The Washington herald., 1908-03-07
How tho Tariff Helped the Paper Trust.

How the lariff Helped the Paper Trust.
A searchlight was thrown on the rela-
tions between trusts and the tariff by
Representative Gilbert Nj. Hitchcock, the
militant publisher OF the Omaha World
Herald. in brief speech on the paper
combination delivered in the House on
Wednesday. Mr.. Hitchcock proved by
documentary evidence that the Committee
on Ways and Means was warned in 1886
that an increase in the paper duty would
result in the formation Of a trust Yet
the committee increased the duty over %
per cent by the familiar trick OF chang
ing 1t from an ad valorem to a specific
duty. thus concealing the nature of the
transaction. Within six months after the
passage of the Dingley BILL the very men
who had appeared before the committee
in advocacy Of an increase in duty formed
the international Paper Company. with
capitalization of S5f600.c10 two-thirds of
which was water Under the shelter Of
the tariff. the price OF print paper was
increased from S175 a hundred pounds
10 81 and $3.50 a hundred.
/ Mr.. Hitchcock's quotations from the re-
port of the hearings before the Ways
and Means Committee show concIusively
that the committee had ample warning
of the consequences Of an increase in me
paper duty. John Norris. then publisher
/ of the New York World. advised the COM
mlttee formally :hat the paper nanufac-
turers were about to form a combination
for the purpose Of raising the price Of
their product in order 70 derive an addl-
tional profit Of five or six millions out OF
their investment. At that moment the
combination had obtained control Of all
the available water power and most of
the available spruce timber What they
needed 70 carry out their plans was pro-
lection from the possible competition of
Canadian forests and water powers. Mr..
Norris told the committee plainly that II
the additional duty were imposed Il would
mean the creation of a paper trust and
an increase in the price of paper He told
them also and this is right 20 the point.
that the removal of the duty on print
paper would prevent the formation of the
/ combination. 1T would simply make i'm
possible" said Mr.. Norris, any eomb.aa-
ton in SO far as It attempted to raise the
price Of paper. 1t would be an automatic
check upon any monopoly"
The Republican members Of the Wavs
and Means Committee were we'll aware
Of all these facts. They were even told
the names Of the men who were forming
the paper trust. and these same men. or
some Of them. appeared before the com
mittee to urge an increase Of the duty.
Yet knowing that their action would en-
courage the formation Of g trust which
would capitalize it's monopoly power and
Its tariff protection and levy tribute on
the newspapers Of the country, the WAYS
and Means Committee granted the trust
promoters the Increased duty asked for.
Mr.. Hitchcock has made out clear case
as to this particular item In the tariff
schedules, but it is only a sample Of many
others equally fagrant; and to Quote Mr.
Hitchcock, publishers have no greater
! grievances or equities than other victims
Of other tariff-protected trusts" And the
very men who were responsible in 1897
for legislation that enable the formation
Of the paper and innumerable other trusts
are the men who will undertake the re-
vision OF the tariff next year IL their party
is returned to power Nothing short of a
revolution in public sentiment will change
their opinions. their methods. or their
theory Of tariff legislation.
/