The Montgomery advertiser., 1909-03-26
Mr. Underwood of Alabama
 Speaks on the Tariff Bill

abroad to bring about fair and honest competition, thereby producing revenue. and at the same time preventing the home producer from hiding behind a tariff wall that will enable him to es- tablish monopolies and unduly In crease the burdens of taxation resting upon the American people without their receiving any benefit in return. either in the shape of revenue for the government or in the development of the great industrial interests of the country; for 1t is an axiom. that can not be disputed. that the moment any industry Is enabled to create monop- oiy. its development along lines of best endeavor at once ceases.
 Tarin 10 . Tax.
 "If there was Q more general un- derstanding, that the tarin is tax in which private interests share the pro- ceeds with the government. there would be a more rigorous questioning of the | various duties imposed by Congress | than has yet been manifest.
 Professor Taussig in his testimony before tn. Ways and Means Commit tee at the recent hearing. stated: "Pro- | tection Is granted for the purpose of enabling new industries to establish | themselves and to offset the difference in cost at home and abroad. If an in- I lusty in reasonable time, 1t shows 1t Is developed by artificial means and | Is not justified and the props should be taken away. Statistics conclusively | show that most of our industries are now able to stand alone." Again, he stated. "Our natural advantages. im- proved machinery, efiicienoy of Ameri- | can labor and ocean freight rates in | many instances overcome the difference in cost of labor at home and abroad" :" | The facts developed before the Ways and Means Committee on the pending bill demonstrate beyond a doubt that | if the definition as defined by Profess sor Tausig of 6 tariff for protection, | is the truth. that there are very few. if any. American industries that are left within its terms or entitled to It's | support. On the other hand, the tes- | tfmony Is conclusive that the present | rates of duty are far in excess of tn e l difference in the cost of production, | and when the tarif duties exceed the difference of the cost of production at home and abroad, they are of necessity levied for the sole purpose of pro- | tecting the manufacturers profits. which. 10 my mind. can not be Justi- | fled under any circumstances, for when | the manufacturer has fair field on equal terms. he should be required to | rely on his own resources, energy and business judgment to successfully meet his competitor. and drive Nhim from the field.
 Foundation of Monopoly.
 Whenever you agree to the doc urine that he is entitled to a protec- tive wall to prevent competition. you have laid the foundation stone to cre- ate monopoly and to unduly and un- justly lay burdens upon the consum- ing masses of the people.
 tn hn nF ha dyflo levied under the tariff acts. although they incidentally afforded some pro- 1 tection. were clearly levied solely for | the purpose of obtaining revenue, but during the war of 1872 the embargo acts and other restrictions that neces- sarily arose from the war developed certain lines of manufacture to an | extent that they were controlling the American market atprices above those justified by normal conditions. To | maintain this suited condition they called on Congress to enact a tarin l that would protect them against for eign competition. ard the tariff of 1 per cent ad valorem. was an outgrowth | of this sentiment. From that day to | this. the great industries of this coun- | try have been fostered and protected | by tarin laws. in many instances pro- hibitive laws, in order that they might grow strong and self-sustaining. As the infant industry grew in most in- stances the tartf rates increased in stead of diminishing. until we have reached a condition where the duties are so high they no longer produce a l fair amount of revenue, and in a great | many instances by the continual in- | crease of the duty; in other cases 1t has been brought about by allowing the old duties to remain when the | ay,I lean industry had placed 1t in a posi- ton where it was enabled to compete on equal terms with Its foreign rival. Deficit in Treasury.
 "In a speech delivered in the House of Representatives on March last, Mir. Tawney. chairman of the Appro- prations. Committee of the House, in the treasury at the end of this fiscal year amounting to S150, 0,000. I do not think he has made an over-esti- mate. It is absolutely necessary to meet this defcit or we will bring dis aster to the Government and the busi- ness interests of the country.
 There are but three ways in which the deficit can be avoided. First, by reducing expenditures; this seems to l be impossible under a Republican ad- | ministration. Second, by levying taxes additional to those now imposed on the people, in order that the pres | ent tarifY duties assessed in the inter- ests of the manufacturer may not be disturbed. Third. by reducing the present prohibitive duties of the Ding ley bill to a competitive basis, where they will produce sufficient revenue to meet the demands of the treasury
 The protective sentiment in this coun- try has been fostered and cherished for so many years by the Republican party that many great manufac tu ring interests look upon 1t as a vested right and seem to believe that regardless of
 revenue to maintain 1t, that they are en-
 titled to the absolute and entire con-
 trol of the American market without competition from abroad.
 No . Healthy Condition.
 This clearly is not a healthy con- dition of affairs. Where any great corporation in the United States con-
 trols 50 per cent of the production of a particular commodity. the people are in arms at once and declare 1t to be a trust: that legislation Is needed to con
 trol 1t; that it is not entitled to con- trol 50 percent of the supply of any great commodity that the people need
 And yet, when the great industries in any particular branch of productive development control S9 per cent of ths American market against foreign com petition and in many instances make
 special agreement among themselves
 to maintain prices, the contention is
 made that such a tariff Is not monopo-
 listic in its tendency and that such
 industries are entitled, to the absolute
 and undivided control of the American