The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1912-01-04
Woodrow Wilson Makes an At
tack on the Tariff
In a Speech Before the National
Democratic Club.
IS PARAMOUNT ISSUE
OF the Approaching Presidential
Campaign He Declares.
Says 1t Is Not Based on Any
Principle Whatever.

New York, Jan. 4.-Governor Wood
row Wilson, of New Jersey, addressed
/ the Natio.-I Democratic club here last
night on the topic: THE Democratic
Party and the Tariff Once again, Mr..
Wilson said, the tariff had become the
chief and most critical question of
a campaign which must decide the poll
cy OIL our government, not only in this
great matter, but in regard to score
OF things Which touch the general ad-
Justments Oh our life
He Continued in part:
Our tariff policy mas not for several
generations been based upon any prin-
ciple whatever. but only upon a system
OF faVOrltiSn, of patronage, of arbitra-
ry fosterage by the federal govern
ment.
1.-The strength of American industry
lies in the skill and intelligence of the
Amerlcin n workman, ard the capacity
of American superintendent and mana
gers; and the efficiency and glory OF
the Workingman depend upon all the
moral and ylysical elements involved in
the circumstances OF mis- employment
If this country is to be the snug
harbor foI those who are at a disad-
vantage in the markets of the world
why should it not also be the convent
ent method Of combinations be a
refuge for those who are also at a dis
advantage in the markets of America
itself. Are there not evidences that it
has become just that? Have not great
com binatlOnS recently effected in this
country brought about just such a re-
suit? OF Il dozen mills or factories
brought together in a single trust on
combination, there is always a very
considerable variety in the so-called cost
of production In some the machinery
has not been brought un to date; the
plant is not built in q way to lend it
self to the most efficient methods OF
production; the market is not quite so
accessible; the source of raw mater
ials is more difficult of access Again
and again it has happened that after
the combination was effected the less
efficient factories and mills were closed
down and only the more efficient con-
tinued in operation; but the business
as newly constituted had to carry the
cost of the original merger of the in
efficient mills and factories They were
probably put into the combination at
a figure greatly exceeding their real
value.
Profits on Watered Stocks.
This figure enters into the issue of
the securities of the corporation; the
profits must be made upon those fig
ures if the stockh OlderS are to get divi-
dends and so the country must carry
for an indefinite period inefficient es-
tablishments which have been actually
closed and put out of business. and
this very process itself shows the fu-
tility of any attempt to base duties
upon cost of production
"Wh-n America was in her infancy;
when her resources were undeveIoped;
when her industries were at their be-
ginning; there was much to be said for
a system of artificial stimulation and
protection. But long after that period
was passed, and that reason for the
maintenance of the system of protec-
ton cut away, it was maintained upon