Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1904-07-06
ADMISSIONS BY SHAW
Manufactures Are Sold Cheaper
Abroad Than at Home.
D1sToRTs FACTS AND FIGURES.
Thinks This Miserable Business Is
DefensibIe Because Foreigners Do
It-An Outrageous System wher-
ever 1t Prevails.

Secretary Shaw, the spokesman fOI
the administration, made another one
Of his exuberant speeches at the Audi
forum in Chicago recently. As in his
recent Wilmington DELI speech be
made some striking and even startling
statements and quoted statistics In his
usual free and easy manner.
In his Chicago speech he reeled of
figures, some of which may be true,
but many of which certainly are false,
and made some admissions on the sub
Ject Of export prices which. coming
from such a high Republican. are most
refreshing. Thus he said:
Our opponents lay much stress upon
the fact that some American manufac-
lures are sold abroad cheaper than at
home. Our frieHds sometimes deny
this, and they sometimes apologize for
IT. and few In times past have joined
our opponents in recommending re
movaI Of the tariff from all such arti-
Giles. It is useless to deny and In my
judgment unwise to apologize and a
little short Of foolishness TO attempt to
remedy the assumed evil in the man
ncr proposed By the opposition"
He then proceeded to quote from the
Industrial commission, which reported
that 81, 100000 worth of merchandise,
the product Of American factories, is
annually sold abroad cheaper than In
the domestic market" He then said
that as I'VE manufacture S13.OO)OOO.-
600 worth per annum our exports sold
abroad cheaper than at home are only
one-thirteenth Of per cent of the out
put of our factories"
Secretary Shaw is either novice
with figures or he is entirely willing TO
fool the voters with big statistics
which he knows are not true 1t is
hardly possible that our secretary Of
the treasury docs not know that we do
not produce Sl3OO0,0 100000 worth or
manufactured goods in year ready
for final CONSUMERS or anything like
this amount. Our census statistics OF
manufactures contain many duplica-
tons. Thus we have manufactures OF
cloth goods and of clothing. OF iron
and steel and of foundry products,
machinery, etc: of lumber and of fur
niture, Of leather and of boots and
shoes In these few industries the du-
plications amount 10 S2.0OO.OOO.OOO or
$1,000 100000. Were 1t possible TO take
out the duplicauons-that is. the prod
ucts of one mill that are sold as raw
material TO another mill-it Is probable
that the total value of finished manu-
featured products would not be more
or not our census figures have been
stuffed In order TO make a great show
ing for protection can only be sur
missed.
The statement that only S4.O00,OO0
worth Of our manufactured goods are
sold abroad cheaper than at home is
ridiculous. 1t is entirely safe TO say
that ten or twenty times this amount
OF iron and steel goods alone are sold
abroad at prices from 10 10 60 per cent
below the prices at which they are
sold in this country. In fact, there are
single items in our exports OF iron and |
steel sold abroad at lower prices which |
amount TO more than SI.GOO.OOO Thus. |
during the ten months ending April 80. |
1904. we sold for export OS.OOO,0OO |
pounds OF wire valued at S4,II1 900. 1t |
IS reasonably certain that every pound /
and every dollars worth OF this wire |
was sold abroad at prices below those |
prevailing in this country and that the /
average difference was not less than 1
% TO 80 per cent. Similar statements |
might be made in regard to the items |
OF builders hardware and sewing ma |
chimes. All. or practically all. are sold !
20 of Ian in, FOR
Nearly 100000 worth Of steel rails |
were sold abroad during these ten /
months 1T an average price Of about /
$50 per ton. the trust keeping the price |
in this country steadily at SIS. Nil |
lions OF dollars worth or structural |
iron and steel. billcts. bars. etc. were /
sold abroad NJ price probably aver /
aging SO per ton less than the dOmcs- /
tic price. Ship plates have been selling !
abroad at 500 10 $50 per ton and in
this country ut SIS TO $40 during the !
last year. Secretary Shaw quotes the |
report OF the Industrial commission. |
He evidently had not read the tesd- |
mony OF Mr.. Charles VI. Schwab. pres /
ident of the United States Steel cor /
poration. before the Industrial COM |
May IL. 1901. Mr.. Schwab |
told the commission frankly that all /
kinds OF iron and steel goods were in
variabIy sold for export at prices lower
than home prices. When asked lis it /
u fact generally true Of all exporters in
this country that they do sell at lower
prices in foreign markets than they do
in the home market" he answered. !
THAT is true: perfectly true"
The secretary Will find this testimony
in volume ID. pages 44S-4S7. 1t may
interest him.
The secretary says that while our
people complain of this practice i think
IL defensible. But whether defensible
Or not l know that foreign producers
10 the same thing"
IL is not denied that the practice OF
selling goods for export at prices far
below domestic prices prevails in near