How Protection Flourishes.

Feilding Star, Volume XVII, Issue 293, 17 June 1896, Page 2

How Protection Flourishes.

-• An interesting example of the use of a high duty to the injury of domestic consumers is just now attracting some attention in the United States (writes the New York correspondent of the ■Argus'). The present tariff it should be understood, is quite high, the ad valorem average of its rates being 41£ per cent., as against about 49 per cent, under the McKinley law. As this country has more than 40 per cent, of the world's railroad mileage, the steel-rail industry is an important one. The several manufacturers have for years been in a combination which exacts a uniform price. Owing to the tariff duty of 7.84d0l per ton, without which, they say, they cannot compete in the Americau market with English manufacturers, they can make tbeir ring price a high one. It is now 29d0l per ton, or a little below the price at which English rails could be sold in New York with duty included. A few weeks ago the news came to this country from London that the leading firm in tbis combination had sold 10,000 tons of rails to Japan at 21.26d0l per ton, underbidding the English manufacturers, whose price was 23.08d01. Au attempt has been made to withhold knowledge of this transaction from the public, but the truth is out now, and it is known that this combination, which complains tbat the duty of 7.84d0l is insufficient to give the protection (against England) which the domestic mills ought to have, is under-selling the English in foreign markets, where it enjoys no protection whatever, and is selling in Japan at 21.26d0l rails for which buyers in its own .country are compelled to pay 29d01. This will not be forgotten. The prices of Bessemer pig iron in the two countries, and of steel billets hero— the. manufacture of neither of these products being controlled in the United States by coinbinatio_s--show , that the cost of making rails is -no higher here than in England, ' :-.■' :y;-r-yyyy y