Weekly Journal-Miner from Prescott, Arizona • Page 3

3 ABLE DISCI IMPORTANT ISSUES Instructive Address on Tariff Board And Reciprocity Delivered by O-Smith at Business Men'sDinner The following interesting address on the tariff board and Canadian reciprocity agreement was delivered by F. O. Smith of the law firm of Ncrris Smith, at the recent Business Men's Dinner, in the Yavapai Club: Mr. Smith's Address. At the last session of Congress two tariff measures were recommended and urged by President Taft.

One, the permanent tariff board; and the other the Canadian reciprocity agreement. Both measures passed the lower house and died in the senate. Died because they were not brought to a vote for a large majority in both houses, without regard to party lines, favored them. Briefly, the tariff board bill creates a permanent tariff commission of five members, appointed by the President for six years, not more than three to-be members of the same party. The first members to serve for two, three, four, five and six years, respectively, so that after the second year one new member will be appointed annually.

The chairman is to receive $7,500 per annum and the other members $7,000. The commission is given power tp conduct investigations anywhere is this or foreign countries and it is its duty to investigate the cost of production of all articles now or hereafter the subject of tariff legislation, with special reference to prices rtniil for domestic, nnd foreirm Inbnr-1 i it prices paid for raw materials and for transportation from centers of production to areas of consumption and the conditions of foreign and domestic markets affecting American products, including detailed- information with respect thereto, and all other facts! necessary or convenient in fixing import duties. In a word, it is a plan to establish a permanent board to study the tariff and its effect on business from A to Z. It is not a new theory. Hamilton proposed a permanent board to study industrial conditions in 1792.

In 1SC7, David A. Wells, as Revenue Commissioner, did very valuable work in reporting on the tariff. Since that time we have had several temporary boards but they have been partisan in character and have accomplished nothing. The value of this board is recognized by statesmen of both parties. Any general tariff bill is so complex that no senator or congressman has ever pretended to a knowledge of the entire bill.

All frankly admit that it is practically impossible for one man to digest such a measure. The Dingley Act of '97, which is typical, placed a duty on 3,150 separate articles. There were fourteen separate schedules, which were again subdivided. "Few congressmen can do more than study the duties in which their districts are particularly interested The Ways and Mcans committee hear testimony of the manufacturers and I producers and give them wnat they desire. The consumer is not ade quately represented.

The bill goes through tho louse and passes the senate with amendments. Then it goes to a conference committee made up of the party leaders and these few men make the real tariff act. They change it to suit themselves. For example, in 1883 the house made the duty on bar iron $20 a ton. The senate $20.16.

The conference committee $22.40. The house put the duty on iron ore at 50 cents, the senate the same and the conference committee fixed it at 75 cents. When the bill comes from the conference committee, the party whip cracks and the act goes through without consideration. It is such political trickery which gives weigat to the Irishmen's definition of our government when he said it was a "half a dozen gintlemcn who git together and decide what's best for thimselves and then decide thatJs bet for the rist of us;" or of the other son of Erin who said that our government meant the "greatest good for the greatest number" and when asked what he meant by the greatest number, replied, "Xumber One." A permanent tariff board would soon end sueh evils. Public opinion SSION OF would compel the consideration "ot its reports.

Of necessity it could only investigate and report on one schedule or group of articles at a time. It -would end the habit of tinkering with the whole tariff at every session of congress. 'Whether the protective theory be right or wrong, past nistory shows nothing is more dangerous to business conditions than continual tariff agitation. The bill when enacted may be very mild, but it is the uncertainty pending action which demoralizes things. Tn 1909, after a long agitation a tariff bill was passed and business has not had an opportunity to recover.

before the probability of another re- vision is faced. Whether the next require a prophet to say that business conditions will not improve generally until the mater is determined. Tn the one nundred and twenty-two years since the first tariff law in 17S9, there have been twenty general tariff bills passed about one every six years, to say nothing of special measures and bills which have failed to pass. Is this a good business tonic? With a tariff commission in good working order, we would have i 3 a oi.is aim spuria xrom tu time on separate schedules. Such bills would receive more careful considera- tion the rates for each article or cheap abor fof there Js nQ cUeap schedule would be considered on in Canada.

industrial condi- merit; uui a revision 01 me laria i i 1 i rtr 1 on cotton for instance would not demoralize business generallv because -i Iiuuse nut autrcitru i-uuiu jju uii iwiu their own affairs. The proposed tariff board is not a party measure. It is approved by the best element in both parties. Why has it not been put into effect long ago? I am sorry to say that I believe the only true reason is that certain high protectionists fear that the investigations of the board will disclose unequal and unnecessary duties and rates which creep into every tariff under our present system. Let me give one example of the evil results of our careless way of considering our tariff.

