The Savannah morning news., 1904-11-05
CLEVELAND SAYS PEOPLE
ARE In FETTERS OF TRUSTS
The Vicious Progeny of Extreme Tariff
Going Deep Into Their Pockets.
Former President Compares the Conditions in
1884 With the Present ExactionS

7 existed at all they were infant indus
| tries too few and too young to be mem
toned In the platform of either of the
great political parties, and too newly
| born to be the companions of such
other infant industries as though still
| unweaned, had actually grown gray
at the breasts of sinfully indulgent
tariff protection.
The multiplication OF this new race
of infant industries soon grew to be
wonderfully in excess of all other
| birth rate records. In 1888 they had
| attracted attention enough to be de-
| nOunced in both party platforms The
J precocity of these infant prodiNies ran
, far ahead of the most exaggerated
| imagination of parental pride. Before
they were a day old they recognized
| in the policy of high protection the
way to growth and strength and
| wealth Though it Is sometimes now
| said that the tariff has nothing to
do with trusts. Mr.. Havemeyer, the
most competent Of all men to give ex-
pert testimony on the subject, has de-
! clared: THE tariff Is the mother OF
trusts" and the trusts themselves
were precocious enough to know this
| at the beginning of their infantile ex-
| istence.
A Tariff Protection Wall.
They know that tariff protection
builds a high wall around American
industries which guards them against
competition or disturbance from
abroad, and they know that nothing
| prevents the raising of prices to the
/ full hight of this wall except compe-
ttion among these industries them
selves, resulting In the underselllng of
| each other at home and within the
fortified area OF their operations.
| They know that this barrier standing
| between our consumers and the exac-
ton of prices as high as the wall of
| tariff protection, must be removed
ana the margin between prices as
! modified by home competition and the
prices attainable without such COM
petitions, be under the control of these
! industries II they were TO enjoy to
! the fullest extent the fruits of govern
ment favoritism. They knew that
home competition could be eliminated
/ by such agreements among the In
/ dustries interested, as would regulate
! prices and production and concentrate
management; but above all things
! they knew that all devices would en-
/ tirely fail to accomplish the result de-
| sired, II any breach In the wall Of pro-
lection against foreign interference
was permitted: and they knew that
the higher this wall was raised the
greater would be the scope for their
extortionate Vaccinations.
Profit In TarIR Protection.
Nor Is Il alone I'm this direct and pal
pable way that high protection is an
essential factor in industrial combina-
tion. Those who manage these affairs
| take into account and consider as an
asset of their undertaking the in
| creased profits which must result when
| tariff protection is coupled with the
suppression of home competitions and
counting this as money in hand, they
are enabled to venture confidently
upon the purchase of similar inde-
pendent enterprises at high valuations
paid I'm watered stock or to force their
cooperation by threats of ruinous at
tack.
Schemes Of this sort, secured against
foreign interference by a protective
tariff and shielded from domestic dis
turbance by covenants of joint partici-
patton and defense. when consummat-
ed and fully under way. enhance their
profits by what rs called enconomy In
administration. which is another
phrase for consolidation Of manage
ment, but which really means less
work for many employees and laborers,
aand the reduction of wages TO the low
est possible limit.
/ have said that the higher the wall
OF protection was raised the larger
was the scope for the Vaccinations OF
The Mckinley Tarir Law.
The Mckinley tariff law which
somewhat increased the average rate
OF import duties over those OF 1884,
was passed on the first day OF Octo-
ber, 1890. The trusts and combina-
tions formed prior to the latter date
were not numerous. I have seen a
list of leading corporate Industrial
combinations numbering 213 OF which
/ 4ftsfa
the time this law became operative
Under the stimulus of increased pro-
lection afforded by the Mckinley
tariff they began to multiply. The
statement has been made that under
this tariff, or rather prior TO the pas
sage of the Dingley law In 1897, only
eighty OF these trusts and combina-
tions had been formed IL must be
noted, however, that during about three
years Immediately before that date the
Wilson tariff law was in force. This
was a Democratic measure which re-
pealed the Mckinley enactment and
lowered duties While the Wilson law
prevailed. the creation OF trusts and
combinations almost entirely ceased
as was naturally to be expected, in
view OF the fact that the atmosphere
OF Democratic tariff legislation and
the policy of the Democratic party is
unfavorable to the growth and devel-
BftttNAN " NhN'r PaAAA1hldA
dustries.
The DinEIey TariH Law of '97.
The Dingley tariff law Of 1897 raised
the average OF import duties to some
thing over 80 per cent. and made the
high water mark IN our countrys tar
III legislation. It's fond parents have
placed upon the family record contain
ed I'm their Bible entitled: "Republi-
can Campaign Text Book. 1904" the
following mention OF the child's birth
and it's lovely traits:
Went into effect July "a. 1897 known
as the Dingley Act-thoroughly protec-
tive and stated In It's title that its pur-
pose was 10 provide revenue for the
government, and 10 encourage the in
dustries Of the United States"
IL has indeed provided revenue for
the government, but II has grievously
burdened the people, put public econ-
Omy 10 shame and invited oxtraVagant
schemes and wastefu expenditures.
and among the industries OF the United
States which n has encouraged. the
promotion % trusts and combinations
stands high on the list. In the month
Of March 1903. "a distinguished kcpub-
loan member of Congress on the floor
Of the House of Representatives pre-
scented r. carefully prepared llst Of in-
dusfrial combinations existing on the