The Detroit times., 1911-12-21

WASHINGTON, Dec. 20.-President
Taft today submitted to congress A
special message urging immediate re,
vision downward OF schedule n. the
wool tariff. He transmitted the report
OF the tariff board on the wool indus
try. Taft stands by the findings OF
that body, as he said he would when
he vetoed the wool bill last summer.
The boards report calls many of the
duties on woods and grades OF cloth
prohibitive.
The president argues that these
duties be reduced TO the point OF COM
pensation for the differences in the
cost OF production as determined by
the boards experts The board recon-
mends the substitution of specific
duties for the present ad valoner plan
and Tan seconds the motion
AS to the differences in cost OF pro-
duction at home and abroad. the board
sets forth that in nearly every wooden
product from the wirty fleece up TO
the goods in the America than in any
other country on earth.
Ii costs 10 cents TO raise pound OF
wool in Ohio and in Australia consider
able less than four cents. These diff
ferences continue throughout the wool
en- industry. While American labor is
much higher paid than in Europe. the
board finds that IL is not as efficient
as that in European mills.
About one dollar OF every four paid
TO the retailer of mems clothing goes
to the manufactures of the cloth. A
suit retailing for S23 Is sold at whole
sale by thee manufacturer for $3.50
II costs him 1882. Thus in general.
the manufacturer OF cloth and cloth
ing is absolved by the board from the
greater part of profit in the high cost
OF clothing, and II is attributed TO the
reailer.
The board states, however. that the
high duties on wool have not resulted
in retail prices as high as might be
expected Competition has kept
prices down. This competition was
stimulated when the high duties made
wooden manufacture very profitable.
Then foreign capital came In and built
mills. For all wooden entries the board
recommends specific duties instead OF
the present method o. assessing ad
valorem rates. The ad valorem sys-
tenn makes duties high when prices are
high and the consumer most needs re-
lief. although the producer Is best able
to bear competition. When prices
are low and the consumer has need OF
foreign competition, then under the
ad valorem system duties are low and
the foreign competition comes in.
The board advocates SPECIFIC
duties" as the best and easiest way
TO Offset the difference In cost OF pro-
duction here and abroad. Because of
the difficulty in classifying fabrics:
however. the board recommends
combination specific and ad yalorem
duty on wooden cloths, a low ad valor-
EN- rate on cheap goods, Increasing TO
the highest rate on expensive goods.
Exactly the reverse policy was adopt
ed by the trainers Of the Payne-Ald-
rich tariff
Experts for the board studied wool
growing in Australia South America.
South Africa. Great Britain and other
European countries and in 173 coun-
ties in 10 states in this country.
The report reads:
The result OF the raw wool investi-
CATION establishes the fact that II costs
more 10 grow wool in the United
States than in any other country; that
the merino woods required in such
great volume by our mills are the
most expensive of all woods produced
that the highest average cost OF pro-
auction OF such wool In the wool Is
In the state OF Ohio and contiguous
territory and that the lowest aver.