I will go back to the cold facts of history. In I860 the market was supplied with salt from works in Xcw York, Virginia and Louisiana. The war placed the Xcw York producers in control. A duty of twelve cents a bushel was secured in 1S61. In 1S62 it was raised to eighteen cents.

Xo salt was importel. The Syracuse Company paid six dividends in 1S62, one of 12' per cent and followed this with a stock dividend of 100 per cent. In six years it laid by a surplus of $600,000 and paid $2,000,000 in divi- dends all on a capital of $160 000. The duty was cut in two in 18,1,, but by that time the entire industry was in the hands of a monopoly. Could such a thing have happened with a watchful tariff commission on the job? A Chicago young man out with best girl for the first time and desiring to make an impression, took her to dinner in one of the large restaurants.

The waiter came hustling up to take the order. "Will Monsieur have table d' hote or a la carte?" "We'll have both." "Both, Monsieur?" "Yes, and put plenty of gravy on 'em." Some powerful combinations today are protected both by high specific and ad valorem duties. They have the tariff "table d' hote" and "a la carte" with plenty of gravy. The tariff commission would at least eliminate the gravy. I might say in passing that Democrats have been no more successful with tariff measures than republicans.

Since 1857 they have passed just one tariff law. In il891 a democratic nouse and senate passed a bill so full of unjust rates and protective features that Grover Cleveland, tho greatest democrat since the days of Jackson, refused to sign it and allowed it to become a law without his signature. The other tariff measure which President Taft is strongly advocating is the Canadian reciprocity agreement. He regards this of such im portance that he had the courage to call a special session of congress to consider the measure. It is not to become effective as a treaty.

The less frankness. Dalzell and Moore of plan is to have the Canadian parlia- Pennsylvania, both representing dis-ment and congress pass bills embody- tricts given over to manufacturing ing the necessary legislation. It is and extremely well protected by the not to run for any particular time present tariff, with tears in their anj either country may change it I at will. In substance the agreement pro vides that food commodities, such as cattlcm fish, wheat and other grains, dairy products, fresh vegetables, lough lumber and other raw matcri al3 are to be admitted into either countrv free of dutv. On food stuffs partlv manufactured, the tariff is greatly reduced.

The agreement con tains four schedules. The articles in Schedule are to be admitted free into cither coun-try. Schedule contains a list of manufactured articles, including farm cofreo-" And the speeches of these implements, engines, automobiles, eminent gentlemen look like which are to be admitted into cither countrv at an especially low rate. Schedule contains a list articles which are to be admited into the United States at a special rate. This list includes iron ore, laths, shingles, etc.

Schedule contains a list of articles which are to be admitted into Canada at a special rate. This list contains coal, cement, etc. The agreement further provides that United States fishing vessels are to receive licenses for Canadian waters for one dollar per annum. This has been recotrnized bv the fisher- Qn our northeastern coast as so dvantaKeous that thev have rracti. callv withdrawn their opposition to the provision in the bill removing the duty on fish.

President Taft in his message tranmitting the proposed agreement to congress states that the guiding motive has been to give free play uut lnu growm ox great trusts industrial production as far as pos-and combinations behind the tariff sible. Everyone recognizes that has caused republicans to modify a nation we arc rapidly reaching a the doctrine so that now we must point where we will not be selling; stand or fall on the proposition laid i raw materials to the. world but im- rt, th Th; i ormnncnta of lUt- MUl II 11 11 fc- tin viui u. ii tions there and nere are practically i IIILUtltai. I1C dlC IUC Dctllie jriUflC During the last few years over eighty thousand of our farmers went to Canada to make their homes there, day and the Canadian reciprocity Canadians are found all over the.

agreement, as has been pointed out United States. We have some of' them 'by Mr. Taft, is directly in line with with us tonight. While the ele-Ithis principle for the reason that the mentary reason for a high tariff, pro- cost of production in Canada and in tcction against cheap labor, cannot! the United States is practically the be urged against this measure, he same. Conditions are almost identical far more important reason can be 1 urged in its favor, namely, that it gives us free food products.

