New Ulm review. (New Ulm, Brown County, Minn.) 1892-1961, 1909-08-11
tn. Presidents Belated Intervention.

The Presidents Be
Mr.. Taft continued to insist, last
week, upon those four additions to
the free list, and was repeatedly told
by Senator Aldrich that it would be
very difficult, and probably impossible,
to obtain them. Perhaps the Senator
explained how he had procured a
majority for large increases of the
rates on cotton goods and certain
other products by retaining the duties
on raw materials, and pointed out
that bargains of this kind should not
be repudiated. The President also
began to talk about proportionate re-
auctions of the duties upon the finished
products in the manufacture of which
such raw materials as hides and iron
ore are used. Then he was told that
it was no longer practicable to change
a majority of these duties, although
reductions of few of them within
certain limits) could still be made.
For example, he suggested that the
duties on shoes should be cut down,
or removed, if hides were to go on the
free list. But the duty on shoes was
made Is per cent by the House, and
20 per cent by the Senate. The con-
ference committee could not go beyond
these limits, in either direction. If a
duty of 10 per cent. were required,
authority to report for such a duty
must be obtained from both the Senate
and the House by concurrent reso-
luton. Such resolution might not
be passed. If introduced, it would
renew the tariff debate and be subject
to all sorts of amendments.
This shows how the President, inter-
vening at so late day, has been con-
fronted by the rules and by what has
already been done. OF course, if the
duty on raw material is removed,
there should be proportionate reduc-
lions of the duties on finished pro-
ducts, for these duties are largely
compensatory for the underlying
rates. Free iron ore calls for lower
duties on steel. But Mr.. Aldrich,
while consenting to a slight reduction
on ore, has raised the present duty of
$40 ton on structural steel to about
SIG. If raw materials now dutiable
are made free, without correspond
ing reduction of duties on finished
products, the change is to the advan-
tage of the manufacturers, especially
in any industry in which competition
has been wholly or partly suppressed.
Thus, Mr.. Taft's proposed additions
to the free list might be enacted, with
the effect of increasing manufacturers
profits and giving no relief to con-
sumers.
The President also began to criticise
the duties on cotton and wooden goods,
owing, it may be, to incontrovertible
evidence laid before him by associa-
lions of merchants. But it was ex-
pected at the end of the week that the
conference committee would, by CON-
promise, make the rates on cotton
goods, hosiery and gloves consider
ably higher than they are in the
present law. 1t is noticeable that in
all this recent discussion at Washing
ton nothing has been said about the
new basis of valuation, although this
alone promises to increase many OF
the duties by a considerable per-
centage.
AS we have said before, if Mr.. Taft
should induce Congress to put hides,
iron ore, petroleum and bituminous
coal on the free list, the effect upon
the whole tariff and upon the cost of
living would be scarcely perceptible.
Accompanying just reductions of the
allied finished products would give
consumers some benefit, but at this
writing such reductions are not ex-
pected.
It should be remembered that a
large part of the present Dingley