOOVER".

I was the only bidder and bought it for just a few dollars. It was a no reserve auction.

I took it to the knife show in Dalton and sold it to a dealer for many times what I had paid.

I honestly believe no one else thought Herbert Hoover etched on the knife was a significant factor.

Charlie Noyes