Dakota farmers' leader. (Canton, S.D.) 1890-19??, 1911-12-29

is prohibitory. In general. they are a.
sessed at rates as high as, or higher
than, the duties paid on the clean content
or woods actually imported. They should
be reduced and so adjusted to the rate
on wool as to bear their proper proportion
to the real rate levied on the actual wool
imports.
Some Duties ProhIbitory.
The duties on many classes Of o
manufacture are prohibitory and greatly
in excess OF the difference in cost of pro-
duction 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 50 cents a pound in value,
and on yarns of 65 cents in value, the
rate is 100 per cent, with cor~respondingly
higher rates for lower values. On cheap
and medium grade cloths, the existing
rates frequently run to 100 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 prohtbitory, since
the goods are not imported, but that the
prices Of domestic fabrics are not raised
by the full amount of duty. On q set OF
one yard samples Of Is English fabrics,
which are completely excluded by the
present tariff rates, 1t was found that the
total foreign value was $41.S4; the duties
which would lave been assessed had these
fabrics been imported. $780,; the foreign
value plus the amount of the duty, $11s.74;
or a nominal duty Of 1888 per cent. In fact,
however, practically Identical fabrics OF
domestic make sold at the same time at
$685. rs, showing an enhanced price over the
foreign market value of but Ct per cent
Would Reduce Duties.
Although these duties do not increase
rio of 1nronctjN goods nv ANYTHING like
their full amount, 1T Is none the less true
that such prohibitive duties eliminate the
possibility Of foreign competition, even In
time of scarcity, so that they form a 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 highe 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
chinery or more 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, ana LlaC the Cost u lullllIiS yam
into cloth is somewhat more than double
Under the protective policy a great indus
try, involving the welfare of hundreds or
thousands Of people has been established
despite these handicaps.
In recommending revision and reduc-
ton I therefore urge 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-
BILE method has been found to levy purely
specific duties on wooden and worsted fab
RIGS, and that. excepting for a compensa-
tory duty, the rate must be ad Valorem
on such manufactures. 1t Is important TO
realize, however, that no flat ad Valorem
rate on such fabrics can be made to work
fairly and effectively. Any single rate
which is high enough to equalize the diff
ference in manufacturing cost at home
and abroad on highly finished goods IN
volving such labor would be prohlbltory
on cheaper goods, in which the labor cost
is a smaller proportion of the total value.
Conversely, a rate only adequate to equal
ize this difference on cheaper goods would
remove protection from the fine goods
manufacture, the increase In which mas
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 40
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 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
thoroughness. industry, impartianty and
accuracy of the men engaged In Its ma
king. They were chosen from both po1t-
lcal parties, but have allowed no partisan
spirit to prompt or control their inquiries.
They are unanimous in their findings. l
feel sure that after the report has been
printed and studied the value of such q
compendium of exact knowledge In re-
spect to this schedule of the tariff Will
convince all of the wisdom of making
such a board permanent, In order that
it may treat each schedule Of the tarlr
as 1t has treated this, and then keep Its
bureau Of information up to date with
current changes in the economic world.
1t Is no part Of the function Of the tar
if board to propose rates of duty. Ihe1f
function is merely to present findings or
fact on which rates of duty may be fairly
determined In the light of adequate
in accordance with the eco
nomic policy to be followed. This Is what
the present report does.
The findings of fact by the board show
ample reason for the revision downward
of schedule K, in accord with the pro-
tective principle. and present the data
as to relative costs and prices from winch
NAV be determined what rates will fairly
euualize the difference in production costs.
l recommend that such revision be pro-
ceeded with at once.
(Signed) WILLIAM H. TAFT.
The White House, Dec. 20, 1911.