The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-02-08

OF BABC0CK
How He Constructed His Tar
if Reduction Bill.
PROTECTS SMALL MFRS.
Experts Drafted the Schedules il
Peoples Interest.
NO MORE GIFTS TO RICH TRUST
ana Steel for More mt Home
Than Abroad.
From. Tho journal Barea.s. Room Is. Post
BuilIiyu, Warrington. Sssi

From. Tho journal Burea,s. e1oon, Is. Post
Building, Warrington.
Washington, Feb. 8.-The exact purpose
of Representative Babcock's bill for q re-
duction Of the tariff on steel and iron pro-
ducts, which as been the subject of so
much discussion in and out of congress,
is to afford scientific protection to these
products without giving the steel trust
any leeway for discrimination in price in
favor of foreign buyers or for paying diyi-
dends on watered stock. This is all Mr..
Babc0ck claims for it,.
In drafting the bill he had the assist
ance and advice Of steel manufa cturers in
all parts of the country, and of those who
are familiar with the anufact ure of steel
and iron and it's cost in foreign countries.
The schedules themselves were drawn by
treasury official who prepared similar
schedules in the Dingley bill and who is
thoroughly familiar with the subject Bah
cock found, when he Investigated the sub
ject, that the trust was charging domestic
consumers of it's product more than for
eign buyers were paying for the same arti-
cles It's output in 1901 was IS ,000, 900
tons of rails and structural iron and steel.
The average profit was $14 a ton. A
profit Of So a ton is sufficient to produce
a five per cent dividend on steel and iron
manufacturers countin the cost Of ma
terial labor, plant and necessary repairs.
He thus figured that the trust was reap
ing profit of Sc a ton as the result of
the high protection afforded by thesDing-
ley law. The trust output in 1901 was
100000 tons, making a total Of excess
profit $90,000000. all Of which was taken
from the pockets Of domestic consumers.
The output is reckoned on the basis Of the
MO irnn God GO
turer of rails and of structural material.
Babcock found that in trust mills mod
ern methods enable the manufacturers to
reduce iron ore, to make steel and to
bring out finished articles, rails and
structural material by continuous pro-
cess, doing away with the remelting of
pig iron. These improvements have
cheapened the processs:to such an extent
that there is no foreign competition and
no revenue accrues on certain articles.
They have, therefore, been placed Oh the
free list They are irpn and steel in
slabs, blooms, loopssF Slsams, Orders,
|joists and all Atruct rsaa.. 5. iron and steel
boiler and ship plates, steel rails, steel
1ngots, billets and bars. On other prod
ucts the schedules have been rearranged
so that the protection afforded is lust
enough to equalize the difference in the
COST OF manufactured here and abroad
leaving the foreigner to pay the cost OF
transportation and insurance in order to
sell his product in this country
Much criticism has been heard because
the Babcock bill leaves the duty on pig
iron. The trust does not produce that,
but other and smaller manufacturers do.
Mr.. Babcock has left the protective duty
on pig iron for the benefit Of the latter,
who need encouragement. The retention
! OF the duty on ore has also been con-
demned, but that schedule was retained
! to afford protection against Canadian
ores. The average rate of protection
| provided in the Babcock bill is so per cent
! Of the Dingley rates. The adoption of the
amended schedules would permit the
manufacture Of all iron and steel products
at fair profit without danger of foreign
| competition.
Under the Babcock bill, should it be-
| come law, the steel trust, if it attempts
to raise it's prices on any of its products
| will invite competition from foreign man
ufacturers. This is what Babcock aims
alto prevent the trust from maintaining
| such absolute control of the domestic
market as to be able to gouge domestic
| consumers out of enormous sums and sc
| increase It's profits.
MORE MONEY The house committee
! on Indian affairs to-
| FOR INDIANS. day decided to restore
| the appropriations fol
the Sisseton and Yankton agencies in
South Dakota, which were stricken out
OF the appropriation bill by the subcom-
mittee that framed that measure All
appropriation of $4,000 for a new agents
dwelling at White Earth was also put
into the bill on recommendation of Rep
resentative Eddy A provision was also
! inserted to make available an unexpende6
balance of this years appropriation fol
the subsistence of the Sioux, so that il
may be expended next year. 1t amounts
Il