It will probably not reduce the cost of food but it will tend to prevent a probable increase and will steady the markets and prevent fluctuations. Moreover, the cry of today is for world markets. We have at last awakened to the fact that we have far less than our share of the world's trade. Even the most ardent protectionist admits there is nothing so disastrous to international trade as a high tariff. To offset this we republicans have preached reciprocity for thirty years.

I say "preached" because no serious, permanent rccip rocity agreements on a large scale have been put into effect and the reason is not far to seek. Prot.c- tionists arc unwilling to grant the concessions necessary. Reciprocity mcans and take. And whenever a reciprocity is brought into consideration all favor the but object to its being put into practice. The fundamental reason is that the protectionist fears that reciprocity agreements tend to let down the bars of the high tariff, and that free trade will follow.

The great European nations, with the exception of England, have shut us out by tariff walls built by expert boards. By special trade agreements and conquest the Europeans have gained control of the trade of Asia and Africa. We have even lost our just share of Mexican and South American trade. Canada alone remains. She is our nearest neighbor and ier markets are at our door.

Sound business policy, as well as the friendly feeling which should exist between neighbors, favors reciprocal trade relations. In the ten years during which the Canadian Beciprocity Treaty of 1855 was in effect trade between the two countries increased wonderfully but at that time the United States was at a serious '''advantage owing to the war and the high tariff sentiment following the war caused the United States to terminate the arrangement. Through the kindness of Mr. Milnes I have had tho opportunity of going through the Congressional Becords and reading the debates upon this question and the only real reason behind the opposition is the fear that this agreement is the entering wedge toward tearing down our tariff walls. The congressmen who oppose the meaj-ure have admitted this with more or voices said that it was most unfair I to the American farmer because it jtook awaJ" thQ protection given his ProJucts.

They could not complain ithat their ovrn interests were injured i because the agreement does not touch them- but they did on to sa" that this was a steP toward free trade wbich once taken, might lead to disasterv Their argument reminds me of a story told of a certain boarding lnouse Keeper. as sne Drougnt in tne breakfast coffce to one of her board- ers she said, "Good morning, it looks like rain." He said, "Yes, it does look like rain but it smells like nnwneny interest me rarmer out the-v sme11 suspiciously like self-in- oflterest Some eaSressmen called the measure unropublican because the democrats adopted it in caucus. But it 'should not be called un-republican for this reason. It ought to be possible, once in a while, for both part ies to recognize and agree upon a good, economic measureand this is one. Against Moore and Dalzell, I prefer take the word of a real farmer, Secretary Wilson.

He says the plan will benefit the farmers. As a republican, I prefer to stand with Taft in favor of such a measure than with those So deeply in love with the protective theory that they worship it as a political god. Republicans once believed it was impossible to have a tariff too high. Horace Greely said the tariff on iiig lron should be one hundred dollars a ton and everything else in propnr- down in the last National platform and reiterated by President Taft. 'The protective tariff on any in- dustrv ouirht not to exceed more than i Ihe difTerenpn between the rnst.

nf production abroad and the cost at home and enough to give a fair profit to tho domestic producer and manufacturer." Admittedly, this is the doctrine upon which the republicans stand to- and we should have free trade be- twecn the countries. In other words, there is no excuse whatever for any tariff wall between this country and any other country where the industrial conditions are the same. I will reverse the order and givo you the text which I have chosen ior this talk at the close. It is found in President Taft's message to congress transmitting the proposed reciprocity agreement. He said, "We have reached a stage in our development that calls for a statesman-like and broad view of our future economic status and its requirements." Both tha tariff board and the Canadian reciprocity agreement are measures directly within this proposition.

