Gilpin observer., 1911-12-28

adjusted 70 the rate Of - cents ON
secured wool. are prohibitory In the same
measure that the duty on secured wool
10 prohibitory. In general. they are as
sessed At rates as high as. or higher
than. the duties paid on the clean content
OF wools actually imported. They should
be reduced and 20 adjusted to the rate
on wool ~ to bear their proper proportion
70 the Eoal rate levied on the actual wool
imports.
Some Duties ProhIbItory.
TAs duties on many olassss Of wool
manufacture are prohibitory and greatly
N excess OF the difference In cost OF pro-
duction here and abroad. This u true q
tops. OF yarns with the exception Of
worsted yarns Of . very high grads). and
OF low and medium grade cloth Of heavy
weight
On tops up to % cents q pound In value.
ana on yarns of 8 cents In value. the
rate IL 100 per cent. with corrsspondingiy
higher rates for lower values. On cheap
ana medium grade cloths, the existing
rates frequently run to 15o per cent. and
cent.
On tho other hand, the findings show
thet the duties which run to such high and
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
which are completely excluded by the
present tariff rates. 1t was found that the
total foreign value was N1.84: the duties
which would have been assessed had these
FABRICS been imported, 1850; the foreign
value plus the amount of the duty, 311s.74;
or a nominal duty of 1s3 per cent In fact,
however. practically identical fabrics Of
Domestic make sold at the same time at
*os.fe. showing an enhanced price over the
Foreign market value of but 81 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 prohibitive duties eliminate the
possibility of foreign competition even in
Time OF scarcity. SO that they form q 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
TINS Industry the actual manufacturing
cost. aside from the question Of the price
OF materials. is much higher in this coun-
try than II 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
chinery or more efficient labor to Offset
the higher wages paid in this country.
Inc ihus SHOW tnat the cost OF turning
wool into yarn In this country 10 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 therefore urge that action be ta-
ken with these facts in mind. to the end
that an important and established indus
try may not be Jeopardized.
The tarin board reports that no eQuita-
Bile method has been found to levy purely
specific duties on woolen and worsted fab
rics. and that. excepting for compensa-
tory duty, the rate must be ad valorem
on such manufactures. 1t 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 dif-
ference in manufacturing cost at home
and abroad on highly finished goods In
volving such labor would be prohibitory
on cheaper goods. In which the labor cost
Is n smaller proportion of the total value.
Conversely. rate only adequate to equal
lie this difference on cheaper goods would
remove protection from the hne goods
manufacture. the Increase in which has
been one OF the striking features Of the
trade development in recent years. l
therefore recommend that in any revision
the Importance of a graduated scale of ad
valorem duties on cloths be carefully con
sidered and applied.
Praises Work Of COMMITTEES.
venture to say that no legislative
body has ever had presented to It a more
complete and exhaustive report than this
on so difficult and complicated a subject
as the relative costs OF wool and woolens
the world over. 1t Is a monument to the
hnr oh Ind matt iVr,r,a tto1t tfxr IVA
accuracy of the men engaged in its ma
king. They were chosen from both polit
ical 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 .
compendium of exact knowledge in re-
spect to this schedule of the tarif will
convince all of the wisdom OF making
such . board permanent. in order that
It may treat each schedule of the tariff
as II has treated this. and then keep Its
bureau of information up to date with
current changes in the economic world.
1t IL no part of the function Of the tar
IN board to propose rates Of duty. Their
function Is merely to present findings OF
determined in the light Of adequate
knowledge in accordance with the eco
nomic policy tc be followed. This 10 what
the present report does.
The findings of fact by the board show
ample reason for the revision downward
of schedule X. in accord with the pro-
tective principle, and present the data
as to relative costs and prices from which
may be determined what rates Will fairly
equalize the difference in production costs.
recommend that such revision be pro-
ceeded with at once.
tSignedD WILLIAM III. TAFT.
The white House. Dec. 20. 1911.
A...,>..,. n.I>t Ik..r.