The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1911-12-20

istered without great expense. The
/ secured content OF the wool is the basis
culations and a duty Of this kind would
fit the usages Of the trade. One effect of
this method OF assessment would be that.
regardless OF the rate OF duty, there
would be an Increase in the supply and
variety OF WOOL by making available TO
! the American market woods OF both low
and fine quality now excluded
The report shows III detail the difficult
/ ties involved in attempting to state in
categorical terms the cost OF wool pro-
duction and the great differences in cost
as between different regions and different
types Of wool. It is found. however, that,
taking all varieties into account the
average cost of production for the whole
American clip is higher than the cost in
the chief competing country by
amount somewhat less than the present
The report shows that the duties on
noils, wool wastes and shoddy. which are
adjusted TO the rate of IS cents on
they are assessed at rates as high as. or
higher. than the duties paid on clean
content Of woods. actually imported
Should Be Reduced.
The duties should be reduced and so
adjusted to the rate on wool as to bear
the actual wool imports.
The duties on many classes Of wool
manufactures are prohibitory and great
ly in excess of the difference 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.
ION tops up to D cents pound in value
and on yarns OF 65 cents in value. the
rate is 100 per cent with CORRESPONDENCE
high rates for lower values On cheap
and medium grade cloths, the existing
rates frequently run to $50 per cent End
on some cheap goods to over DO per cent
This is largely due to that part of the
duty which is levied ostenSibly TO compen-
safe the manufacturer for the enhanced
cost OF his raw material due to the duty
on wool As a matter OF fact, this COM
pensatory duty, on 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 that the
prices OF domestic fabrics are not raised
by the full amount of duty On set OF
one yard samples of sixteen English
fabrics. which are completely excluded by
the present tariff rates, II was found that
the total foreign value was S1.S4; the
duties which would have been assessed
had these fabrics been imported, $3.50;
the foreign value plus the amount OF
the duty, $11S.74, or a nominal duty of 1S3
per cent. In fact however, practically
identical fabrics OF domestic make sold
at the same time at $3.50, showing an
enhanced price over the foreign market
value of but 81 per cent.
Competition Eliminated.
Although these duties do not Increase !
prices Of domestic goods by anything ike
their fun amount It is none the less true
tnat such p-ohibitive duties eliminate the
possibility of foreign competition, even IN
time of scarcity; that they form a temp ,
tation TO monopoly and cOnspiracies to .
control domestic prices; that they are |
much in excess of the difference in cost |
Of production here and abroad, and that i
they should be reduced to a point which |
aceords with this 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 1t IS abroad, that IN the making I
Of yarn and cloth the domestic wooden or I
worste manufacturer has in general no /
advantage in the form of superior ma I
chinery or more efficient labor to offset /
the higher wages paid in this country. !
The findings show that the cost OF turn
ng wool into yarn IN this country IS
about double that in the leading compel
ng country and that the cost Of turning
yarn into cloth is somewhat more than
1Ouble- Under the protective policy a
great industry, involving the welfare OF
hundreds OF thousands of people. had
1een established despite these handicaps-
ion. I therefore urge that action be taken
With these facts in mind, to the end that
IN independent and established industry
nay not be jeopardized-
Must Be Ad VaIorem.
THE tariff board reports that no equit-
bile method has been found to levy pure
Y specific duties on wooden and worsted
abrics and that, excepting for com
alorem on such manufactures. It is I'M
'ortant to realize. however. that no Hat
d valorem rate on such fabrics can be
made to work fairly and effectively Any
ingle rate which is high enough to equal ,
ze the difference in manufacturing cost
t home and abroad on highly finished
GODS involving such labor would be pro :
ibitory on cheaper goods, in which the
abor cost is a smaller proportion OF the ,
otal value. Conversely, a rate only sde-
uate to equalize this difference on cheap
r goods would remove protection from |
he fine goods manufacturer, the in
rease in which has been one OF the str1k-
ng features of the trades development
Il recent years L therefore, recommend
hat in any revision the Importance OF a
Taduated scale of ad valorem duties on ,
loths be carefully considered and ap-
lied.
4 venture to say that no legislative
ody has ever had presented to 1t a more
omplete and exhaustive report than this :
n so difficult and complicated a subject
s the relative costs Of wool and wcolens,
he world over. It is a monument to the J
horOughness. industry, 1mpaEhalitys and
ccuracy of the men engaged in It's max
~. They were chosen from both 2olfti-
al parties but have allowed no partisan
pirit to prompt or control their inquiries
hey are unanimous in their findings
eel sure that after the report has been
-inted and studied as to this schedule or
he tariff ii will convince all or the WIS
ON OF making such board permanent =
order that II may treat each schedule
{ the tariff as it has treated this and :
hen keep its bureau of Information up {
, date with current changes in the
economic world
arif board to propose rates Of duty
heir function Is merely to present find
lgs Of fact on which rates Of duty may
e fairly determined in the light of &C
1rate knowledge in accord with the
economic policy to be followed This IS
hat the present report does.
THE findings OF fact by the board show
nlple reason for the revision downward
{ schedule X in accord with the protec-
re principle and present the date as to
slative costs and prices from which may
e determined what rates will fairly