New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-12-21

! uibu'ed % each
] garment on bBsis
/ OF manufacturing
Inent ...' ', .cGo 80 .1o4 l.i22
Total factory cost s7.253 ss.1o4 $685. si2H2
/ Selling expense dis
/ garment on basis
: Of ratio OF total
/ selling expense 10 $500.
value OF output. i.''e
/ Final cost 0ac.
tory cost plus 49, 80.
. selling EXPENSE FiN''+"
I Extracts from the report follows:
The result Of the raw wool investigation
establishes the fact that II costs more 70
grow wool in the United States than I'm any
other country, that the merino WOODS re-
| qured in such great volume by our nllIs
! are the most expensive OF all WOODS pro-
duced that the highest average cost or
| production Of such wool in the world is III
| The State Of Ohio and contiguous territory.
and that the lowest average cost on similar
| wool Is I'm Australia.
! II is not possible TO state in exact terms
/ the actual cost OF producing pound OF
wool considered by itself. for the simple
reason that wool is but one of two prod
ucts Of the same operation.
That in the western part or the OHlteo
States. where about two-thirdS OF the SheeP
OF the country are to be found, the fne ana
fine medium woods carry an average charge
of at least II cents pound. interest not
included.
That If account is taken Of the entire
wool production of the country, including
both fine and coarse woods. the average
charge against the clip is about S'2 cents
pound.
That IN South America the corresponding
charge IS between four and five cents 4
That taking Australasia as whole It
appears that charge Of very few cents
q pound lies against the great clips or thal
region in the aggregate. While the board
cannot, therefore. undertake To name an
exact figure in that case IL Is certain that
the Australasian costs at large fall ma
terially below the South American
Present Method Defective.
The board finds that the present method
of levying the duties upon raw wool is de-
fective in that it operates, by reason OF
the varying shrinkages OF the different
kinds OF wool. TO prevent the importation
Of many heavy conditioned sorts which, III
imported, would add substantially to the
stock of sound staple available for the
manufacture of woollen fabrics.
That there is no valid reason for the dis
elimination that now exists as between the
WOODS of Class ! merino and crossbred)
and Class ii English, medium and lustre),
and that these two classes could properly
be consolidated
That the present duty of SO cents a pound
ON secured wool is prohibtive, preventing
cfiCctuaily the importation or clean, low
priced foreign woods of the lower grades
that would be exceedingly useful in the
manufacture Of woOllens in this country,
and il so used might displace In large meas
ure the cheap substitutes now so frequently
employed in that industry. The fact that
such cheap woods are of such heavy shrink
age that they cannot be imported IN an
Unsecured state emphasizes all the more
the prohibitive character OF the present
secured pound duty.
That an I'D valorem rate is open 10 grave
difficulties from the point Of view of ad-
ministration and revenue. in the case OF
crude bulky commodity like wool, produced
in many remote regions and finding It's way
into the markets through so many various
channels Of trade.
/ That, Furthermore, an ad valorem rate
would give a high duty a pound when
prices arc high: that is. when the consumer
/ most needs relief and the producer is most
able 20 bear competition. With a low price
or wool the duty pound would he low
! that Is. at the time when the consumer has
! less need OF competing woods and the pro-
queer is least able to bear competition.
/ The rates OF Schedule X are based upon
| the assumption that woods in the grease
shrink an average o. Sc % per cent While
IL is true that considerable quantities or
wool do shrink that amount. the average
I is well below that figure. Certain very
! heavy woods grown AZ the South African
| care and IN certain districts OF Australia.
South America and the Western United
States shrink as high as 70 TO 70 per cent.
Manufacturing Costs Most Here.
The cost Of manufacturing woollen and
! IS much higher than in Europe The main
elements OF cost Of production are cost Of
plant, material and labor. The cost Of
erecting and equipping both Wooilen and
worsted mills IS much higher in this coun-
| try than In England
! The material is increased in price by the
duty on raw wool. The manufacturer who
/ imports his wool must pay the full amount
/ OF the duty Woods grown In the United
States are increased in value by the duty.
/ hut not by the fun extent Of the duty
Wages are much higher In the United
States, but wages are I'm themselves no
necessary indication OF relative cost Of
! production Frequently n is found that
| high wages and low labor cost go together
II appears that this particular industry
| IS one in which the high elements OF cost
IN This country are not In general offset by
any particular advantage or by any marked
superiority in the efficiency Of labor. To a
certain extent European countries have the
advantage ~ ~ in this latter regard.
IT may be said. then. that. taking the In
Suetrv az a whole, the American manufact-
urcr practically has no advantage I'm en-
cheney of labor and equipment over HIS
I foreign competitor. On certain speclalties
the largest and most efficient American
mills are able by Skilful organiza ton ma
terlallv 70 reduce the difference in cost.
The investigation began in 1910. and has
been pursued at home and abroad. In the
United States expert Investigators visited
/ I. 900 wool growers in nineteen states and 173
counties Special agents worked I'm Aus
tYalis South America and England and on
tho European Continent. Figures were also
gathered from mills
A LARGE part Of the report Is devoted 10
wages efficiency and employees. A large
| proportion Of machinery used e. made
abroad OF the $500 employees in the tn
dustrv IN This country S. per cent were
born in foreign countries and more than g
per cent had no previous experience in me
lcbanical industry.