Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1911-12-28

the chief competing country by an
amount somewhat less than the present
duty The report shows that the duties
on noils. wool wastes. and shoddy, which
are adjusted TO the rate OF % cents Cd
secured wool Is prohibitory. In general.
they are assessed at rates as high as.
or higher than the duties paid on the
clean content OF woods actually imported.
They should be reduced and so adjusted
10 the rate on wool as to bear their
proper proportion 10 the real rate levied
on the actual wool imports.
The duties IN many classes Of wool
manufacture are prohibitory and greatly
In excess Of the difference in cost OF pro-
duction here and abroad. This is true Of
tops for yarns with the exception Of
worsted yarns Of a very high grade), and
weight.
On tops up to 50 cents a pound in value.
n on yarns of 65 cents in value, the
rate is 100 per cen with correspondingly
higher rates for lower values. On cheap
and medium grade cloths, the existing
rate frequently run to $50 per cent and
ON some cheap goods to over 200 per
cent. This il largely due to nat part Of
the duty which is levied ostensibly TO
compensate the manufacturer for the en-
HANGED cost Of his raw material due to
the duty or 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 finding show
that the duties which run to such high
ad valorem equivalents are prohibitory.
s thnt III, tne GOODS are noa imported: put
not raised to the full amount Of duty.
On a set of l yard samples of 16 English
fabrics, which are completely excluded
~ the present tariff rates, it was found
that the total foreign value was S4l.S4;
the duties which would have been as
sessed had these fabrics been imported.
1880; the foreign value plus the amount
of the duty, $1lS.74; or a nominal duty
of 1873 per cent. In fact, however, prac-
tically Identical fabrics of domestic make
sold at the same time at 500. 70, showing
an enhanced price over the foreign mar
ket value of but 81 per cent.
Although these duties do not increase
prices of domestic goods by anything
like their full amount, it is none the less
nate the possibility Of foreign compvtt-
ton, even in time of scarcity, so that
they form a temptation to monopoly and
conspiractes to control domestic prices;
that they are much in excess of the diff
ference in cost of production here and
abroad, and that they SHOULD be reduced
to a point which accords with the prin-
ciple.
The findings of the board show that IN
this industry the actual manufacturing
cost, aside from the question OF the cost
of materials, is much higher in this coun
try than it is abroad; that in the making
of yarn and cloth the domestic wooden OF
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 findings show that the cost of turn
ing wool into yarn in this country is
about double that in the leading Compel
ing country. and that the cost of turning
yarn into cloth Is somewhat more than
double. Under the protective policy a
great industry, involving the welfare of
hundreds of thousands of people, has
been established despite these handicaps.
In recommending revision and reduce
ton / therefore urge that action be taken
with these facts in mind, to- the end that
an important n established industry
may not be JeopardiZed.
The tariff board reports that no equit-
able method has been found to levy pure
ly specific duties on wooden and worsted
fabrics and that excepting for a compen-
satory duty, the rate must be ad valorem
on such manufacturers. 1t is important
to realize, however, that no fiat ad valo-
rem rate on such fabrics can be made to
work fairly and effective. Any single
rate which is high enough to equalize the
difference in manufacturing cost at home
and abroad on highly finished goods in
VolVing such labor would be prohibitory
on cheaper goods, in which the labor cost
is a smaller proportion of the total value.
Conversely, a rate only adequate to
equalize 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. l
therefore hat in any revision
the Importance of a graduated scale of ad
Valorem duties on cloths be carefully con-
sidered and applied.
l venture to say h no legislative
body has ever had presented to it a more
complete and exhaustive report than his
on so difficult and complicated a subject
as the relative costs of wool and woolens
the world over. 1t is the monument to
the thoroughness, industry, impartiality
and accuracy of the men engaged in it's
making. They were chosen from both
political parties but nave allowed no par
inquiries. They are unanimous in their
findings. l feel sure that after the report
has been printed and studied the value
of such a compendium of exact knowl-
edge in respect to this schedule of the
tariff will convince all of the wisdom of
making Sych a board permanent in order
that it Ia treat each schedule of the
tariff as it has treated this, and the
keep its bureau of information up to date
with current changes in the economic
world.
1t is no part of the function of the
tariff board to propose rates of duty.
Their function is merely to present find
ings of fact on which rates of duty may
be fairly determined nj the light of ade-
quate knowledge in accordance with the
economic 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 which
may be determined what rates will fairly
equalize the difference in production
costs. | recommend that such revision
be proceeded with at once.
(Signed) WILLIAM H. TAFT.
The White H0uea IOnp IN 1Q11