The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1909-09-05
THE PROTECTIVE TARIFF
AND RAILWAY REGULATION

| Samuel o. Dunn in World Today
Magazine for August, 1909: Tariff re-
vision and regulation Of railways are,
perhaps, the two most important pub
lie questions now being considered IN
this country. Their simultaneous con-
sideration calls attention to marked
differences between the way the ma
tional government deals with manu-
| facturers and railways. Manufactur-
es and rail transportation are, except
agriculture, the two greatest indus
tries of the United States. The nation
is committed equally to regulation OF
railways and the protection Of manu-
| features; and the merits OF neither
policy, per Sc, will be entered into
here. But a statement Of the way
these two policies affect and react
upon the two great industries men.
toned will, it is believed, present
aspects of both policies that will be
new to many readers.
The principal purpose of the pro-
tective tariff is to safeguard the
manufacturer against foreign compe-
tition in the home market. 1t re-
stricts or prevents the sale here OF
many foreign articles. Those who
favor protection say that this Is a
| good thing because 1t enables the do
nestle manufacturer to get large
profits, pay high wages and make
some things that he otherwise could
not.
The railways plant Is analogous to
the manufacturers plant. IL
makes" transportation. If it is ex-
pedient to protect our manufacturers
by imposing import tariffs. why would
it not be expedient to protect our rail-
ways by imposing tariffs (if this were
constitutionaD on goods that are
shipped into or out of the country va
foreign railways or steamship lines
when they could be shipped via Unit
ed States railways? Whether such a
policy would be expedient or not, II
never has been seriously proposed
The railways Of the United States
have constantly to meet the full force
: of the competition OF the Canadian
and Mexican railways and OF the
steamships of those and other coun
) tries. The Canadian Pacific completes
with them for traffic from Pittsburs
and other eastern points to the "a
cific coast and the Orient. The Grand
Trunk completes with them for traffic
A-., r,l;.,... ,nd Nyou Work The
; Tehuantepec Railway completes witt
them for traffic between New Yori
and San Francisco There Is con
slant struggle between American
railways and the British Steamship
: for freight, which may move iron
Pittsburg and Cleveland to Asia ant
! Australia either eastward by ocean o
westward by rail to the Pacific coast
and thence by steamship.
The government not only does notn
Ing to protect the railways agalns
e competition. but 1t is spending man.
millions of dollars building the Pan
anna Canal, which will stimulate coH
e petition against them; and 1t Is pre-
e naring to spend other millions IN dc
S welcoming inland waterways further t
/ stimulate competition against them
Q The development of waterways III
e ouestionably is expedient and needfu
n But it will be recalled that "ne
II Kansas appropriated money TO stai
s. Irvine factory to compete with TN
q manufacturers of binding twine. an
$ when it later appropriated money
I start oil refneries to compete VII
n the Standard Oil Company, that stat
q was warned that it was embarklng
q the uncertain seas of Socialism.
q Protection enables the domest'
e manufacturer to charge higher price
u for his products than he could get
IS he had to meet foreign competitio'
% The large majority in this countr
H. who favor protection think the mig
e nr;ces 1t causes are advantageous M
Y only to the manufacturer. but also
~ his employees and the public. III
II railways charges for hauling frelgi
. and messengers are its prices. II mig
prices for shoes or steel rails are
good thing, why would not high price
for hauling shoes or steer ralls pe
u, good thing? The manufacturers
a. the United States in 1905 paid out
u per cent of their gross recelpts
= wages and salaries. The railways
: the same year paid out 40 per cel
of their gross receipts in wages al
salaries. If high prices for concern
=, ~ that pay out q per cent OF their gro
~ receipts are a good thing for wag
~ earners, why would not high rates I
;. concerns that pay out 40 per cent
- their gross receipts in wages and $;
- aries be a good thing for wag
VIC earners?
v. While, however, the national &c
ed eminent. by the protective tart
helps the manufacturers to get hi,
prices, it has adopted policy of ra
no way regulation that tends to make al
lie keep railway rates low. The Hepbu
do amendment to the Interstate Co
no merce Law empowers the Intersta
Commerce Commission when 1t fin
-