No. 216.] 129 



superintendence, &c. &c , but particularly in avoiding numerous 

 charges for commissions, guarantees, &c., consequent upon the fre- 

 quent changes of ownership, by the system as now pursued; we give 

 below an example of how seriously profits are reduced by having to 

 pay said commissions. For instance, a manufacturer of wire in 

 Rockland county sends to New- York 5 tons per day, upon which 

 allowing nothing for commissions on purchase and sales, his profits 

 are $20 per ton. 



In the first place, however, the manufacturer buys his stock of 

 raw materials, (coal and iron,) in Pennsylvania or elsewhere, and 

 makes his draft on his commission merchant for the amount, and is 

 charged, say 2| per cent., for their acceptance of such drafts. The 

 material is then manufactured and sent to the commission house for 

 sale, is charged as follows: 



Sold 5 tons wire at 6 cents, is - $600 00 



Casting to be manufactured as follows: 



3 tons anthracite coal, at $4, $12 00 



5 tons coiled rods, at $75, 375 00 



Labor, &c., per ton, at $20, 100 00 



Cost of making 5 tons, including waste, acc't, 487 GO 



$113 00 



Deduct commissions on purchase, - $9 67 



do do sales, 60 00 



69 67 



Nett profits to manufacturer, $43 33 



By the preceding, which is not an unusual case by any means, it 

 will be seen that the man who lends his credit to the manufacturer 

 has made one-third more out of the operation, than the man who has 

 done the hard work. It shows very conclusively that the fewer the 

 changes of ownership before an article reaches the consumer, the 

 cheaper the same is brought to him. 



A single commission is allowable ; more is not, and under some 

 circumstances would prevent the production of the article itself alto- 

 gether. 



[Am. Ins.] J 



