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MEMORIAL 
 
 OF TlIK- 
 
 Landoiiderry Iron Companv. Ltd. 
 
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 Presented to the Taritf Cimimission at Halifax. 
 
 
 • ■ . • 
 
 
 'i. . 
 

■■■ 
 
 warn 
 
 To the Honorable Board of Tariff Commissioners of Canada : 
 
 The Lon<Jon.Jerry Iron Co., Ltd., of Londonderry, N. S., does not appear before you 
 with any idea of dictating any certain policy as to the tariff, but to ask you to consider 
 its present vested interests, as well as tha intere^.tr. of those citizens of our section more 
 or loss dependent upon the operations of this company. Our interests are basL-d on a 
 protective tnriff and we respectfully urge upon you : 
 
 First. That in our opinion a reduction of duty on 'm:^ at the present time would 
 not be beneficial to the country at large, would seriously affect our interests, owing to 
 the keen competition of foi.ign products, and be almost certain to close down a large 
 part of our iron plant, thus causing great hardship to a very large number of employees, 
 their families and the .surrounding population, more or less dependent for their support 
 upon the operations of this plant. 
 
 Second. Should, however, you deem it wise and necessary to make any changes in 
 duty or bountv, that then you give us time or opportunity, to .so adjust our affairs to 
 such changes, as to enable us, if possible, to properly meet them when do they occur. 
 
 Third, To so arrange the tariff rates that they shall be of as uniform a character 
 on every article as is possible to obtain with a specific duty. 
 
 Fourth. That in forming the tariff laws ycu do so in such a manner, as to keep in 
 view more particularly, that whatever duty you place on any article, it shall he a pro- 
 tection according to the labor which is put into that article from its raw material up, so 
 that your tariff" .system shall be a real protection to your laboring, commercial and 
 citizen classes, as well as the manufacturing interests and their owners. 
 
 Fifth, that your Board constantly keep in view that the lower provinces are 
 larcrely producers of raw material, and that the great distances from their markets is 
 on^of the prime causes why they cannot meet competition except through an adequate 
 system of protection. 
 
 We feel that by carefully considering these petitions you will .serve the interests of 
 those citizens who form the bulk of the voting masses, and upon whom the system of 
 free government by the people is really based ; and, while it may not meet the views of 
 all mlinufacturing interests, yet we will try to place the matter before you in such a way 
 as to convince yon that the position tiken by us is the correct one, namely, that any 
 system of tariff, whether high or low, is inadequate and unjust unless based upon the 
 amount of labor e.xpended in the country upon the articles so protected. The object of 
 the tariff system, high or low, is, first : to raise the revenue ; second ; to procure employ- 
 ment and put money into circulation among the masses of the people that form or 
 unforrn a governinent, and naturally manufacturers receive their proportion of gain by 
 such a system : this depending on the rate of the duty put on the various articles, 
 and anything that gives more or less encouragement to the investment of capital 
 in industrial enterprises increases the earning capacity of the majority of citizens, for 
 
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 no labor can be employed without capital expenditure, and after all the bulk of money 
 going into the manufacturing of any article is bound to go into the hands of the 
 employees, and through them to the community at large, and hence any serious jet-back 
 will afi'ect these neopie much more largely and disastrously as a rule, than those who 
 have put their money into the establishments. 
 
 We now beg to be allowed to set before you some facts and figures connected with 
 the Londonderry Iron Company's plant, at Londonderry, Nova Scotia. 
 
 Since its inception the company has expended in plant some $3,000,000 to 
 $4,000,000 ; the greater part of this amount has been circulated through the Lower 
 Provinces in payment for labor and material, for constructing the many and varied plants, 
 of which some have proved unsuccessful and been dismantled, though the people of this 
 «i>ction have received and distributed their proportion of such expenditures. 
 
 The company has further expended in its operation during the last twenty years 
 $9,237,799, the details of which are shown in Exhibit " A." This was almost entirely 
 for labor in mining coal, ore, limestone, digging sand, clay, etc., cutting timber, paying 
 freights, buying materials and stores, largely in the lower provinces, and indicating a 
 distribution all over these provinces, though mainly in Colchester, Cumberland and 
 Pictou counties. 
 
