The Birmingham age-herald., 1913-10-23
INLAND POINTS AT
DISADVANTAGE IN
DECREASEDPR|CES
Imports Under Tariff Will
Be Utilized Chiefly Along
the SeabOard
FREIGHT RATES AN
IMPORTANT FACTOR
Steel Corporations Gary.plant an Evil
dence of Foresight in Saw
ing Long Hauls
by Rail
ny HOLLAND

| New York. October 22.-(speciaL)-NN
comparative ease, certainly with no such
strain upon the resources as was neces-
sary year ago this time to carry the
country through till the end of the year
without the peril of serious money strin-
gency, the bankers of the United States
have this fall met and are now meet
ing calls for funds with which the crops
of the summer may be converted into
caAh or credit. Were 1t not for one factor
whose character is not yet fully deter
mined American business, agricultural.
commercial and industrial, would certain
ly be carried on through the year under
the most favorable monetary conditions.
The factor is the necessity with which
the banks will find themselves face to
face of calling in loans and curtaiing
credit while the readjustment of our pres
ent banking system to the new one is in
progress. This factor will not appear, in
case the bill falls to become a law this
fell.
Other readjustments in the business
world have begun, but they are those
made necessary bv the enactment has
new tariff law. Much confidence has
been expressed at Washington and else
where about the ability of American in
dustry so to increase and perfect effici-
ency as to make good any threatened i'm
pain ment of business due to reduction of
tariff rates.
Feature Lost Sight OF
There is one feature of tariff revision,
however, which was lost sight of during
the discussions in Congress. Since the
tariff bill became law, however, 1t has
begun to attract attention. That is the
fact that by reason OF the great area OF
the United States certain portions of the
country are amply protected against for
eign importations by the charges for the
transportation of freight From this point
OF view the states which border the At
lantlc or the gulf or the Pacific are more
likely to feel the competition which for
eign manufactured goods can under the
new tariff offer than are the inland states.
1t was probably this principle which the
United States Steel corporation recognized
and adopted when it decided to expend
100000 out of earnings In establishing
a great steel manufacturing plant at a
city which 1t was to build at the lower
harbor of Lake Michigan.
For it could thereby transport its pro-
ducts to points in the midwest and farther
west at less ultimate cost to the con-
sumer or purchaser than they would be
obliged to meet If they bought like COM
mooities in the east. The charges for
| transportation of freight make consd
cradle item of cost and these would be
| q eatly reduced IL the commodities could
be started from a point in the Mississippi
valley or upon the great lakes.
A principle similar to this justified the
United States Steel corporation in expend-
ing s40,OCO.000 In harmonzing its plants.
When that work was finished the cor
poraton was able to contemplate any pos
| sible changes in the tariff without appre-
hension since it reasoned that whatever
tariff rate were acceptable to the inde-
pendent producers would also be accept
able to the United States Steel corpora
tion.
The very vastness of the United States
and the remoteness of a very flourishng
part of the great community from the
sea-coast, will tend to offset to some ex-
tent any presumable impairment TO bus-
ness which would be occasioned by the
Importation of commodities to Europe un-
der the new tariff law.
In the steel manufacturing trade it has
been common to hear recently the state
ment made that while the eastern states
may be somewhat affected by foreign com =
petition the steel and iron manufacturers
of the west are confident that railway
freight rates will make disastrous com
petition with foreign goods impossible.
The tariff may reduce the rates eXacted
at the custom house upon foreign impor-
tations, but Congress and the interstate
commerce commission have not yet dis
covered the way TO compel the railroads
to reduce freight charges so that the
consumers in the interior of the United
States may. to any extent take advan-
tage of the reduced tariff.
President Wallis View
Some time ago Theodore y. Vail, presi-
dent of the American Telephone COM
pany, and also of one of the great tele-
graph companies. intimated in a CONVEX
sation that the instantaneous communl-
cation of intelligence at low cost which
the vast plants of these two companies
make possible would serve as a counter
acting influence, at least to some extent,
whereby dangerous competition instituted
by foreign manufacturers, justified by a
low American tariff. could be overcome.
President Vail meant that the facility with
which instant communication can be es-