Omaha daily bee., 1911-07-28

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alleged inequalities. The smoot amend
ments proposed a reduction Of about Q
cents a pound on raw wool and some re-
ducfions on Manufactured products of wool
La FoIIette's Speech.
In offering amendments proposing reduce
lions in the duties on wooden goods Sem
ator La Toilette OF Wisconsin took the posi-
ton that these reductions, II adopted, would
compensate the farmers, at least In part,
for the losses they will suffer as a result
of free trade in agricultural products with
Canada.
They WILL" the speaker continued, ''in
some measure relieve all of the people of
the United States who have been made to
pay tribute to the wooden trust, long the
pampered favorite OF the tariff law. Two
years ago at the time we we're considering
the present tariff act, which left schedule
X practically unchanged, proposed GER
tain amendments.
These amendments have modified and
offer as an amendment to the pending bill,
1 believe that the duties proposed by me
on manufactured wooden cloth are greater
than are necessary to protect American
manufacturers from European competition
However bearing in mind that this is but
a temporary measure, to be followed, as 1
hope, by a more thoroughgoing revision
and with the purpose OF meeting the views
of a majority Of the senate to the end that
some reduction may be promptly secured,
1 shall offer for present consideration
changes in the wooden schedule.
Effect of Amendments.
THE effect of the amendments to sched-
ule X which 1 now propose are as follows:
Duty on clothing woods, 40 per cent; car
Yarn S per cent? carpst a 20 per cent
| cloths and all other manufactures COM
posed entirely Of wool or having wool as
the component material Of chief value, 90
| per cent.
The present average duty on raw wool,
as shown by the report on commerce and
navigation of the bureau of statistics for
| 1910 is a fraction less than 40 per cent
| In proposing a duty Of 40 per cent ad
valorem, make no wide departure from
| the duties paid today on raw woods on the
average. 1t will do away, however, with
the gross inequalities and determinations
under which the users OF the cheaper
woods. which go to mako up the poor man S
clothing, have TO labor under the present
specific duties.
"A straight aid valorem duty Of 20 per
cent will do away with prohibitive rates
and will reduce the rates on woods which
manufacturers of wooden goods need today
for the purpose of blending with our own
woods so that they cannot result In any
benefit to the consumers. The ad yaloreno
duty will also do away with the present
injustice of subjecting woods that con-
tain three fourths, of their weight In grease
and dirt to the same duty as the fine, ex-
pensive woods, with shrinkage of, say, %
per cent.
Passing now to the proposed duties on
intermediate and finished products, the
principle underlying them is that in all
cases a compensating duty equivalent to
the duty on raw wool shall be imposed
in addition to a protective duty, which is
/ to cover the difference in the cost of pro-
duction at home and abroad in the manu-
featured article"
Senator Lafollette said that the proposed
amendments OF duties on manufactured
wool would result In reduction from 50 IS
per cent ad valorem under the present
| law, to 56s2 per cent or more than SSIS Der
| cent ad valorem. and more than 81 DER
| cent below the present rate. The change
for the wool schedule as a whole would
represent reduction from an average ad
valorem OF 6l.4 per cent under the present
law, to 1924 per cent. or reduction of 2s1l
per cent ad valorem. and more than 81
per cent below the present rate.
Speaking of the effect these reductions
would have upon the revenue derived by
the government. the speaker said, "a re-
duction of duty may result in an Increase
OF Importation. which will not only offset
the reduction in rate, but bring In a larger
revenue than the old higher rate did Of
course this is not always the case, since
the manufacturers should reduce their price
to the consumer and thereby prevent In.
creased importations from abroad. What
usually happens and what would probably
happen II the proposed amendments wer,
adopted would be a combination of botE
conditions, and it is impossible to fore.
tell what the ultimate effect upon the rove
nue. would be.
1T is a matter of common knowledge
to all who have travelled abroad. as well a.
to those who have studied the condition.
in business, that wooden goods are sold il
this country generally at double the price
at which they can be purchased in Eng
land. This would justify the assumption
= that the duty enters fully into the price /,
. the consumer"