The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1899-06-26
VERY PERTINENT REMINDER.

Dallas, Texas, juno 24.--(staff Special
The recent remarkable utterances of Re-
publican Sugar-King Havemeyer anent
trusts and protection forcibly recalls some
very foreible suggestions along this line
by Congressman Joseph w Bailey In a
great tariff speech made on the floor OF the
house OF representatives July 10. 1897. In
that speech Mr.. Bailey made some pre-
dlctions that have already proven true.
On the subject OF trusts as corollary
OF protection. Mr.. Bailey said:
Not ONLY Is Il true. Mr.. Speaker. that pro
teyuoh dminishes our wealth by abridging the
ireeacm Of international exchange. but II is
also true that II dimnishes our wealth by fos-
terms those combinations OF capital which are
tCImtd lot the purpose OF limiting produ tion
IA order to maintain prices Trusts are the
lekltmato aud unavoidable outgrowth OF pi O.
tectlGu' md both aim at the same end Each
is intended to enable the manufacturer to
escape competition. Protection Is designed to
plotect domestic manufacturers against for
elgh competition; but does any man
suppose that when our manufacturers have
learn now profitable 1t is to be relieved from
foreign comDettion they will suffer a dimin-
uuoh OF their profits by competing aginst
each other? The same motives which impe
me manufacturers to apply to congrcas far
protection against foreign competition appeal
10 them with equal or even with greater force
to prevent competition among themselves Not
only. sir. Is combination corollarv of pro-
lection; but the organizers and attorneys for
lhese trusts have borrowed the argument
and almost the very language. of the pro-
tectonists: and the highest court in Ger
many mas recently decided that trusts are
not AGAINST the hubble policy of nation which
adheres to the theory of protective tariff
nave been unable tn procure the text Of that
decision; but have summary OF It printed
IN the issue of Public Opinion OF June "a
SDGCially q "a -
from the Berlin Tageblatt. and / will ask the
clerk to road " at the desk
Inc clerk read as follows:
Inc highest court OF the German empire
slttlng at Leipsic has rendered an important
decision. which WI summarize below com
corning combines or trusts The decision will
be OF great Interest to other nations and
particularly to tho United States where trusts
nave como to exercise such a prominent part
In the commercial and Industrial affairs. The
court mentioned has declared emnhaticallv
that trusts and similar combines are entirely
regal. The grounds upon which this decision
was based were rs follows: When In certain
lndusuials pursuits the prices OF products arc
SINKING so low as to make business immoral
bic or as 10 endanger the successful carving
on tnereot the crisis which necessarily fol
lows IS not only disastrous to the individual
concern but also to internal affairs rencr-
ally.
For this reason 1t is in the interest of the
entire state that Inadequate low prices shall
not prevail TOO long In any industrial branch
Realizing this urncDle. the legislative bodies
have repeatedly and only recently undertaken
to bring about an increase in tho pricea of
certain products by the establishment of pro-
tective duties. For this reason 1t can not be
deemed certainly, or generally speaking OBJ
h0Nious TO the interests of the community
when the manufacturers OF certain articles
FORM what is called trust, with the object
In view Of preventing ruinOus competition and
for the purposo of mitigating the downward
tendency In the prices OF their particular
manufactures.
"On the contrary, such combinations can be
looked upon. not only as warranted by the
instinct of self-presorvation, but as meas
ure for the interest Of the whole community
as we'll. Especially Is this true in cases
where prices ere so low that the manufac-
turers of the articles are on the verge or
financial disaster For this reason the build
ing of syndicates or trusts have been desig-
mated by a number Of authorities as a means
which, when propcrly managed. would prove
oNtromelY eNpedient TO prevent detrimental
and unwarranted overproduction. "
Mr.. Batley-Almost every reason which can
he given for the enactment of protective
tariff law is a defense of all the trusts In
existence; and V was his clear perception of
this fact that moved Mr.. Blaine to utter his
celebrated protest aainst the assaults which
were begun upon these combinations ten years
ago They tell us that these large aggrega-
lions OF capital, by guarding against the
competition which they call Industrial war
fare. can produce their goods more chenply
and will therefore sell them more cheaply
This is the old argument over again For
wears the friends of protection have insisted
luat III congress would secure our domestic
manufacturers against the competition Of the
old world. these gentlemen would within a
reasonable time become rich enough and
strong enough to voluntarily reduce the price
Of their goods. or IL thew did not reduce prices
voluntarily, they would be forced to do so
nv domestic competition. They persuaded
many peon.e TO beleye that these manu-
facturers when relieved from foreign compe-
ttlou would in time become competitors
against each other but those who believed
that mscalculated the strength and intensity
Of orr Had han ,,rtu
first as they have become through expert
ence, they would have known that men who
have long enjoyed an immunity from compe-
tition will resort to every possible means to
continue that immunity and as for my part
| do not wonder that having been taught by
the arostles of protection that they can be
made rich and powerful by being saved from
comnoution against foreigners, they should
fully understand that they can be made richer
aud more powerful bv being saved from com
petition among themselves.
The friends of protection can not assail the
trusts without admitting the democratic con-
tention that unrestricted competition is de-
very foundation OF the protective system. po-
litical parties must be consistent in their
positions. and however honestly the repub-
liean party may be opposed to trusts as an
Independent proposition, II can not and 1t
Will not oppose them II In doing So IL finds
II necessary to attack, even by Inference. its
layorlte theory, 1t is not surprising. there
fore, that republican members of this house.
like the gentleman from Massachusetts (AIr.
WaMerl, have volunteered to defend the
trusts. The country. however. will under
stand that the gentleman from Massachusetts,
while holder In his speech has not been dit
ferent in his conduct from the rest OF his
party, From the beginning 10 the end of the
debate on this bill. both in the house and in
the senate, YOU have consistently and PER
tistently defeated every effort to destroy these
unlawful combinations of capital Let Us.
VT, speaker look for q moment at the at
titude Of the two uartis on tn IS question You
had prepared q bill intended to prevent for
oign competition, and YOU averred that do
nestle competition would sufficiently reduce
she price 81 all commodities to the ue3ple.
serted that the manufacturers Of this country,
ution by protective tariff, would secure
themselves against domestic competition by
combinations amoag themselves Thus the
issue was made IN when we entered upon the
consideration OF this bill bv paragraphs. and
az The very earliest opportunity we tested
y1ur confidence IN your position. To the first
paragraph Of the bill we offered an amend
ment which nrovldcd that II the domestic
ala combine 10 escape domes-
tic competition they should have no benefit
Of your protection pgainst foreign comp-t-
ton Did YOU gentlemen ioin us IN this prop
o-ition. as We had right 10 expect II you
are really in favor Of compettlonc No. sir;
every gentleman on that side voted to sus-
tain ruling OF the chair which refused the
house an opportunity 10 mass upon the Gues-
ton. and YOUR party In the senate has reso-
lutelv voted down every amendment which
was intended TO destroy these trusts. Gentle
men. II YOU are right In asserting that protec
81 nj nfFan