Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-12-20

CONTINUED from First Page.)

making available to the American market
woods of both low and fine quality no"
excluded.
: Production Cost Here and Abroad.
THE report shows in detail the difficult
| ties involved in attempting to state in
| categorical terms the cost of wool pro-
duction and the great differences in cost
as between different regions and different
types of wool. 1t is found, however. that,
taking all varieties into account, the aver
age cost of production for the whole
American clip is higher than the cost in
| the chief competing country by an
| amount somewhat less than the present
duty.
| THE report shows that the duties on
nols wool wastes and shoddy. which are
adjusted to the rate Of 30 cents on second
| wool. are prohibitory in the same measure
| that the duty on secured wool is pro-
| hibitory. In general. they are assessed
at rates as high as, higher than. the
duties paid on the clean content of woods
| actually imported. They should be re-
as to bear their proper proportion to the
real rate levied on the actual wool i'm
ports.
The duties on many classes of wool
manufacture are prohibitory and greatly
in excess of the difference in cost of pro-
duction here and abroad.
High Duty on Tops of Yarns.
This is true Of tops. of yarns fwith
the exception of worsted yarns Of a very
high grade) and of low and medium grade
cloth of heavy weight.
''On tops up to 81 cents pound in
value, and on yarns of 81 cents in value,
the rate is 100 per cent with correspond
ingly higher rates for lower values. Un
cheap and medium grade cloths, the eN-
listing rates frequently run to $50 per cent
and on some cheap goods to over 200 per
cent. This is largely due to that part of
the duty which is levied ostensibly to
compensate the manufacturer for the en-
HANGED cost of his raw material due to
the duty on wool. AS a matter of fact.
this compensatory duty, for numerous
classes of goods, is much in excess of the
amount needed for strict compensation.
''On the other hand, the findings show
that the duties which run to such high
ad valOrem equivalents are prohfbitory.
since the goods are not imported, but that
the prices Of domestic fabrics are not
raised by the full amount of duty. On
set of vineyard samples Of sixteen Eng
lish fabrics, which are completely eX-
cluded by the present tariff rates, it was
SALSA; the duties which would have been
assessed had these fabrics been imported,
$3.50; the foreign value plus the amount
Of the duty. Sis "a; or nominal duty of
Ioo per cent. LII IdCts however, PfdCtiCduy
identical fabrics of domestic make sold at
the same time at $6975, showing an en-
HANGED price over the foreign market
value Of but 81 per cent.
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 duties eliminate the
possibility Of foreign competition. even in
time Of scarcity; that they form a tempta-
ton to monopoly and conspiracies 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 this principle.