Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1911-12-22
TAFT RECOMMENDS
BIG REDUCTIONS IN
WOOL TARIFF RATES
Existing Duties on Many Class
es. of Wool and WOODEN
Goods Prohibitory, Says Re-
port on Schedule K
Csy Associated Press


Taft sent to congress today the long
awaited report of the tariff board on
schedule K of the Payne tariff act, and
with it message recommending that
the rates on wool and woolens be mate
rally reduced.
The report shows that the existing du-
ties on many classes of wool and wool
manufactures are prohibitory and great
ly in excess of the difference in the
cost of production here and abroad The
duties are so arranged as to keep out OF
the United States entirely woods of fin
er qualities which if imported might he
used to displace the cheap substitutes
now employed.
President Taft calls attention to these
points and urges that revision of the
schedule be proceeded with at once.
MONUMENT TO INDUSTRY.
He characterizes the report of the
tariff board as the most complete ami
exhaustive statement of difficult and,
complicated subject ever presented to
Legislative body. He declares il a mon-
ument to the thoroughness. industry.
impartiality and accuracy of the men
engaged in its making. He also dweils
with emphasis upon the fact that the
report is unanimous one. and asserts
the belief that it will convince all Of
the wisdom of making the tariff board
permanent. f.4
Neither the president nor the board
proposes definite rates of duty, MIR
Taft holding that the function of the
board merely is to present findings of
fact on which rates of duty may be fair
ly determined in the light of adequate
knowledge and in accord with the eco
nomic policy to be followed. President
Taft recommends that the proposed re-
vision adhere to a policy of protection
based upon the difference in cost of pro-
duction at home and abroad
SHOULD REDUCE RATES.
In his message, after referring briefly
to the creation of the tariff board. the
president says:
I'm message of August II. 1911. ac-
companying the veto of The wool bill.
said that, in my judgment. schedule
should be revised and the rates reduc-
ed. My veto was based on the ground.
since the tariff board would make in
December a detailed report on wool and
wool manufactures, with special refer
ence to the relation of the existing
rates on duties to relative costs here
and abroad, public policy and a fair re-
gard to the interests of the producers
and the manufacturers on the one hand
and of the consumers on the other de-
manded that legislation should not be
ed in absence
information; that was not myself pos
sessed at that time of adequate knoWl-
edge of the facts to determine whether
or not the proposed act was in accord
ance with my pledge to support falr
and reasonable protective policy; that
such legislation might prove only tem
porary and inflict upon great INDUS
try the evils of continued uncertainty.
BOARD UNANIMOUS.
NOW herewith is submitted report of
the tariff board on schedule X. The board
is unanimous in its findings. on the basis
of these findings now recommend that
congress proceed to a consideration OF
this schedule with a vie to its revision
and a general reduction of its rates
1.-THE report shows that the present
method of assessing the duty on raw
wool-this is, by specific rate on the
(grease pound, i. e., unscoured)-oper-
ates TO exclude woods of high shrinkage
in the securing but fine quality from the
American market and thereby lessons the
range of woods available to the domestic
manufacturer; that the duty on secured
wool of 80 cents per pound is prohibitory
and operates to exclude the importation
of clean, low priced foreign woods of in
ferior gardes, which are nevertheless val
liable material for manufacturing and
which cannot be imported in the grease
because of their heavy shrinkage. Such
woods, If imported, might be used to
displace the cheap substitutes now in
use.
ITO make the preceding paragraph
little palmer, take the instance of a hum
dred pounds of first-class wool imported
under the present duty, which is II cents
pound That would make the duty on
the hundred pounds 81. The merchant
able part of the wool thus imported is
the weight of the wool of this hundred
pounds after securing. If the wool
shrinks 50 per cent, as some woods do,
then the duty in such a case would
amount to $11 on 20 pounds of secured
wool. This, of course, would be prohibit
tory. II the wool shrinks only so per
cent 1t would be S11 on so pounds of wool.
and this is near to the average of the
great bulk of woods that are imported
from Australia. which is the principal
source OF our imported wool.
AID VALOREM DUTY.
These determinations could be over
come by assessing duty in ad valorem
terms, but this method is open to the
objection. first that it increases admins
trative difficulties and tends to decrease
revenue through under -aluations: and,'l
second, that as prices advance. the ad
valorem rate increases the duty per
pound at the time when the consumer
most needs relief and the producer can
best stand competition; while if prices
decline the duty is decreased at the time
when the consumer is least burdened by
the price and the producer most needs
protection.
SPECIFIC GREASE WOOL DUTY.
Another method of meeting the diff
Guilty of taxing the grease pound is to
assess a specific duty grease wool in
terms of it's secured content This obvi-
ates the chief evil of the present system,
namely, the discrimination due to differ
ent shrinkages, and thereby tends greatly
to equalize the duty. The board reports
that this method is feasible in practice
and could be administered without great
expense The secured content of the wool
is the basis on which users of wool make
their calculations. and duty of this kind
would fit the usage of the trade. The
effect Of this method of assessment would
be that. regardless of the rate of duty.
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