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The Commoner
MAY 26, 1905
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THE tariff row on tho'canal is perhaps tlio most
interesting of recent day developments. The
Panama canal executive committee decided, with
the approval of Secretary Taft, to buy in Europe
not only ships but machinery and material for
the Panama canal. Walter Wellman, Washington
correspondent for the Chicago Record-Herald,
says that this anouncement "came like a Shimoso
bomb shell into the camp of the 'stand-patters' and
high tariffltes." Mr. Wellman adds: "The deci
sion has been the sensation of the day in political
circles. There is much talk among the high pro
tection apostles of the republican party of appeal
ing to President Roosevelt for a reversal of the
decision, but there is littlo prospect that this will
do them any good. The determination of the
executive committee is understood to have the ap
proval of the president, as well as of the secretary
of war, and if the big wall builders do not like this
blow at their favorite policy they will havo to
lump it No one should understand that the deter
mination of the executive committee is to buy all
its ships, machinery and materials in foreign coun
tries. Probably the great bulk of all purchases
will be made in the United States. But the de
cision of the committee is that it will buy where it
can buy cheapest. If it can get the lowest prices
in the United States, it will purchase here; if for
eign manufacturers and dealers underbid Ameri
can sellers the contracts will go, abroad."
TT IS not surprising that Secretary Taft's order
I has created consternation in the ranks of the
champions of protection. Mr. Wellman says: "On
the face of it this looks like nothing more than
good business policy. But it does not please the
high tariffltes at all. They look upon it as rank
heresy. They perceive, as everyone perceives,
that it raises the whole tariff question, and raises
it in a manner calculated to give far more com
fort to democrats and independents and tariff re
formers than to those who have helped push up
the walls and who have made exclusion of foreign
trade in any form an article of party faith, it will
be a long time before the Panama commission
and the country hears the last of the storm brewed
by this important decision."
MANY of the comments on the Taft order are
decidedly interesting. A member of con
gress, interviewed by Mr. Wellman, says: "For
generations we have been teaching that it Is bet
ter to buy at home,' even if we havo to pay a lit
tle higher prices, because that is for the general
good. That is the very essence of the protection
doctrine. Yet here comes the government and
says it is not willing to abide by the practice of
the country. It will break down the rule to which
it is at least morally a party, and will buy abroad
whatever it can buy there cheaper than at home.
In other words, you and I can't go into the world's
markets and buy where we can buy cheapest. The
tariff prevents us. But the government, having
no duty to pay on what it imports into the isth
mus, announces its intention to go into the world's
markets and save all the money it can. A fine
example indeed for a government to set in a
protection country! What are we coming to any
way?" A UNITED STATES senator, evidently devoted
to the republican party's protection theory,
said that he could hardly credit the statement that
a commission, acting under the republican party
proposed to purchase a considerable amount of
supplies abroad. And another senator, who, ac
cording to Mr. Wellman, "stands high in the re
publican party," said that Mr. Taft's action was
"highly unfortunate and certain to bringj;he repub
licans face to face with the tariff issue in its keen
est form." This senator added that Taft's order
would give the democratic party "just the weapon
it most badly needed in Its fight against the pro
tective tariff system."
REPRESENTATIVE GROSVENOR of Ohio Is
reported to be "much disgusted." While de
claring that he does not care to pose as a critic of
the administration Mr. Grosvenor says: "We have
built up the policy of the protective tariff in this
country on the basis of higher prices. Those 'prices
were higher because wo paid our labor better
wages. People have become more cognizant every
year of the benefits of that policy, and understand
the reason for higher prices. The country would
rather pay a littlo more for something that was
made at homo, furnished employment for homo
folk and gave them better pay than their more un
fortunate neighbors abroad enjoyed. If the gov
ernment is to bo the complainant against tho
prices that are the result of this employment of
American labor at American wages, it will cer
tainly furnish a theme for some very interesting
deliberations over tho tariff."
THE facts leading up to tho Taft ordor aro
stated by Mr. Wellman in this way: "Chief
Engineer Wallace reported to tho commission that
in addition to tho regular ships now running in tho
Panama Railroad line between New York and tho
isthmus at least two vessels would soon bo needed
to carry supplies and materials for tho canal work.
No suitable American ships could be bought at
any reasonable price, and when ho came to -inquire
into tho matter Secretary Taft found that to build
ships in this country would cost about twice as
much as to buy them abroad. Two 6,000-ton steam
ers would cost $1,400,000 in this country and could
be bought abroad for $750,000. Neither the sec
retary nor the members of the executive com
mittee could see any good reason why tho govern
ment should lay out two dollars when one dollar
would do just as well. As to supplies and ma
chinery, it is not believed that much will bo
bought abroad. It is understood that tho execu
tive committee wished to serve notice upon Amer
ican manufacturers and dealers that if they wished '
to do business with the canal management they
must be prepared to cut their prices. It is hinted
that efforts were making to induce the government
to pay the same prices that other purchasers havo
to pay. But tho government agents are deter
mined to have at least the export price. For In
stance, it is known that the steel rail pool has
asked tho commission for rails, for doublo-tracking
the Panama railroad a price several dollars in ox
cess of what the same pool has sold tho same rails
for In foreign markets. The government wants
the advantages of that lower price and is de
termined to have them."
BUT even if most of the supplies and machinery
be finally purchased in this country at tho
' lowest possible of export prices, the champions of
high tariff say that "the damage is already done."
