Wauwatosa news. [volume] (Wauwatosa, Wis.) 1900-1948, 1911-12-29


sssssd az rates as high AZ or higher
.nah. the duties paid on the clean content
~ WOODS actually imported They should
pc reduced and so adjusted to tile rate
on wool as 70 bear their pre.,&r proportion
- tne real cate levied on the actual wool
Son:e Duties Prohibitory.
Inc duties on many classes OF wa9l
manufacture are prohibitory and greatly
IA excess of the difference in cost Of Dro-
ouction here and abroad. This is true Of
tops, of yarns with the execution az
Morsted yarns of very high grade). and
OF low ard medium grade cloth of heavy
weight
On tops up 10 = cents pound In value
anu on yarns OF s. cents in value, the
rate IS 100 per cent. with correspondence
| higher rates for lower values. on cheap
anu medium grade cloths, the existing
rates frequently run TO $50 per cent. and
cent
On the other hand, the findings show
that The duties which run to such high ad
Nalorem equivalents are prohibitory, since
the goods are not imported but that the
prices OF domestic fabrics are not raised
Dy The fun amount of duty. On a set OF
one yard samples of 16 English fabrics
which are completely excluded by the
present tariff rates. it was found that th6
total foreign value was s4l.S4; the duties
which would have been assessed had these
iaorics been Imported $500: the foreign
value plus the amount of the duty, $l1s.74
or nominal duty of 1873 per cent. In fact
however, practically identical fabrics OF
domestic make sold at the same time at
5000, 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 fun amount. 1t is none the less true
that such prohibitive duties eliminate the
possibility of foreign competition, even In
time of scarcity, so that they form a 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 point which ac-
cords with the principle.
The findings of the board show that in
this industry the actual manufacturing
cest aside from the question of the price
of materials, is much higher in this coun-
try than it is abroad: that in the making
of yarn and cloth the domestic WOODEN
and worsted manufacturer has in general
no advantage in the form of superior ma
chinery or more efficient labor to offset
the higher wages paid in this country.
The finds show that the cost of turning
double that in the leading competing
country, and that the cost of turning yarn
into cloth is somewhat more than double.
Under the 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 reduc-
ton l therefore urge that action be ta-
ken with these facts in mind, to the end
that an important and established indus
try may not be jeopardiZed.
The tariff board reports that no eqlita-
BILE method has been found to levy purely
specific duties on wooden and worsted fab
RIGS. and that. excepting for a compsnsa
tory duty, the rate must be ad valorem
on such manufactures. 1t is 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 equalize 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 smaller proportion of the total value
Conversely, a rate only adequate to equal
ize this difference on cheaper goods would
remove protection from the fine goods
manufacture the increase in which has
been one of the striking features or the
trade develcpihent in recent years L
/
the Importance of a graduated scale of ad
valorean duties on cloths be carefully con-
sidered and applied.
Praises Work of Committee.
7 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 subject
as the relative costs of wool and woolens
| the world ever 1t is monument to the.
| thoroughness, industry, impartiahty and
accuracy of the men engaged IN It's ma
king They Were chosen from both poi1t-
ical parties. but have allowed no partisan
spirit to prompt or control their inquiries.
They are unanimous In their findings. l
| feel sure that after the report has been
| printed and studied the value of such
| Compendium of exact knowledge in re-
spect TO this schedule of the tariff VIII
| convince all of the wisdom OF making
| such a board permanent In order that
| il may treat each schedule of the tarift
| as it has treated this. and then keep its
| bureau of information up to date with
| current changes in the economic world.
! II is no part of the function of the tar
| if board to propose rates of duty Their
/ function is merely TO present findings OF
! fact on which rates of duty may be falrly
! determined in the light Of adequate
/ knowledge in accordance with the eco
1 nornic policy to be followed. This is what
the present report does.
! The findings of fact by the board show
ample reason for the revision downward
| OF schedule X. in accord with the pro-
tective principle, and present the data
| 80 to relative costs and prices from which
may be determined what rates will fairly
eaualize the difference in production costs.
I recommend that such revision be pro-
ceeded with at once.
| (SignedD WILLIAM Il TAT !.
The White House. Dec. 20, 1911