The Washington herald., 1909-06-29
Senatorial Tariff Revision.

The soundest criticism Of the Senate's
work in framing the dutlabIe schedules
Of the tariff bill is that offered by Sen
ator La Follette-it practically ignores the
vast economic changes which have oc-
CURED since the enactment OF the Ding
ley law. All the old protectionists af-
frmed their disbelief In a tariff that
promoted monopoly. They held TO a faith
In competition as an industrial regulation
maintaining that. although tariff duties
might reduce, restrain, or abolish foreign
competition, they augmented domestic
competition. thus protecting the consumer
from exorbitant prices But what has
actually happened? Not only has foreign
competition been practically eliminated by
the high duties imposed or importations.
but freedom from foreign competition has
been taken advantage OF for the forma-
ton Of domestic combinations 10 elimi-
nate home competition. Under the Ding
ley law industrial combination has rapid
y advanced. until on January !. lsOS-we
are using Senator La Follette's figures
II embraced 1920 manufacturing plants.
with a total capitalization in stocks and
bonds OF S31.672OOOOO0. These conbina-
tons control prices to such an extent
that competition plays but a limited role
in regulating charges TO the consumer.
Meantime, the processes OF production
have been greatly cheapened. the ef-
hciency Of labor enhanced. inventions
have multiplied the economies Of manu-
facture and displaced slower and .costIier
methods Of hand labor. so that the result
has been that we are now making COM
modities OF all sorts at a lower labor
cost than anywhere else in the world. and
our competition has been felt in the mar
kets OF every industrial nation. In fact.
foreigners can obtain what we produce
ia many instances at vastly lower prices
than the American who bears the burden
Of tariff taxation. and yet. as Mr.. La
Toilette says. THE consumer is not only
denied the benefits of cheapened produc-
tion, but is compelled to pay extravagant
prices for inferior articles'-the precise
consequence Of monopoly the world over
at every period Of history.
Now. the Senate Finance Committee.
and the Senate under its guidance. has
thrust aside these vital considerations as
irrelevant II has gone upon the theory
that gigantic combinations need. as much
as the small manufacturer OF an earlier
period. 10 be protected from the competi-
ton Of foreign manufacturers with whose
products they are actually able to com
pete In oversee markets The cheapen-
ing Of production abroad is alleged as
an excuse for not permitting the con-
sumer TO derive any advantage from the
like cheapening OF production at home.
All the great facts OF domestic produc-
ton are ignored, and only the possibility
that importauons may TO some extent dis
place domestic manufactures is given
any weight. To exclude these importa-
tions or TO insure that the cost Of making
them shall allow the domestic manufac-
turer to charge a monopoly price for his
output Is substantially the object of the
duties imposed IN the Senate revision.
That excessive duties encourage monopoly.
as President Taft has said. has been Of
no concern 10 the Senatorial revlsers.
The form Of prosperity that arises out
Of the high privilege OF depressing the
American people under the forms Of law
Is not Of enduring stability. nor Is It
likely TO insure the continuance of the
existing era Of political good feeling.