 When in full operation the Londonderry Iron Company employs directly some 
 seven to eight hundred men in its ore and coal mines, railroads, coke ovens, blast 
 furnaces, puddling furnaces, bar and sheet mills, pipe shops, foundry and machine shops, 
 lumbering and many minor operations. This means a population of some 3,000 to 4,000 
 people, and the expenditure of about $300,000 per annum for wages ; this money con- 
 tributes to the support of the commercial, professional and agricultural interests of 
 Acadia Mines, Truro, Great Village.. Folly Village and all the surrounding sections of 
 country, even Halifax. 
 
 In addition, the Londonderry Company buys coal, ore and limestone outside of 
 Londonderry to the amount of 96,000 tons per annum, involving about $135,0C0, which 
 means a distribution of this amount among about 350 miners, involving a further 
 population of about .'800 persons, in Springhill, Stellarton, Westville, Brookfield, 
 Annapolis Va!ley and other points. 
 
 In addition to this the Londonderry Iron Company's business means a revenue of 
 $100,000 per annum to the Intercolonial Railway and connecting lines, a very important 
 factor to the government, as most of this freight is in the nature of carload lots, involving 
 the least amount of labor and cost in handling, and thu^ contributing its proportion to 
 the employment of labor on the railroad. 
 
 These few data will give your Honorable Board a fair i'lea of the extent of the 
 operations of the Londonderry Iron Company, limited, and we therefore urge upon your 
 Honorable Board not to make any changes in the tariH' laws that would tend to 
 seriously interfere with the continued operations of this plant. We might state that the 
 
3 
 
 very uncertainty of the poverniiient's action in tariff matters has caused our CDmpany to 
 delay the rebuilding and reUiOdeiing of its furnaces, the reopeninf* of its mines, and 
 preparing for its supplies of improved coke and other raw materials ; all of which has 
 been studied and plans and specification completed. These improvements would have 
 brought intn direct circulation some §25,000 or $85,000 and given employ ment to a 
 large number of men, to whom the enforced idleness, through this uncertainty tind the 
 necessary inaction of the company, is far more serious than to the company itself. If 
 the company could be assured that no changes would be made, or, that whatever chani^'es 
 it was deemed wise to make, would be made gradually and in such a manner ns to give 
 it time to prepare for them, if possible, by improved methods to help lower the costs, or 
 that any reduction in tariff woidd be met by nn increase in bounty, then there would be 
 no difficulty in so arranging matters as to proceed with these contemplated repairs and 
 improvements and restart the plant in all its branches. 
 
 This covers the first two pleas of our petition. The third is that the tariff' shall be 
 of as uniform a character as possible, and that the duty be specific and not advalorei.i. 
 We make this suggestion because it is well known that advalorem duties are a constant 
 temptation to undervaluations, and to all acquainted with customs affairs it i- an 
 unfortunate and imdeniable fact, that such undervaluations constantly do occur and are 
 hard to detect A^ide from this, advaloreiu duties bring in a much smaller revenue when 
 prices are low, and protection is most needed, than when prices are high and protection 
 is not necessary. In tact, advalorem duties at such times are likely to be prohibitory 
 and the revenues of the country are likely to be at a very low ebb just when they are 
 most needed in hard times ; furthermore, it is very difficult to li itermine what is the 
 value for an advalorem duty upon articles manufactured at such wi<Je ranges of prices 
 and distances as is the case, for instance, in iron and steel in the States, unless y. .. take 
 the value of the article delivered at the border. The southern iron car be laid dow.i at 
 furnace for S5.00 to S6.00 per ton ; freight to Canada is altout S5.00, making a value of 
 $10.00 to $11.00 per ton at the border, yet an invoice value of $5.00 to $6.00. On the 
 other hand, iron at Buffalo can be laid down at furnace for $9.00 to $11.00 per ton 
 (invoice value) with freight, say 50 cents to $1.00 per ton, making total price $10.00 per 
 ton at border. Now if you charge, say 30 per cent, duty on in"nice value, then the 
 southern iron pays but $1.50 to $1,80 per ton duty, making its price, duty paid, not 
 exceeding $12 80 laid down at border ; while the Buffalo iron pays $3.00 to 3.60 per ton 
 duty, making its price, duty paid, not exceeding $16.50 per ton at border, which is a 
 discrimination of $2.80 per ton in favor of southern iron. Natural ly Canadians would 
 only buy .southnin iron, and pay the low rate of duty, and the government would find its 
 revenues reduced ju.st to that extent. 
 
