The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1904-09-28

mere change I'm the tariff schad11le@-s
Wnlcn - about the only remedy the Dem
Gcratlc party suEEests, or has attempted
TAILS to strike at ahe root OF the evil, and
cegald not by any possibilities reach sons
81 me most monsfrOus trusts, such as the
Standard Oil trust for instance. Besides
removal Of the faFfff would not only
aneC5 the products Of the trusts but also
the ssfnliar products of those concerns
which are entirely free from trust attri-
Dutes, and thus the good and the bad
would receive equal punishment Al tine
one ease P9erhaps deserssd in the osflsr
policy would not only destroy marry
worthy aa1d struggling industries, but i8
would lea. Lead 70 the formation Of interna-
tl0nal trusts, and open the doors wide fog
the products OF foreign trusts.
FarfH and TRUSTS.
On this subject. the United States In
dustrial Commission, composed of five
Il other persons appointed by the president,
In which both. OF the great political par
ties Of the country were represented, in
their final report of Feb. II, 1902, say:
1t has been frequently asserted that
one Of the causes, if not the chief cause,
90 Industrial combinations is the pro-
teet1Ee tariff. Experience, however, both
in TINS country and in Europe, does not
justify the assertion. In our own coun-
try some of the largest and most monopo-
listic combinations have no direct tariff
protection. and i'm England. where there
are no protective duties. many combina-
tons have been founded, most of which
no other country than England is the
form OF industrial combinations so like
that ganerally found in the United
States (NOl. TO- page 627)
After further discussing the subject, the
commission comes to this conclusion:
THE removal of the tariff, then, will
not abolish combinations unless 1t abol-
ishes the industry. The domestic COM
petitors of coSnbinati6ns might be largely
cut off by tarin reductions or removal,
and the combination survive with mod
products to domestic consumers at much
lower prices But this sharpening of for
eign competition by the removal of the
tariff would beyond any doubt, lead
American combinations in some cases to-
enter into International combinations:
Already we have the thread industry OF
England and the United States, indeed
the thread industry of the world, largely
in the hands of an International combt-
nation The borax trade is also organ
lied internationally. and there have been
efforts to bring about an international
iron and steel combination. In Europe
many combinations have crossed national
boundaries. The advocates Of lowering or
removing the tariff in any line of in
dustry should inquire carefully, whether
its effects might be to produce an inter-
national combination, and If so, whether
such an international trust would be de-
sirable. The possible effect upon wages
Of a reduction or removal of duties must
also be considered, and the further pos
sibility of admitting to this country the
surplus stocks. of European manufactur-
eTS at rates So low as TO seriously GRIP
pie our home manufactures. Ii our man
ufacturers extend their foreign markets
by selling at low rates abroad, they but
follow the example OF European manu-
facturers, who for years have disposed or
surplus stocks in this country so as TO
keep their factories going to their fulI
capacity. What can be gained by help-
ing foreign trusts in order to n4rI 90
nestle trusts is not apparent (Vol. ~
page 030-l.)
Control of Trusts.
The purpose of, and inducement for,
the organization Of many of their trusts
is two-fold Their promoters seek to en-
rich themselves not only by controHlng
the market, but also, and that IS often
the chief end in view, by foatlng large
quantities of unduly inflated stock. Could
we get ait the exact figures il would no
doubt be found that the great steel trust
has directly or,indirectly levied a greater
tribute on the public by the large volume
of inflated stock it put upon the marker
than by the enhancement Of the price OF
its products. The stock victims nave IN
many instances. suffered more than the
consumers.
Owing to our dual system of govern
ment-state and federal-and the result
ing limitations of the federal eonstltu-
ton it is no easy matter to regulate ana
control these trusts and to keep them
within proper bounds The, powers OF the
federal government are confined 10 the
control of interstate commerce and do
not extend to purely state commerce or
to manufacturing or production. me
Republican party is the only party that
has enacted any material federal legls-
lative restraints and sought to enforce
them through judicial proceedings.
Trust. Legislation.
The following is a brief summary. of all.
federal antitrust legislation:
"a The interstate commerce law of
1887, enacted by a Democratic house and
Republican senate.
" "A clause in the Wilson tariff law OF
1894 prohibiting combination among inn
-farc Arad hfu H1y1C a
at antitrust legislation. made by the
Democratic party when they were in
power.
law of 1890. passed during Harrison's adj
ministration by a Republican house and
Republican senate. and which III clear
terms prohibits monopolies and comblna~
tions in restraint of interstate commerce
(4l The act of. Feb. III, 1903, expediting:
trials of SUITS to enforce the Sherman
f5) The act, Of Feb. IA, 1904 establish
ing the department of commerce and la
Dor, with a bureau Of corporations hav-
ing power to- gather. secure ana punnsn'
thorough information In regard TO the
organization and operation Or all cor
porations engaged in interstate COM
(6) The act Of FEB. 10, 1904. amending
the interstate commerce law by enlarging
the powers Of the commission and the
courts and prohibiting rebates and draw
III M On, FEB. Is, 1904 an act was
passed appropriating 100000 to enforce
the provisions of the antitrust law and
vesting the attorney generals with power
to employ special counsel and agents to
conduct suits and prosecutions under the
law; and
Isl on March 3, 1904; an act was
passed providing for the appointment OF
an assistant attorney general to assist
in the enforcement OF the ANTITRUST law.
blocked ~ Democrats.
Not. only has the Republican, party
given the country all this antitrust Iegis-
lation but Inn 1900 1t aimed I'm the house
to secure the adoption or constitutional
amendment giving congress ampler pow
err to regulate and control trusts. On the
passage OF this amendment 148 Repub-
iicans voted for 1t, 2 against ih and 10
Democrats voted against II and only 3
for it, IT failed to pass for the lack or
a tw0-thfrl vote In it, favor In dis
cussiny this amendments Mr. Richardson.
the Democratic leaden or the house. read
from the Washington Post. al Democratic
paper, the following:
@FK&w SafnFprfinR tAltg constitutional