The morning Astorian. [volume] (Astoria, Oregon) 1899-1930, 1907-02-09
Secretary Shaw Advocates Di-
vision Of United States.
FOR COMMERCIAL PURPOSES
Would Bot Apart Certain Districts for
Purposes of Manufacturing and
Cut on TariH~-lntorost In RIv-
ers and harbors Bill.

WASiiiNGTON. Feb. g. Secretary
SHAW would split the Union. This
does not mean that he IN IL secession.
lst or that hr cOhtemplntra u renewal
OF conditions that prcclpltatcd civil
War. but llu has just advanced an idea
that has caused Washington authori-
Ties 10 at III and take notice.
The hond VI the Treasury would
Hrgregato certain portions ~ the At
lnniic, phcinc and Gulf coasts into
which raw materials from abroad
would > admitted free. Including coal
and ol 3r fuel. To be used in the pro-
cess of manufacture lie would cut
those sections of absolutely from The
operation II the United States tariff
laws. mnling them essentially manu-.
featuring districts aud not permitting
tho erection Of any rrHdenorH or bust
hess houHca other than establishments
devoted TO manufacture. In this way
tho Secretary believes that he would
create veritnble foreign mnrnkt for
American labor"
Mr.. Shaw has turned the scheme
over IN hia mind for many months,
ana he dwrit u, length upon It this
week IN AN address before The New
Hampshire Board Of Trade at Con-
cord. Al the presrnt time there are
bonded factories IN which products
for the export trade are made from
imported materials In which no Iuty
In paid, the nmterinia being held In
bond until they are shipped out Of the
country an finished goods. Mr., ThawH
scheme IN merely % extend this policy
by bonding well.dennod sections Of
land ana permitting factories ostab-
liAhcl upon this land To turn out by
by Wholesale manufactures worked
up from material brought from abroad.
American commerce. because of the
conditions under which II labors. al
ways hnA experienced difficulty IN en-
tcrlng foreign markets.
The principal handicap Of the Amcrl'
can manufacturer are the enhanced
cost Of raw materials In this country.
and tho fact that American labor Ia
the highest paid In the world. Despite
these two disadvantage. American
manufacturers build up an export trade
Of tieo0ooo In 1905. AN amount which
totaled II per cent of the total exports.
This Was accomplished in the face OF
tho ferccsi competition. through the
process OF consolidation. American
business men, realizing that individual
effort could secure for them no share |
cf this rich foreign trade organized
NJ set out 10 capture the foreign mar
ke.s i
This was the beginning OF the cor
porntion, ana In the present struggle
fof the trade supremacy OF the world
the corporation has come to stay. The
dicap OF high prices for both raw ma
tcrlnlH ana labor. cannot hope 10 COM
pete with foreign rivals unless !; ex.
tends and elnborates this system OF
concentration Of cffort and combInntl0
or intcrests This fact In thoroughly
aprrcrlt led here. where broad Wow
OF business conditions Is obtainC Bile
Tut the existence of this truth In not
seen 'learly by the individual states.
This fact Is worrying th' national
government not little. for State leg
islaturcs now are busy enactlng laws
that are certain to hamper the efforts
OF the administration to control and
direct the big corporations, 1t Is real
lied that Federal control Will be diff
cult In the face OF conflicting and
unsatisfactory tumble of state legls-
llti0n