The sun., 1907-08-20

10 tho home industry operating under the
influence Of an energetic composition be-
tween American manufacturers, induces
such Improvement in the methods OF manu-
faCturs and such economies as TO reduce
greatly the price for the benefit Of tho
American public and makes IL possible to
reduce the tariff without depriving the man.
ufacturer Of needed protection and good
profit.
BusIN Ess SYSTEM RESTS ON PRorEcrIvs
TARIFF-YREE TRADE REVISION
DISASTROUS
The present business system OF the coun-
try rests on the protective tarin. and any az.
tempt TO change IL to free trade basis will
certainly lead only to disaster.
DUTY or REPUBLICAN PARTY TO PREVENT
EXCESSIVE TARIFF RATES.
II is the duty Of the Republican party.
however. TO see to II that the tarin on inn
ported articles does not exceed substan-
tally the reasonably permanent diherential
between the cost OF production in the Tor
eign countries and that in the United states,
and therefore when changes take place In
the conditions OF production likely to pro.
duce a very large reduction in the cost OF
production in the United States It 10 time
that schedules be reexamined, and II ex-
cessive that they be reduced 30 as to bring
them within the justification for the rule
by which the amount OF tarih to be inn
posed under the protective system Is prop
erly determined.
TEMPTATIONS TO MONOPOLY IN RATES Ex-
CEEDIN0 PROTECTIVE PRINCIPLE
Whenever the tariff imposed 10 largely in
excess Of the differential between the cost
of production in the two countries, then
there Is formed at once a great temptation
to monopolize the business OF producing
the particular product and to take ad-
vantage Of profit in the excessive tarin
This denies to the people altogether the
q ION, that CNOnnQtiflnn
under a protective tariff should develop.
REASON FOR THINKING SOME SCHEDULES
EXCESSIVE.
In the enormous progress in the manu-
featuring plants and the Improvement IN
methods which have been brought about
in the last ten years in this country. there
is the strongest reason for thinking that In
many industries the difference between the
cost Of production in this country and
abroad has been reduced. This is an
opinion of mine formed PRIOR because l
am a sincere believer in the efficacy OF the
protective system ultimately TO cheaper
the cost Of production. The opinion has
been confirmed by conversation with manu-
facturers and others who knew something
Of what they speak.
CONFIRMATION BY ACTION OF NATIONAL AS
ISOLATION OF MANUFACTURERS.
am not, myself, a tariff expert and am
not sufficiently familiar with the cost OF
In the many schedules to point out the
particular ones in which such change
has taken place; but my general CONCLUSION
formed as above hnde striking support
in the action Of the National Association OF
Manufacturers Of the United States upon
this very question. A committee appointed
by that body for the purpose, investigated
the question whether the tarth bad not IN
respect 10 many articles by change IN
conditions become excessive.
ASSOCIATION ALL PRoTEcrIoNlsrs.
This National Association Of Manufac-
turers is composed almost wholly OF pro-
tectionists, and think we may safely say,
therefore. Of Republicans. l am advised
that the association represents all classes
of manufacturers in this country and that
a majority OF the manufacturers a conse-
quence are members. The committee re-
ports: -Ws are all protectionists--ther
are a very few brilliant exceptions. but 30
few that we may repeat the statement.
We are Protectionists.' The committee
laws down in it's report the following doctrine
which seems to me OF the orthodox hepub-
lican type
Protection, as the word implies, requires
that the tariff schedules be such as profecf
our manufacturers against undue pressure
from foreign competition, and MAINTAIN
our high wage scale and standard OF living
The minimum measure OF protection 10.
therefore, as President Roosevelt said.
The difference in the cost OF production
in this country and abroad These protec-
tive schedules. thus figured. must carry
with them a very ample margin for safety.
Ii must make full allowance for the poesi-
bility Of hard times abroad and good times
here; for dumping. and all other contin-
gencies. This done, 1t Is truly protective;
and it is only 80. as il covers these fe atures
and nothing more
MANY SCHEDULES ExcRssrvE.
After referring to the fact that there
were some articles in which the tarih was
hardly high enough. the eonotusion oi the
Confining ourselves to the protective
principle, we find many scheduies-some OF
them upon the prime necessities OF hfe--re-
turning the Government no revenue OF con-
sequence, and yet, under the claims OF the
protective theory, bearing tarih schedule
not merely equal to the diherenoe in the
cost Of production here and abroad, with
all reasonable contingencies allowed Tor,
but decidedly in excess OF the total wage
cost o. Rr9duSsion ~ y this this country cnsae.
times in excess Of the difference between
the coet Of production here and abroad.
We find that individuals who are at the top,
both in stock holdings and in management
in some OF these same industries, declare
privately that these schedules are wrong
and that the best interests OF those indus
tries themselves, as well as the interests OF
the country at large, require adjustment
at the earliest possible moment. 1hey say
that now is the time for revision, while the
country is 30 prosperous that adjustment
may easily be made TO new conditions
VOTE OF ASSOCIATION.
~In that body Of members OF 800, $50, or
20 per cent, were radically opposed to re-
vision; 3 per cent. were opposed 10 revision
at this time lest it unsettle business; IS per
cent. wished revision. and II per cent.
were Indifferent or uniformed. Taken
by industries, out OF II different industries
tabulated, SO voted for revision, casting a
total OF 1910 votes; 10 industries voted
against revision, casting a total OF i02
votes; 5 industries were each tied in their
votes, casting total Of % votes.
The association then Ivy resolution passed
by a large majority declared itself in favor
OF a revision OF the tariff at the earliest
practicable date.
sI0NIFICANCE OF THIS REPORT AND ACTION
SHOULD BRING MATTER BEFORE
CONGRESS FOR RINvEsTIoArroN.
have not cited the report or action OF
the National Association Of Manufacturer
as conclusive upon the character OF the
present schedules. nor do / assume that the
manufacturers OF the country embrace al
the classes who are interested in maintain
ing the protective system, for fully recog-