Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1889-07-15
THR LOGIC oE PROTECTION

We present in this issue, from the Stock
ton Mail of July 9th, an editorial under
the heading "Protection in New Aspect. y
and commend its perusal to our readers. 1t
will be found to present that breadth OF
intelligence, strength of statement and
lucidity of treatment, which is SO charac-
teristic of our contemporaries editorial
work.
1t shows that the Canadian road has
been subsidized to an equivalent of $780,
0oO,0OO. This subsidy was in the nature
of direct gifts from the Imperial and Do
mlnlon Governments, and not loan. or
any other form of aid, which. as
in the case OF the American roads.
was an obligation to be re-
turned with interest at future tim ;.
1t shows that the Canadian road is exempt
from taxation, and that the entire interest
charged against it amounts to but $685. per
mile. To this, however our contemporary
might have added that the large land
grant, yet .unrealized upon, will eventually
retire the small bonded Indebtedness of
the Canadian road and leave it free of
debt
The second term of the statement pre-
sents the American roads as sustaining
securities by an interest rate which
amounts to 1,4S3 per mile. The differ
ence ($S2S per mile) being multiplied by
the mileage, gives the Canadian road
yearly advantage of S24 100000.
By reason of the requirement that
transcontinental roads, aided by the Gov
eminent, should purchase their iron in
America, and by reason of the tariff, the
cost of railroad iron in this country was
very greatly advanced.
Now it should be patent to the meanest
capacity that the cost of constructing an
instrumentality of transportation is a per-
manent charge against transpor tation.
The additional cost which enters into the
construction of railroad, is the founda-
ton of perpetual annual cost in maintain
ing its securities, and that annual cost is
necessarily charged to transportation.
Thus, TO the end that the American man
ufacturer of railroad steel shall have a
higher price for it, and under the hypo-
critical pretense that the object of making
such higher price is to maintain higher
scale of wages in America, the productive
industries of the country are perpetuallv
taxed to pay interest on the additional
cost consequent upon high protection.
The subsidy, therefore, which the tariff
affords, does not end with its payment, but
the additional cost which enters into the
fixed capital of enterprise must earn a
perpetual reward. Since all the elements
which enter into the construction, main
tenance and operation of railroads in the
United States, enjoy an average protection
equal to 81 per cent, the spectacle of per-
uniting the commerce of the country be-
tween the States to be carried upon British
soil, and under free trade conditions, is
extremely grotesque.
The position of New England in this
controversy is characteristic of the whole
system of protection. The New England
people declare that they never will sub
NIT to any curtailment of the privileges
which they now enjoy through the use Of
.Ia Ca~o1;o, Dao;Eo po;I.o,1 IT. NJ.
England, more than to any other section
of this country, transportation is a mercan-
tile commodity. New England imports
all her supplies and exports the great
body of her manufacturing products. She
asks and has received large advantage by
way Of the protective policy of the United
States. She has asked this upon the very
broad, philanthropic, and public-spirited
plea of maintaining the commercial indie
pendence of this country, of maintaining
high rates of wages for our laboring
classes and at the same time she is willing
to put the wages of 100000 railroad opera.
tives at the risk of free trade competition
She never will submit" TO having her
carrying trade done under protection con.
ditions. In word, she desires protection
where that policy supplements and sub,
serves her private interests. She desire:
the adoption of the free trade policy
wherever that policy best subserves hei
selfish interests; and no clearer exposure
of these miserable aims that end in self
could have been afforded than is disclosed
by her position upon the question of inter
state transportation.
A vast volume of New England capital
chiefly trust funds, is invested in the
securities of American transcontinenta
railways. These investments are largely
the property of widows and orphans in The
manufacturing towns of New England
The investment of citizens in the trans
continental railroads enjoys no protection
at the hands OF the Government. In the
same manufacturing towns the capital and
the productive capacity of that capital, in
vested in manufacturing enterprises, enjoy
an average protection of CO per cent. Il
protection is good for one species of prop
erty and one class of industry, and efficient
in maintaining high scale of wages for
one class of industry, it is equally good for
all. The 100000 employees Of railroads in