Morgan County republican. (Versailles, Mo.) 1906-1914, 1911-12-28

be overcome by assessing a duty In
ad valorsm terms but this method 10
open to the objection first, nat 10
increase, administrative d~ificulties
n tends to decrease revenue
through under valuation; and, sec.
ond, tina. as prices advance, the ad
valorem rate increases the duty per
pound at the time when the consumer
most needs relief and the producer
can bes. stand competitions; while II
prices decline the duty Is decreased
at the time when the consumer ID
least burdened by the price ana me
producer most needs protection.
Another method of meeting the Dill.
ficulty OF taxing the grease pound 10
to assess a specific duty on grease
wool in terms OF secured content
This obivates that chief evil OF the
present system namely. the discrima'
ton due to different shrinkage and
thereby tends to really equaiza the
duty, the board reports that this meth
cd Is feasible in practice and could
be administered without great ex-
pense. The secured content Of wool
Is the basis on which users Of wool
make their calculations, and a duty
Of this kind would fit the usages OF
trade. One effect of this method OF
assessment would be that regardless
of rate Of duty, there would be an in
crease in the supply and variety Of
wool by making available to American
market woods of both low and fine
quality now excluded.
The report shows in detail the diff.
ficulities involved In attempting to
state in categorical terms the cost
Of wool production and the great DIFF.
ferences in cost between different re-
gions and different types Of wool.
1t is found, however that, taking all
varities in account, the average cost
OF production for the whole American
clip is higher than the cost Of any
competing country by an amount
somewhat less than the present duty.
The duties on many classes Of wool
manufactured are prohibitory and
greatly in excess OF difference in cost
OF production here and abroad. This Is
true Of tops, of yarns with exception
OF worsted yarns of a very heavy
grade) and of low and medium grade
cloth of heavy weight.
On tops up to So cents a pound in
value. and on yarns of 65 cents in
value, the rate is 100 per cent, 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 is largely due to that part Of duty
which is levied %ostensibly to com.
pensate the manufacturer for the en-
HANGED cost of his raw material due
to the duty on wool. AS a matter of
fact, this compensatory duty, for mum.
erous classes Of goods, is much in
excess of the amount needed for strict
compensation.
On the other hand, the findings
show that the duties which run to
such high ad valorem equivalents are
prohibitory, since the goods are not
imported, but that the prices of do
nestle fabrics are not raised by the
full amount OF duty. On a set Of
vineyard samples of 16 English fabrics
which are completely excluded by the
present tariff rates. 1t is found that the
total foreign value was $4i.S4; the
duties which would have been assess.
ed had these fabrics been imported
$7G.90; the foreign value plus the
amount of duty $118.74 or a normal
duty of 1873 per cent, in fact however,
practically identical frabrics OF domes.
tic make sold at the time at $69.75,
showing an enhanced price over the
foreign market value Of but 67 per
cent.
Although these duties do not in.
crease prices of domestic goods by
anything like their full amount, 1t Is
none the less true that such prohibi.
tive duties eliminate the possibility
OF foreign competition even in time Of
scarcity SO that they form a tempta.
ton to monopoly and conspiracies to
control domestic prices, that they are
much in excess Of the difference in
cost Of production here and abroud,
and that they should be reduced to q
point which accords with the prin.
Ciple.
The findings of the Board show that
in this industry the actual manufac.
turing cost. aside from the question
of the price of materials, is much
higher in this country than 1t 10
abroad; that in the making Of yarn
and cloth the domestic wooden or
worsted manufacturer has in general
no aduantauo In the firm Of snnorios