The Cairo bulletin., 1911-12-18
FLAYS POLICY
/ OF PROTECT|ON|N
TARIFF MATTERS
Democratic Leader Underwood
Addresses New York
Southern Society
AGAINST REPUBLICAN SCHEME
Believes Customs at Tariff
Houses Should Be
Levied For Revenue
AGAINST REPUBLICAN SCHEME


House of Representatives in speech
before the New York Southern So
ciety last night, condemned the Re-
publican theory of tariff adjustment.
THE kaleidoscope of political issues
must and will continually change
with the changing conditions of our
republic" he said, There is one
question that was with us in the be
ginning and will be in the end, and
that is the most effective, efficient
and fair way OF equalizing the buf-
den Of taxation that are levied by til.
national government"
1.-THE Republican party has main
tanned the doctrine that taxes should
not only be levied for revenue said
he. but also to protect the home
manufacturer from foreign compe-
t ion. OF necessity protection from
competition carrying with ii Il guar
antee of profits,
THE Democratic party favors the
policy of raising its taxes at the
custom house by a tariff that is levied
for revenue only, which clearly eN.
Guides the idea of protecting tho
manufacturers profits x some
men assert that the protection Of
reasonable profits to the home manu-
tacturer should be commended IN
sted of being condemned, but in my
judgment, the protection OF any pro
llrs must of necessity have ter-
lency TO destroy competition and Gre
ate monopoly, whether the profit
protected Is reasonable or unreasoa-
able"
Explains Uuders6lling
Mr. Underwood explained how it
il possible for protected manufac-
turer to undersel his foreign com
retitors slightly by putting his
prices Just below those which the
foreigner must charge because of the
tariff on the article. After the Amer
lean has driven the foreigner from
the field, Mr.. Underwood contended,
he is enabled to raise prices to tht
point established by home compe-
tition. TIE denied that the cost of
production in the United States is
greater than that in other countries
He admitted that wages paid might
be smaller but insisted that the cost
per unit of production is less in
America because of the superior in
ventive skill of the American and
the better quality of his workman
ship and machinery
ITO protect profits of necessity
means to protect inefficiency." was
one of the speakers epigrams. at
does not stimulate Industry because
manufacturer standing behind a.
tariff wall that is protecting his
profits is not driven to develop his
business along the lines of creates;
efficiency and greatest economy" he
continued
This is clearly illustrated in a
comparison of the wool and iron and
steel industries. Wool has had a.
specific duty that which worked out
to an ad valorem basis amounts to a
tax of about 90 per cent of the ev-
eragee of all wooden goods imported
into the. United States, and the duties
imposed have remained practically
unchanged for forty years. During
that time the wool industry has mad
comparatively little progress in
cheapening the cost of its product
aid improving its methods. On the !
other hand, in the iron and steel in
dustry the traiff rate has been cut |
every time tariff bill has been writ
ten. Forty years ago the tax on steel
rails amounted to $3.50 a ton, to-
day it amounts to $3.50. The sam,
is true OF most or the other articles
in the iron and steel schedule, and
yet the iron and steel industry has
rot languished; II has not been de-
stroyed and 1t has not gone to the
walls. 1t is the most compact, virile,
fighting force Of all the industries o. /
America today. II has long ago eY-
banded its production capacity be-
yond the power Of the American peo-
pie to consume its output, and Is
.oday facing towards the markets az
The world, battling for part of the
trade of foreign lands where IL must Il
meet free competition or as is often
Ike case, pay adverse tariff rates to
inter the Industrial fields Of its
Favors Revenue Basis
Which course is the wiser one Of
'ur government to takeg The one