Mr. Wellman explains: "The action of tho govern
ment serves as confirmation strong as holy writ
of the cry which the democrats and tho tariff re
formers who are not democrats set up in last
year's presidential campaign. Voluminous pages
of last year's republican campaign text-book were
devoted to meeting this argument of tho enemy
that American manufacturers deliberately sell
abroad cheaper than they sell at home, and that
home consumers aro entitled to at least as much
consideration as foreign consumers. At that time
it was not expected the Roosevelt administration
Itself, in whose behalf all those Ingenious argu
ments were compiled, would be tho first to estab
lish the truth of the democratic position. When
congress meets again tho high tariffltes say tho
democrats will be sure to make the most of the
opportunity which this canal affair has thrown
their way, and they are at a loss to know how
to me'et the looked for onslaught Apparently ev
ents are conspiring to bring the tariff question
very much to the front during the coming winter."
THERE Is considerable criticism concerning the
character of testimoay called for by the sen
ate rate investigating committee. Railroad law
yers, large shippers who are suspected of stand
ing high in the favor of rate-making officials, and
politicians who have generally been opposed to
any regulation of corporations are conspicuous
among the witnesses. The facts aro well stated in
an editorial in tho Lincoln (Nebraska) Evening
News, a republican paper from which editorial
this extract is taken: "Tho farcial character of
tho hearing before the senate rate investigating
committee is evident from the names of the men
who are being summoned. befofe It from Nebraska.
Every one df these men who has so far appeared
before the committee from this state belongs in
tho class of big shippers, men who aro In position,
by reason of the large Lhlpmcnts they control, to
compel tho railway companies to give thorn lowor
rates than their competitors receive. Does any
body who knows tho practices that prevail In tho
shipping world beliovo that those men do not exor
ciso tho power thoy possess to sccuro secrot and
lower rates? Look at tho list: II. G. Lcavitt, beet
sugar magnate and partner of General Manager
Holdrogo in vnrious enterprises; T. B. Hord, tho
largest cattle feeder and individual shipper In tho
world; Peter Jansen, one of tho largest snoop feed
ers In tho west, and Frank IT. Gilchrist, a big ship
per of lumber and owner of a lino of yards along
favoring railroads. Why aro these gentlemen sat
isfied with existing rates? Why should thoy op
pose any reduction in tho charge- that they must
pay for tho carriage to market of what thoy havo
to sell? Does any sano man bellco that they
wouldn't bo very glad to havo rates lowered if
thoy were paying now tho samo as every other
shipper of cattle, sheep, or lumber? Doosn't tho
fact that these gentlemen aro so anxious to main
tain oxlsting conditions, under which it Is possiblo
for rebates and secret rates to bo given, present
reasonable grounds for tho suspicion that they aro
now tho recipients of favors from railroads that
competitors who, by reason of their smaller ship
ments, aro unablo to secure?"
A CORRESPONDENT for tho Baltimore Sun,
writing from Columbia, S. C, whero tho
Southern Conference for Education was recently
in session, gives a review of tho work done ani
now being done in the south In the interest of pub
lic schools. In substance this correspondent says
that in North Carolina a state-wide agitation for
education was conducted two years ago, and, as
a consequence, tho schools are being greatly im
proved and tho state has a. loan fund for the erec
tion of new school houses. There ar now more
than 1,000 school libraries, whereas a fow years
ago there wore practically nono. Many of tho
districts- havo voted for local taxation to Improve
their schools. Tho new agricultural building at
tho Agricultural and Mechanical college, at Ra
leigh, Is ono of tho finest of its kind in the coun
try, while the now model dormitories and other
Improvements at the state normal college, at
Greensboro; tho new buildings at tho state univer
sity, and many other colleges, show notable im
provement." THE honor of the origin of the railway postal
system belongs to the great state of Mis
souri. The Missouri legislature appropriated $1,000
to pay for a marble tablet to bo placed In the St.
Joseph postofilco in honor of Wm. A. Davis, the
man who devised the plan of distributing the mail
on trains. Mr. Davis was born in Kentucky. For
twenty-five years he worked In the postofilco at
Richmond, Va. He went to St. Joseph, Mo., in
1S55. He was appointed postmaster at St. Joe
by President Buchanan.
IT IS claimed that Major W. W. Armstrong of
Cleveland, Ohio, who died recently, was tho
inventor of the rooster as tho democratic emblem
of victory. A writer In the Washington Star, re
ferring to this claim, says: "It is a mistake, for
tho gamecock was made to crow for democratic
victory when Major Armstrong was just entering
his 'teens. I have heard that a democratic senator
in congress from Indiana first suggested it In a
letter to one of his constituents when it was defin
itely ascertained that Polk had beaten Clay in
1844. The language of the letter was: 'Tell Chap
man to crow.' Chapman was the editor of the
local democratic organ, and his next Issue con
tained the first democratic rooster crowing over
the vanquished whlgs. But Major Armstrong was
the hero of a democratic rooster story. I believe
it was in 1883. Hoadly was the democratic candl
date for governor and Foraker was his republican
competitor. Armstrong was tho editor of the
Cleveland Plain Dealer, but did not have much
hope of success. The Sunday evening before the
election he had a conversation with a republican
friend noted for his skill, or luck, as a prognostic
tor of popular verdicts and was told that, in thd
opinion of the seer, tho democrats would prevail.
'If they do,' said Armstrong, 'chickens will be
'awful cheap In this town on Wednesday morning.
J