The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1911-12-20
Rates Higher Than Difference
in Cost of Production.
METHOD CONDEMNED
In Many Cases the Tax Is De-
clared PrOhibitiEe.
Figures Submitted on Cost of
Suit of Clothes.

congress today py PRESIDENT lat, su5
gests a general revision of the duties
on wool and woolens and many m
<<lividuaI reductions in the rates
~ The board makes no reconm enua-
lions but points out what changes al e
desired In nearly all classes OF the
schedule, the boards experts report
the majority of the rates OF DUTY pro
hibitory. and condemns the systems OF
levying them
great changes in the present system
OF levying duties upon raw wool ana
finished cloth. It would assess duty
on scrubbed wool-not wool ana
grease combined: and suggests a
graduated scale of ad valorem rate
The report is divided into sections,
viz. Raw wool, yarn and cioth- 1ney
are taken UP in the order IN Whlch
they come in production and manu1ac-
on raw wool. the board finds the
present system of levying duty bad,
and the duties higher than the differ
ence in cost Of production in the
United States as compared with the
cost abroad The method OF levying
duty is condemned because it charges
for grease as we'll as for wool ana
operates to keep out OF this country
the heavy shrinking wOolens.
On tops. from which yarn Is made,
the present rate of duty is found to
be rrohibitory. II costs so per cent
more in the United States to convert
tops into yarn than It does anywhere
else.
Duty Is ProhibitOry.
on yarn. from which cloth is woven,
the present rate of duty is found to
be prohibitory because it keeps out all
except the finer grades
On cloth the present rate of duty is
pronounced prohibitOry on heavy
weight, cheap and medium grades |
Nloths, principally because of the spe-
Sxic compensatory duty which fixes a
al valOrem rate begins 1t costs 100 /
per cent more to make cloth from /
yarn in the United States than it does
in England and France The present /
system of fixing the same ad valorem /
rates of duty on different grades of (
fabric is condemned as unfair.
The board holds that fair solution /
would be the adoption of a graduated /
scale under which the al valorem rate 1
properly assessed on goods of low val /
ne should then increase progressively I
according to slight increments Of val
ue. up to whatever maximum rate
should be fixed.
The boards figures would seem to
show that the .tprohibitory duties do
not affect the American consumer so
much as would be inferred by the use
of those words; for while the duties
on 5 samples of foreign cloth selected
by the board averaged 1874 per cent
the actual excess of the domestic price
over the foreign price was found to
be 81 per cent as the result OF domeS-
tic competition.
AT the present time the industry
in general is on a competitive basis
the report says.
Cost of Clothes.
The cost of a suit of clothes from
the back Of a sheep to the back Of a
man is computed IN the report and
The profits which accrue in the pro-
-eSs are traced to their sources For
purposes Of computation, the board
-alzeS a suit Of clothes retailing at $23
and wholesaling at $3.50. This is
said to represent fairly the suit of
.lOtheS worn by the average American.
The farmer receives for the wool in
such suit of s2.2S and his profit is
IS cents; the manufacturer OF cloth
receives for his product s4.7s and his
profit is % cents; the wholesale cloth
ng dealer receives for his product
$3.50 and his profit is S2-1S; the re-
all clothing dealer receives S23 and
mis- profit is $3.50. The figures are
aggregate. &
Extracts from the report follow:
The result of the raw wool inves-
cation establishes the fact that it
states than in any other country; that
he merino woods required in such .
5reat volume by our mills are the !
most expensive of all woods produced; / +.
hat the highest average cost of pro- !
iuction of such wool in the world is {
n the state of Ohio and contiguous 5
erritory; and that the lowest average
.ost on similar WOOL is in Australia.
1T is not possible to state in exact !
errns the actual cost Of producing a {
,ound Of wool considered by itself for {
he simple reason that wool is but one l
f two products of the same operation. |
That in the western part of the :
United states where about two-thirds :
f the sheep of the country are to be
ound, the fine and fine medium woods I
AIRY an average charge of at least z
y cents per pound, interest not in i
luded-
ONE by assessing a duty in ad valo-eTn e
srus but this method is open to the OBJ '
actzan- first, that It increases ajIninis
-ative difficulties and tends to decrease q
svenue through under valuations. and. Q
acoud that as prices advance. the ad I
aIorem rate increases the duty per T
olnd at the time when the consumer Z
lost needs relief and the producer can | e
est stand competition; while If prices c
ecfine the duty is decreased at the time /
hen the consumer is least Durdened by
! rrice and the producer most needs
rejection
Another Method.
Another method OF meeting the dirfi-
iltv OF taxing the grease pound is TO {
ssess a specific duty on grease wool in
rms of its secured content This OBJ
ates the chief evil Of the present s5-s