 The fourth petition suggests that whatever duties may be imposed on the iron pro- 
 duets, these l)e in direct proportion to the amount of labor which is employed on any 
 article from its raw material up. This is the only way to get adequate protection for the 
 labor of this country; and I can only refer you to the most excellent and claar .state, 
 laents made by Mr. A. T. Paterson, of Montreal, on this subject, which is marked exhibit 
 " B" You will note it refers especially to duties on wrought scrap iron, from which bar 
 
•■■t 
 
iron its inaile ; ami aw we are lur^'e iiiariufuctuicMs tif puUdleiJ bar, employing tlieioby a 
 larjfe amount of com|)iiriitively higli-priced labor, and enabling un to work up those 
 grades of pi;^ iron wliicli aiu not adapted to foundry purposes, but e.speci.tlly adapted for 
 making puddled bai, tlm matter is one of essenti il imp .tunce to u*. In explanation of 
 thia request for an increased duty on wrought Ncraj), I might say that in operating a 
 blast furnace it is impossible to so control its operations thai, all iion made is fit lor 
 foundry purposes; hence a certain proportion of the make, depemling largely upon the 
 uniformity of the materials used, such as coke, ore, etc., as also on the working conditions 
 of the furnace, is bound to bo iron not suitable for foundry purposes, but will suit for 
 mill or pipt! shop purposes. This iron costs just as much as foundry iron, and must be 
 used, or the furnace man cannot continue his operations. In every iron-making country 
 this is the case, and due care is taken to find an outlet for it. Here we have only two 
 outlets; a part is well adapted for use in pmldling furnaces, another part for use in the 
 manufacture of cast iron pipe. Cut off these two sources through any reductions in tariff, 
 or through discrimination in duty on wrought scrap which replaces this puddled bar, and 
 you simply force the furnace to either ':tock the e grades or go out of blast. Of course 
 the latter is the ultimate result, as no one can stock any largo q'nmtity of such material. 
 This, then, means thai all labor employed in mining or developing mines of ore, lime- 
 stone, and a certain proportion of coal, must stop, as well as all coking operations 
 and furnace labor. A large proportion of thf revenue to the railroad is cut off, and all in 
 all a large number of the citizens are forced to seek other outlets for their labor, in order 
 to enable bar iron m.tkers to get a cheap raw material upon which little or no (Canadian 
 labor has V>een expended ; ajd yet after it is worked up into finished product, they will 
 get just as much protection as they would for bar iron made out of Canadian puddled 
 bar, made fro..i Canadian pig, smelted from Canadian ores and coal, — all of which must 
 therefore be cut off. There is not a particle of jnstice in thi-s, and we most earnestly pray 
 that this Government regulate and correct this blot on the iron tariff of Canada. In 
 connection w'th this it l-icomes necessary to refute some of the wild statements made in 
 Upper Canada by parf' s who should have known better, that no puddled bar could be 
 obtained in Canaila that was fit to use or would make a first-class bar iron. We deny 
 these statements in toto, and are prepared to prove before your honorallo ooard, 
 or before Parliament if necessary, that the Londonderry Iron Company has m^ e and 
 does make a puddled bar as good and better than any that is imported for bar iron 
 purposes, and that thousands of tons have been sold and used satisfactorily, making 
 excellent bar iron and that the Londonderry Iron Company is at present making 
 bar iron out of its own puddled bar, and i." prepared to have its quality tested 
 and examined under Government supervision, if necessary, in order to demonstrate 
 the unreliability of these statements. It is our contention, furthermore, that we 
 do not pose as a monopoly in the matter oV making puddle<l bar, but that any 
 and and all of the mills are welcome to put in puddling furnaces in connection with 
 their plants, and make (heir own puddled bar; that we, as well as other pig iron manu- 
 facturers, are willing to furnish the special grades of pig iron at much lower rates than 
 charged to the foundrymen, in order to work them up as fast as they are made. Any 
 such move would greatly increase the employment giving re)Tources of Canada. But as 
 