The overwhelming majority of the great leaders and thinkers in both parties favor them. From the very jci itT has been its watchw0rd. Democrals have ajwavs favored i. i. iiitn- -t wa3 in jinc with the of frec tradc and a pcrman.

cnt tariff commission has been urged by the best statesmen for over fifty years. Prophecies are soldom fulfilled; but President Taft has shown himself to be a great man on more occasions than one. He has strenuously advocated these measures in the face of opposition in his own party. He cannot be given tho credit for initiating them because they have been advocated for years. But it one thing to favor a policy and another tn put it into effect and my propfce-y is that if he succeeds in putting these measures into effect the future historian in writing tno record of today, after the strife r.nd bitterness of the struggle is gone, will point to Taft as the greatest republi'-an President since the davs of Lincoln.

PBEPABIHG TO DEVELOP. (From Friday's Daily.) Sam Xorlan rf the Three Mile Station on the Lynx Creek road, while in the city yesterday states that he will start" development of his Two Star mine during the coming month and that it is his intention to operate on a permanent basis. The vein runs to within a few feet of his home, and not until a year ago was he aware of its existence. Mr. Xorlan is confident of proving a property of merit from limited work.

He also states that the county grading machine is at work near his place repairing and establishing a new grade. When finished all sharp turns will be eliminated. RADICAL DOCUMENT RIDICULED IN EAST F. ML Murphy Says That President Taft Will Most Assuredly Not Approve The Recall of the Judiciary (FrOui Friday's Daily.) After an absence of over fifteen months from Arizona, F. M.

Murphy returned to his home in Prescott es- terday afternoon and was accorded an ovation. The S- P. P. depot was teeming with many to welcome this distinguished citizen, and when he alighted from his private car, hundreds were present to greet him. After a hearty exchange with friends, be was driven to his home on uurlev street, where many called dur ing the evening, socially and on business.

Speaking to a representative of the Journal-Miner Mr. lurphy gave a brief outline of several ques-tions which will be read with inter est. He said: "I come back to Arizona, after an absence of nearly one and one-half years for the purpose of look ing over the situation, and in a few days will leave for Tombstone, Im perial and the Gila River properties, stopping for a few days at the Castle Hot Springs. After my return to frcscott, 1 will spend a few days in the Bradsbaw mountains with Mr. Meanv.

The rounds of the railroads will then be made with Mr. Drake, after which I will have something to say for publication which will be of importance to this section. "However, there is no occasion for business interests in this city or county to feel alarmed over the future. Certain things are under con sideration that mean much to this city and its future prosperity. Mv visit will be prolonged in Arizona.

for several weeks, when I expect to return east." When questioned about the reports in circulation to the effect that he had decided to make Xew York city his home, he was emphatic in denying the rumors, saying: "There is nothing whatever to the reports. I have not decided to change my residence or to make any otner place but Prescott mv home. I prefer it to any other place and tonight I feel again perfectly at case and am contented at again being in the citv 1 have known so long. Please deny these unwarranted reports." On the question of statehood, Mr. Murphy was expressive of his well-known attitude on that subject, and gave a brief outline of the situation as he found it in Washington and the principal cities of the cast, saying: "It is possible that tne president will put up with the initiative and referendum features of the constitu tion, but most assuredly he will not approvo the recall of the judicary.

This I believe is the actual condition BOLD CRIMINAL CAPTURED IN PHOENIX. (From Friday's Daily.) Deputy Sheriff Thomas E. Pulliam of Coconino county, passed through yesterday afternoon with Jesns jl. Torres in custody, on the charge of murder committed in Williams, Jonn Alby being the victim. Torres was arrested in Phoenix Wednesday, afti7 fleeintr from the scene of his crime, and was taken into custody without the least resistance.

The crime al leged is said to have been most briit.il and without provocation. His vic tim, a barkeeper, was assaulted with a six shooter, and his head crushed at several places. After linge-itig for over three weeks, and during nearly all of that time in an unconscious condition, Alby passed away Wednesday morning. For several days it was not definitely knoivn who the perpetrator of the eritfis was, but after a rigid investigation, Torres was centeed upon as the prin cipal. He left Williams two days after assaulting Alby, and suspicion followed when his barber snop wns closed without any announcement.

During one of his lucid intervals, Alby imparted the information to Sheriff Francis of the identity of assailant, and from that clui this well known officer commenced li.s man hunt, passing through Presott about ten days ago and locating his wan in tho capital city. Torres was shadowed until the death of when he was promptly placed under arrest. He evinced the least unconcern on being accused of tin n.irri-ble crime, and had been, for nearly week, a daily visitor at tho sheriff's office in Phoenix, to learn the con dition of Alby, showing a friendly feeling for the wounded man. Torres bears a bad reputation of ssveral years standing in the southern part of the territory. Fe i3 said to have served a long term in th penitentiary of Colorado for murder, and is suspected of having participated in the murder of a prominent Mexican at Xogalcs and has a long chapter of lesser cr'nics behind a criminal trail of several years.

