The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1911-12-20

secured content Of the wool is the basis ssl
culations, and a duty OF this k na
effect of this method of assessment
would be that regardless Of nd the :. sa ,n
the supply and variety of wool by max.
ing available to the American market
woods Is Of Of both low and fine quality now
1.-THE report shows in detail the DIFF
ficulties involved in attempting to state
In categorical terms the cost of wool
production and the great differences IN
cost as between vu different mere regions sou ana
however, that, taking all varieties In
account, the average cost Of produc-
ton for the whole American clip Is
peting country by an amount somewhat
less than the present duty.
Disproportionate Rate.
noils. wool wastes, and shoddy. which
are adjusted to the rate OF SO cents on
secured wool are pronibitory In the
same measure that the duty on secured
wool is prohibitory. In general, they
are assessed at rates as high as. or
higher than, the duties paid on the
ported. They should be reduced and 80
adjusted to the rate on wool az to bear
their proper proportion to the real rate
levied on the actual wool imports.
THE duties on many classes OF wool
manufacture are prohibitory, and greatly
in excess of the difference in cost Of
production here and abroad. ....-.
the exception OF worsted yarns Of a
very high grade, and Of low and me-
dunn grade cloth Of heavy weight.
'On tops up to 50 cents a pound In
the rate is 100 per cent with corre-
spondingly higher rates for lower val
ues. On cheap and medium grade
cloths, the existing rates frequently run
goods to over 200 per cent. This Is
largely due to that part Of the duty
which is levied ostensibly to compensate
the manufacturer for the enhanced cost
wool. AS q matter Of fact, this COM
pensatory duty, for numerous classes
Of goods, Is much in excess Of the
amount needed fer strict compensation.
Comparison of Cloths.
ION the other hand. the findings show
that the duties which run to such high
ad valorem equivalents are prohibitory.
since the goods are not imported. but
that the prices Of domestic fabrics are
not raised by the full amount OF duty.
On a set of vineyard samples Of sixteen
English fabrics. which are completely
excluded by the present tariff rates, 1t
was found that the total foreign value
was $41.S4: the duties which would have
imported. 1850; the foreign value plus
| the amount Of the duty. S11a74; or q
nominal duty of 1888 per cent. In fact,
however, practically Identical fabrics OF
/ \ - ttvrno
at sss.75. showing an enhanced price
| over the foreign market value Of but
Although these duties do not in.
thing like their full amount, It is none
the less true that such prohibitve du-
ties eliminate the possibility Of foreign
| competition, even in time Of scarcity
that they form temptation to monop.
oily and conspiracies to control domes-
tic prices that they are much in ex.
cess of the difference in cost of produc.
ton here and abroad, and that they
should be reduced to a point which &C
cords with this principle.
1.-THE findings Of the board show thai
in this industry the actual manufactur
| ing cost, aside from the question Of
the price of materials, Is much highel
| in this country than 1t Is abroad; tina
domestic wooden or worsted manufac
/ the form Of superior machinery o.
more efficient labor to offset the high
er wages paid in this country. Thu
findings show that the cost of turnin,
wool into yarn in this country Is abou
double that In the leading competinl
country, and that the cost Of turning
yarn into cloth is somewhat more thai
great industry, involving the welfare o
hundreds of thousands OF people. ha
been established despite these handicaps
Recommends Caution.
"In recommending revision and reduc
ton I therefore urge that action +
taken with these facts in mind, to tn
end that an important and establishe-
Industry may not be jeopardized.
1.-THE tariff board reports that n
equitable method has been found t
levy purely specific duties on woole
and worsted sabrics and that, except
ing for a compensatory duty, the rat
must oe ad valorem on such manufaC
lures. 1. Is important to realize. how
, ever, that no fiat ad valorem rate o
, such fabrics can be made to work fati
, ly and effectively. Any single rat
!. Which is high enough to equalize til
difference in manufacturing cost @
home and abroad on highly f1nishe
, goods involving such labor would b
/ prohibitory on cheaper goods, III whic
3 the labor cost Is a smaller proportio
t Of the total value. Conversely, raj
Q only adequate to equal.ze this differ
e protection from the fine-goods man,
s facture, the increase in which has bee
: one of the striking features of til
Q trades DEVELOPMENT in recent years.