The Idaho Springs siftings-news., 1911-12-30

aANasssd 70 the rats Of - cents On
secured wool. are prohibitory in the sarns
measure that the duty on scoured wool
10 prohibitory. In general. they are A.
sessed At rates a. high a.. or higher
than. the duties paid on the clean content
Of wools actually imported They should
b. reduced and % adjusted to the rate
on wool - to bear their proper proportion
to the r1al rate levied on the actual wool
imporlD.
Some Duties PrehIbitory.
TAA dutise on many classes OF WooA
manufacture are prohibatory and greatly
In sxcsss Of the difference In cost OF pc.
duction here and abroad This y true g
tops. OF yarns with the exception %
worstsd yarns OF . very high grsdsl. eno
Of low and medium grade cloth Of heavy
weight
On tops up to q cents . pound In value.
and on yarns OF . cents in value. ne
rate IL 100 Per cent. with corrssDondiney
higher rates for lower valusA On eheep
and medium grade cloths. the sxisunc
rates frequently run 70 10 psr cant. Ano
on some cheap 6oods TO over =" ps'
cent
that the duties which run TO such hiSn ana
valorem equivalents are prohioitory. since
the goods are not imported. but tnet the
pnces OF domestic fabrics are not rAseo
by the full amount OF duty. On set ot
one yard samples Of 10 English faorics,
which are completely excluded BY tns
present tariff rates. II was found that tns
total foreign value was Nlsl: the duuee
which would have been assessed had thess
fabrics been imported. 1850; tho ioreien
value plus the amount Of the duty, als.t'
or = nominal duty Of LIS per cent In fect
however. practically Identical fabrics OF
domestic make sold 1t tho same time at
- rs. showing an enhanced price over the
foreign market value of but 81 per cent
Would Reduce Duties.
Although these duties do not increase
prices Of domestic goods by anything ike
their full amount, II IL none the less true
that such prohibitive dutes eliminate the
possibility Of foreign competition. even In
time OF scarcity. so that they form temp
taton to monopoly and conspiracy to con-
troll domestic prices: that they are much
in excess of the difference in cost OF pro-
duction here and abroad. and that they
should be reduced to a point which &C
cords with the principle.
The findings Of the board show that IN
this industry the actual manufacturing
cost. aside from the question Of the price
OF materials. 10 much higher in this coun-
try than It Is abroad: that in the making
OF yarn and cloth tho domestic woolen
and worsted manufacturer has In general
no advantage in the form of superior ma
chfnery or more efficient labor to onset
the higher wages paid in this country.
The nnds show that the cost OF turning
wool into yarn in this country II about
double that in tho leading competing
country. and that the cost Of turning yarn
into cloth Is somewhat moro than double.
Under the protective policy q great inous-
try. involving the welfare Of hundreds OF
thousands OF people has been established
despite these handicaps.
In recommending revision and reduc-
ken with these facts in mind. to the eno
that an important and established indus
try may not be JeopardiEed.
The tariff board reports that no eQuitA-
BILE method has been found to levy purely
specific duties on wooden and worsted Fab
RIGS, and that excepting for a compensa-
tory duty tho rate must be ad valorem
on such manufactures. 1t Ii important TO
realize. however. that no fiat ad valorem
rate on such fabrics can be made to work
fairly and effectively. Any single rate
which Is high enough to equalixe the DIFF
ference in manufacturing cost at home
and abroad on highly finished goods IN
volving such labor would be prohibitory
on cheaper goods. in which the labor cost
Is a smaller proportion of the total value.
Conversely. a rate only adequate to equai.
ize this difference on cheaper goods would
remove protection from the fne goods
manufacture. the increase In which mas
been one Of the striking features OF the
trade development in recent years.
therefore recommend that in any revision
valorem duties on cloths be carefully con
sidered and applied.
Praises Work Of Committee.
venture to say that no legislative
body has ever had presented to 1t more
complete and exhaustive report than this
on so difficult and complicated a subject
az the relative costs Of wool and woolens
the world over. 1t IL q monument to the
thoroughness. industry. fmpartiality ana
accuracy Of the men engaged In It's ma
king. They were shosen from both polft-
ical parties but have allowed no partisan
spirit to prompt or control their inquiries
They are unanimous in their findings.
feel sure that after the report has been
printed and studied tho value OF such q
compendium OF exact knowledge In re-
spect to this schedule of the tarin VIII
convince all Of the wisdom Of making
such q board permanent, in order that
II may treat each schedule Of the tarih
as II has treated this. and then keep III
bureau of Information up to date Win
current changes In the economic world
1t 10 no part Of the function of the tar
~ board to propose rates Of duty. Theil
function IL merely to present findings OF
fact on which rates of duty may be fairly
determined in tho light OF adequate
knowledge in accordance with tne eco
nomic policy to be followed. This 70 what
the present report does.
The findings Of fact by the board snow
ample reason for the revision downward
Of schedule X, in accord with the pro
tective principle. and present the data
as to relative costs and prices from whicl
may be determined what rates will fairly
eoualixe the difference in production costs
1 recommend that such revision be pro-
ceeded with at once.
(Signed) WILLIAM n AAH A.