Akron daily Democrat. [volume] (Akron, Ohio) 1892-1902, 1899-06-15
Havemeyer's Excuse For Ex-
istence of Trusts.
HE DENOUNCED HIGH TARIFFS.
Claimed Combinations of Capital Were a
Necessity In Some Instances-Said the
Sugar Combine Had Been a Benefit to
the Consumers-Other Points.

toms tariff bill. The existing bill an
the preceding one have been the occa
sion of the formation of all the larg
trusts with very few exceptions, mas
much as they provide for an lnordinat
protection TO all the interests of TIL
country =. sugar refining excepted
Economic advantages incident to tn,
consolidation of large interests in tn,
same line of business are great incen
tive to their formation, but these bear
very insi gniticant proportion to the ad
vantages granted in the way of protec
ton under the customs tariff.
There probably is not an industry
that requires protection of more thar
10 per cent ad valorem and it is to OBJ
tain what is provided over such per
centage in the tariff that leads to tn,
formation of what are commonly spoken
of as trusts
with protection to an industry no
exceeding 10 per cent all menace to the
community of trusts would cease. Thi:
10 per cent would represent the differ
ence III cost of production, and likewise
act as production against surface
products of foreign countries being
dumped in oIir local markets, thereby
interfering with the regular and eco
nomic working of our industries. ANY
advantages that might then accrue tC
such combinations they would be fully
entitled to, and the public would not be
damaged thereby, as any expansion OF
price would be met by foreign competi-
ton and relief.
II have said that sugar was an excep-
ton. The rate of protection ON sugar
is an eighth OF cent per pound, which
is about 81 per cent ad valorem, and is
not the difference in the cost of rein.
ing between this and foreign countries.
The least it should have is per cent,
or, in specific figures, a per cent per
pound. The sugar refining industry of
this country, no matter what form its
organization, is entitled to adequate
protection, if any industry is. There
are at least 100000 people dependent
upon it. What it pays, or has paid, to
its stockholders in the past represents
nothing more than fair return on the
capital invested, considering the extent
of the business.
1.-The United States tariff bill, in as
sessing about $40 per ton duty ON i'm
ported sugar, pays into the pockets of a
few Louisianans on their annual crop,
250,000 tons, S10,000,00O; to the Ha-
wailan islanders, probably represented
by $50 foreigners, on their annual crop
of 100000 tons, $4,000. 900; say 1O0, 900
States, S4,O00,000.
Here you have $24, COO, 900 extracted
from the United States for the sake of
getting the revenue which $40 per ton
on foreign sugar provides. This is
merely illustrative of the whole tariff
every line of it-and its effect upon the
people. In fact, the tariff bill clutches
the people by the throat, and then the
governors and the attorneys general of
the several states take action, not against
the cause, but against the .machinery
which the people employ to rifle the
public's pockets.
sit would have been very easy and
proper for the government to have put
a corresponding internal revenue tax on
sugar simultaneously with the imposi-
ton of the customs duty, and have these
524, ,OO0,0 900, which now go into the pock-
ets of few individuals, go into the
treasury for the benefit of the whole
people. If no expenses of the govern
nent needed to be provided for, and
to American industries was
desired, the imposition of 10 per cent
Id valorem on all manufactured prod
acts would have settled the matter.
There Is every reason why, If revenue is
desired, that with duty OH raw mate
'lals OF foreign production a correspond
ng internal revenue tax should be lev
ed on similar products, and the protec-
ion to manufacturers thereof limited
20 an additional 10 per cent.
II repeat that all this agitation
'gainst trustsis against merely the bust
less machinery employed to take from
he public what the government in its
ariff laws says it is proper and suitable
hey should have. 1t is the govern
nent, through its tariff laws, which
,lunders the people, and the trusts, ETC.,
re merely the machinery for doing it.
"Whether the sugar refining COM
'any has been benefit or injury to the
can be best expressed in
able showing the prices for consider
bile period prior to the formation of
he trust and for a corresponding period
The difference since its
shows an advantage to the
onsumer-note that: consumer-of
ver IS of cent per pound.
''What the sugar company has dis
ursed in dividends has been, not be-
ause of any extreme protection under
he tariff. but out of conditions per-
ectly legitimate and commendable.
Mir. Havemeypc further said in part:
The sugar company undoubtedly tries to
o its utmost to enlarge its business, but does
in way which they consider the only proper
ne, i. e., by making the price so low as to
efy competition.
nder no obligations whatever to any of the
.ates for their existence. Quite the reverse
he states are under obligations to them. If
ne plant of these industries consolidated was
apable of being put on wheels and moved
'om state to state, you would find very active
ddng for them.
Hostility to capital meets with its own con-
This is illustrated by the situa- |
on in New York, where "a discrimination |
5ainst capital has prevented its employment |
nd driven it elsewhere, resulting in greatly |
creased tax rate, and a tendency to increase |
lie number of the unemployed.
All have to say about trade organizations |
nd strikes is that, without violence they are |
ltural. They have one objection, however: |
heir tendency TO reduce all labor to low |
vel.
Business is not philanthrophy. Capital and |
Dor will adjust their own relations if they |
e let alone Interference always operates |
,ainst one or the other. That means to the |
of both.
In the absence of all disturbing causes the
rect tendency of combination of capital is
} promote economy reduce expenses and di-
inish price.
Great public improvements, factories and
her enterprises requiring large capital
ther are impossible unless through the in
of corporations, or are poss-
e only through the action of individuals
possessed of unlimited capital. 1t
easy 90 see what in the latter case would
ippen to the community.
One form in which hostile action manifests
self is by legislation which is intended to
eep corporations and their products out of
lrticular states.
This legislation in some states takes the
~ L. ,snl, z.@s l