Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1899-07-06
The Tariff and Trusts.

KNOWN 10 nlf1lSelI-aSSerteu very EN-
phatically his belief that the protective
tariff is the parent of trusts. If the
object of this assertion was to array
popular sentiment against the protec-
tive tariff, Mr.. Havemeyer was GER
tainly most unfortunate in his selec-
ton of a time for nauguratng his
propaganda. With the present pros
porous conditions that have come
about since the enactment of the Ding
ley tariff which is now in
full force; with times getting
better and better every day, and with
the hardship and suffering of that
period of stagnation and soup houses
that followed the enactment of the
Wilson free trade tariff law under
Democratic rule, still fresh in mind,
the American people would not be
turned from their support of a protec-
tive tariff, even if they could, by any
means be persuaded to take Mr.. Have
meyers view that it is the mother of
such a proposition Let us continue
the conditions that give us national
prosperity-plenty of work at high
wages-trusts or no trusts"
But as matter of fact the protective
tariff is not the mother of trusts, and
Mr.. Havemeyer's saying 50 will not
Ia IN
combinations of capital in all the fields
of industrial and commercial enter
prise, is an outcome of modern bust
ness conditions and tendencies. Mr..
Eugene Debs processes to see in them
the transition period between individ-
ualism and state socialism-but there
seems to be little practical basis in
modern conditions for any such de-
auctions.
1t does not necessarily follow thar
large combinations of capital are in
imica BILE to the interests of society. In
deed most of us can probably recall
many instances where such combind-
tions have resulted in great and ma
terial benefits to the general public.
Certainly existing conditions demon
strate the fact that our present trusts
are not incompatible with magnfi-
cent national prosperity. The trust
only becomes dangerous when having
obtained control of field of enterprise,
timakes use of its position to unrea-
sonably advance the prices of its
products. The instances of this, how
ever are not numerous. Our observa-
ton has been that such combinations
have usually looked for their increase
in profits to cheaper means of produc-
ton, and more economical methods Of
an unjust use of their powers. to OPP
press the public they are certainly
worthy of the strongest condemnation.
and should, if possible, be reached and
controlled by law. 1t would be mani
testify unjust, however, to assume that
all combinations of capital belong to
this category. 1t will be recalled that
when Mr. Blaine returned from Europe
at the commencement Of the campaign
which resulted in the election Of Benja :
min Harrison to the presidency, he met
and effectually disposed of the state
ment that a protective tariff fostered
trusts by calling attention to the fact
that Free Trade England was fairly
honeycombed with them.
renton that trusts are the offspring of
a protective tariff they would not be
found in free trade countries. But
what are the facts? The New York
Tribune which has devoted a great
deal of care to the investigation Of
this subject finds that there are today
protected America has only 160. Evil
IDENTIFY Mr.. Havemeyer has overlooked
these facts in reaching his conclusions.
They show conclusively that neither
free trade nor protection can be held
responsible for the existence and
growth of trusts. which are due to con
ditions Independent of either Re
ferring to British trusts the Tribune
says: THE dividends paid by these
British concerns averaged for their en-
tire capital S.07 per cent in 1898. before
half the existing industrial companies
In this country We're formed. More
over. 1872 of them had been in operation
for five years or more and paid diyi.
dends averaging sos per cent on theil
capital in the disastrous year 1894. OF
the 2S hotel and purveyor companies |!
were formed since 1894. and of the q
warehouse and drapery concerns min,
were old. But there existed five years
ago or more % in coal mining, Is il
coal and iron. 16 in iron manufacture
10 in engineering and ship building.
In textile manufactures, II in manu-
features of rolling stock. nine in meta
foundry and manufacture. four in pa
per and pulp, three in soap and can
dies. and % in miscellaneous manu-
features. The dividends paid average
even in 1894 overs per cent. in all mis-
cellaneous and warehouse and draper
concerns, over Z per cent in rollins