Milford chronicle., 1905-06-02
WASHINGTON LETTER.

Considerable satisfaction is expressed in
Washington at the general results of the
Ohio convention. In the main, the Ohio
platform is hearty endorsement of the
administration and its expressions on the
subject of rate legislation are particularly
gratifying. The platform would have been
even more satisfactory had it endorsed
the administrations recommendations in
favor of tariff readjustment, but il is, as
a whole, so satisfactory that there is no
disposition to criticise its one defect.
Secretary Taft's frank statement, as chair
man of the convention, that the majority
in Congress will be compelled to take
some action with view to obvesting the
steady deficit does not agree with that
made at St. Louis by Secretary Shaw, re-
Gently, when he said, ''We are not wor-
ried about the deficit" but Mr.. Taft's
version is the one entertained by the
President and a majority of the members
of his cabinet. 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 pro-
ducing power.
Speaking to a high protection State like
Ohio, Secretary Taft doubtless deemed it
wise to 60 no further than to present the |
alternatives, but there is no doubt, in
the minds of those who have discussed |
the subject recently with Mr.. Taft, that
he believes the tariff schedules should be
readiusted, as do all the members of the
except Secretaries Shaw, Wilson
and Metcalf, all of whom are inveterate
stand patters.
There are strong indications that the
tariff readiustment policy will receive con-
help from a new and unexpected
source, namely from some of the most in
huential of the protected interests. Sew
eral managers Of legitimate benefciaries
Of the protective tariff have advised the
President that their industries are over
protected. Paradoxical 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 any one
who takes the trouble to think. They
iay that with the tariff so high as to pre-
ient the alluring possibility of inordinate
profits, new and inexperienced business
men are prone to rush into the industry
md establish small plants which invaria-
bly, come to financial grief in a short
ime. Were these little fellows allowed
o pass through a period of financial
tress, ultimately to fail, they would nat
irally sell their products at reduced prices
o secure the much needed ''ready cash.
md so demoralize the entire market. To
void this undesirable result, the large
producers buy up the smaller and weak =
and are often compelled TO /
10 so at a serious loss, because the little q
ellows invariably overvalue their plant
nd stock. Moreover, even at a fair val !
ation, these additional plants are seldom Il
rorth much to the larger concerns which {
re already provided with all the ma
hinery, etc, that they require. To n
lake these purchases the larger concerns o
re compelled, as a rule, to issue addi- o
onal stocks or bonds and these increased e
abilities are prejudicial to the interests :, "
( the stockholders. Therefore, argue q
ne protected manufacturers, it would be Il
Iore beneficial were the tariff schedules "
,duded to a reasonable basis, the over nj
us of domestic competition curtailed
I'd the market kept steady It will, of B
'urse, be obvious'to the reader that this 81
gument is advanced only by the mana