mmmm 
 
 long ay the Londonderry Iron Company is the only one that has yone into the heavy 
 expenditure of a complete pinldling plant, so long should its own interests and those of 
 its own employees in this department be guarded by the government a.;ainst the cheap 
 non-kbor enploying wrought scrap. 
 
 The very same remarks apply to claims as to' the unfitness of Cnnaditin pig iron, 
 which are as absurd as thev arc incorrect, and ina<ie tor the purpose of misleading your 
 Honorable Board for the sake of selHsh interestst. The thousands of tons used uunu dly 
 by all the foundries in this country and our own experience in using nothing but (lur 
 own pig iron in all classes of castings are ainplo refutation of these scatements. 
 
 Another suggestion we have to make is that the 'iaritt on cast iron pipes be retained 
 at the present figure owing to the fact that a portion of those grades of pig iron wlii'ih 
 are neither suitable for foundry or mill purposes, are excellently adapted for this class of 
 worK, and a large industry has sprung up which consumes the greater portion of this 
 special grade of pig unsuited for other work. Besides, our plants here have not the large 
 output of the American and Scotch plants owing to the smaller proportion of population 
 here, and hence these foreign plants are able to make pipe at figures that would render 
 it impostible for us to compete with them without adequate protection ; and as this 
 industry is a growing one, paying a comparatively high rate of wages, it is one of con- 
 siderable importance to the commercial and laboring classes. 
 
 We feai we have trespassed upon your very valuable time more than we should, 
 an<l have but few more remarks to make. 
 
 In reference to our fifth petition we need not say much. You know we are all largely 
 the raw material producers of Canada. Our friends in the West complain that our 
 prices are too high — yet that is largely due to the heavy freight rates .we have to pay, 
 owing to the peculiar geographical situation of Canada. 
 
 We will say nothing here about prices of all products of iron before and since the 
 introduction of protective taritt; statistics of all countries show a most wonderful 
 reduction in prices in all lines within the last 20 or 2.5 years; steel rails from $60.00 and 
 higher to $30.00 and less per ton ; pig iron from $2.5.00 and $30.00 per ton to $15.00 per 
 ton ; bar iron from $50.00 to $30 00 per ton. All these reductions can be verified by any 
 statistical review accessible to your Honorable Board. 
 
 We desire to draw your attention also to the taxes paid by the Londonderry Iron 
 Company, which annually amount to ibout $2000 all in all, and any diminution of 
 which, through our intibility to continue operations owing to tariff changes, would be 
 seriously felt in our surrounding counties and increase the taxation of the present 
 population. 
 
 The.-e - but one more statement we desire to meet, and that is the .statement that 
 the company has made no money, and hence should not be upheld or coddled, if unable 
 to do so. This is only true in a sense. In the high priced years of 1S87 to 1891 the 
 company made ooosiderable muney, some $123,000, though, during the depressiou biuce 
 
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 1891, they lost money until the fall of 1895; yet they kept in partial operation, Inrgely 
 for the sake of their employees; nut wi^hintj to scat er their orii;HLnizatioii. The la^t half 
 of ISO) be<,'an to show a profit, and the in'iieitions are that !89G will also show a fair 
 proHt, imiicating that thoy are able to hold their own even in times like these, with the 
 proper encouragement from the Givernment; but also indicating that they would be 
 u lalde to stand any material reduction which might not be offset by an increase in the 
 bouMtj'. 
 
