New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-05-07
TO CURE TARIFF FAULTS.

The appropriation of $25O,OO0 in the
sundry civil bill for tariff investigation
leaves, as it should leave, wide discre-
ton in the hands of the President.
If the appropriation stands. he VIII
have It in his power 10 make the Tariff
Board consist of any number Of experts
he may see fit, and he may employ ex-
perts to act either under the direction
Of the Tariff Board or under his own per-
sonal direction to investigate questions
bearing upon the tariff both In this
country and abroad. He is to have the
power to fix their compensation and to
oversee their work. IN brief, the appro-
priation would place in the Presidents
hands Just the opportunity which he
desire TO obtain all the facts relating
TO Il proper adjustment Of duties and
make 1t possible 10 put protection on
scientific basis.
The Hon. Joseph W. Bailey was more
ingenious than convincing when he said
in the Senate the other day that he
could not understand why prOtectiOnists
should differ as 10 the proper measure
Of protection. If he were prOtectiOnfst,
Mr.. Bailey explained. he would not
greatly care whether the duty levied on
a foreign article were 10 per cent, 80
per cent or so per cent In his opinion
there was no necessity from the pro-
tectioniSt point Of view of StandardiZ
ing protected duties or guarding against
the danger of OverprOtecfion. II was
one of the cardinal doctrines OF the
protectiOnistS school, the Texas Senator
said. that 0verprOtectiOn must cure it
self. competition among domestic pro
ducers. once an industry had been firm
ly established. being certain to reduce
the domestic price to n figure represent
ing not the foreign cost with the full
duty added. but the domestic cost plus
reasonable profit.
Mr.. Bailey's argument was intended
of course. 10 diScredit the idea of es
tablishing a tariff commission with
power to ascertain the difference In cost
of production here and abroad, through
whose aid Congress would he enabled TO
carry out the pledge of the last Repub-
lican platform that protective duties
should cover the differential in cost of
production with a reasonable margin of
profit to the domestic producer 1t Is
easy 10 understand why an anti-pro-
tectiOnist should not wish 10 see the
protective principle applied fairly and
exactly. As an advocate of tariff for
revenue only Mr.. Bailey naturally de-
sires 10 be able 10 attack Il Republican
tariff law on the ground Of its alleged
determinations and inequalities. We're
a protective law 10 be enacted measur-
ing with absolute eXactitude the differ
entail between foreign and domestic cost
of production, Mr.. Bailey's occupation
as an agitator for a tariff for revenue
only, with its gross favoritisms and its
indifference 10 the needs of American
industry would soon be gone.
In his argument against accurate and
scientific protection the Texas Senator
ignored some important facts 1t is true
that under the protective system do
mestlc competition is counted upon to
reduce the Domestic price and TO permit
the gradual lowering of the duty thought
necessary TO put an industry on its feet.
Under normal conditions the domestic
pl itt iptS IlStiI more OF less
independently of the tariff margin. But
in recent years the spirit of competition
in industry has tagged the whole world
over. The tendency 10 combination has
become general, and 1t sometimes oper-
ates nowadays to maintain or Increase
prices through common effort rather
than to lower them through competition.
In an industry in which competition is
disappearing there is Il natural tempta
ton TO take the full benefit Of protective
duties which have become excessive.
All industries and all producers are not
sensible Of their obligation to the gov
eminent which protects them to do what
they can In return 10 lower the cost of
production. Too many persons look on
the aid given them by the nation for
national ends as private benefaction.
1t is therefore necessary in the public