The times. [volume] (Washington [D.C.]) 1897-1901, 1901-05-11
trade of the world to the United states


and Great Britain.
Byron w. Holt. representing the Reform
Club of New York City, gave his views
concerning the relation of the tariff and
the trust. The greatest of all trusts, the
United States Steel Corporation. said Mr..
Holt would be Samson with his hair
shorn If deprived OF tariff protection 1t
might, because of ether special privi-
leges, continue to exist without tariff pro-
lection, but It would probably cease to
pay dividends on its common stock and
in time would doubtless cut down it's
capitalization. The visible assets of the
company were only about $500, 5000, or
the amount of its bonds, and all its stock,
both preferred and common. was water.
That is, the invisible assets constituted
10 per cent of the value of the corpora
ton.
The record of the Tin Plate Trust. con-
sidered by protectionists as a model tariff
trust and a product of protection. shows
that the COMPANY had several times adj
yanced prices arbitrarily, at one time.
four months after the trust was formed,
being then within Is of cant pound
of the importing point. 1t was clear from
his Investigations Mr.. Holt said, that the
trust advanced prices arbitrarily and with
more regard to the prices at which tin
plate could be imported under a protec-
ton tariff than to the increased cost of
Bessemer plates, themselves the product
of another tariff trust, which also arbi-
trarily advanced prices. Mr.. Holt esti-
| mated what he called the tariff profits
OF the trust at 81, 900, 900 yearly. He knew.
he said. also. that the American Steel
ana Wire Company, a part of the Steel
Trust. was leaning heavily on its tariff
crUtches in this country and using them
as clubs to hea. down rivals in all other
countries The small manufacturers. Mr..
Iiol. said were at the mercy of the trust
while the tariff lasted.
The Window Glass Trust Mr. Holt con-
sidered one of the most interesting and
instructive tariff trusts. The history of
the glass industry had been succession
of combinations, pools. lock-outs. price
list committees, agreements for fixing
prices and wages and limiting production
on the part of the manufacturers and of
labor unions, strikes, wage committees,
and wage scale agreements on the part
of the glass workers. Wages and prices
changed often and radically. and nearly
all OF these tariff nursed Industries were
always in an unsettled. unstable and I'M
healthy condition As a consequence the
public paid double price for its glass and
the workers were in very backward
state of development-fully ten years be-
hind that of Belgium. Under such con-
ditions it was a national sin to continue
the tax on sunlight.
The Borax Trust was good example of
the evils of tariff trust In that 1t show
ed unearned and undeserved profit. en-
HANGED prices, restricted production. linn
tied consumption. employed foreign labor
at low wages, sold at lower prices in
foreign countries than in the United
States, and made the false and hypocriti-
cal plea that free borax would destroy
the borax industry. Mr.. Holt said that
he did not agree with the statement of
Mr.. H. O. Havemeyer that the mother
of all trusts was the customs tariff bill"
He believed that it was the mother of
many trusts. however, and the foster
mother of ali others. The tariff was but
the conspicuous special privilege that
made monopoly possible. He did not be-
lieve that the abolition of the tariff would
kill many of the trusts, but he did believe,
to reap the benefits of the tariff and but
for the absurdly high tariff there would
not lie at present the vast accumulation
of wealth in the hands of few which
made easy the formation of great indus
trial and transportation combinations.
The evils of tariff-protected trusts were
not measured by injuries inflicted by ar
officially high prices. The evil extended
into political and social life, and was re-
sponsible for much of the corruption in
politics Pennsylvania was a ridden
State because the Camerons and Quays
had political power and influence. because
they served the tarif-protected trusts
The protective tariff was responsible, also
for the large amount of water in trust
stocks and enabled trusts TO pay divi-
bends such stocks.