New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-04-03
STAND PAT" TO WIN.
So Thinks Senator HanSbrOugh-
The Wheat Dra1oback.
IvnoM THE TRIBUNE BUREAU.i


bune Bureau to-day Senator Hansbrough, de-
spite the fact that he is an ardent protectionist
believes that the time has arrived when certain
tariff schedules should be revised, but he Is
convinced that the drawback policy of Secretary
Shaw will so far revoiutionize the administration
Of the existing tariff law as to prevent the sue
cess Of the Presidents policy OF securing some
modification Of the Dingley law by the next
Congress.
Apparently the 'stand-patters' are going to
win in their contention that there is no necessity
for a readjustment of the existing tariff law II Is
semi-ofacialIy announced that the extra session
viii not begin until October 16." continued Sen
ator Hansbrough "From that date until the
beginning Of the regular session the two houses
will be occupied in their own reorganization
and any railroad rate legislation which may be
proposed must be considered in the winter and
spring months of 1906. The House managers
will easily discover that there is no time for
consideration Of tariff or other revenue legisla-
ton. Indeed, it looks as IL they had already
made that discovery.
Secretary Shaw's drawback order extending
the drawback privilege to wheat millers. estab-
fishes the principle of free materials, and
must eventually rob those who believe that the
tariff schedules should be adjusted to existing
conditions of the valuable support Of those New
England manufacturers whose desire for tariff
changes has been largely prompted by their
hope of obtaining cheaper raw materials
Secretary Shaw's wheat order was based on
an erroneous assumption, the error of which
should have been known to the Secretary, who is
a Western man. Ostensibly the Secretary as
sumed that domestic millers are obliged to go to
Canada for hard wheat to be used in export
flour, and that, Of course, was the specious pre-
text on which the mfers claimed the drawback
privilege. The fact is that the millers can get
all the hard wheat they want. II they will pay
the price, and they prefer the Canadian wheat
only because it is from 10 to 20 cents bushel
cheaper. The disparity in price is greater now
than for several seasons past, owing to the
short crop in the United States last year. The
total production Of wheat last year amounted to
$50, 100000 bushels, which is S5.OOO,OO0 bushels
less than in 1903 and 196.O00OOO bushels less
than in 1901. Because Of this shortage there
was llttls surplus wheat for sale abroad. and
American grain growers. thus relieved from
competition with the grain growers Of the world,
were receiving the full benefit Of the protective
tariff Of % cents bushei until Secretary Shaw,
by his peculiar methods Of tariff revision.
granted permission to the millers to bring in
foreign wheat to be ground into flour for ex-
port Since then American wheat has fallen in
price from four to six cents bushel. all for the
gain of the manufacturer.
and passed the drawback provision of the tariff
law was to provide for the Of imported ma
terial in articles made for expectation only when
such materials could be identified in the manu-
featured article. This is obvious from the law
itself, which reads that the imported materials
shall so appear in the completed articles that
the quantity or measure thereof may be ascer-
tained' Attorney General Olney construed this
law In a case where application was made for
cordance with the obvious intent of its wording.
Since Mr.. Olney's time on application Of nu-
merouS manufactures the law has had a diff
ferent Interpretation. and nearly all imported
raw materials are admitted free Of duty, ths
mere afidavits OF the manufacturers that i'm
ported materials have been used in articles Of
export being accepted by the Treasury Depart
ment as evidence sufficient to Justify the grant
ing Of the drawback This is a gross perversion
Of the law, especially in the case OF wheat. The
millers assert that they must have Canadian
hard wheat to blend with domestic soft wheat
for the manufacture Of -four for export, but this
is a thinly disguised subterfuge. The hard
wheats are always higher in price than soft
wheat, and the high priced wheat is never used
in export flour. which must be sold in the worlds
markets in competition with the cheap flour OF
the world. Yet under the Treasury Depart
ments remarkable policy, it is all sufficient il
the miller swears he has used high priced
wheat with which to make a low priced -four
The department will go through the form Of
supervising the operation. but it will never be
able to follow given quantity of wheat through
miles Of elevator shafts and spouts or to locate
it, even by chemical analysis. In the completed
article.
And so with Congressional tariff readjust-
ment now practically out OF the question; with
every demand Of the manufacturers acceded
to- with firmly established Treasury Depart
ment policy which discriminates against five
million grain growers and thousands of miners
and other producers Of raw materials: with a
Treasury deficit back OF us and one In front
of us: with the House Of Representatives in
the grasp Of an oligarchy OF 'stand-patters'
we find ourselves joyOusIy and blitheIy gliding
down the toboggan slide Of prosperity with our
vision complacently fixed upon the mythical
man in the moon. The situation is beautiful
to contemplate and shows what a great coun-
try like ours can endure-for time. My faith
in the policy of protection is unshaken 1t is
the modern application of the policy that dis
turbs me-
Is there, in your estimation any demand for
or Likelihood Of reciprocity with Canada?'
There will be no reciprocity treaty with Can
ada, and so far as Canada is concerned none
is necessary. Canada is now receiving sreate-
benefits under Secretary ShaW's tariff noIicy,
than would be possible under any reciprocity
treaty. Last year we exported sixteen million
pdrreis OF hour II the Secretary's order had
been in force last year nothing would have pre-
vented the millers of the country from cIainina.
that all this flour contained imported wheat
About four bushels OF wheat are required tn |
make a barrel of flour Suppose they could have
claimed that there were used two bushels of i'm
ported wheat to the barrel This UOuld have
meant meant rebate Of duty amounting to $8OGOOOO |
Could there be devised any scheme of reciproc- !
lty OF greater advantage to Canada? Under the /