The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1899-06-16
ROB THE PEOPLE.
MOnopolies Are Merely the
Machinery Used
Under Present Tariff Laws Says
Magnate Havemeyer.
ISSUES ARE DISCUSSED
InOrdinate Protection Fosters
the Trusts
People Are POWerless to Remedy
the Evil.
ISSUES ARE DISCUSSED


of the sugar trust. appeared before the
Industrial commission sitting at Wash
ington, on Wednesday, and read a pa
per. the main features Of which were
printed in the State Journal Of that
date. In view of the great interest
which has been manifested in Mr.. Have
meyer statement, the full text of his
remarkable document is presented. 1t
is as follows:
1.-THE mother Of all trusts is the Gus
toms tariff bill. The existing bill and
the preceding one have been the occa-
siOns for the formation of all the large
trusts with very few exceptions, mas
much as they provide for an incidental
protection to all the interests of the
country-sugar refining excepted Econ
Onic advantages incident to the conSol-
idation of large interests in the same
line of business are a great incentive to
their formation, but these bear
very insignificant proportion to the ad-
VantageS granted in the way OF pro-
lection under the customs tariff.
There probably is not an industry
that requires a protection of more than
10 per cent ad valorem, and it is to OBJ
tain what is provided over such per-
centage in the tariff that leads to the
formation of what are commonly spo-
ken of as trusts
with protection to an industry not
exceeding 10 per cent. all menace of
trusts would cease. This 10 per cent
would represent the difference in cost
of production and likewise act as a pro-
lection against surplus products of for
eign countries being dumped in our To-
cal markets, thereby interfering with
the regular and economic working of
our industries. Any advantages that
might then accrue would not be dam
aged thereby, as any expansion of
price would be met by foreign compe-
titiOn and relief.
Il have said that sugar was an excep-
bn 70. Of T-r,Te Ion -
is an eighth of a cent per pound, which
is about 315 per cent ad vaIorem, and is
not the difference in the cost of refining
between this and foreign countries. The
least it should have is per cent or, in
specific figures, quarter per cent per
pound. The sugar refining industry of
this country, no matter what form its
Orga nization, 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 a fair return to the
capital invested, considering the ex-
tent of the business.
1.-The United States tariff bill in as
sessing about $40 per ton duty on inn
ported sugar, pays into the pockets of n
few Louisianans on their annual crop,
$50, 900 tons, 500. 900, 900; to the Hawaiian
islanders, probably represented by $50
foreigners, on their annual crop of ESQ.,
900 tons, 900; say 100000 tons
produced elsewhere, In the United
States 100000.
Here you have 1874 900. 900 extracted
from the people of the United States
for the sake of getting the revenues
which $40 per ton on foreign sugar pro-
vides 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
attorney generals of the southern states
take action not against the cause but
employ to rifle the public's pockets.
There appears to be in the public
mind a distinction between robbery by
an individual and that by a corpora
ton. What is commendable in an in
dividual appears to be dishonest in a
corporation.
Il maintain that it is immateriaI to
the public in what form business is
done-whether by an individual, firm,
corporation or even trust. These are
merely forms of conducting business, or
in other words. machinery for the Op
Grafton of business. 1t is the duty of
the government to see that under the
tariff laws they enact this machinery
can not in its action result to the detrl-
ment or innpOveriShment of the public.
1T would have been very easy and
proper for the government to put a cor
responding internal revenue tax on SUI
gar simultaneously with the imposition
of the customs duty, and have these
| 1924, 000. 600 which now go into the pOck-
cts of a few individuals go into the
treasury for the benefit of the whole
people. If no expenses of the govern
ment need to be provided for and pro-
lection to American industries was de-
sired, the imposition of 10 per cent ad
valorem on all manufactured products
would have settled the matter. There
is every reason why, If revenue is de-
sired. that with a duty on raw ma
! terials of foreign production a CORE
spending internal revenue tax should be
| levied on similar products.
Il repeat that all this agitation
! against trusts is against merely the
| business machinery employed to take
/ from the public what the government
| in it's tariff laws says it is proper and
/ suitable they should have. 1t is the
/ government, through its tariff laws.
| which plumbers the people, and the
| trusts, etc, are merely the machinery
| for doing it.
1.-THE statements made before the
| committee in congress and the speeches
| against the sugar refining company are
| absolutely devoid of truth-utterly I'M
| worthy of credit.
7 Whether the sugar refining company
| has been a benefit or injury to the COM
| munity can be best expressed in a table
| showing the prices for q considerable
| period prior to the formation Of the
trust and for corresponding period
| subsequent.
| THE difference since its formation
shows an advantage to the consumer
note that-consumer-of over Il of q
| cent per pound.
What the sugar company has dis
| bursed in dividends has not been be-
cause of any extreme protection under
! the tariff, but only out of conditions
perfectly legitimate and commercial BILE
! Their record shows concluSiVe1y that nc
| advantage has ever been taken by the
| company of any protection in excess OF
| the per cent claimed. that is, one
| quarter of a cent per pound, under the
| tariff.
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