The Elbert County tribune., 1911-12-29
PRESIDENT SAYS
RATES TOO HIGH
Chief Executive Urges Downward
Revision Of Schedule K.
MESSAGE SENT TO CONGRESS
Document Upholds Protective PrIneI-
pie But at the Same Time Most
ArdentIy supports Reeommsn-
cations Of Tarlf Board.

cations Of Tarlff Board.
Washington. .-Presiden Taft trans
mitted TO congress the report Of the
tarin board ON schedule K Accom-
pauying tho report. the chief execu-
tive sent TO the national legislature
tho following message:
To the Senate and House Of Representa-
tives;
In my annual message to congress. De-
cember, 1909. stated that under section
? OF the act OF August s. 1909. had ap-
pointed tariff board of three members
to cooperate with the state department
In the administration of the maximum
and minimum clause OF that act. to make
glossary or encyclopedia of the exist
ing tarin 80 as to render its terms intel
ngible TO the ordinary reader. and then
to investigate industrial conditions and
costs Of production at home and abroad.
with view to determining to what ex-
tent existing tariff rates actually exen-
plify the protective principle. viz: That
duties should be made adequate. and only
adequate. to equalize the difference In cost
OF production at homo and abroad.
further stated that believed these In
vestigations would be OF great value as a
basis for accurate Legislation. and that i
should from time to time recommend to
congress the revision of certain sched-
ules In accordance with the findings OF
the board.
In the last session of the six.y-rrst con-
gress bill creating permanent tariff
board of five members. of whom not
more than three should be of the same
political party passed each house, but
failed OF enactment because of slight diff
ferences on which agreement was not
reached before adjournment An appro-
priation act provided that the permanent
tarin board. II created by etatute. should
report to congress on schedule X In De-
cember. 1911
Presidential Appointments.
Therefore. to carry out so far a. lay
within my power tho purposes of this
bill for a permanent tariff board, ap-
pointed in March, 1911. board Of Ave.
adding two members of such party affli-
ktion would have fulfilled the statu-
tory requirements. and directed them to
make a report to me on schedule X of
the tariff act in December of this year.
In my message of August II. 1911. ac-
companying the veto of the wool bill.
said that, In my Judgment schedule X
should be revised and the rates reduced.
My veto WINS based on the ground that.
since the tariff board would make, In
December, n detailed report on wool and
wool manufactures. with special refer
ence to tho relation of tho existing rates
Of duties to relative costa here and
abroad. public policy and a fair regard
manufacturers the one hand and OF
the consumers on the other demanded
that legislation should not be hastily en-
acted in the absence Of such information;
that I WINS not myself possessed At that
time Of adequate knowledge Of the facts
to determine whether or not the proposed
act was in accord with my pledge to
support q fair and reasonable protective
policy; that such legislation might prove
only temporary and infiict upon great
Hr1An thA ,f aA
tAinty.
Advocates Reduction Of Rates.
now herewith submit q report OF the
tariff board on schedule X. The board il
unanimous in Its findings. On the basis
OF these findings now recommend that
the congress proceed to confederation
OF this schedule with q Wow to its revi-
sion and a general reduction OF its rates.
The report shows that the present
wooI-this il. by the specific rate on the
grease pound. l. O.. acknowledgements to
exclude woods Of high shrinkage in
securing. but hne quality. from the
American market and thereby lessons the
range Of woois available to the domestic
manufacturer; that tho duty on unsecured
wool of % cents per pound IL prohibitory
and operates to exclude the Importation
OF clean. low-pricsd foreign woods Of In
ferior grades, which are nevertheless val
which cannot be imported In the grease
because OF their heavy shrinkage. Such
wools. II imported. might be used 30 dis
place the cheap substitutes now in use.
To make the preceding paragraph 4 lit
tie palmer. take the instance Of hum
dred pounds Of nrst-class wool imported
under the present duty. which Is II cents
. pound. That would make the duty on
the hundred pounds $il. Tho merchan-
disc part OF the wool thus imported 10
s1~~ l~h <x< ~. - a. l~-A
pounds after securing II tho wool
shrinks 80 per cent. as some wool does
then tho duty in such a case would
amount to I'll on 20 pounds OF secured
wool This. of course. would be prohibit
tory. II the wool shrinks only 90 per
cent. II would be I'll on so pounds of
WOOL and this IL near to the average of
the great bulk of woods that are imported
from Australia. which IL the principal
source CT our imported wool.
These determinations could be over
come by assessing duty in ad va1orem
terms, but this method IL open to the OBJ
lection. FIRST. that It increases administra-
uve difficulties and tends to decrease
revenue through undervaluation: and.
second. that 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 competitions: while II prices de-
cline the duty II decreased at the time
when the consumer 10 least burdened by
the price and tho producer most needs
protection.
Method That Meets Difficulty.
Another method of meeting tho diffi-
Guilty OF taxing the grease pound Is to as
cess a specific duty grease wool in
terms of its secured content. This obvi-
ates the chief evil of the present system,
namely. the discrimination due tc difrer-
ent shrinkages. and thereby tends great
ly TO equalize the duty. The board re-
ports that this method Is feasible In prac-
tice and could be administered without
great expense.
The report shows In detail the Difficult
ties involved In attempting to state in
categorical terms the cost OF wool pro-
duction and the great differences In cost