The Montgomery advertiser., 1905-05-28
TARIFF FIGHT COMING
NEW YORK TRIBUNE SEES NEW
 FORCES AT WORK.
Oyerprotected Industries and Railways
 Favor Headjustment.

Washington Special to New York
 Tribune (Rep.) The President will warn Congress Of the necessity of readjusting the tarin schedules in his message to the special session expected to be called for Octo- Der Is, and 1t is probable, moreover, that he will express himself on this subject with greater detail in his mes, sage to the regular session, which will convene on December 4. From an entirely new and unexpected source he Is assured of receiving hearty support in his advocacy of the scaling of those tarif schedules which the country has outgrown since the Ding ley law was placed on the statutes that is from the protected industries themselves. In the estimation of many of the ablest managers of pro- tected industries the protection now afforded by the Dingley act Is so great in some cases as to induce inordinate competition, with the result that large concerns, whose business Is menaced by the continual organization of small competitors are compelled to aosorD the little fellows at extravagant valua- tions.
 Attracted by the alluring possibilities of profit in an overprotected industry, men with limited capital, and frequent 1y with limited experience, are con stant tempted to invade that industry. If permitted gradually to approach and finally to arrive in insolvency they will inevitably, under pressure of nnanciai stress, demoralize the market ana 1s en, tail serious losses on their more solid contemporaries. To avoid this result 1t is the custom of the large concerns to buy out their smaller competitors, even though compelled to buy at an overvaluation the little fellows plant.
 When it becomes necessary for large concern to buy up small com petitor 1t is the custom 10 piace on % .ne market new issue of stock. or bonds. with which to raise the funds for the purchase, and in this way the interests of the original stockholders are seri- ously menaced by the constant danger of overcapitalization, so that 1t Is in- variably the unfortunate stockholder who suffers in the end.
 This Is an economic phase or the tariff question which appears never to have dawned upon tht purely political stand -patters." but 1t is one which promises to prove potent factor In tne is not. one, 1t must be admitted, which appeals to some of the trusts which make a slarge profits annually from their manipulations of the stock mar. ket as from the legitimate pursuit of the industry in which they are en- gagged, but 1t is one that vitaily anects some of the most important business enterprises in the country, and mem bers of Congress are certan to learn the facts before they are called upon 10 act on the Presidents recommendations.
 Attitude of the Railways.
 Another potent. factor in precipating H attitude of the railways, which are now determined to throw their influence into the scale in favor of readJustment. They clearly appreciate, as do all who have closely observed events in Wash ington throughout the past year, that the 'stand-patters" seized with aVidlty upon the Presidents recommendation oL railway rate legislation as buffer with which they dreaded and with the hope of causing the railway question to eclipse the tariff problem In the all hnN ceeded every one appreciates, none more so than the railway men, and 1t would be only natural If they now sought to retaliate by yielding their Influence to assist the tariff readjust- CTS. That the railway men cherish no particular regard for the men Wno' to save their own interests, turned the sn as existing railway system Is clearly illustrated by few moments conver- sation with any of the men who nave come to Washington to oppose rate
 The railway men have, however, more worthy motive than that of re- Venge to prompt their advocacy or some modification of the Dingley schedules When Congress met last fall the most earnest advocates of aI;a. read1qStmaSeni5: us aSni; estimation, most needed revision ln- variabIy replied Why. steel. and. and probably m seYeeai tSs priess 9ess demanded of the Panama Cana! com mission and of the regular sale to for- eigners of domestic productions at prices far below those demanded or Americans have almost invariably nad to do with articles enumerated in the steel schedule. One of the strongest arguments advanced by advocates Of readiustment has been the exorbitant price which American railroads are posed to the price at which their com petitors on the northern side Of the Canadian boundary are supplied With the same essential of railway construc- tion.
 Under these circumstances. it is gen. will be subjected to powerful pressure from railway sources materially to re- duce the tariff on steel. MT. Schwab remark that steel rails can be produced for SIP a ton will be extensively quoted and men who have stood pat" for al- most a generation will be compelled to yield to the arguments of the railroads and advocate Legislation which will re- iieve the railways from the presen: high prices which they are compelled
 With the railroads advocating lower tariff on the products of the Steel Trust the spectacle of the Steel Trust casting its influence in favor of rail- way rate legislation as @ retaliatory measure is almost certain, and the re- by no means impossible that an alli- ance offensive and defensive, may be effected which will successfully oppose any important legislation affecting either the tariff or the railway prob- lem.
 Maximum and Minimum Plan.
 third strong factor in promoting considera tion of the tariff in the com ing Congress will be Germany's deter