 In view of all the above, therefore we pray that the Government may, first, leave 
 the duties on iron products, with the exceptiim of wrought scrap, as they are. Second, 
 put a duty on wrought scrap that will be equivalent to that on putldlfd bar; or third, 
 make whatever changes it deems wise to introduce slowly and j^radually, and carefully 
 consider the advisability in that case of adding to the bounty whatever reduction may 
 be made in the duty. 
 

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 Exhibit B. 
 
 MEMORANDUM re DUTY ON WllOT. SCRAP IRON. 
 
 Read at Ottawa, February, 1889. 
 
 Montreal, 21st February, 1889. 
 
 I ask that the duty of S2 per ton now levied on wrought scrap iron 'ae increased, for 
 the following reasons, viz. : — 
 
 Ist. Because it is too low, relatively, to the duties on other articles ; that it is thu» 
 inconsistent with the principle of uniform protection to labor, on which our Nitional 
 Policy Tariff is and should he based, and that this unfair duty has the effect of throwing 
 an undue profit into the pockets of a few individuals, at the expense of the C( nsuiner nnd 
 the general public, and seriously endangers the whole system of protection, by enabling 
 its opponents to prove their oft repeated assertion, that the National Policy is not in- 
 tended to protect labor, but is merely a scheme to put money into the pockets of a few 
 employers of labor. 
 
 2nd. Because this unfair duty entirely frustrates the object the Government an- 
 nounced they had in view in re-adjusting the iron duties two years ago, which was to 
 develop the manufacture of iron in Canadn, from Canadian ore, fuel, Ac, by aHording an 
 uniform protection to the labor e'TnDlo5'ed in each branch or stage of the industry, equiv- 
 alent to the difference in cost be . jen European and Canadian wages 
 
 In proof of these statements I submit the following facts and arguments : — 
 
 The first and most crude form in which iron exists as a merchantable commodity is 
 that of pig iron, on which our duty is $4 per ton, and I submit that it is entirely inron- 
 sistent with protectionist principles to admit a more finished grade of iron, upon which 
 a great deal more labor has been expended at one-half the duty imposed on pig iron, and 
 as it co.sts about $12.75 to produce pig iron in Canada, the protection given to the (!an- 
 bJain labor employed is about 31J p. c. 
 
 Setting aside castings, which is a distinct branch of iron manufacture not involved 
 in this discusi.son, the next stage of manufacture in its progress towards fini.shed iron is 
 that of puddled bars. To convert a ton of pig iron into a ton of puddled bar in Cnnada, 
 costs $13.00, and our duty on puddled bar beinff S9.00, as against St 00 on pig, the dif- 
 ference of $5.00 gives to the labor employed in making puddled bar a protection 
 of 38|p. c. 
 
 The third and final stage is the conversion of puddled bar into bar iron, .sheets, hoops, 
 or nail plate, which co.sts in Canada SIOOO per ton, and our duty on these being 81300, 
 
 as against on puddled bar ?9 00, the oitferenc of $4.00 gives 40 i'. e. 
 
 protection to the labor employed in this process. 
 
.a. 
 
10 
 
 It will be observed that these duties are not mathematically correct, and that the 
 percenta^ro of protection to labor in higher in the more advonce'l than in the eailier 
 8ta{»es of tilt" iniiniit'acture, but specific liuties are tixe<i while the cost of labor Huctuatea, 
 and they cannot therefoie be expected to be always uniform to the cost of labor. 
 
 Upon the whole, our duties on pig iron, puddled bar, and bar iron, plate and sheets 
 are frtirly accurate. Free traders think theni high, but udi.iit that they are not unequal, 
 and tbul fioui a proleciiuni^t point of view the tales imposed un these articles are fairly 
 proportioned. 
 
