Arizona republican., 1917-09-01
XVIII
Dragging the Leaden Weight o'
 Billions for the War

Much of the commercial success or the Germans during the last forty years is due to the fact that each rflanufac- turer each discoVerer in Germany, each exporter knew that the whole weight md power of the government was be- hind him in his efforts to increase his business. On the other hand, in Amer ica, business men have been terrorlzed- almost into inaction, by constant prose- .ution. What was a crime in one part of the United States under one circuit court of appeals was perfectly iegltl- mate act in another. If we have to meet the intense competition of Ger many after the war we have not 10 view all these business problems rom new angles.
 For instance, there is question or | free ports. Representative Murray Hubert has introduced in the house Of representatives resolution directing l the secretary of the treasury, the sec l retary of war and the secretary of com 1 merce to report to congress as to the | advisability of the establishment Of | free ports within the limits Of the 1 established customs of the United I States
 l Advantage of Setting up Free Ports Free ports exist in Germany and have existed for long time, although Ger many is a country with protective tariff. In free port raw goods are manufactured and then exported, of course, to the advantage of the country 1 permitting the establishment of free ports, because by this manufacture oi raw materials and their re-eXport without being subject to duty, money IS l earned by the manufacturers to the | benefit of their own country and em- l nlovment is given to many working 1 men: thus, of course, improving the | condition of these workingmen ana ol | all others in the country. It IS seil l evident that the employment of eacf | workingman in an industry whlcf | would not exist except for the exist ance of the free port withdraWs Una | Worklngman from the general lapo market ane, therefore, benefits the DO ;ition of his remaining fellow laborers
 Although free ports do not exist Il the United States, an attempt has peel l I.means of what are known as draw | backs" the same benefit that the. l would enjoy were free ports existent | our country.
 Thus the refiners of raw sugar fror Cuba pay a duty on this sugar when enters the United States, but receiV this duty back when a corresponoln amount of refined sugar is exported | 1 other countries.
 There has lately been an attack mad upon this system-i, the case, now ever, of the sugar refiners oniy-aii the question has been treated in som newspapers as if these refiners wel obtaining some unfair advantage frol the government; whereas, as matte of fact, the allowance of these ara" backs enables the sugar refiners
 carry on the refining of the sugar f' export much as they would II the refineries existed in free ports modeie on the German system.
 The repeal of the provision of alloy ing drawbacks in this and other Il dustries will probably send tine indu tries to Canada or to some other terr | tory where this system, equivalent
 the free port, is permitted to exist.
 A few days before I left Germany fl had conversation with manufa' .urer of munitions who employs apo' eighteen thousand people in his fa' tories, which, before the war, manufa' tured articles other than munitions
 asked him how the government treatt the manufacturers of munitions, and said that they were allowed to maj good profits, although they had to ps out a great proportion of these prof in the form of taxes on their excess
 war profits; that tho government d. sired to encourage manufacturers
 turn their plants into factories for u making of all articles required by u nation in sustaining war, and that u manufacturers would do this, provid that it was only question as to ho much of their profits they would
 allowed to keep. But if the governme
 had attempted, he said. to fix prices
 low that there would have been dou
 IS to whether the manufacturer cou
 make a profit or not, the production
 articles required for war would neN
 have reached the high mark that
 had in Germany.
 Policy of Paying for German War
 a yyoaffor of fa ahOlIt fha ar