New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-05-26
TARIFF FIGHT COMING.
NEW FORCES At WORK.
OUerprotected Industries and Rail
1cays FAVOR Readjustment.
TFRoM THE TRIBUNE BUREAU

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Washington. May 25-The President viii warn
Congress of the necessity Of readjusting the
tariff schedules in his message to the special
session expected to be called for October 16
and it is probable, moreover that he will ex-
press himself on this subject with greater detail
in his message to the regular session. which
will convene on December f.
From an entirely new and unexpected source
he is assured of receiving hearty support in his
advocacy of the scaling Of those tariff 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 abIest managers of
Protected industries the protection afforded
by the Dingley act is so great in some cases as
10 induce inordinate competition, with the re5uIt
that large concerns, whose business is menaced
by the continual organization of small COM
petitors, are compelled to absorb the little fel-
lows at extravagant valuations
Attracted by the alluring possibilities Of profit
in an overprotected industry men with limited
capital and frequently with limited experience,
are constantly tempted to invade that industry.
If permitted gradually to approach and finally
TO arrive at insolvency they will inevitably
under pressure of financial stress. demoralizs
the market and entail serious losses on their
more solid contemporaries. To avoid this result
it is the custom of the larger concerns to buy
out their smaller competitors. even though cons
PEELED to buy at an overvauatiOn the little fell
lows plant.
When it becomes necessary for a large con-
Germ to buy up a small competitor it is the Gus
tom to place on the 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 seriously menaced by
the constant danger of overcaptalization, 50
2 il Try-ar tai 10 unfortunate ZtOC-lOlGer
who suffers in the end
This is an economic phase of the tariff ques-
tion which appears never to have dawned upon
the purely political "stand-patters' but 1t is
one which promises to prove a potent factor IN
the movement for tariff readjustment- 1t is not
one i. must be admitted, which appeals TO some
of the trusts wI'ch make as large profits an
nually from their manipul atoms of the stock
market from the Legitimate pursuit of the
industry in which they are engaged, but it is one
that vftaIly affects some of the most important
business enterprises in the country. and MEM
bers of Congress are certain TO learn the facts
before they are called upon TO act on the Prest-
dents recommendations
ATTITUDE OF THE RAILWAYS.
Another potent factor in precipitating tariff
debate however, will be the attitude of the
railways, which now determined TO throw
their influence into the scale in favor of read
JuSIneHt, Iney tIedIly dPpANNiltNF '' N-- '''i
who have closely observed events in Washing
ton throughout the past year. that the stand
patters" seized with avidty upon the Presi-
dents recommendation of railway rate legisla-
ton as a buffer with which to fend off that
tariff readjustment which they dreaded and
with the hope of causing the railway question
10 eclipse the tariff problem in the pubic mind
How we'll they have succeeded every one ap-
preciateS nCne more thau the railway men.
ana it would be only natural II tney now
sought to retaliat5 by welding tneiI IIlIIueH,e
to assist the tariff readJusteTs that lne ran
vay men cherish particular regard Tor the
men who, TO their own interests turned
the attention Of the public TO the eVllS or the
evistfnr railway system is clearly illustrated
by a few moments conversation win WIN any %
the men who have come to washington 10 op-
pose rate legislation
WORTHY motive than that of revenge 10 prompt
their advocacy of some modification OF me
Dfngley schedules When congress me- la9'
fall the most earnest advocates OF It1UJuS,-
roent when asked what schedules IN thelr
estimation most needed revision, inNarldoIy re-
,,IiaI. s'VVhv steel and, well-steeL ana prob-
aGIv- several Others" Recent exposures OF the
rrtcas demanded OF the Panama Canal Com
FIicJS F!i - of the regular sale TO foreigners of
domestic productions at prices far below tnoSe
demanded of Americans have almost lhEarlaoIy
rad 10 do with articles enumerated III the steer
obad,Ila one of the strongest arguments ad-
vanced bv advocates of readJustmeht mas oeeh
the exorbitant price Whicn Arleris@l '%Ilroaus -
are Comuelled to Pay for steel rams as opposed
70 the nrice at which their competitors on the
northern side OF the Canadian boundary are
.VnpiIed tVI with the same essential of railway
construction. =. =, ,, =,
Under these circumstances. 1t is generally be,
go ut the next Congress will be subjected
~ nowerful pressure from railway sources ma
tariallv TO reduce the tarin on steel MT
Scbwsbs remark that steel rails can be pro-
6ucsd for S12 a ton will be extensively quoted,
aDd rren who have stood pat for almost
Generation will be compelled to yield 10 the
arguments of the railroads and advocate legis-
Iation which will relieve the railways from the
present high prices which they are compelled TO
nav to the steel industry.
WITH the railroads advocating lower tarif
op the produots of the Steel Trust, the spectacle
of the Steel Trust casting its Influence In favor
Of railway rate legislation as a retaliatOry
measure is almost certain. and the result no
man can foreteH. although it is by no means
impossible that an alliance offensive and de-