 I have shewn that the difference in duty between Puddled Bar and Bars; Hoop, 
 Sheet or Plate Iron made from it is $400 per ton, and that it afToids a protection to the 
 labor empioyed in the process of .. ..40 p. c, which is relatively high to the protection 
 on labor employe<l in the earlier stages of nmnufacturf, or inileed to the ideal rate 
 necessary to equalize European and Canadian labor, which was 50 p. c. on the former, or 
 33i^ p. c. on the latter, but it .so happens that Bar, Hoop, Plate or Sheet Iron can be 
 made out of what is called Wrought Scrap as well as out of Puddled Bar, and the 
 question arises what should the duty on this Hub;ititute be t 
 
 My answer is, it should be such as to afford just the same degree of protection to 
 the labor necessary to convert it into Bar, Plate, Hoop or Sheet Iron, as is given to the 
 labor npces.sHry to produce the same articles from Puddled Bars, viz., 40 p. c. Now let 
 us see what Wrought. Scrap Iron is; what it costs to convert it into Bars, Hoops, etc., 
 and what percentage of protection our present scale of duties affords to the labor 
 empioyed in tliat process. 
 
 Wrought Scrap is Iron which has already arrived at the third stage of manufacture, 
 (havinj; been made out of Pig Iron and Puddled Bar), but it either has been in nse or 
 has been cul off from bars or sheets ma<le too large for the purpose to which they were 
 to be af>pli(d. It is therefore already finished Iron, but requires to be reshaped to adapt 
 it for use. 
 
 If a piece of Scrap Iron is large enough, it only requiies to be heated once and 
 rolled into the desired form to convert it into a Bar, Hoop, or sheet, and being already 
 more tinished and less impure than Puddled Bar, it requires less work to ettect the 
 change, which is in fact merely an alteration of shape, and not as in the case of Puddled 
 Bar, an improvement of quality also, 
 
 If Scrap Iron is not large enough to be made directly into the desired form of Bar, 
 Hoop or Sheet, it may be used in two ways : 
 
 1st. In conjuncion with two or more larger pieces, tilling up vacancies between 
 them, in which case it is identical with the larger pieces, requiring only one heat, or 
 
 2nd It is made into a Scrap Bar or Billet, which is then again make into the Bar, 
 Hoop, or Sheet required, — this process requires two heats. 
 
 The cost in (.'inada of the lirst of these proce.sses, viz : the direct conversion of 
 scrap by one heat into bar, hoop or sheet iron, I believe does not exceed S8 per ton, 
 and I have lieaid it claimed that it can done for $6 per ton, but lor the sake of this 
 ar<fuua'nt I aui willing to assume that if costs as much as to make the same article from 
 
! 
 
11 
 
 i 
 
 ptiildled bar, Hay $10 per tun, 
 
 ami as the <lut} on this Horap is only 8 2 
 
 while the dnty on the proiliict of it is 13 
 
 the protection is 3^1 ] equivalent to 110 per cent, upon the 
 
 labor employed. 
 
 It' the co.st i.i $H, the protection i:i still $11 -^ 140 per cent, and if the cost is SO, f'.e 
 protection is still $11 -183 per cent. 
 
 Apain, the cost in Cannda of tlie .-ycond mode of ilealing with scrap iron i.s about 
 $14 per ton, anti us the diHerence in duty is $11 as above, the protection to the labor 
 employed is Kjuivalent to about 79 \>fr cent. The fuft^ that hibor in Cunntla costs so 
 much more than in Europe, naturnlly causes our people to buy the firs't class of scrnp in 
 preference to the soconfl, ever if they piiv rather more for it than a European uiHnu- 
 facturer would, and I believe 1 am well within the mark when I tay that two-thirds of 
 the scrap iujporterl into Canada is of the tirst class. 
 
 Takinij it at that ratio (two-thirds and one-third) the averafje labor ccst of 
 converting scrap into bars, plates, &c., will be $11^ per ton and that the protection on 
 
 il $11.... r 9!)3 per cent, a rate entirely out of unison 
 
 with the proi,ectif)n given to labor employed in any other branch if the industry, and 
 undue excess of protection does not att'ect wiiges, for if they were raised in proportion we 
 should at once be flooded with operatives from the United States. 
 
 This unfair duty merely aHords un o-xtra profit to the manufacturer who works 
 scrap, at the expense of the revenue or consumer, and crushes out the manufacture of 
 iron fiom pmldled bar, thus defeating the object the Government had in view in read- 
 justing the tarirt'two years ago. 
 
