The citizen. (Frederick City, Md.) 1895-1923, 1910-08-19
High Cost of Living.

In commenting on the report of the
Senatorial Committee, which was ap-
pointed to investigate the high cost Of
living, the Philadelphia Record says:
The character of Senator Lodges
report on the high cost of living is fairly
well indicated by the fact that its list Of
causes begins with the increased cost of
farm products due TO higher values of
land. Mr.. Johnson. of Alabama, who
prepared the minority report, has no
trouble whatever 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 it could
produce large quantities of sugar beets
that certain land in California jumped
from two to two hundred and even FIVE
hundred dollars per acre.
The minority report is a very strong
document. Several other reasons alleg-
ed IN the Lodge report are completely
disposed of by Mr.. Johnson. Between
1900 and 1909 there was no very great
or general increase in railroad freight
rates, one of the Lodge reasons for the
increased cost of living The agricult-
ural statistics fail to bear out the de-
creased 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.. Johnson takes up the tariff
and deals with it thoroughly. OF course,
it is impossible in this space to reproduce
much of his document. But to begin
with, he neatly turns the tables on SEN
ator Lodge by quoting from certain con-
sular reports passages omitted by the
Lodge report, which made other seec-
tons from them. Mr.. Johnson quotes
from these reports testimony that the
tariffs of various European countries in.
crease the prices Of commodities, and
furthermore. that retail prices are in
creased very much more than the duty
imposed. This is very natural result.
1t occurs in this country also, as Mr..
Johnson 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. Incident
ally Mr. Johnson produces conclusive
evidence that the Payne Aldrich tariff
increased taxation, although on consid-
erable number of minor articles it re-
duced rates.
After dsposing of the tariff Mr.. John
son takes up the trusts, practically a
that most of the trusts were organized
immediately after the Dingev tariff had
replaced the Wilson tariff. The increase +,
OF prices, the reduction in the weight of
packages, the abundant evidence OF the
absence of competition which can only
be accounted for by agreements, are
recited by Mr.. Johnson with overwhelm-
ing force. The comparisons between
American and foreign prices leaves no
doubt whatever of the result of suppress
ing competition by the high duties on
foreign articles and the combination of
domestic manufacturers.
The conclusion of tle minority menu
bers- Johnson, of Alabama; Clarke, of
Arkansas, and Smith, of South Caro-
llna-is that the three substantial causes
for the advance in prices are the tariff,
the trusts, combines and monopoies,
and the increased money supply. I'VE
are without sufficient data says the
minority report, ito apportion the degree
of responsibility between these three
causes, but that the first two are the
chief maleiactors, we have no doubt, and
they are OF our own creation or per
mission The Record has given rea-
sons for believing that the increased
money supply is an even smaller factor
than the minority regards it. But with
out question the high duties levied upon
articles of consumption, raw materials,
tools and implements, directly and indi-
rectly reach every consumer and add
greatly TO the prices of the articles he
uses, and to very considerable extent
the manufacturers have suppressed COM
petition among themselves-foreign COM
petition being excluded by law-and
then raised prices much above the level
where they would be under competi-
tive regime