The Washington times. (Washington [D.C.]) 1901-1902, 1901-08-13
Mr.. Babcock's DUTY.

earnestly made, viii result In nothing
| in the way of remedial legislation at
| the hands of the next Congress. If it
| is true, as reported, that he has de-
| clared that he wants no Democratic
| help. and that it is matter for the Re-
| publicans themselves to settle, then it
| is self-evident that he does not want
| to accomplish anything, and that he
is simply talking for effect 1t may be
affirmed with perfect assurance that
all the Republican strength that viii
follow his lead, combined with the en-
tire Democratic vote in both Houses,
will not be sufficient to strike an effec-
tive blow against these great monopo-
lies. for even IL such a measure could
be carried through Congress. the Ad-
ministration would still be a bulwark
between the trusts and any legislative
harm.
But granting this, 1t is still the duty
of Mr.. Babcock to act and act vigor-
ously, gathering aid wherever he can.
and regardless of its political COM
plexion. Not only is it his duty to the
people, but it is the opportunity of his
own political life. If it is true. as he
says, that the tariff is creating trusts,
and that the trusts are plundering the
American people under cover of the
protection which the tariff affords
them, then 1t is as clear as light that
his duty to the people outweighs every
consideration of party fealty. There
is no doubt that he Is right and that
he can easily prove all that he has
charged. and a good deal more.
Possibly the tariff is not the sole
support of the trusts. but it is unde
niable that it is their main stay. This
can be demonstrated with mathemati-
cal certainty. We may start out with
the broad proposition that American
manufacturers, and particularly those
who are the component parts of trusts.
are selling all the goods abroad for
which they can find a market For the
year 1900 the exports of iron and steel
amounted in round figures to one hun
bred ard twenty-nine million dollars. 1t
is not to be supposed for a moment
that those goods were sold at loss,
or at prices which fgiled to net a fair
profit Sometimes it has been claimed
that the foreign sales merely repre-
scented the surplus stock, but when
these sales run into the hundreds of mil
lions of dollars. and our manufactur-
ers are energetically bidding for con-
tracts everywhere-taking immense
contracts for goods not yet made, 1t is
idle to talk of the salessbeing merely
of surplus stock left on their hands.
Mr.. Schwab, President of the Steel
Trust. testified before the Industrial
Commission, that export prices are
made alta very much lower rate than
those for domestic consumption. 1t has
been stated, apparently upon good au-
thority. that domestic prices average
about twenty-five per cent higher
than export prices We must conclude
therefore, that the American consumer
is being compelled to pay something
like twenty-five per cent more than
price which will yield the manufac
turer a fair profit, either this. or that
the goods sold abroad do not bring a
profit that is just and fair. This latter.
under the circumstances, is very I'M
likely. If in fact the manufactured
goods sold abroad are disposed of at
less than reasonable profit. there is
no point in boasting of the tremendous
expansion of our export trade in man.
ufactures, for If it is a trade which
brings inadequate returns II is not a
trade to be desired The very best that
can be said for the trusts IN this mat
ter is that the profits on the exported
goods are less than they think they
should have. and SO they raise the
price to the American consumer in or
der to bring up the average. Even this
view shows that the home price is con-
siderably higher than it ought to be.
But the common-sense view is that
fair price is secured for the goods
sold abroad, and that the higher prices
charged in this country, are just so
much in excess of what the American
consumers should be compelled to pay.
1t can be seen at a glance that without
the tariff the trusts would not be able
to perpetrate this rank injustice, for
the moment they set the price materi-
ally higher in the American market
than it was abroad. they would be sub
ject to foreign competition, which
would force them to lower the price.
AS it is, they can charge twenty-five
per cent more in America than they do
in Europe, because the foreign goods
cannot get into the country without
paying forty or fifty per cent duties.
1t is incomprehensible that so large |
a proportion of the people of the Uni
ted States are blind to these palpable |
facts. If anything in our industrial his |
tory is certain, then is il certain that |
in many lines Of manufactures the pro-
fits have been excessive, which is proof |
positive that the consumers have been |
robbed to the full extent of the excess. |
When Andrew Carnegie, beginning |
with nothing, in the course Of about |
thirty years amassed a fortune of |
nearly three hundred million dollars in |
the iron and steel industry. it furnish |
es about as strong evidence as could |
more than enough protection to ensure |
him a fair profit.
SO we repeat that If Mr.. Babcock |
makes his effort with a will, he has a |
boundless opportunity before him, and |
1t is to be hoped that he will embrace |
it in dead earnest He may not get any |
legislation through the Fifty seventh |
Congress, but he can make a demon
stration that will startle the country, !
and lay a foundation for substantial |
results in the not distant future. Dem
ocrats may. of course, make the same
40, ., .