New-York tribune., 1896-12-30
SECOND TARIFF HEARING.
THE COTTON AND SILK SCHEDULES CON
SIDERED.

THE COTTON AND SILK SCHEDULES CON
sIDERED.
v.rrs PRESENTED TO SHOW THE NEED OF
.ruoeorGu REVISION or EXISTING LAw-THE
Al yArOREM SYSTEM OF DUTIES DE-
NouNcEp-soME rNwELcoME TEs-
TIMoNY FOR THE DEMO
CRATIC MEMBERS
rpY TELEGRAPH TO THE rRIBrNE1
Washington. Dec. 29.-In the hearing before
the WAYS and Means Committee to-day on the
schedules Of cotton and silk goods many inter
estine facts were brought out which clearly and
conclusively showed the necessity Of a thorough
revision Of the existing tariff law. and that such
necessity does not by any means wholly depend
nm a revision of the rates Of duty with view
10 obtaining q larger revenue or affordng
farer degree Of protection to American indus
tries.
As on yesterday. the matter Of ad valorem du-
ties and tho fraudulent undervaluations when
they invite and encourage cut a large hgure IN
the discussion. and some striking statements
were made respecting the extent to which such
undervaluations are carried under existing law
BY no means the least impressive Of these was
one to the effect that Assistant Secretary HAM
lin. Of the Treasury Department. after several
years experience In the administration or the
law estimated that the yearly loss of revenue
on account of undervauations amounted to SO
100000. This is equal TO lJ9s per cent or
the total revenue received fror, customs for the
fsca, year ended June 80. 1896. Mr.. McMillin.
OF Tennessee who was one OF the trainers of the
existing law, Is the only member Of the commit
tee present at the hearings who seriously at
tempts to defend the ad valorem system. and his
efforts must seem unsatisfactory even to him.
self Several changes in the schedule OF cotton
goods we're recommended and urged with much
force.
COTTON MANUFACTURERS HEARD.
The manufacturers Of the finer grades OF cot
ton yarns have suffered serious injury on ac-
count Of the legislation of 1894 and by violations
or evasions Of the law. The cotton schedule as
amended and reported to the Senate was salts
factory In the main. but Mr.. Vest succeeded In
having two provisos added to the paragraph re-
lating to yarns which virtually nullifled the pro-
visions imposing specific rates Of duty. The re-
suit has been to paralyze the fine yarn industry
and compel American manufacturers in many
cases to import the yarns they use. The facts in
relation to this branch Of the cotton manufacture
ing Industry were clearly set forth by Arnold b.
Sanford Of Fall River, Mass. who spoke in be-
the United States. which includes about 90 per
cent Of the cotton spinners Of New-England and
the Middle States who operate 1.OOO.UO spin
dies
He satd that the proviso which prescribes that
the duty on yarns not exceeding in value % cents
a pound shall not exceed cents pound. and
that the duty on yarns valued at more than 20
cents a pound and not more than 40 cents
pound shall not exceed Is cents a pound. coupled
with the proviso which imposes a duty Of 45 per
cent ad valorem all yarns valued at more
than 40 cents pound. had resulted in extensive
underva auations. which had caused a heavy loss
Of revenue to the Government and made the
spinning Of fine cotton yarns in this country
virtually impracticable. Not content with this,
the foreign manufacturers it appears have
sorted to the manufacture for the American
market Of cotton rovings," which do not dis
close the numbers and these imported in
large quantities at rates of duty far below the
rates they should be required to bear.
ARGUMENTS FOR SPECIFIC DUTIES
s. p. Chase. Of Fall River, who spoke for the
manufacturers of cotton cloths. said that they
did not demand an increase OF duties. although
the rates on some of the finer grades were
lower than they ought to be. They did ask
however that specific rates be applied to few
kinds Of goods which ad valorem rates
now imposed-fOr example. on cloths containing
more than 200 threads and not exceeding 300
threads 10 the square inch. and, on cloths ex-
ceedine 300 threads to the square irch. They
also desired ard recommended an increase Of
30 per cent of the specific duty on plain cloths
figured weaves the manufacture Of which
they trying to establish In this country.
Mr.. Chase also called attention to evasions
OF the law--whch he said were extensive and
exceedingly injurious to domestic manufactur-
ers, as we'll as to the Governments revenues
by foreign manufacturers and importers. by
flooding the American market with cotton piece
goods which are marked off by bars in fugi-
tive colors. into squares about the size Of
pocket handkerchief These goods invoiced
as handkerchiefs and admitted under an ad
valorem duty OF 40 per cent. Once past the
Custom House the bars of colors washed
out and the fine handkerchief appear
piece goods which, II imported such. would
have been subject to compound duties and re-
quired to pay much higher rates This sort
Of Competition was destructive IL
unfair and unlaw both to the Government
and the domestic manufacturer
Mr. Chase further asked attention to what
he called "obvious error in the act Of 1894,
which in one paragraph. provides that on all
cotton cloth exceeding $50 and not exceeding
200 threads to the square inch, dyed co!ored,
stained. painted or printed. valued at over l2is
cents a square yard. there shall be paid duty
OF 40 per cent ad valorem. while according to
the succeeding paragraph the duty on cloth
exceeding 200 threads 10 the square inch. dyed.
colored. stained painted or printed. valued at
over Is cents a square yard-a much finer and
more expensive grade Of goods-is only 80 per
cent ad valorem.
MR. MMILLIN STIRRED UP
In the of his remarks Mr.. Chase
aroused Mr.. McMillin. n champion of the ad va
lorem system. who finally said; well, the ad
valorem catches them. does II not?"
ssI d0 pof think tho ad valore,n catches apv-