The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1900-01-23

The theory of the protectionists 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 well
established. According to promise con-
sumers were then to get back in low
prices what they had paid in high
prices in order to secure industrial in
dependence" Results have shown that
these theorists have omitted several i'm
portant factors. Two of these are the
helplessness on the part of manufac-
turers, resulting from tariff bounties,
and the tariff trust which intervenes, as
soon as the manufacturers are ready
to compete to prevent consumers from
getting back what they invested in
protective tariffs
If such duties could be removed when
an industry has been firmly establish
ed the protectionist's theory might pos
sibly prove true in exceptional cases.
But neither the manufacturer nor the
protectionists are ever ready to admit
that a tariff-nurtured industry is
sufficiently established to get along
without further tariff pap. The men in
such charity industries become demora-
lized and dependent and conclude that it
is the duty Of the government to con-
tinue to support them.
MANAGER GATES ADMISSION.
These demoralizing and cocialistic
effects were well illustrated by the testi-
mony of Mr.. John w. Gates, m anaging
director of the American Steel end Wire
company, before the Industrial Commits
sion 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 prices
of raw materials;
that this company exported 700 tons
of wire day;
that it furnished England with 60 per
cent of her supply;
that goods were sold lower to foreign
erS.
that such prices were necessary ito
hold outside trade"
that not infrequently new plants were
shut up and dismantled;
that this was done for various rea-
sons"
that five plants had been closed;
that his company had monopoly of
81, the barbed wire business
that, therefore, higher prices were
charged for these products;
that his company was making him
profits;
that his company did not recognize
labor unions as such:
that subsidies should bel paid to steam
ship lines and to corporations
with $5,O00,000 or more capital;
that the government should supervise
all such corporations;
that he went to Europe to form a
world trust;
that he proposed to increase prices SIC
ton If such a trust were formed;
that the Germans contemplated 81
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 80 per cent of the
iron and steel business of the
world;
that the protective tariff has had
much to do with building up the
industry;
that the continuance of the policy was
necessary to the future prosperity
of the industry.
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 1t owes him and his kind a
living?
Will any honest man think it fail
for these manufacturers to sell their
products at the highest possible notch
to those who pay the tariff bounties and
to bestowupon the untaXed foreigners
the blessings of low prices-even "tc
hold outside trader" Why not tax the
foreigner awhile and give the home con-
sumers chance to get some of theiI
tariff taxes back?
Consider to what use the tariff has
pSSi put III wire anu Hall
by the millionaires whom it has
produced.
EARLIER WIRE COMBINATIONS.
Going no farther back than in 1896
we find the Consolidated Steel & Wire
company, an Illinois corporation of 1892
with $4,000, 900 of capital, as the barbed
wire trust, with Mr.. John w. Gates as
manager. Various pooling agreements
In hn
tween all Of the barbed wire manu-.
facturers. but they were only temper,
aryily successful in producing higher
prices.
The Export Barbed Wire association
composed of four principal exporters
was in force several years previous tc
1895 and did much to steady prices. II
was partially revived in 1885,
In September, October and November