He has been arrested many 1. .,1. I m.ico, uui. cavaitu anagcr ueuamp win install as a and is generally regarded as a precautionary appliance for the saf smroth and dangerous man. Tmbued ety of miners in case of accidents with the belief that he will again ior the hoisting machinery becoming escape punishment, Torres ye3tcrday on tne train, was unduly polite ana agreeable and seemed in 'way alarmed over the enormity of the crime of which he is accused.

Journal-Miner High class job work so far as the Executive is to bo considered. Until the radical constitution was fromed and after its adoption, the eastern feeling toward Arizona was excellent, but sinco a reaction has set in. It is particularly unfortunate that the citizens of Arizona did not take advantage of tha opportunity to frame and adopt a conservative constitution, one that would appeal to investors who were looking with favor upon the territory. Anyone who has been conspicuous in the statehood fight foryears, comes in for ridicule and derision from representative men in the east who have been appealed to so persistently for all these years in Arizona's behalf for recognition on the grounds of high qualification for citizenship and fitness for statehood these days. Arizona's claims as they were presented when joint statehood was being opposed, that it would be an outrage to subject the hich-class- citizenship of Arizona to the domination of an inferior citizenship, of a sister territory, has been held up for ridicule ever since the conventions were organized and the constitutions of the two territories were framed.

And, since the adoption of Arizona's constitution by the people, the ridi cule has become almost unbearable. Conservative people of the east, those who were appealed to to assist in defeatine the aims of advocates of joint statehood, seem to take especial ueiignt ana pleasure in taunting tho Arizonan, and unhesitatingly point to the Arizona constitution as conclusive proof of the unfitness of -the territory for self eovernment. It would appear, however, from what nas laxen piace, mat tne majority of the people of Arizona care very little for the opinions or criticisms of the conservative element of the east, as they seem bent upon narry-ing out their own and ill-advised methods, regardless of consequences. It is fortunate for the territory, how ever, tnat we have a president who, in all probability, will see that at least one of the mistakes that the friends of tne constitution are endeavoring to make, is not permitted. It is to be hoped that some way can yet be found by which Arizona may tie given an opportunity to enter the sisterhood of states free from harm ful effects that are sure to result from extreme radicalism, new nationalism, vicious progressiveness and soon and on." The many friends and acquaintances, of Mrs.

Murphy will be pleased to learn also, that she accompanied her husband from the east. IMPORTANT STOCK TRANSACTIONS CLOSED. (From Friday's Daily.) The large range interests of William Rudy and his two sons, Joe and Ab Rudy, have been taken over by the Burnt Ranch Land and Cattlo company, was the announcement made yesterday by D. D. Crabb, a member of the purchasing company.

Delivery will be made Immediately. The sale is one of the heaviest that hag been closed in this county in recent years, and while no consideration was given publicity, it is known the sum paid is over $40,000. Tho entire herd goes at $22 a head. William Rudy retains his homestead in the lower end of Skull Valley, otherwise everything kindred to the cattle business is included in the sale. Joe Rudy contemplates locating at Parker, on the Colorado River, and will engage in business at that point and also in land interests on the California side.

He is now investigating conditions and is said to be impressed with the country. The Burnt Ranch company will consolidate their Kirk-land interests with that near this city, and operate from the latter point. Mr. Crabb, at the present time, is in charge of the Houghton Land and Cattle company, a subsidiary organ ization, of Xavajo county, and will remain with the later. He arrived yesterday from the north, and reports the same favorable conditions as in this section, with high prices and good feed.

IMPROVES CONDITIONS. (From Friday's Daily.) The Arizona Mine Supplr Company yesterday forwarded to the Pacific Copper Mining at Silver Mountain a chain ladder, which General VUUIU HllibU -r inoperative. The introduction of this utility in keeping with the efforts of Mr. DeCamp to afford miners security from injury in case of any accident when shots are set off or exits to the surface become damaged or useless..