Gilpin observer., 1911-12-28
PRESIDENT SAYS
RATES TOO HIGH
Chief Executive Urges Downward
Revision Of Schedule K.
MESSAGE SENT TO CONGRESS
Document UphoIds Protective PrineI-
pie But at the Same Time Most
ArdentIy Supports Reeommsn-
datlons Of TarIfS Board.

datlons Of TarIff Board.
Washington.-Presid Taft trans
United to congress the report OF the
tarif board on schedule X. Accom-
panying the report. the chief execu-
tive sent to the national legislature
the following message:
dves:
In my annual message to congress. De-
ceuJber. 1909. I stated that under section
. OF the act OF August 8. 1909. l had ap-
pointed a tarif board of three members
to cooperate with the state department
in the administration of the maximum
and minimum clause of that act, to make
GLOSSARY or encyclopedia of the exist
ing tariff so as to render its terms intel
ugfble TO the ordinary reader. and then
to investigate Industrial conditions and
costs Of production at homo and abroad.
with view to determining to what ex-
tent existing tariff rates actually exem-
plify 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.
I further stated that believed these In
vsstisations would be of great value as a
basis for accurate legislation, and that
shou1d from time to time recommend to
congress the revision of certain sched-
ules In accordance with the findings Of
the bonrd.
In the last session of the Sixty-nrst con-
Gress a bill creating a permanent tariff
board of hve 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-
priation act provided that the permanent
tartn board. II created by statute. should
report to congress on schedule x in De-
cember. 1911
Presidential Appointments.
Therefore. to carry out so far as lay
within my power the purposes Of this
bill for q permanent tariff board. / ap-
pointed In March. 1911. board Of nve.
adding two members of such party affili-
alton as would have fulfilled the statu-
tory requirements. and directed them to
make n report to me on schedule of
the tariff act in December of this year.
In my message of August II, 1911, ac-
companying the veto of the wool bill. !
said that In my judgment. schedule
should be revised and the rates reduced
Ny veto was based on the ground that.
since the tarin board would make, in
December. a detailed report on wool and
wool manufactures. with special refer
ence to the relation of the existing rates
of duties to relative costs here and
abroad. public policy and n 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
~ Nl.tA
policy: that such legislation might prove
only temporary and infiict upon a great
industry the evils of continued uncer-
tainty.
Advocates Reduction Of Rates.
! now herewith submit a report OF the
tariY board on schedule X. The board il
unanimous in its findings On the basis
of these findings I now recommend that
the congress proceed to a consideration
of this schedule with a view to Its revi-
sion and a general reduction of Its rates.
The report shows that the present
method OF assessing the duty on raw
grease pound, l. O., ACKNOWLEDGEMENTS to
exclude woods of high shrinkage in
securing. but hne quality. from the
American market and thereby lessons the
range Of wools available to the domestic
ma9nfacturer: that the duty on unsecured
and operates to exclude the Importation
of clean. iow-priced foreign woods OF In
ferfor grades. which are nevertheless val
uahIe material for manufacturing. and
which cannot be imported In the grease
because Of their heavy shrinkage. Such
wools. II 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 hun
dred pounds Of nrst-ciass wool imported
under the present duty. which IL II cents
q pound. That would make the duty on
the hundred pounds Sii. The merchan-
disc part of the wool thus imported II
the weight OF the wool of this hundred
pounds after securing. II the wool
shrinks 20 per cent. as some wool does.
then the duty in such case would
amount to I'll on 20 pounds of secured
wool. This, of course. would be prohibit
tory. II the wool shrinks only 20 per
cent, II would be I'll on 80 pounds OF
wool. and this Ii near to the average Of
the great bulk OF woois that are imported
from Australia. which Is the principal
source of our imported wool.
These determinations could be over
come by assessing n duty In ad valorem
terms, but this method Ia open to the OBJ
lection. hrst that II increases administra-
tive difficulties and tends to decrease
revenue through differentiation: and.
second that as prices. advance, the ad
at the time when the consumer most
needs relief and the producer can best
stand competition: while II prices de-
cline the duty 10 decreased Mt the time
when the consumer II least burdened by
the price and the producer most needs
protection.
Method That Meets plfflcuIty.
Another method of meeting the difn-
Guilty OF taxing the grease pound Is to as
cess u specific duty on grease wool In
terms of its secured content. This obvi-
ates the chief evil of the present system.
namely. the discrimination due &c differ
ent shrinkages. and thereby tends great
iy to equallze the duty. The board re-
ports that this method is feasible In prac-
tice and could be administered without
great expense.
The report shows In detail the difficult
ties involved In attempting to state In
categorical terms tho cost of wool pro-
duction and the great differences in cost