manufacturers use their protection, while the Government collects on imports only. When Congress fixes any percentage of duty it assumes that this percentage should be added to foreign prices to bring them up to our domestic prices based upon domestic costs. That is, if the duty is 30 per cent the domestic price may be, if the manufacturers so elect, 130 per cent of the foreign price, and domestic consumers must pay the prices so made. Says Mr. Fordney, "Whatever duty you put on is for the purpose of bringing the foreign value [price] up to our value." On this basis the amounts voted by Congress for use of domestic manufacturers at their discretion, without check or control, is shown for 29 industries in the following table. The amount collected by the Government in duties on these products is also shown. The Government collects in thousands of dollars and makes consumers liable in millions. In short, the Government collected $1 for each $100 it made the consumer liable for. The tariff used to provide one-third of the Federal revenue; now only 8 per cent. It never meant so little to the Government nor so much to the consumer. These manufacturers never showed their cost books nor gave any proof of their needs. They simply talked to committees of Congress in loose and general and often disingenuous terms. They now ask for great increases in their rates, to cost the public additional billions. As retail prices on highly manufactured articles-excepting such large or conveniently handled articles as automobiles are double the manufacturers' prices-due to their passing through several hands from the manufacturer to the consumer-these great grants of protection to industries cost the consumer up to a possible $2,467,000,000 in 1914 and $4,741,000,000 in 1919, as here shown. As these industries yield only about 30 per cent of all customs revenue the total cost of carelessly granted duties is very large when those not here listed are allowed for. The industries were voted sums equal to the war expenses under which we groan; the Government went elsewhere for its sustenance. The products of these few industries cost the consumers an average of $40 in 1914 and $104 in 1919. The per cent of the product going to labor in 1914 was 20.3 per cent. In 1919 it was only 16.9 per cent. In the old days of sharp competition manufacturers added only the part of the tariff necessary for fair profits. Competition would not let them add more. Competition was the protector of the consumer, just as the tariff protected the manufacturer. In time manufacturers learned by consolidations and price agreements to add all of the tariff and to work Congress for more. McKinley failed to see the danger. He was father to more trusts than Abraham had children. Čount the trusts incorporated under the McKinley tariff and note their relation to the McKinley tariff rates, their excessive capitalization and high prices. (See Moody, "The Trusts.") The tables on pages 5374-5376 tell part of the story. 1 The Payne law was operative only July 1-Oct. 3 of this fiscal year ending June 30, 1914. Its rates are applied to the entire year, being the only census year showing production since 1909. Woven fabrics (except carpets and wearing apparel), felt goods, laces, and all manufactures of these materials. Woven fabrics (except carpets, handkerchiefs, and wearing apparel), pile fabrics, cloths, tapestries, laces, and other manufactures known as cotton small wares. 4 Woven fabrics (except handkerchiefs and wearing apparel), laces, embroideries, and all manufactures thereof. Not shown. You will notice in the above table that the tariff allowance to the manufacturers is in large figures standing for that many millions of dollars, and that the cost to the consumer is measured in still larger figures, while the revenue collected by the Government from the various industries is mostly in decimals of one million. The workings of the Payne and Underwood laws and some of the effects which the Fordney bill as written or a renewal of the Payne rates would have upon domestic production and upon the extension of our foreign trade, upon wages, prices, and the cost of living are shown in the following tables, and their net cost in the last column on pages 5408-5411. Senator LA FOLLETTE. Mr. Miles, will you furnish for the committee the tabulated statement there to which you have referred, so it may be printed in full in the record? 1 The Payne law was operative only July 1-Oct. 3 of this fiscal year ending June 30, 1914. Its rates are applied to the entire year, being the only census year showing production since 1909. Woven fabrics (except carpets and wearing apparel), felt goods, laces, and all manufactures of these materials. Woven fabrics (except carpets, handkerchiefs, and wearing apparel), pile fabrics, cloths, tapestries, laces, and other manufactures known as cotton small wares. 4 Woven fabrics (except handkerchiefs and wearing apparel), laces, embroideries, and all manufactures thereof. Not shown. You will notice in the above table that the tariff allowance to the manufacturers is in large figures standing for that many millions of dollars, and that the cost to the consumer is measured in still larger figures, while the revenue collected by the Government from the various industries is mostly in decimals of one million. The workings of the Payne and Underwood laws and some of the effects which the Fordney bill as written or a renewal of the Payne rates would have upon domestic production and upon the extension of our foreign trade, upon wages, prices, and the cost of living are shown in the following tables, and their net cost in the last column on pages 5408-5411. Senator LA FOLLETTE. Mr. Miles, will you furnish for the committee the tabulated statement there to which you have referred, so it may be printed in full in the record? |