The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1899-07-04
BRYAN REPLIES.
Approves Magnate Havemeyer's
High Tariff Attitude.
But His Defense of Trusts Is
Severely Criticised.
A RE UNNECESSARY.
No Hostility Towards CaDitaI-
UNNECESSARY,
No Hostility Towards Capital
Americans Desire It.
But Are Opposed to Means EN-
plOyed by Some.

pIOyed Dy S0mes
New York. July 1.-THE Journal pub
fishes the following answer to Henry o.
Havemeyer, president of the Sugar
trust, by Mr.. Bryan:
Mr.. Havemeyer's testimony before
the industrial commission has excited
much comment, due in part to his prom
inence in business and financial circles
in part to the fact that ne is himselt
at the head of a great trust, and In part
to the arguments submitted by him. lie
declares that the tariff is the mother
Of the trusts The same thing has been
said a great many times before by
great many people, but the reading pup
lie is just now engaged in considering
the subject of trusts, and such state
Tnent at this time from such a man
challenges attention. Republicans ac-
cuse him of having grievance.
Whether the sugar trust has received
its share of the favOrs bestowed by the
Mckinley act and the Dingley act IS
a matter Of little concern to the public,
but whether Mr.. Havemeyer'S views
are correct is a question Of great mo-
ment.
When tariff reformers have pointed
to q high tariff law as a barrier against
outside competition and burden to
home consumers, prOtectlOnlSIS nave IN
Variably responded that competition at
home will reduce the price Of the pro
tected article to the point where the
manufacturer WOulQ only IGGG4fC q
reasonable return upon his investment.
What will the protectionists say now
when the manufacturers openly COM
bine to destroy competition and secure
all that the law will permit?
According to the theory OF protection
lists the tariff should be exactly equal
to the difference between the cost of
production in the United States and the
cost of production abroad. No tariff
can be defended according to this theory
unless it is actually added to the price
Of the home product, because II 1t IS
not added it is not needed
A tariff that is not used by the man
ufacturers is a. constant temptation TO
them and presents an ever-present in
vitation to combination. To advocate
q tariff on the ground that it is needed
and then punish those who unite to take
advantage OF it is superlatlVe absur-
EFFECTS OF A FREE LIST.
Some have suggested the free list as
cure-au remedy for the trusts. There
is no doubt that the removal of the tar
if from a trust-made article would re-
duce the exto1tion, but would it neces-
sarily destroy the trust2 If for instance
steel rails can be sold for SIS per ton IN
both Europe and the United States "a
tariff of SO per ton would enable the
domestic manufacturers to form a COM
bination and raise the price OF steel rails
in the United States to $24 per ton A
law putting steel rails upon the free ns6
would prevent the eXtOrtlOn, but II
steel rails can be produced in the United
States as cheaply as elsewhere steel
rail trust could be formed without the
aid of any tariff wall and a trust or
Eanized under those conditions would
be able to control the price the pro-
duct as well as fix the rate Of wages
and the price of raw material
Whenever an article can be exported
in competition with foreign products
trust formed in that article can collect
from the consumer the foreign price,
plus the cost of transportation, and we
are yearly increasing our export Of
manufactured products: it is evident
that we are constantly adding to the
number of articles which trusts could
control without the aid of import duties.
Tariff reform, therefore, or even Tree
trade would be only a partial remedy
To advance this as the only remedy or
as a complete remedy would not only
prove a disappointment to the OppOn-
ents of monopoly, but it would prob
ably rally the prOtectiOnists to the sup
port of the trusts.
evils flowing from monopoly; there are
other evils, which, though less notice
able, are not less dangerous to our
country Mr.. HaVemeyerS broad de-
Tense of trust principles is, therefore,
deserving of as much attention as MS
condemnation of a high tariff: After
pointing out the advantage which the
Il dsts derive from high-tarih laws ne
warns the public against antitrust leg
isiatiOn. He says: prestige, ablllty,
experience and wealth win in the long
survival of the fittest in business" He
argues that trusts exist because they
deserve to exist, and he seems to con-
slider wealth entitled to all that 1t can
secure, no matter what the means en-
pIoyed. The '1et-alOne policy now ad-
Vocated by trust magnates has always
been popular with the strong. The giant
does not need any protection from the
dwarf and naturally reSents the inter-
ference of government when a law is
passed prohibiting larceny, assault or
murder.
RESENTFUL CORPORATIONS.
So some of the great corporations to-
day resent any attempt upon the part
of the government to protect smaller
corporations and private individuals
from trust methods, but the physical
giant has more right to complain OF in
reference than the corporations, be-
cause the giant is under no obligation to
the dwarf for superior strength, while
the corporation derives it's privileges,
its power and even its very existence
from laws passed by the people.
The corporation is a creature OF the
government and under a government
like ours we must assume that the cor
poratiOn was created for the public
good. If a. corporation so uses its priv
iIeges as to become a. menace TO the
general welfare, those privileges must
be withdrawn or restrictions must be
added which will prevent abuse.
The trusts have brought the country
face to face with a question of great
Importance, namely, whether the in
dustria1 system shall rest upon compe-
titiOn or monopoly. We can not permit
a few of our industries to combine I'M
less we are willing to allow all to COM
bine. In other words, now that the
question is raised, the government
must either protect competition in all
departments of private industry, or 1t
must permit the trust to overthrow
competition everywhere.
Self-pr preservation is the first law of