The Republican. [volume] (Oakland, Md.) 1877-current, 1905-06-08
WASHINGTON NEWS NOTES.
A Correspondent Writes OF Matters of
Interest at the Nations CAPITAL

suits on the Ohio convention. In the
main, the Ohio platform is II hearty
endorsements of the administration
and it's expressions Oh the subject If
rate legislation are particularly graf
flying. The platform would have
been even more satisfactory had it
endorsed the administrations rec
concentrations in favor Of tariff re
adjustment hut il is as il whole, so
satisfactory thar there = no DISPOSE
ton to criticise its one defect. Sec
rotary Taft's frank statement, made
as ch4irmau of flp convention, that
the majority in Congress will be com
PEELED 80 take SOM action with a
view 10 OhvintinG the steady defect
does not agree with that made at ST.
Loui- by Secretary Shaw, recently,
when he saiu, We are not worried
abOut the deficit" but Mr.. Taft's
version j. the one entertained by the
Taft told the Ohio Convention that
COugre.s wnnla have to restore the
war taxes, increase the internal rev
enue taxes, or so readjuSt the tariff as
to augment its revenue producing
power.
Speaking to high protection state
like Ohio, Secretary Taft doubtless
deemed it wise to go 40 further than
to present the alternatives, but there
is no doubt in the minds of those
who have discussed the subject re-
Gently with Mr.. Taft, that he believes
the tariff schedules should be read
justed, as do all the Cabinet, except
Secretaries Shaw, Wilson and Metcalf,
all of whom are inveterate stand pat
tiers
There are strong indications that
the tariff readiustment policy will
receive considerable help from a lew
and unexpected source, namely from
some of the most influential of the
protected interests. Several mana-
gers of legitimate heneficiaries of the
protective tariff HaVe advised the
President that their industries are
over protected. ParidoXical as they
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 elucidation
of this statement, however they make
it clear to anyone who takes the trou-
bic 20 think. They say that with the
tariff so high as 10 preseLt 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 a period of
financial stress, ultimately fail, they
would naturally sell their products at
reduced prices to secure the much
needed "ready cash. and so demora-
lie the entire market. To avoid this
undesirable result, the large produc-
ers buy up the smaller and weak COM
petitors and are often compelled to
do so at serious loss, because the little
fellows invariably overYalue their
plant and stock. Moreover, even &
fair valuation, these additional plants
are seldom worth much more 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 q rule to issue addition
al stocks or bonds and these increas-
ed liabilities are preiudicial to the
interest of the stockholders. There
fore. argue the protected manufac.
turers, It would be more beneficial
were the tariff schedules reduced to
a reasonable basis, the oyerplus of
domestic competition curtailed and
the market kept steady. 1t will of
course be obvious to the reader that
this argument is advanced only bv
the managers of legitimate manufac-
turing concerns which makes their
pI oft 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
manipulations in Wall Street.
The Senate committee on Inter-
state Commerce has finally adjourn
ed, after taking testimony on the
railway rate question for upward of
thirty days, without action. At the
executive session of the committee
held after the last hearing, however,
it was developed that the committee
is unanimously opposed to the char
acter of legislation recommended by
the President. The committee will
meet again two weeks before Con-
gress convenes and will report bill
with which it hopes to head off the
passage by the House of measure
In accord with the views of the Presi-
dent. This bill will amplifv the