Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1906-09-15
SECRETARY SHAW
TELLS OF TARIFF
EXPLAINS OPERATIONS OF DRAW.
BACK PROVISION TO CAR
DINA AUDIENCE

Deals With Question of American Pro-
ducts Being Sold Abroad Cheaper
Than at Home-GalIagher's State.
ment Has Never Been Denied.
Greensboro, N. c., Sept. 12.-secre
tary Shaw spoke to an immense gath.
ering of republicans at Winston Salem
yesterda--, and again at Salisbury last
night.
At Winston Salem he arraigned the
democratic party, declaring it had no
platform and stood for nothing.
At Salisbury Mr. Shaw spoke as fol-
lows:
Secretary Shaw's Speech.
Our political opponents lay much
stress upon the fact that some Ameri.
can manufactures are sole abroad
cheaper than at home. That the prac-
tice prevails to some extent all must
admit, but thai it does not prevail gen.
orally or to any considerable extent
is easily established. A non-partisan
industrial commission was appointed
bv congress in 1898, which, after
spending more than three years in the
investigation, filed its report In 1902,
which was published in eighteen large
volumes. This report contains all avail
able evidence on this subject. After
making careful compilations from the
data therein contained, Senior Calm
ger Of New Hampshire, stated on the
floor Of the United States senate, in
April 1904, that approximately 3,OO0,-
900 worth of American manufactured
products are annually sold abroad
cheaper than in our own Domestic mar
ket. No one has ever attempted tic
disprove Senator Gallinger's conclus-
ions, though our political opponents
continue to speak of the practice as
well-nigh universal. This $4,O0O0OO
worth can he far more than accounted
for by the advantage given to export.
ers under our drawback laws, and It
is quite likely the estimate is too low.
Is Republican Policy.
ut has been the policy of the repub.
lican party for many years to allow
manufacturers who export their pro.
duct the advantage Of the cheapest
tariff law provides two ways by which
advantageous privilege. First, the law
chandise for export in bonded factor.
les and permits to be transferred there.
to not only imported ores, iron and
steel billets and other material free of
duty, but also spirits and tobacco free
Of internal revenue tax. During the
last fiscal year approximately $4,000.
600 worth of imported ores for smelt-
ing, material for manufacture, and dis
10I mi, ik1 %o1~ AZ
used and the entire product exported
and no duty or intern,l revenue paid
thereon. Had this material been en-
tered for consumption in this country.
the duty and internal revenue tax
would have been quite large amount.
and, to the extent of this saving in
the cost of the finished product, the
smelter and manufacturer could reduce
his export price and still make the
same profit.
American Manufactures.
"Under the American scale of wages
LIE value of ordinary American MANI.
features is about equally divided be-.
tween material and labor. The con.
version into finished products, there.
fore, Of $10,000,000 worth of raw mater.
ial consumed in bonded factories would
justify the sale abroad of twice that
amount of refined or manufactured
products cheaper than at home.
Should not be surprised to learn that
most Of the output of these bonded
smelteries and factories is sold abroad
below the price prevailing in the Unit
ed States.
Pays Back Some.
"The other method provided in the
Dingley law for allowing manufactur.
ers who export their products the adj
vantage of cheap material auth rizss
the secretary of the treasury to pay
back to the exporter Of manufactured
merchandise SO per cent of the duty
which he has actually paid upon any
imported material consumed therein.
During the last fiscal year there was
refunded to the exporters of manufac
lures produced in whole or in part
from imported dutiable material ap.
proximately $6,000,000. The refund Of
duty averages about per cent of the
value of the exported merchandise.
This drawback provision, therefore,
justifies the sale abroad OF $4,000, 600
worth Of American-manufactu mer.
chandise per cent below the domes.
tic price of similar ARTICLES Both these
provisions Of the Din-ley tariff law
were enacted for the avowed and sole
purpose of enabling the American en-
ployer of labor to put his product On
the foreign mark. at reduced prices
In this way only is he able success
fully to compete with rivals who al
ways have the benefit of cheap labor
anu frequently of non-dutiable and un
taxed material