New-York tribune., 1910-08-29

the excess of the tariff rate over the diff
ference between the cost of production
abroad and here.
The Payne tariff bill is the first bill
passed by the Republican party In which
the necessity for reducing rates to avoid
this evil has been recognized. and it Is
therefore a decided step in the right direc-
ton and il ought to be accepted as SUCH
On the whole, 1t was downward re-
vision, particularly on articles OF neceS-
sity and on raw materials. The actual
figures on the first years operation or
the law demonstrate this. II must also
be remembered that the tariff rates In
the new law on imported liquors, wines
and silks were increased substantially
over the Dingley rates, because these
were luxuries and IL was intended to In
crease the revenue.
The charge that the present tariff Is
responsible for the increase in the prices
of necessities is denonstrably false, be-
cause the high prices. with very few ex-
ceptions. affect articles in the tariff
upon which there was no increase IN
rates or in respect to which there was a
substantial reduction.
Tariff Board.
Perhaps more important than any one
feature of the operative part OF the tariff
law is that section which enables the
Executive to appoint a tariff commits
sion or board TO secure the needed 1nfor-
nation for the proper amendment and
perfection Of the law The difficulty IN
fixing the proper tariff rates In accord
with the principle stated in the Repub-
liCan platform is in securing reliable
evidence as to tie difference between the
cost of production at home and the cost
of production abroad. The bias Of the
manufacturer seeking protection and OF
the importer opposing it weakens the
weight Of their testimony. Moreover.
when we understand that the cost of
production differs in one country abroad
from that in another, and that it changes
from year TO year and from month to
month, we must realize that the precise
difference in cost Of production sought
for is not capable of definite ascertain
rnent and that all that even the most
scientific person can do in his inVestiga-
ton is. after consideration Of many facts
which he learns, to exercise his best
judgment in reaching a conclusion.
The commission, however, already Sc
Iected and at work. is a commission OF
disintereSted persons, who will ascertain
the facts. not In formal hearing by eX-
animation and CroSs-eXdmlnat1on OF Wit
nesses, but by the kind of investigation
that StatiSticianS and scientific inveStl-
gators use. When the commission COM
pletes its work. either on the entire tariff
or on any Of the schedules in respect to
which issue has arisen, and the work OF
the commission shows that the present
tariff is wrong and should be changed, L
expect to bring the matter to the atten-
ton of the Congress with view TO It's
amendment Of the tariff in that partcu
lar, OF course this will be Impractical
bic unless Congress itself shall adopt the
parliamentary rule, as | hope it will, that
a bill to amend one schedule Of the tariff
may not be subject to motion to amend
by adding changes in other schedules.
It will thus be possible TO take up
single schedule with respect 10 which it
is probable that great majority of each
house will be unprejUdiced to admit the
evidence and to reach fair conclusion.
and this method will tend TO avoid dis
turbing business conditions. For these
reasons it seems to me that all Republi-
cans-conservative. progressive and rad
ical-may we'll abide the situation with
respect to the tariff until evidence now
being accumulated shall justify changes
in the rates; and that it is much better
for them to vote for Republicans than
/ 10 help create a Democratic majority
which would be utterly at war with the
! protective principle. and therefore WouId
have no use for the findings Of the Tariff
Commission, as we may certainly infer
from the solid Democratic vote in the
! present Congress against the necessary
! appropriation for the commissions work.
Results of Payne Law.
! One great virtue in the new tariff law.
! including the corporation tax, is that,
! taken with the current effort of the ad-
! nlinistration to keep down or reduce
! governmental expenditures and to re-
| form the methods of collecting the Gus
| toms revenue. il has, by its revenue pro-
ducing capacity, turned deficit in the
ordinary operations Of the government
( Of sos 100000 for the year ended June
! 80, 1909. to a surplus in the first full year
! OF the law, ended August 5, 1910, of
! S26 100000 From a revenue standpoint,
| then, there can be no controversy over
| the effectiveness Of the new law. In
| creased revenue indicates increased i'm
| ports, and an examination of our i'm
/ ports during the last year will disclose
! a most substantial increase in manu-
/ facturers' material, from which, in the
making of finished products, whether for
expectation or home consumption, has
come g, larger volume of employment for
our wage earners. a larger purchase e
! power and a greater consumption of the
products OF our farms and fabrications
! Of opr factories. So far, then, IS such
! importations do not diSplace home pro-
duction they must be of benefit to all.
! Generally speaking q full measure of
! Industrial activity in production, trans
! portation and distribution has accom-
panied the operation of the new law.
Under the maximum and minimum pro-
visions we have concluded treaties with
! all foreign nations, gaining the best pos
/ sible terms for entrance to their mar
! kets without sacrificing our own By the
! Payne tariff law we have at last done
/ justice to the Philippines by allowing the
/ producers Of those islands the benefit of
! cur markets, with such limitations as to
prevent injury to our home industries.
Again, the present law in its corpora
/ ton tax imposes q new kind of tax
! which has many of the merits of an in
come tax. 1t taxes success, not failure
! Unlike a personal income tax, it is easily
( and exactly collected, and by an increase
or decrease in the rate enables Congress
/ with eXactness TO regulate its income to
/ its necessary expenditures. More than
! this, il furnishes an indirect but effective
method of keeping the government ad-
/ all corporations It is enc of the most
useful and important changes in our
revenue laws, as the future will show
| IN spite Of the criticisms heaped upon
! it at its passage no party responsible for
revenues or anxious to retain every
means of legitimate supervision of cor
porations VIII repeal It.
Interstate Commerce.
The next most important work of the
present Congress was the passage of the
amendment to the interstate commerce
| bill The Republican platform favored
amendment TO the interstate commerce
act with view TO giving greater power