The Laclede blade. (Laclede, Mo.) 1890-1945, 1905-06-03
WASHINGTON LETTER.
Our Regular Correspondent Writes From the
National Capitol.

eu In w asnlngCOn at Cne generai re
suits of the Ohio convention. In the
main, the Ohio platform is hearty
endorsement of the administration
and its expressions on the subject O
rate legislation are particularly graft
flying. The platform would have
been even more satisfactory had 1t en-
dorsed the administration recon-
mendations in favor of tariff readjust
ment, but it is, as a whole, so satisfac
tory that there is no disposition tc
criticize its one defect. Secretary
Taft's frank statement, made as chair.
man of the convention, that the ma
jority in congress will be compelled
to take some action with a view to
obviating the steady deficit, does not
agree with that made at St. Louis by
Secretary Shaw recently when he
said, "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 cab
met. Secretary Taft told the Ohio
convention that congress would have
to restore the war taxes, increase the
internal revenue 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 no further than
to present the alternatives, but there
is nc doubt in the minds of those who
have discussed the subject recently
with Mr.. Taft, that he believes the
tariff schedules should be readjusted,
as do all the members of the cabinet
except Secretaries Shaw, Wilson and
Metcalf, all of whom are inveterate
stand patters.
There are strong indications that
the tariff readjustment policy will re-
ceive considerable help from a new
and unexpected source, namely, from
some of the most influential of the
protected interests. Several manag-
,erssof legitimate henefciaries Of the
protective tariff have adAlsed the
president that their industries are
,over-protected. Paradoxioal 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
trouble to think. They say that with
the tariff SO high as to present the al
Turing possibility of inordinate profits
new and inexperienced men are prone
to rush into the industry and estab-
lish small plants which invariably
come to financial firief in short time.
Were these little fellows allowed to
pass through period of financial
stress, ultimately to fail, they would
naturally sell their products atreduc-
ed prices to secure the much needed
ready cash." and so demoralize the
sntire market. To avoid this unde-
Iirable result, the large producers buy
Up the smaller and weak competitors, I
md are often compelled to do so at a h
erious loss, because the little fellows g
invariably overvalue their plant and t
took. Moreover, even at fair val 7
lation, these additional plants are e
eldom worth much to the larger con- q
erns, which are already provided
nth all the machinery, etc., that
hey require. To make these pur- <
hases the larger concerns are compel
ID, as a rule, to issue additional
locks or bonds, and these increased
abilities are prejudicial to the inter m
its Of the stockholders. Therefore, 81
rgue the protected manufactures. it n
ould be more beneficial we're the &
riff schedules reduced to . reasona- d. d.
Ie basis, the Overplas of domestic Sc Sc
,mpetition eurtailed and the market e e
spt steady. Ut win, of cOurse, be D