Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-12-25
Republicans Will Adhere to the Pro-
lection Policy.
PROGRESSIVES IN QUANDARY
Attitude of Protectionists in Senate
on Wool Schedule Stated by
Senator Smoot.


ties on wool and woolen goods at rates
which will allow for the difference in
cost of production here and abroad and
allow profit to the American producer.
The democrats intend to scale that diff
ference down to point where it serves
only to bring in revenue and ignoring
entirely the question of profits to the
wool grower and the manufacturer.
This program, it is said by republicans,
| will have two results. First, it will bring
to the fore and accentuate the old re-
publican policy of protection to American
| industries. Second, it will put squarely
up to the insurgent republicans the prop
! osition whether they are for protective
or a revenue tariff.
Progressives in Quandary.
| If the progressives try to avoid the is
sue by insisting upon rates somewhere
| between those advocated by the demo-
Gratis and those proposed by the majority
of the republicans of the ways and means
committee. in the end they will have to
decided between adherence to the pro,ec-
| tive or the revenue principle in tariff
| making.
| One alternative to that course might
| be that in case of a deadlock in the
| Senate the democrats may do as they
| did before, accept the insurgent rate
after their own had been voted down
| in order to pass a bill.
In such event, it would devoive upon
| the President to decide whether the bill
was a revenue or a protective measure:
Reports are current that the free wool
democrats will again make try for
free raw wool. Success of such effort is
| thought to be doubtful, since it is argued
that the same reasoning which forced
the adoption by the democratic caucus
last summer Of a duty on wool is just as
applicable today as it was then.
Senator smoot's Statement.
The attitude of the protectionist re-
publicans of the Senate on the wool
schedule and the report of the tariff
board is outlined in a formal statement
issued by Senator Smoot, the wool ex
pert of the republicans of the finance
committee. He said in part:
Il am pleased with the tariff boards
report on schedule X and hope that
the findings of that board will be ac-
cepted by the American people, coming
| as they do from a nonpartisan board. In
analyzing the report it is evident that
wool bill can be prepared, based upon
the facts submitted, that will not inter-
| fere materially with the great woolen
| industry as now established and main-
| tanned by the republican policy Of pro-
| lection, and one that can be supported
| by every republican who believes in the
| principle of protection.
Il will prepare a bill in which the rates
| of duty imposed will equal the differ
ence Of the cost Of producing wool and
the manufacture of wool in this country
and foreign countries, based upon the
tariff boards report.
Fixes Wool Duty at 90 Cents.
| Il will support a single rate of duty,
based on the secured content of wool
| Of the first and second class, of 70 cents
pound. and am confident that the wool
grower will receive as much protection
as he is now receiving. based upon the
| IL cents a pound i'm the grease or a sup
posed protection Of :sS cents on each
secured pound. The rate of 20 cents a
pound will be the basis for compen-
satory duty for secured wool used in the
manufactured product. instead of 33 cents
a pound. as in the present law.
Woolen Duty at 81 Cents.
| The compensatory duty levied upon
wooden and worsted fabrics should be a
| specific duty of - cents a pound, being
the 90 cents levied on secured wool and
7-cent allowance for loss i'm manufactur-
| ing the wool into cloth, instead of Al
cents, as provided in the present law on
1 goods valued at more than 40 cents a
pound, and a graduated scale of ad va
loren duties to equal the difference Of
cost of production in this country and
| abroad
| The report shows the average cost OF
manufacture in the United States Of
i nod fnA 70 HPf<, 10 ohn
per cent more than In England. Assum-
| ing the average manufacturing cost in
this country to be 40 per cent Of the total
cost. the average ad valorem equivalent
would then be 10 per cent of 40 per cent,
or ~ per cent on the market value. The
present law provides 80 to 55 per cent,
| according to value. These rates i have
named are the difference between the cost
of producing here and abroad, with no
allowance for reasonable profit.
| Barring the prohibitfve rates on low
grade mixed goods caused by the specific
duty of A cents. but not taken advan-
tage of by American manufacturers, as
shown by the tariff boards report. the
ad valorem rates OF the present law are
not far from being right on the great
bulk of woolen and worsted fabrics
future the rates must be graduated so
as to not overprotect the lower grades
of mixed fabrics.
Contention Sustained.
II always have contended that the
cost of conversion of wool into wooden
and worsted goods in this country Is
100 per cent to $50 per cent more than
In England. The report sustains my
contention. I have always claimed there
are no advantages in the way of labor
saving devices and machinery in this
country as compared with foreign coun-
tries; that the efficiency of our workers
was no greater but in certain instances
less than in England. The report proves
my claim to be correct.
Il have made the statement time and
time again that there was no combina,-
ton in control Of prices in the woolen
and worsted industry: that under the
fierce competitive conditions the differ
ence between prices here and abroad
of fabrics, as sold at the mill, depends
upon the difference in the cost of pro-
duction rather than on the amount of
. the duty. The report proves my state
nent correct.
IT always have claimed that the