Gloucester County Democrat. (Woodbury, N.J.) 1878-1932, 1902-09-11
How The Tariff Works.

Just now while the Republicans are
getting ready to food the country with
speeches from the lips of flap doodle ora
tors, the people will do we'll to take plain'
common sense, businesslike view of the
tariff question. They will do well to re-
dollars and cents as basis. They will
then get more real insight into the question
than all the spell-binding speeches the
Republican party can manufacture in years.
No industry will better illustrate the
workings of the tariff than the steel in
dustry. The Steel Trust has, through the
workings of the tariff, become the most
colossal Of Trusts. To illustrate how it
makes its profits nothing will better serve
than the question of steel rails.
A town in Western Pennsylvania wishes
to build street railway. They ask for
bids from the Steel Trust, and also from
the English iron masters. Let us see how
the two bidders make their figures.
In the first place it costs the American
manufacturer less than it costs the English
iron master to procure ton of steel. This
is shown by the fact that last year Ameri-
can steel manufacturers sold SOB, 900, 600
worth of steel in English markets, and IN
direct competition with the English iron
masters. When it is remembered that the
American manufacturer had opay freight
of SAT per ton and still undersell the
Englishman in his own market, that propo-
sition will need no argument But, giving
the Republicans the benefit of every doubt,
we will grant that the cost of production is
the same. Sworn statements by iron manu-
facturers themselves before the United
Safes Industrial Commission show that the
cost of producing a ton of steel here is
twelve dollars per ton. 1t is as much III
England, if not more, hence, when the
English iron master figures his bids he will
have to begin with S12 as costs Of produc-
ton. To deliver that ton of steel he finds
that it will cost him S4.75 or Whereabouts.
This too is shown by the evidence before
the United States Industrial Commission.
Then when this ton Of rail reaches the port
of entry at New York, he has to pay the
tariff duty of 1874 before he can land his
rails. Therefore when he figures up what
he can deliver his steel on the ground for
it looks like this =
| (,4 &c ,,-o1,o+;o,, ct0 IN
Transportation charges. ...... 10
Tariff duty. o.
Living profit. NEUTRALITY-SUSPICIOUS. D w
Total NEUTRALITY-SUSPICIOUS.. S29 %
So he writes to the Pennsylvania town
that he will deliver the rails for 500 50 per
ton.
On the other hand the American Steel
Trust bidder with characteristic shrewd-
ness, figures in this way: at costs me S12
to produce ton of steel. l could fill that
order at SIT per ton and make S. per ton at
that. But here, l know that the English
iron masters bid will not be under S28 per
ton, and as l have no competition at home,
am safe in placing my bid at $27 per ton.
/ know that the steel only costs me $12 per
ton, and it is true that l have shipped my
share of S93,000 600 worth of steel to
England and charged the English buyer
only $23 per ton for it, after paying the
freight myself, yet here | have lead pipe
cinch ON these people, and am going to
charge them all they will stand" He puts
in his bid at $27, and as it Is the lowest
bid, it is accepted. Thus the people Of
that town have been charged net profit OF
SIS on ton of steel that according to the
report of the United States Industrial Com
mission cost $l2 to produce. The consumer
is held up by the tariff and deliberately
robbed No wonder the Steel Trust is able
to declare a $40, 600, 900 dividend, even
after payingtheir Schwabs million dollar
llaries The conditions in steel are pre-
valent in every Trust controlled industry.
They are growing richer every day and
more powerful. Shall they continue to
fitch the money out of the pockets of the
people and grow Unreasonable richer at
the expense of the people?