 1 think that unless my facts and Hgures can be disproved, and I am certain thr.t is 
 impossible, they prove the justice of the request I have made, and I anticipate that the 
 opposition to it will take the form of an argument lather against the policy of m&king 
 an?/ change in the duties, than to attempt to show that the scrap duty is equitable. I 
 expect to hear it said, that to make the change wouM upset everything connected with 
 the iron timie, and that it would be unfair to capita! which has haen invested in the faith 
 of the pre>ent scale of duties, and so on. 
 
 Now my answer to that is, it was distinctly i.ecliTcii by thu Finance Minister two 
 years ago, that tlii-< scrap duty was unfair, and that it was uierely a temporary measure. 
 
 Everyone therefore has had ai/iple notice that the change was impending, and no 
 one can complain if it is made. Besides this, I would say that every year an abuse is 
 permitted to exist increases the difficulty of rectifyir.g it. 
 
 Thm 1 expect to hear of the vast interests which will bt im[ierilled bj' any change. 
 I have, in fact, already seen a statement in a newspaper to the eflfect that my request was 
 opposed by a representation of $2,900,000 capital and 2,500 men. 
 
 Now such statements are mislealing. Very probably the concerns which oppose me 
 represent these Hgures, but their capital and their employees are engaged in many other 
 industries, each of which has its own separate protection, and I doubt if there aio 500 
 men employed by the whole of them in rolling iron. If, however, they had 5000 men 
 employed in roiling iron, I deny that the increase in the scrap duty asked for should 
 
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 1 
 
 ■•m<i(,iyffpit,t:/M,im'ifm:mmtflammm/ii0fmif^ 
 

 necessitate the fiischarfre of one of them. Why should it, when the full measure of 
 protection to which that labor is entitled, say 40 per cent, would still remain ? Another 
 objection will no doubt be, that there is not enouyh puddled bar made in the country to 
 supply the deinaml — quite *rue, and what is more there will be less and less puddled bar 
 made every month that t is unfairly low duty on a sub.«titute for it, is permitted «9 
 exist. As a matter of fact, only half the quantity of iron is being puddled now that 
 there was six months aojo. 
 
 But whiit rifjht has a rollinjj mill, which enjoys $13 duty on its product, to ohjc^j 
 to pay 89 tluty on its raw material : clearly none. If it asks '0 get in its raw material 
 free, or at a I w duty, it shouM bb prepared to see the duty on its products reduced in 
 the same proportion, so that its protection may remain %V. If this is not done, — if the 
 full duty on the product is i»mintained, and thh duty on the material used 'w removed or 
 reduced, it is clear that the c>nsuuier remains burdened with the whole dutv piuper to 
 protect and develop both stai;e.s of manufacture, while the country only benefits by the 
 estalilishinent of one, the protection of which <s double I, and all chance of establishing 
 the other is lost. Whereas, if the duties are preserved both on the raw material and on 
 its product, the revenue gets the btnefit of the duty on the former so long as »t is not 
 made in the country, and the consumer is therefore relieved from paying taxes on some 
 other article. The fact that the duty exists tend-e to establish the production of the ma- 
 terinl, and tl^w manufacturer who uses it, having the protection to which he is entitled 
 throii^rh tho diii..i-ence in duty between the raw material and its finished product, has 
 nothing to complain of; indeed I believe the change would increase the number of hands 
 they employ, by causing them to add puddling to their other departments. 
 
 It may seem an exaggeration to those who have not thoroughly studied the question, 
 yet it is true, that this one flaw in the tariff, or as Sir Charles Tupper himself ^spressed 
 it, " this blot" cflectually destroys the harmony and defeats the intention of the other 
 duties, and unti! it is rectified, the object the Government had in view in imposing them 
 cannot be realized. 1 hope I have made myself intelligible, but if there is any poin* on 
 which [ have failed to do so, I shall be happy to ondeavor to explain it. 
 
 Thanking you for your patient hearing, 
 
 (Sgd.) 
 
 A. T. PATERSON.