The Detroit times., 1911-12-21

which are nevertheless vu'uaplr
material FOR manufacturing aud W..
cannot be Imported in the slt"sN
because OF their heavy shrinkage SUI
woods. IN imported. must he Hsen ~
diSIlace the cheap substitutes 10" ="
use ,,,h
ttttle plainer take the instance or
hundred pounds Of hfst-rlass Wool I'M
ported under the present duty, WIN -
- cents pound IA. M,,nts Sif
the duty on the hundred p"uhus -
THE merchantable part OF the W""l ,lus
imported is the weight OF the Woei ~
lthfs hundred pounds after scouflhk.
the wool shrinks 80 per cent. as 0pn'
woods do then the duty in such case
would amount 20 Sli ON 20 POUNDS o,
! secured wool This al t"uisf' W"a t
be prohibltory. IL the Wool snflhhs en!s
so per cent a WOULD Dee slF on MY
mounds Of wool and this - near 70
the average Of the great bulk % WOODS
that are imported from Australia
which Is the principal source or our
'fhese determinations could be over,
come by assessing dutN IN ~
Valorem terms. but this methou i oPcn
To the objection hrst. that ~ lnDlSasss
administrative difficulties anu tehus ="
decrease revenue through undef-Nalu-
atom: and second, that as prices az
vance the ad Valorem rate increases
the duty per pound at tnt uH'e tba
the consumer most needs RELIEF ana lhe
producer can best stand competition
while N prices decline the duty rs de-
creased az the time when the consume
is least burdened by the price ana 'hs
producer most needs protection
Another method OF meeting the ditn
Guilty OF taxing the greas" pouhu
20 assess a specific duty on grease M0oi
i'm terms Of IT'S secured content. rus
ohyiates the chief evil OF the present
system. namely the Discrimination due
10 different shrinkagSs. and theteoy
tends greatly TO equaliZe the duty Inc
"a method
ible in practice and could lie admins
tered without great expense lue
secured content OF the wool rs the basis
on which users ~ Wool make thclt c'l
lculations and a duty OF this KIND
would tit the uses OF the trade. ohe
effect OF this method or assessment
would be that, researches OF the i"te
duty there would he an increase IN
the supply and variety OF wool ~ max
ing available 90 the American market
woods OF both low and fine quality no"
excluded. 80.
culties involved in attempting 10 state
in categorical terms the cost OF Wool
production and the great differences m
cost as between different regious
and different types OF wool IL
is found noweN that taking All
varieties In account. the averaGe cost
! OF production for the whole American
, clip is higher than the cost in the fhleI
competing countries by any amount
som what less than the present duty.
The report shows that The duties on
nails. wool wastes, and shoddy Wuch
are adjusted 10 the rate .,f 80 cents
on secured wool, are prohibitory IN the
same measure that the duts Oh secured
, wool is prohibitory In general thsy
; are assessed at rates as hEn as; OF
higher than the duties pafd on the clean
coptent OF woods actually imported.
They should be reduced, ana SO ad-
Justed 10 the rate on wool as TO bear
their proper proportion 10 the real rate
; an
The duties on many classes OF WOOL
manufacture are prohibitory and
greatly In excess OF the difference IN
cost OF production here ana ABROAD
This is true OF tops, Of yarns with
the exception OF worsted yarns OF a
very high gradel and OF low ana
medium grade cloth OF heavy weight.
On tops up TO o. cents a pound III
4 value a nd on warns OF 65 cents In value.
the rate is 100 per cent with CORE
spondingly higher rates for lower
values ON cheap and medium grade
cloth. the existing rates frequently run
u 10 $50 per cent and on some cheap
goods 10 Over 2pU per cent. fHts Is
largely due 10 that part of the duty
which is levied. ostensibly TO Coinpen-
safe the manufactures for the en-
HANGED cost OF his raw material due 10
the duty on wool. AS matter OF tact.
this compensatory duty, for numerous
classes OF goods, is much I'm excess OF
the amount needed for strict compen-
sation.
on the other hand the findings show
that the duties which run to such high
ad valorem equivalents are prohioitory.
since the goods are not imported but
that the prices OF domestic fabrics are
not raised by the full amount Of duty.
on a set OF oneNard samples or IS
English fabrics which are completely
excluded by the present tarin rates, IL
was found that the total foreign value
| was Ss1.si; the duties which would
! have been assessed had these fabrics
i been Imported $3.50. the foreign value
plus the amount OF the duty, sllS.T4i
or a nominal duty OF 1873 per cent In
fact. however, practically Identical Fab
I RIGS OF domestic make sold at the same
/ time at $6975. showing an enhanced
price over the foreign market value Of
| but 81 per cent.
/ Although the duties do not increase
I prIres Of domestic goods by anything
! like their full amount, ~ is none the
\ less true that such prohibitive duties
eliminate the possibility OF foreign COM
, petition. even I'm time on scarcity; that
I they form a temptation to monopoly
and conspiracles TO control domestic
! prices that they are much " excess
! of the difference In cost OF production
, here and abroad. and that they should
/ be reduced to point which accords
with this principle
/ The findings of the board show that
| In this industry the actual manufac-
turing cost aside from the question OF
the price OF materials Is much higher
! in this country than IL ~ abroad, that
( in the making OF yarn and cloth the
| domestic Of worsted manufacturer has
J i'm genera no advantage in the form
! OF superior machinery or more efficient
! labor TO offset the higher wages paid
i'm this country. The findings show that
the cost OF turning wool into yarn in
this country and that the cost OF turn
tuE warn into cloth is somewhat more
lthan double. Under the protective
4 policy a great industry involving the
! welfare OF hundreds OF thousands OF
| people has been established despite
/ these handicaps.
| In recommending revision and reduc-
! ton, I therefore urge that action be
| taken with these facts in mind to the
| end that an important and established
/ Industry may not be je)paydized.
tariff hoard repnIis- that no
| equitable method has been found TO
! levy purely specific duties on woolen
and wursted fabrics and that except
ing for a compensatory duty. the rate
| must be al Valorem on such manufac-
/ lures IL Is important TO realize how
! ever that no al Nalorem rate on such
fabrics can he made TO work fairly
| and effectively ANY sir gle rate which
| Is high enough 10 elualize the differ
| ence In manufacturing cost at home
and abroad on highly fiutShed goods.
! involving such labor. would be pro-
| hibitory On cheaper goods, In which the
I labor cost H. a smaller pre- portion OF
/ the total value. Conversely. a rate
| only adequate 10 cqualiZe this differ
| ence on cheaper goods would remove
! protection from the fine features OF the
! trades development in recent years.