Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1900-01-15
BY Hon. John Dewitt warner.

Upon IarlH Dutics'
Nv Hon. John Dewitt Warner.
The theory of the p~rotectionists,
from Carey to Mckinley and Dingley,
has been that while protective tariffs
might at first somewhat increase prices
they would result in lower prices Just
as soon as our manufacturers were
once we'll established. According to
promise were then to get
back in low prices what they had paid
in high prices in order to secure in
dustrial independence" Results have
showns that these theorists have omit
ted several important factors. Two Of
these are the helplessness OF the part
of manufacturers, resulting from tariff
bounties, and the tariff trust, which in
teryenes, as soon as the manufacturers
are ready to compete, to prevent con-
sumers from getting back what they
invested in protective tariffs.
IL SuCu uuLl6S COulu NC lCuIOfCQ VIVA
an industry has been firmly established
the protectionist's theory might pos
sibly prove true in exceptional cases.
But neither the manufacturers 0 the
protectionists are over ready to admit
that a tariff-nurtured industry is suffi-
GENTLY established to get along with
out further tariff pap. The men in
such charity industries become demon
allied and dependent, and conclude
that it is the duty of the Government
to continue to support them.
Gates Admissions.
These demoralizing and socialistic
effects were we'll illustrated by the tes-
timony of Mr.. John w. Gates, manag-
ing director of the American Steel and
Wire Company, before the Industrial
Commission ON November IA, 1899.
Without a blush he stated that prices
of wire nails, etc., had been doubled;
that he deprecated the necessity for
such high prices; that they were due
to the high price of raw materials; that
his company exported 700 tons of wire
a day; that it furnished England with
go per cent. of her supply; that goods
were sold lower to foreigners; that
such prices were necessary ito hold
outside trade;" that not infrequently
new plants were shut up and disman-
tied; thai this was done for various
reasons" that five plants had been
closed; that his company had a mono
poly of the barbed wire business; that,
therefore, higher prices were charged
for these products; that his company
was making big profits; that his COM
pany did not recognize labor unions
as such; that subsidies should be paid
to steamship lines and to corporations
with 5000, 900 or mOre capital; that
the government should supervise all
such corporations; that he went to Eu-
rope to form a world trust; that he pro-
posed to increase prices $40 a ton il
such a trust were formed; that the
Germans contemplated a So increase;
that the Germans wanted too big a
share of business; that Germany S
bounty system was excellent; that if
it were applied here we should soon
be doing so per cent. of the iron and
steel business of the world; that the
protective tariff had had much to do
with building up the industry; that the
continuance OF the policy was neces-
sary to the future prosperity of the in
dustry.
Can any sensible, fair-minded and
patriotic man take the statements and
admissions of Mr.. Gates and reach his
conclusions as to the necessity for
tariff duties Or bounties?
Is it not clear that he has received SO
much from the government that he
now thinks it owes him and his kind a
living?
Will any honest man think it fair for
these manufacturers to sell their prod
ucts at the highest possible notch 10
those who pay the tariff bounties and
to bestow upon the untaxed foreigners
the blessings of low prices-eVen "tc
hold outside trader" Why not tax the
foreigners a while and give home con-
sumers a chance to get some of their
tariff taxes back?
Consider TO what use the tariff has
been put in the wire and nail industry
by the millionaires wnom it has pro-
duced.
Earlier Wire Combinations.
Going no farther back than in 1895
we find the Consolidated Steel and Wire
Company, an Illinois corporation of
1892 with $4,000, 900 capital, as the
barbed wire trust, with Mr.. John w.
Gates as manager. Various pooling
agreements were formed in 1894, '95
and '96 between all of the barbed wire
manufacturers, but they were only tenn
porarily successful in producing higher
prices.
The Export Barhed Wire Association,
composed of four principal exporters,