The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-08-19
THE COST OF LIVING

FROM the Pniladelphia RECORD.
The character of Senator Lodges re-
port on the increased cost of living Is
fairly we'll indicated by the fact that it's
list of causes begins with increased cost
of farm products due to higher values
of land Mr.. Johnston of Alabama,
who prepared the minority report. has
no trouble in showing that the high cost
of land cannot increase the cost of farm
products because the value of the land
is itself the result of the price of its
products. 1t was because 1t could pro-
duce large quantities of sugar beets
that certain land in California jumped
an acre.
The minority report Is a very strong
document Several other reasons al
legged in the Lodge report are completely
disposed of by Mr.. Johnston. Between
1900 and 1909 there was, no very great
or general increase in rail freight rates,
one Of the Lodge reasons for the in
creased cost of living. The agricultural
statistics fail to bear cut the decreased
fertility of the soil alleged by the Lodge
report. Some of the statistics of the
Lodge report are shown to be clearly
impossible.
Then Mr.. Johnston takes up the tariff
and deals with IT thoroughly OF course,
1t is impossible in this space to repro
duce much of his document. But to be-
gin with, he neatly turns the tables on
Senator Lodge by quoting from certain
consular reports passages omitted by the
Lodge report. which made other selec-
tiens from them. Mr.. Johnston quotes
from these reports testimony that the
tariffs of various European countries in
crease the prices of commodities, and fur
thermore. that retail prices are increased
very much more than the duty imposed.
This is very natural result 1t oc-
ston shows, and the increase made by
the retailer is none the less the result
of the tariff. although it is very much
in excess of the customs duty. Incl
dentally Mr. Johnston produces conclu-
sive evidence that the Payne Aldrich tar
If increased taxation, although on con-
siderable number Of minor articles it re-
duced rates.
After disposing of the tariff Mr.. John
ston takes up the trusts, practically
branch of the same subject. for he shows
that most of the trusts were organized
Immediately after the Dingley tariff had
replaced the Wilson tariff. The increase
~ he t., ;eht
of packages, the abundant evidence of
the absence Of competition which can
only be accounted for by agreements. are
recited by Mr.. Johnston with overwhelm-
ing force. The comparison between
American and foreign prices leave no
doubt whatever Of the result of SUPPRESS
ing competition by high duties on for
eign articles and the combination of do
nestle manufacturers.
The conclusion OF the minority members
Johnston of Alabama, Clarke of Ar
kansas and Smith of South Carolina
Is that the three substantial causes for
the advance in prices are the tariff, the
trusts, combines and monopolies. and the
Increased money supply. I'VE are without
sufficient data" say the minority. ito ap-
portion the degree of responsibility be-
tween these three causes, but that the
first two are the chief malefactors we
have no doubt; and they are of our own
creation or permission The Record"
has given reasons for believing that the
increased money supply is an even small
er factor than the minority regard It, But
without question the high duties levied
upon articles of consumption, raw ma
terials, tools and implements. directly
and indirectly reach every consumer and
add greatly to the prices of the articles
he uses, and to a very considerable ex-
tent the manufacturers have suppressed
competition among themselves-foreig
competition being excluded by law-and
raised prices much above the level where
they would be under competitive regime.