Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1911-12-29

c0nfRnf
OF woods actually imported They should
De reduced and adjusted to the rate
on wool as TO bear their pco,,$r proportton
10 the real cate levied on the actual wool
Imports WIZ
Some Duties Prohibitory.
Inc duties on many classes of wo,l
manufacture are prohibitory and greatly
IN excess of the difference in cost of oro-
ouctlon here and abroad. This is true Of
tops or yarns with 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
ana on yarns of IS cents in value the
rate is 100 per cent, with correspondinpiv
higher rates for lower values On cheap
and medium grade cloths the existing
rates frequently run to $50 per cent. and
on some cheap goods to over 200 per
cent
On the other hand, the findings show
that the duties which run to such high ad
Valorem equivalents are prohibitory, 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
one yard samples of Is English fabrics
which are completely excluded by the
present tariff rates, it was found that ths
total foreign value was SALSA the dutie.
which would have been assessed had these
IopAlCS peeu imported, Sfb.9O; the foreign
value plus Jthe amount of the duty, $11S.74;
or a nominal duty of 1873 per cent In fact,
however, practically Identical fabrics of
domestic make sold at the same time at
SOY 10, showing an enhanced price over the
foreign market value Of but Ct per cent.
Would Reduce Duties.
Although these duties do not increase
prices of domestic goods by anything like
their full amount, it is none the less true
that such prol1ibitive duties eliminate the
possibility Of foreign competition, even in
time of scarcity, so that they form temp
taton to monopoly and conspiracy 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 a point which ac-
cords with the principle.
The findings of the board show that in
this industry the actual manufacturing
cost, aside from the question Of the price
of materials, is much higher in this coun-
try than it is abroad; that in the making
OF yarn and cloth the domestic WOODEN
and WOrsted manufacturer has in general
no advantage in the form of superior ma
ch1nery or mora efficient labor to offset
the higher wages paid in this country.
The finds show that the cost of turning
wool into yarn in this country is about
double that in the leading competing
country, and that the cost of turning yarn
into cloth is somewhat more than double.
Under the protective policy a great indus
try, involving the welfare of hundreds of
thousands of people has been established
despite these handicaps.
In recommending revision and reduc-
ton L therefore eurge that action be Ia
ken with these facts in mind to the end
that an important and established indus
try may not be jeopardized.
The tariff board reports that no equita-
~ 10 Ja1lr
specific duties on wooden and worsted fab
RIGS, and that, excepting for compensa-
cory duty, the rate must be ad Valorem
Oh such manufactures. It is important TO
realize however, that no fiat ad valorem
rate on such fabrics can be made to work
fairly and effectively. Any single rate
which is high enough to equalize the dlf-
ference in manufacturing cost at nome
and abroad on highly finished goods IN
volving such labor would be prohioltoFy
on cheaper goods, in which the labor cost
is a smaller proportion Of the total vafue
Conversely, rate only adequate TO equaI-
ize this difference on cheaper goods would
remove protection from the fine goods
manufacture the increase in which has
been one of the striking features OF the
trade development in recent years.
therefore recommend that in any revision
the Importance of a graduated scale OF ao
valorem duties on cloths be carefully con-
sidered and applied
Praises Work of Committee.
I venture to say that no legislative
body has ever had presented to 1t more
complete and exhaustive report than TINS
on so difficult and complicated subject
&c the relative costs of wool and Woolens
the world ever. It is q monument to the
thoroughness industry, Importantly ana
accuracy of the men engaged In It's ma
king They were chosen from Doth poht-
zeal parties, but have allowed no partisan
spirit to prompt or control their inquiries.
They are unanimous in their findings
feel sure that after the report has been
printed and studied the value of such
iSmpendium Of exact knowledge IN re-
spect to this schedule of the farlH VIII
convince all of the wisdom OF mahlhs
such a board permanent, in order tAal
it may treat each schedule OF Tue .ei az
as it has treated this, and then keep IT'S
bureau of information up to date with
current changes in the economic world
Tt is no part of the function of the tar
if hoard to propose rates OF duty 1helI
function is merely to present fndlngs OF
fact on which rates of duty may pc LARRY
determined in the light of adequate
tnoy1adea in accordance with the eco
nonfc policy to be followed. This is what
the present report does
The findings of fact by the board snow
ample reason for the revision oo"h" alo
of schedule *, in accord with the pr
tectiye principle, and present the data
IS to relative costs and prices from when
may be determined what rates VIII 1alIly
eoualize the difference in production cosls.
T recommend that such revision De pro-
$50 (eterea1 WILLIAM H. TAFT.
The White House. Dec. 20. l9ll
Opera Houses in Europe.