Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1909-05-25
AMERICAN TARIFF LAWS

EHE TEMPLATE INDUSTRY


The theory of protection finds its best
argument in American tin-plate lnous-
try. From an industry whose output was
a negligible quantity I'm 1891 to an annual
output valued at $65,OOO,OeO in 1904 and
a wage roll OF $1O,OO0,O00 year; such Is
the story of American tin-plate. AT the
same time, the price of tin-plate is cheap
er than II was prior to 1884, when the
bulk of our supply came from England
Pryor to the passage Of the Mckinley
bill il was the theory Of protection that
the infant industry should be fostereo.
When the tin-plate schedule was framed,
II was not to foster an industry, but vir-
tually to bring one into being. Before
that time there had been a duty OF one
cent per pound on tin-plate. 1t was not
enough to encourage the investment OF
capital in the manufacture of this COM
modify. 1t simply served as revenue
raising schedule. Then came the Nc
Kinley law with its duty Of 22 cents
pound on tin-plate. American capital at
once saw that with such a wall erected
against the English tin-plate maker,
there was every chance of success, and
tin-plate establishments sprang up ike
mushrooms in the night Prices were
not increased beyond what the foreign
rates had been, but still the manufac-
turerG grew wealthy at those rates.
Many thought that the growth was
too rapid to be lasting and solid, but a
test was soon to come which disproved
that conclusion. The Wilson German
law provided a reduction to IL cts. pound
lust two mills a pound higher than pro-
vided before 1890. II the industry had not
taken firm root, this reduction might
have sufficed to cause it to wither. But
in spite of the great reduction, the tin
plate business continued to grow and ac-
tually increased about threefold during
the three years the Wilson-Gorman law
was in force.
When the Dingley law was passed it
was agreed that the tin-plate manufac-
turer no longer needed the % cent rate
which had obtained under the Mckinley
law. They advanced the rate only
three mills per pound above those OF the
Wilson-Gorman law, making 1t 10 cents,
or seven mills less a pound than under
the Mckinley law. The Democrats OPP
posed even this increase, declaring that
the industry got all the help it then need
ed out of the rate provided in the Wilson
German law.
II was afterward developed in a strik-
ing way, that the Democrats were even
more right in this contention. When
the Industrial commission held its hear
ings several years after the Dingley law
became operative, President Real, OF the
tin-plate trust, declared that the tariff
could be lowered half a cent per pound,
that is. to one cent, without exposing
the american product to destructive for
eign competition. From this it will be
seen that the start given the industry by
| the Mckinley law was sufficient to carry
it through the hard times that shortly
| followed and to enable it to thrive on
the same duty Of one cent per pouno
that had obtained before the Mckinley
law brought it into being. And at the
same time the cost of tin-plate had fallen
from one to three cents pound. All of
this was accomplished, it is to be re-
membered in less than ten years.
| When the Industrial commission was in
vestigating the tin-plate trust, 1t called
| a Washington Pennsylvania manufactur-
| err to testify He stated that after the
passage of the Mckinley law the manu-
| facturers were able TO make as much as
100 per cent per year on their invest
ments. and that even with the lower
rates Of the WiIson-Gorman and Dingley
! laws they were able to clear heavy per
| centage. He had sold his plant to the
trust at what he regarded as a 80 per
| cent increase over its cost. and was then
preparing to erect another Independent
| plant The trust manager of the former
| plant declared that it had been one OF
/ the worst managed Of all the plants the
American Tin-Plate company had &C
| quired, and that he was under the neces-
sity of recognizing it in order to put 1t
on a paying basis.
Under the Dingley law the protection