The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1898-08-05
An Impregnable Position.

If the policy of isolation through pro-
lection is to remain the permanent pol
icy of this country, the argument Of
Col. Clough before the interstate COM
merce commission is absolutely i'm
pregnable. There is no reason, specious
or solid, for the protection of one in
dustry that does not pertain to all.
In fact the contention of all advocates
of that policy has been that, directly
or Indirectly, all are protected, and
they have gone to the extreme, as in
the case of meat and grain products,
or laying tariff for protection that
eScites only ridicule for its empty pre-
tensions. Whenever the schedules
have been in process Of change, we
nave heard much Of what are called
compensatory rates, as, for illustra-
ton. In the wool schedule, where a
pound tax is laid on imports of WOOL
ems, to compensate manufacturers for
the increased cost of wool, with an ad-
ditional ad valorem tax for their own
protection.
but here is an enormous industry,
with an actual capital exceeding that
invested in any other, employing hun
dreds Of thousands Of men. that is not
oA-iy "ilIOOI even pro-
lection from foreign competition, but
is heavily handicapped by the working
of the protective tariff There is not
an article used in the equipment Of
our railroads that is not to be found
on the dutiable lists of every tariff
This contributed enormously to the cost
or construction of roads built since the
war. 1t is reasonable to estimate the
added cost at so per cent. A reflex
effect Of this was proportionate cap
ltallZation, and this, in turn, forced the
rates for freights and traffic to points
where interest on the fixed debt and,
ii possible, dividends on the stock could
be earned. The vicious circle ended
in hostile legislation. But, when legis-
ldtureS or railway commissions at
tempt to compel reduction of rates.
they are met with the contention sus-
tanned by the courts, that only such
rates are reasonable as allow earn
lngs that will give a fair return on
the capitalization. Thus, very right
eously, policy approved by the people,
In its latest reaction, compels the peo-
pie to contribute to the protection of
those who. have invested in railway
STOCKS and bonds whose volume that
policy greatly augmented. 1t is a fine
case Of chickens coming home to roost.
COL Clough emphasizes his argument
by contrast of the treatment accorded
the two classes Of carriers, water and
rail. No foreign vessel can be bought
by Americans and given domestic reg
lister with the coastwise privileges It
carries. No foreign vessel can take
of
another port of this country If it dis
charges at one port and loads at an
| other, 1t must go in ballast from the
one to the other, while at every port it
must pay port dues. But a foreign
| railway can cross the border with it's
trains laden with dutiable goods in
bond and under seal. It's trains pay no
entry dues 1t can take way freight
at points within our territory and dis
charge 1t at others; it can cross our
territory earning freights on which no
gross earnings tax is paid; enjoying, in
short, all the rights and privileges of
American railways. No argument can
be advanced for our navigation laws
that does not apply with equal force
! and relevancy to our railways Here
| we find one Of the many wide gaps
in the protective wall congress has at
! tempted to build about our industries.
But that is not all, nor is it the
worst showing Col Clough makes in
his argument. He AYERS it to be the
| fact, and it is statement no one will
have the hardihood to deny, that rail
manufacturers in this country have
sold rails, and to the particular COM
petitor referred to. by him, at a less
cost per ton than they would sell to the
domestic roads that had to compete
with the foreigner. This is but one
| case Of hundreds where manufacturers
have used the power congress gave
! them to compel the helpless home pur-
chaser to pay more here at home for
their products than the price at which
| they have sold the same articles to
| foreigners. In the case of rails, Col.
| Clough asserts, this difference in price
was the equivalent of the duty on i'm
ported rails. We are making no argu-
ment for protection, but for equal
| rights, if this policy of legal thieving
is to be retained. Were we making an
| argument against the whole nefarious
| system, we would find in Col Clough's
| argument conclusive reasons for it's
| abolition.