The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-06-12
BY WILLIAM PHILIP SIATMS
scripps- Howard Foreign Editor

scripps Howard Foreign Editor
TORONTO, June 12-Dr. julius
Klein, assistant secretary Of COM
merce, denies that foreign countries
are excluding American goods by
drastic tariff barriers.
That the good doctor must have
had his tongue In his cheek and
was talking as a politician rather
than a specialist in the export bust
ness, seems evident. Take the case
Of Canada and Campbell's soup.
For years Campbelps soup has
been doing an increasingly good
business on this side of the border.
There is some Canadian COM
petition, but I am told by Can
adams not connected with the in
dustry, Campbell outsold all the
other brands combined
This 1t was able to do despite a
tariff Of Is per cent. The profit on
each can was not large, but in large
lots the business amounted to
millions.
Canadians Got Sore
Then something happened. Con-
gress, down at Washington, passed
the Hawley- Smoot act, hitting
Canadian products, from sea foods
IN the eastern maritime provinces
to shingles in British Columbia.
The Canadians got sore. They
mt back. AS soon as they could
DO so, they elected a rip snorting
Tory premier who promised never
10 let the Yankees annex Canada
commercially or otherwise, and the
first thing he did was to boost the
tariff on American products. Among
other items the tariff on soup was
raised from rs per cent TO IS.
To CampbelIs this made big
ditterence-the difference between
profit and loss, so far, at least, as
It's Canadian business was con-
cerned.
Campbells Did 1t
There was but one thing to do and
Campbell's soup did it. It made
plans for a branch factory in Can
ada. That plant now is going up
mere, a million-dollar concern which
when completed, will give employ
nent to several hundred Canadians
at good American wages.
Indirectly, it will give EMPLOYMENT
70 several hundred Others Cans
Tor the soup will have to be mace.
SO will labels, cartons, packing cases
and other things incidental 10 the
soup business. Tomatoes, okra, beans
and the rest of the vegetables that
enter into the making of SOUP will
nave to be grown, and Canadian
farms will grow them.
Transportation of the raw mate
rails to the factory and transporta-
ton to consumers, from coast to
coast will be necessary and Cana
dlan-built and Canadian driven
trucks and Canadian-manned rail-
roads will do the hauling.
Goes Into Canada's Products
All the money earned by all these
workers will be spent for Canadian
made automobiles, radios, clothes.
groceries and what not, the produc-
ton Of which is translatable in
terms Of jobs for still more Cana
dian workers.
Thus while retaliatory tariffs are
hurting American industries by
driving them abroad, they are hurt
ing American wage earners even
more.
Multiply the story Of CampbelTs
soup by several hundred and it be-
ZONES plain that DR.. Klein erred A
trif1e when he said American goods
are not being shut out by drastic
tariff barriers.
Canada has seventy industries
whose export trade alone is in ex-
Eess of 100000 a year. OF these,
thirty eight have an export trade in
excess Of 100000 each. In her
thirty ranking export industries are
automobiles, automobile tires, rubber
footwear and machinery-all four
dependent upon branch factories
which emigrated from the United
States.
The automobile industry is sixth
among Canada's exporters. A total
of 100000 motor cars, valued at
s4S,ooO,ooo, were shipped abroad in
1929.
Canada does a rubber manufac-
turing business in excess of $90,000,-
900 a year, six American concerns
having the bulk of this trade, ex-
port as well as local. Almost all
this business is here to avoid tariffs
and the prejudices growing out of
our tariff policy.
More than 1000 branches of
American business have been set up
in Canada, Europe, Latin America
and Australasia, largely for the
same reason. Foreign retaliation
and prejudice against goods made
in America" are cutting into our
foreign trade, and the answer is to
establish branch plants abroad,
But the migration of American
industry isn't helping the American
masses. The automobiles, tires,
radio sets, telephones, dynamos,
aluminium pots, machinery. steel,
ships and sails and sealing wax
made by American concerns on for
eign soil are mighty small comfort
to the 100000 unemployed beating
the pavemertS back home looking
for jobs.
Saturday: Foreigners See Peril in
Our Economic Imperialism"