The Ordway new era., 1911-12-29

10 prohibitory. In general. they are as
sessed at rates a. high a.. or higher
than. the duties paid on tho clean content
of wools actually imported. They should
be reduced and SO adjusted to tho rate
on wool as to bear their proper proportion
to the real rate levied on the actual wool
imports.
Some Duties ProhIbltory. .
msnufacture are prohibitory and greatly
In excess Of the difference In cost OF pro-
duction here and abroad. This II true Of
tops. of yarns with tho exception OF
worsted yarns Of a very high gradel. and
of low and medium grade cloth OF heavy
weight.
On tops up to 81 cents q pound in value.
and on yarns OF e5 cents in value. the
rate 10 100 per cent. with correspondingly
higher rates for lower values On cheap
and medium grade cloths. tho existing
rates frequently run to lbo per cent and
on some cheap goods to over 100 per
cent
On the other hand. tho 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 set OK
one yard samples OF Is English fabrics.
which are completely excluded by the
present tarir rates. It was found that the
total foreign value was &lN; tho duties
which would have been assessed had these
fabrics been imported. $3.50: the foreign
value plus the amount Of the duty. Sl1S.H:
or . nominal duty Of 183 per cent. In fact.
however. practically Identical fabrics OF
domestic make sold at the same time AZ
Sss.7 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 like
their full amount. It Is none the less true
that such prohibitive dutes eliminate tho
possibility Of foreign competition. even in
time Of scarcity. 80 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 thcy
should be reduced to a point which ac-
cords with the principle.
The findings OF the board show that IN
this Industry tho actual manufacturing
cost, aside from the question OF tho price
of materials. II much higher In this coun-
try than It II abroad: that In the making
Of yarn and cloth the domestic woolen
no advantage In tho form Of superior ma
chincry or more efficient labor to onset
the higher wages paid in this country.
The fnds show that the cost OF turning
wool into yarn In this country 10 about
double that in tho leading competing
country. and that tho cost Of turning yarn
into cloth 10 somewhat more than double.
Under tho protective policy a great indus
try. involving the welfare Of hundreds OF
thousands of people has been established
despite these handicaps.
In recommending revision and reduce
ton therefore urge that action be ia
ken with these facts in mind. to tho end
that an important and established Indus
try may not be jeopardxed.
The tariff board reports that no equita'
bio method has been found to levy purely
specific duties on woolen and worstcd fab
RIGS. and that. excepting for compensa
tory duty. the rnte must DO ad vaiorem
on such manufactures. 1t II important to
realize. however. that no nat ad valorem
rate on such fabrics can be made to work
fairly and effectively. Any single rato
which Is high enough to eQualixe tho dif-
ference In manufacturing cost at home
and abroad on highly finished goods in
volving such labor would be prohioitory
on cheaper goods. in which tho labor cost
Ii a smaller proportion OF tho total value
Conversely. n ratio only adequate to equal.
ize this difference on cheaper goods would
remove protection from tho nne goods
manufacture. tho increase In which has
been one Of tho striking features OF the
trade development In recent years. !
the Importance OF n graduated scale OF ad
vaIorem duties on cloths be carefully con-
sidercd and applied.
Praises Work Of Committee.
venture to sny that no legislative
body hns ever had presented to II more
complete and exhaustive report than this
on 80 difficult and complicated q subject
rs the relative costs OF wool and woolens
the world over. II II monument to the
thorouEhness. industry. impartiality and
accuracy Of tho men engaged In Its ma
king. They were chosen from both polit-
ical parties. but have allowed no partisan
spirit to prompt or control their inQuirtes
They arc unanimous in their findings. I
feel sure that after the report has bscn
compendium Of exact knowledge in ro-
spect to this schedule Of tho tarin will
convince all OF the wisdom Of making
such . board permanent In order that
II may treat each schedule Of tho tartn
as It has treated this. and then keep its
bureau Of information up to date with
current changes in tho economic world.
1t IL no part Of the function OF the tar
IN board TO propose rates OF duty. Their
function 10 merely to present findings OF
fact on which rates Of duty may be fairly
determined in the light Of adequate
knowledge In accordance with tho eco
nomic policy to be followed. This II what
the present report does.
The findings Of fact by tho board show
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 which
mny be determined what rates Will fairly
equalixe the difference in production costs.
recommend that such revision be pro
ceeded with at once.
tSigned) WILLIAM II. TAFT.
The White House. Dec. 20. 1911.
Opera Houses In Europe.
Milan. with a population OF some