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In addition to these, there has been received from sales of land' $165,168.74, and there has been expended for land and damages, $178,698.02; for particular statement (see. Doc. No. 27, pages 9 to 21), that the cost and value of wells, pump houses, reservoirs, con duits, offices and erections of the State (see Doc. No. 27, page 5), is $311,710.
This is an abstract statement of the facts proven before the com. mittee, and some estimates of the Superintendent of the Onondaga Salt Company. The facts will not be disputed, at least by the Salt Company or manufacturers, as they furnished all but those from the State records. As to their estimates, we shall have something to say.
The undersigned has been thus particular to state these facts, be. cause of the great disagreement among the committee with regard to the subject referred to them, so that, although he may not be able to find out any remedy, he may yet furnish the facts from wbich the Convention may the better determine upon the question. His excuse for so particular a statement in relation to the Onondaga Salt Company, is that its history is the history of the entire salt manufacture ever since it was organized, and because the undersigned believes that the operation of the monopoly created by its organization and maintained by it ever since, has been detrimental to the interests of the people of the whole State, although it has been very profitable to all persons interested in the manufacture of salt, and hence to all interests connected therewith. From these facts thus established, the undersigned has deduced the following tables, which he believes to be correct.
It will be observed, that in the calculation as to the cost of manu. facture of salt, both coarse and fine, the amount allowed for rent differs in the tables of the undersigned from the statement of the Superintendent of the Salt Company. The difference arises in this: The undersigned calculates his tables from the actual rent paid by the Onondaga Salt Company, as returned by them, viz.: on $1,618,640.00, for coarse salt property, and $1,777,613.76 for fine salt property, while the calculation of the Superintendent is made on his valuation of the present value of said property, viz. : $2,195,469.00 on coarse salt property, and $2,303,500.00 for fine salt property. The undersigned submits that, if the Salt Company wish to make a return o
the actual cost, they should base it on what they actually pay, and that it is not just, by monopoly, to increase the price of salt, and because of this increase in price to increase the valuation of tho property, and then calculate the rental on this increased appraised value, as a part of the cost of production, to account for the increased price produced by monopoly. With these suggestions, he submits the tables, viz:
TABLE No. 1, Showing the average production of fine salt blocks during year 1866, and cost of work and coal to manufacture the same : 214 blocks were operated, producing the average...
25,477 bus. During 1862 and 1866 the average production of
each block daily was 233 bus. If, therefore, it was operated 210 days, or continuously during the season, each block would produce
48,930 106 would produce...
which is the entire production of 1866. Hence to produco all in 1866 only required 106 blocks; balance of 206 blocks useless.
The price paid for manufacture was
19 cents. If the blocks are operated as in 1866, producing 25,447 bushels. in season, the allowance for repairs on block worth average $5,000, will be ....
$254 47 Allowance for superintendence.
318 09 If the blocks were operated continuously through season,
producing 48,930 bushels, allowance for repairs would be ....
489 30 Allowance for superintendence ...
611 62 This shows that 19 cents pays liberally for manufacture, repairs and superintendence, and in addition to this the owner gets 12 1-2 per cent on valuation.
TABLE No. 2, Showing how much should be allowed per barrel for the manufacture of salt by the Onondaga Salt Company in order to pay dividends upon the whole property leased by them, that portion of the salt blocks necessary to us, and upon the capital stock invested, as determined by the manufacture of 1866. The whole number of barrels made was 1,431,701, of which 1,036,064 was fine salt, and 395,637 was coarse. The valuation of fine salt property on which rent was paid was $1,777,613.76; of coarse salt property $1,618,640.00 :
Showing average cost per barrel for manufacture of salt by Onondaga Salt Company for year 1866, and also what it would cost if this Company paid 7 per cent instead of 12 per cent on their leases, or ten per cent on the leases of 106 blocks, which would make all the fine salt if kept continuously at work:
1.816 1.512 1.72 1.286
TABLE No. 4, Showing the average net price at which salt was sold by the Onondaga Salt Company during the year 1866 in different markets. The price per barrel that the residents of this State (except N. Y. river counties and some south-eastern counties) paid more than non-residents of different markets, and the aggregate excess in price thus paid. The amount sold in State market at $2.35 was 414,358, of which at least 350,000 bbls. were thus sold to inhabitants of this State :
P.S.—This table is made up from the returns of the officers of the Onondaga Salt Company, with this single exception : They charge home market with 10 cents per barrel for taxes and home office expenses, and put no such charge on salt for other markets. This table divides it and puts 5 cents per bbl. for such expenses on all sold.
TABLE No. 5, Showing profits made by the “Onondaga Salt Company” on the 350,000 barrels (of the 414,358 barrels returned as State) sold to the inhabitants of this State where this Company controls the price without competition. It is calculated on 260,000 barrels fine, 90,000 barrels coarse salt, which is in proportion to entire manufacture. The capital stock is... $320,000, 10 per ct.,... $32,000 00
surplus is.... $768,023 18
$116,802 308 7. per cent, ....
The whole number of barrels manufactured was 1,431,701, wbich makes the allowance on each barrel, to pay 10 per cent on capital stock, and 7 per cent on surplus and borrowed money, 8 cents.
The cost of manufacturing barrel of fine salt, paying 124 per cent on all leases, was (table No. 3),......
$1.81 5 Add for use of capital stock and surplus,
Makes total cost,
The cost of manufacturing coarse salt per barrel, paying 12% per ct. on leases, was (table No. 3),.....
$1.51 2 Add for use of capital stock, surplus, &c.,...
Total cost of barrel of coarse salt,..
But 260,000 barrels fine salt at $1.89.5, will cost .... $492,700 00
90,000 barrels coarse salt at $1.59.2, will cost.. 143,280 00
But the 350,000 sold for $2.35=$822,500.00, leaving
a profit of....
Hence the clear profit on the salt sold the inhabitants in the home market was $186,520.00, over and above and after paying 123 per cent clear on all the real estate, 10 per cent on stock, and 7 per cent on surplus and borrowed money.
If the Salt Company had only paid 7 per cent net on the valu. ation, in leases, then the cost of manufucture per barrel fine salt would be (table No. 3),..... Add for use of capital stock and surplus, &c.,.
08 Total cost fine salt per barrel,
The cost of manufacture per barrel of coarse salt would te (table No. 3), .....
.. $1.28 6 Add for use of capital stock, surplus, &c.,...
.08 0 Total cost coarse salt per barrel,
$1.36 6 (Cox. No. 162.)