The Birmingham age-herald., 1911-12-21


 bear their proper proportion to the real rate levied on the actual wool imports. Duties ProhibitOry
 "The duties many classes of wool
 manufacture are prohibitory and greatly in excess of the differences in cost of production here and abroad.
 This is true of tops of 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 52 cents a pound In value, and on yarns of 65 cents In value, the rate is 100 per cent, with correspond ingly higher rates for lower values. On cheap and medium grade cloths the ex- | isting rates frequently run to 150 per cent, and on some cheap goods to over part of the duty which is levied osten- sibly to compensate the manufacturer for the enhanced cost of his raw ma terial, due to the duty on wool. As a
 matter of fact, this compensatory duty for numerous classes of goods is much in excess of the amount needed for strict compensation
 "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 the prices of domestic fabrics are not raised by the full amount of duty. On set of one yard samples of 16 Eng fish fabrics which are completely exclud- ed by the present tariff rates, 1t was found the total foreign value was $41.S4, the duties which would have been as sessed had these fabrics been imported l $76. 90, the foreign value plus the amount of the duty S14S.74; for nominal duty of 1S3 per cent In fact, however, prac-
 tically identical fabrics of domestic make sold at the same time at $6975 showing an enhanced price over the foreign market value of 67 per cent.
 "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 elimi- nate the possibility of foreign competi- | tion. even in time of scarcity; that they | form a temptation to monopoly and con- l spiracies to control domestic prices; that l they are much in excess of the difference | in cost of production here and abroad. | and that they should be reduced to a point which accords with this principle. Prices Lower Abroad
 '"The findings of the board show that | in this industry the actual manufactur- ing cost, aside from the question of the price of materials, is much higher in this country than it is abroad that in the making of yarn and cloth the do- | nestle wooden or otherwise worsted man. ufacturer has in general no advantage | from the form of superior machinery or more efficient labor to offset the high CT wages paid in this country. The find ings 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. Un- der the protective policy great indus
 try involving the welfare of hundreds of thousands of people has been estab- lished despite these handcaps
 "In recommending revision and reduc- ton l. therefore. urge that action be taken with these facts in my mind to the end that established industry may not
 be ieopardzed The tariff board reports that no equitable method has been found to levy purely specific duties on woolen and worsted fabrics, and that, excepting for a compensatory duty, the rate must be ad valorem on such manufactures. It is important to realize, however that no flat ad valorem rate on such fabrics can be made to work fairly and effec- lively. Any single rate which is high enough to equalize the difference in man ufacturing cost at home and abroad on highly finished goods involving such la bor. would be prohlbitory on cheaper goods in which the labor cost is small
 CT proportion of the total value
 Conversely. a rate only adequate to eoualize the difference on cheaper grades would remove protection from the fine goods manufactures. the increase in which has been one of the striking features of the trades developments in recent years |. thcrefora, recommend that in any re- vision the importance of graduated scale