Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1911-12-28

! Is prohibItory. In general, they are as
sessed at rates as high as, OF higher
than, the duties paid on the clean content
OF woods actually imported They should
be reduced and so adjusted to the rate
on wool as 10 bear their proper proportion
70 the real rate levied on the actual wool
4 imports.
Some Duties Prohibitory.
The duties on many classes Of wool
manufacture are prohibitory and greatly
in excess Of the difference in cost Of pro
ductiOH here and abroad This is true OF
tops Of yarns with the exception Of
worsted yarns Of a very high grade1. and
Of low and medium grade cloth OF heavy
weight
On tops up to 3 cents a pound in value.
ana On yarns Of s. cents in value the
rate is 100 per cent. with correspnndingly
higher rates for lower values. On cheap
and medium grade cloths, the existing
rates frequently run TO $50 per cent and
on some cheap goods to over 200 per
cent
On the other hand. the findings show
that the duties which run 10 such high ad
VaIorem equivalents are prOhiDltCry, since
the goods are not imported, but that the
prices of domestic fabrics are not raised
by the fun amount Of duty. On d set OF
one yard samples Of 16 English fabrics,
which are completely excluded By the
present tariff rates. it was found that the
total foreign value was $41.S4; the duties
which would have been assessed had these
fabrics been imported, 1850; the foreign
value plus the amount Of the duty, Sis "A;
or a nominal duty OF IS3 per cent. In fact,
however. practically identical fabrics Of
domestic make sold at the same time at
So. 70. showing an enhanced price over the
foreign market value OF but 81 per cent.
Would Reduce Daties.
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 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-
duciOn here and abroad, and that they
should be reduced to a point which &C
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 higher in this cOun-
try than it is abroad; that in the making
OF yarn and cloth the domestic wooden
and woTsted manufacturer has in general
no advantage in the form of superior ma
chineTy or mora efficient labor to Offset
the higher wages paid in this country.
Tie finds 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.
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 ia
ken with these facts in mind, to the end
that 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
rics. 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 fiat ad VaIorem
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
VoIving such labor would be prOhibitOry
on cheaper goods. in which the labor cost
is a smaller proportion of the total value.
Conversely, rate only adequate to equal
lie this difference on cheaper goods would
remove protection from the fine goods
manufacture, the increase in which has
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 ad
valorem duties on cloths be carefully con-
sidered and applied.
e