The Donaldsonville chief. [volume] (Donaldsonville, La.) 1871-current, 1905-06-03
WASHINGTON LETTER.
An Interesting Discussion of the Tariff Re-
adjustment Question-VieWs OF
the Big ufacfurers.

pressed at " ashington at the general
results OF the Ohio convention. In
the main, the Ohio platform is q
hearty endorsement of the administra-
ton and its expressions on the subject
of rate Legislation are particulanay
gratifying. TIplatform would hase
been even more satisfactory had it en-
dorsed the administr atoms recon-
mendations in favor of tariff re-adjust
ment, but it is, as a whole, SO satisfac-
tory that there is no disposition to criti-
ciseIits one defect. Secretary Taft . Il aak
statement, made as chairman OF the
convention, that the majority in con-
gress will be compelled to take some
action with view to obviating the
steady deficit does not agree with that
made at St. Louis by Secretary Shaw,
recently, when he said, 1--WE are not
worried about the Deficit but Mr..
| Taft's version is the one entertained
by the president and majority OF the
members of his cabinet. Secretary
Taft told the Ohio convention tn at
congress would have TO restore the
war taxes, increase the internal rev.
enue taxes, or SO re-sdiust the tariff
as to augment its revenue-producing
| power.
Speaking to high protection state
like Ohio, Secretary Taft doubtless
deemed it wise to go no further than
TO present the altern atives, but there
is no doubt, in the minds OF those who
have discussed the subject recently
with MIR. Taft, that he believes the
tariff schedules should be re-adjusted,
as do all the members of the cabinet,
except Secretaries Shaw, Wilson and
Metcalfe, all of whom are inyeter ate
stand patters.
There are strong indications that
the tariff re- adjustment policy will re-
ceive considerable help from new
and unexpected source, namely, from
some of the most influential of the
protected interests. Several managers
of legitimate benefciaries of the pro-
tective tariff have advised the presi-
dent that their industries are over
protected. Paradoxical as this may
seem their second statement on the
subject seems even more SO. They
say that there are too large profits in
their respective lines. In elucid ation
OF this statement, however, they make
it clear to any one who takes the trou-
bic to think. They say that with the
tariff so high as to present the allur-
ing possibility OF inordinate profits,
new and inexperienced business men
are prone to rush into the industry
and establish small plants which in
variably come to financial grief in a
short time. Were these little fellows
allowed to pass through period OF
financial stress, ultimately TO fail, they
would naturally sell their products at
reduced prices to secure the much
needed "ready cash, " and so democrat
ize the entire market. To avoid this
undesirable result, the large producers
buy up the smaller and weak compete
tors and are often compelled to do so
at a serious loss, because the little
fellows Invariably overvalue their
plant and stock. Moreover, even at
fair valuation, these additional plants
are seldom worth much to the larger
concerns which are already provided
with all the machinery, ETC., that they
require. To make these purchases the
larger concerns are compelled, as a
rule, to issue additional stocks or
bonds, and these increased liabilities
are prejudieial to the interests of the
stockholders. Therefore, argue the
protected manufacturers, it would be
more beneficial were the tariff sched-
ules reduced to reasonable basis, the
overplus of domestic competition cur
tailed and the market kept steady. It
will, of course, be obvious to the
reader that this argument is advanced
only by managers of legitimate man
ufacturing concerns which make their
profits out of their business, and that !
such reasoning is obnoxious TO all of
those trusts whose profits are largely
comprised OF the margins on stock ma
in Wall street.
The senate committee on Interstate
commerce has finally adjourned, after
taking testimony on the railway rate Il
question for. upwards Of thirty days.
without action. At the executive ses-
sion Of the committee held after the
first hearing, however, it was de-
veloped that the committee is unani-
nously opposed to the character or
egislation recommended by the presi-
lent. The committee will meet again
wo weeks before congress convenes
md will report bill with which it
Iopes TO head of the passage by the
ouse of measure in accord with the
Jews OF the president. The bill will
.mplify the Elkins anti-rebate law SO
8 to prevent any possibility OF re-
ates, which curtail the profits of the
ailroads. 1t will place the private
ar lines under the SUP ervision of the
1terstate commerce commission, the
esults Of which will be probiematical.
will not delegate to the Interstate
ommerce commission the power to fix