Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-06-02
TO CURB THE TRUSTS
Canada's Law for the Removal
of Tariff Duties.
BENEFITS QUESTIONED
COMPLAINT REGARDING LUMBER
NOW BEING CONSIDERED.
Trade With the United States-Desire
BENEFITS QUESTIONED
Trade With the United States-Desire
for Observation-Disclosures
May Be Attempted.
Correspondence of The Evening Star.

Correspondence Of The Evening Star.
OTTAWA. Canada. May %. 1908.
The Canadian people have been greatly
interested in what President Roosevelt has
had to say about the tariff in his recent
speeches. No opinion he set forth has
aroused more comment. however than that
! in which he declared his belief that the
present tariff schedule of the United States
was in no wise responsible for the creation
of trusts. Canadian statesmen do not as
a rule agree with him. and under the Can
adam laws the import duty can be re-
moved without parliamentary action upon
any article shown to be a monopoly and
this is looked upon as wholesome check
to any restraint Of trade through increase
of cost to the consumer.
Several attempts were made during the
last session of the United States Congress
to so amend the law as to put trust-made
| articles upon the free list whenever 1t was
shown that such articles were being sold
| at a greater than normal profit to the
l. combination controlling the output. CANADA
| already has such a law and 1t has been In
| effect about six years. In all that time
but one case has been acted upon and then
| with some question as to benefits derived
Another case is now under consideration
The Canadian Law.
The Canadian law reads follows:
Whenever the governor in council has
reason to believe that in regard to any ar
| ticle of commerce there exists any trust
combination association or agreement OF
| any kind among the manufacturers OF
such article or dealers therein. to unduly
enhance the price of such article or in any
other way to unduly promote the aoVan
| tage Of the manufacturers or dealers at
q
ernor in council may commission or en-
power any judge of the supreme court or
excheQuer court Of Canada. or OF any SUI
perior court in any province or Canaoa 10
inquire in a summary way into ana re-
port to the governor in council whether
such trust combination, association or
agreement exists.
1.-The judge may compel the attenoahce
| of witnesses and examine them under oatn
and require the production Of books ana
papers. and shall have such other necessary
| powers as are conferred upon him by the
governor in council for the purposes OF
such inquiry.
s'If the Judge reports that such trust.
combination association or agreement ex-
| lists and IL 1t appears to the governor IN
| council that such disadvantages to the con-
sumers is facilitated by the duties or Gus
| toms imposed on like article, when I'M
| ported, then the governor In council shall
place such article on the free list. or so
| reduce the duty it as to give the public
| the benefit or reasonable competition III
such articles
| Paper Put on the Free List.
| Some time ago 1t was represented to the
| government that there was a trust or COM
| bination in the paper used for newspapers.
An inquiry was instituted and it was de-
cided that the charge was just The tarfn
was removed with the alleged purpose of
breaking the combine. but reports differ
| as to the material advantage derived by
| the consumer. Through some technical err
| rors the order did not have the full effect
ANTICIPATED and was not considered fair
| test of the law. 1t Is claimed, however.
| as a fact that print paper was reduced IN
| price by the removal OF the duty. and that
| the combination or trust was deprived of
| material advantage.
| It is now asserted that there is trust
or combination which controls all lumber
sold in a large part of western Canada and
| the question of suspending the import duty
| upon lumber from the United States Is UNI
| der serious consideration. The agitation
for It's removal will probably be successful.
| Whether this move can be considered as
| fair test Of the law is also open to doubt,
| as the people of the northwest are large
| consumers of this staple and the demand
for cheap building material is very strong,
! regardless Of antitrust agitation. Free
| lumber from the United States would un-
| doubtedly be regarded as great boon by
| the northwest provinces under the present
| circumstances and to get such a conces-
| sion from the government would rebound
| to the party in power, hence the complaint
| Is being given most friendly hearing.
| The Canadian tariff law. as a whole. al
| lows the government In power great free
dom in making trade arrangements with
other countries without further legislative
| action. The principal difficulty in the path
| of an agreement with the United States is
the fact that the Canadian import duties,
as a whole, are much lower than those of
| the United States. and material concessions
| would have to be made by the latter coun-
| try to bring the American schedules within
| the operation of the Canadian law.
| Excluded Products.
The dairy interests of Canada, which are
very large. are protected from competition
with foreign substitutes for butter by
| provision which absolutely prohibits the
| Importation of "oleomargarine, butterine or
| other similar substitutes for butter"
| Prison-made goods are also in bad repute.
as the Importation of goods manufactured
| or produced wholly or in part by prison
| labor is prohibited. The law also excludes
| goods which have been made within or in
| connection with any prison, Jail or peniten-
! tiary; also goods similar in character to
| those produced in such institutions, when
| sold or offered for sale by any prison. firm
or corporation having a contract for the
| manufacture of such articles in any SUCH
| institution or by any agent of such prison,
| firm or corporation. when such goods
| were originally purchased from or trans
| ferred by any such contractor"
Canada is always ready to make a reci-
procity treaty with any country which will
meet her half way. and the principle Of
| reciprocity governs all her tariff legislation,
! as shown in numerous paragraphs through
| out the Canadian tariff law it now
| stands. 1t is provided that when the GUS
| toms tariff of any foreign country admits
| the products of Canada on terms which on
! the Who1o a favorable Canada q
| those granted by the latter articles which
| are the growth, produce or manufacture of
| such country, when imported direct there
| from, may be entered for duty or taken
| out of the warehouse for consumption in
| Carada at reduced rate.
This reduced rate is 70 per cent Of the
| existing duty, except that the reduction
| does not apply to wines, malt liquors, spir-
| it's, spurious liquors. liquid medicines and
| articles containing alcohol, sugar. molasses
| and syrups of all kinds, the product of the
| hoo or fn,o o;rr