The age-herald., 1900-01-25
THE CANAL MUST BE BUILT
Sentiment in Alabama Which Was Formerly Inclined to Favor Protec- tive Tariff Has Now Seen Me-
 cesslty of Free Trade.

bama district, is one of the rising young
 men in the house. He Is now serving his
 third term in congress. Representing, as
 he does, the district which is the center of
 the great steel and iron business of Ala
 bama, his views on the questions of pro-
 tection as applied to the interests of his
 district, and upon the effect of the proposed
 ship subsidy bill upon the exporting busi-
 ness of his people, are of considerable in-
 terest representing the opinions of a demo-
 cratic constituency largely interested in
 manufacturing. In answer to inquiries,
 Mr. Underwood said:
 At one time in .Lle manufacturing DOT
 ton of my district. there was strong sen-
 timent in favor of protective tariff. but
 the manufacturing conditions of the dis
 trict have changed, and with the change
 of conditions has come a change in the
 views of some of my constituens in refer
 ence to the tariff duties on iron and steel
 "The hard times that we passed through
 some years ago, with the resulting low
 price of iron, was not altogether un-
 mixed evil. As a result of the conditions
 that then existed those engaged in the
 manufacture of iron and steel were com
 pelled to resort to every available means by
 which they could cheapen their cost of
 production. They were successful in re-
 ducing the cost of production at their fur
 naces and foundries, and were finally en-
 abled to manufacture pig iron, which is the base of all manufactures of iron and steel, at less cost in the Birmingham district than anywhere else in the world But even then, with the railroad freight against us, it was found difficult to dispose of our
 products in the northern markets, and our people made an attempt to enter the mar
 kets of Asia, Europe and South America. This trade had grown to such a large ex-
 tent in the last four years that an export
 business has been established that has consumed at least one-third of the output of pig iron furnaces in our district. No Longer Necessity
 '"The high price of iron that exists to- | day, and the demand for the output of our | furnaces and factories in the American | market, has, to a great extent, done away with the necessity of our people trying to | build up a large foreign trade, but, of | course, we all recognize that existing con- ditions will not last always, and that in a l few years in all probability the price of iron will go down again and the home market will be overstocked. We will then find that we are producing more iron and steel than we can use in this country, and it will be necessary, in order to keep our furnaces. and foundries in blast, for us to dispose of our iron and steel products abroad. "Our opportunity to compose with our competitors in lhe foreign markets is not limited by the cost of production, because
 there is no quesaon srlat not only in the Birmingham district, but in all the other iron districts in the country We can manu- fracture iron and steel cheaper than our English competitors; but the main ques- ton to be considered, in or6sr for us to successfully enter into the foreign mar kets, is the cost of transportation. When long voyages are made the transportation ral,es often amount to more than the Fro!t to be realized.
 "Iron and steel, in order to get cheap rates, must be carried as ballast. An ideal cargo is made up of iron as ballast aud cotton or grain as the bulk of the cargo. There is but Mpsle trouble in finding cargoes to fill outgoing ships, but the difficulty we have had in the past has been to find a cargo for ships to bring nome. The English are able to ship their goods to South Amer ica and then have che ships return home laden with goods for the English market. In this way they are only required to pay the freisL.t on the outgoing passage. But
 unless shippers find d cargo ito bring home we have to pay the cost eff the return of the emOty ship, thereby
 doubling the foreign rate and taking away
 what would otherwise be a legitimate
 profit.
 Tt is needless to say that our protec-
 tion laws against Ltre Importation of South
 American goods in the American market
 mliiIatq against foreign tnr9dp wish to become great export nation and to dispose of our surplus manufactured produces, We must enact laws that will allow other people to trade with us. I am heartily in favor of any Legislation that will build up our merchant marine, but
 we do not believe that it can be dime by paying subsidies
 The Subsidy Law
 "The law to subsidize ships for carrying
 tG1e United States mails was passed in
 March, 1891, and 1t has been on the statute
 books ever since Under this law the
 steamers that carry Iae malls except the
 transatlantic ones receive more than they
 would under the Hanna-Payne subsidy bill.
 As a matter of fact five thousand, ten to
 twelve knot freislter, sailing from New
 ork to Buenos Ayres, or from San Fran cisco ito Hcng King, would receive more under the present subsidy law than under the Hanna-Payne bill. Yet the postmaster
 has endeavored to carry out this law, but has failed except as to subsidies paid to certain transatlantic steamers.
 "Jn my opinion, ahe way to build up American commerce is to establish train- ing schools for American boys, in order that they may be educated to become American seamen; and then we should re- duce our tariff taxes in order that the people Who wish to enter our markets may do so; but, above ail other things, the h,,il.7 <yf fc,A Hoo al do more towards building up our foreign cnmmerca Uhan rieca of laoislah