Wauwatosa news. [volume] (Wauwatosa, Wis.) 1900-1948, 1911-12-29
FAvDRS LOWERING
OF TARIFF RATES
seEs,pENT TAFT, IN MESSAGE TO
CONGRESS. ADVOCATES RE-
oucTIoN OF DUTIES.
SCHEDULE K UNDER FIRE
IN communication to Congress, Chief
executive Endorses Conclusions
Arrived at by the Recently
Creates Tariff Board

Washington I'm transmitting to
congress the report of the tariff board
on schedule X the president accom-
psnied it with the following message:
10 lie senate and House OF Representa-
tive5;
In my annual message to congress, De-
cember. 1879, 7 stated that under section
OF the act of August 5. 1909. | had APP
nolntsd a tariff board of three members
Ia cooperate with the state department
in the administration of the maximum
ard minimum clause of that act, to make
a glossary or encyclopedia of the exist
ing tariff so as to render its terms intel
Hgible TO the ordinary reader. and then
10 investigate industrial conditions and
costs of production at home and abroad
with a view rs determining to what ex-
tent existing tariff rates actually exem-
pity the protective principle. viz: That
duties should be made adequate. and only
adequate, to equalize the difference in cost
of production at home and abroad.
further stated that | believed these in
designations would be of great value as
basis for accurate legislation, and that
should from time to time recommend to
congress the revision of certain sched-
ules in accordance with the findings of
tho board.
IN the last session of the Sixty-first con-
gress a bill creating permanent tariff
board of Eve members, of whom not
more than three should be of the same
political party, passed each house. but
failed of enactment because of slight diff
ferences on which agreement was not
reached before adjournment. An appro-
pTiation act provided that the permanent
tariff board, II created by statute. should
report to congress on schedule X in De-
eember, 1911
Presidential Appointments.
Therefore. to carry out so far as lay
within my power the purposes Of this
bill for permanent tariff board, ] ap-
pointed in March. 1911. a board of five.
adding two members OF such party affili-
alton as would have fulfilled the statu-
tory requirements. and directed them to
make report to me on schedule X Of
the tariff act In December of this year.
In my message of August II, 1911. ac-
companying the veto of the wool bill, 1
said that, in my Judgment schedule X
should be revised and the rates reduced
Ny veto was based on the ground that.
since the tariff board would make, in
December. a detailed report on wool and
wool manufactures, with special refer
enee to the relation 90 the existing rates
OF duties to relative costs here and
abroad public policy and a fair regard
TO the interests of the producers and the
manufacturers on the one hand and of
the consumers on the other demanded
that legislation should not be hastily en-
acted in the absence of such information.
that I was not myself possessed at that
time of adequate knowledge of the facts
TO determine whether or not the proposed
act was in accord with my pledge TO
support fair and reasonable protective
policy: that such legislation might prove
Is,4
industry the evils of continued uncer-
taJaty.
Advocates Reduction of Rates.
I now herewith submit a report of the
tariff beard on schedule K. The board Is
unanimous in it's findings On the basis
OF these findings I now recommend that
the congress proceed to a consideration
Of this schedule with view to its revf-
sion and a general reduction of its rates
The report shows that the present
method of assessing the duty on raw
wool--this is by the specific rate on the
grease pound, l. e., acknowledgements to
exclude woods of high shrinkage In
securing but fine quality, from the
American market and thereby lessons the
range of woods available to the domestic
manufacturer; that the duty on unsecured
wool OF SO cents per pound is prohibitory
and operates to exclude the importation
ef clean low-priced foreign woods OF In
feror grades which are nevertheless val
liable material for manufacturing, and
which cannot be imported in the grease
heeause of their heavy shrinkage Such
wools If imported, might be used TO dis
place the cheap substitutes now in use.
To make the preceding paragraph a lit
tie palmer take the instance OF a nun
dred pounds Of first-class wool imported
under the present duty, which is IL cents
q pound That would make the duty on
the hundred pounds SILL The merchan-
disc part of the wool thus imported is
the weight of the wool of this hundred
pounds after securing. If the wool
shrinlSs 50 per cent. as some wool does.
then the duty in such a case would
amount to 81 on 20 pounds of secured
wool. 1'his.gof course would be prohibit
tory. II the wool shr.nks only 80 per
cent, ii would be 81 on so pounds OF
wool. and this is near to the average OF
the grea bulk of woods that are Imported
from Australia, which is the prineipa
source of our imported wool
These Determinations could be over
come by assessing a duty In ad valoren
terms. but this method is open to the ob.
lection, FIRST that it increases administra-
tive difficulties and tends to decrease
revenue through underyaluation; ana
second. that as prices advance. the &C
valorem rate increases the duty per pound
needs relief and the producer can hes
stand competition, while If prices de
cline the duty is decreased at the tins
When the consumer is least hurdened b
the price and the prosleer most need:
Protection
Method That Meets Difficulty.
Another method of meeting the diff
Guilty Of taxing the grease pound is to as
cess a specific duty on grease wool n
terms OF its secured content This obvi
ates the chief evil of the present system
namely. the discrimination due to differ
eat sllrinkages. and thereby tends great
y 70 equaiize the duty. The board re
ports that this method is feasible in prac
ice and could be administered withou
srest expense.
The report shows in detail the Difficult
Ties involved in attempting 70 state II
faiegerical terms the cost OF wool pro
aUetion and the great differences in cos
as between different regions and differen
types Of wool It IS found. however, that
taxing ali varieties in account. the aver
age cost Of production for the Who'll
Aiseric.sn clip is higher than the cost +
t3e CHEF competing country by al
amount somewhat less laan the presen
duly