The Raymer enterprise., 1911-12-28

adjusted to the rate Of q cents on
secured wool. are prohibitory in the sams
measure that the duty on secured wool
10 prohibitory. In general they are A.
sssssd At rates a high a. or higher
than. the duties paid on the clean content
Of wools actually imported. They should
bs reduced and 10 adjusted to the rata
on wool ~ to bear their proper proportion
| to tha real rate levied on the actual wool
imports.
Some Duties Prohlbltory.
TIE duties on many classes Of WOO.
manufacture are prohibitory and greatly
In sxcess Of the difference In cost OF pro-
duction here and abroad This u true Of
tops. Of yarns with the exception Of
worstsd yarns Of very high grads). and
OF low and medium grade cloth Of heavy
weight
On tops up to g cents pound In value.
and on yarns OF 9 cents In value. ths
rate is 100 per cent. with corrsspondinsiy
higher rates for lower values. On cheap
and medium grade cloths. the existing
rates frequently run to iso psf cant and
on some cheap goods to over ~ pss
cent.
On the other hand. the findings show
that the duties which run to such high and
valorsm equivalents are prohibitory. since
the goods are not imported. but that tbs
prices of domestic fabrics are not raised
BY the full amount Of duty. On q sst Of
one yard samples Of ls English fabrics.
which are completely excluded BY the
present tAri6 rates. II was found that ths
total foreign value was S4l.N: the duties
which would have been assessed had thsss
fabrics been imported. 1850; the foreign
value plus the amount Of the duty, tll1N:
or = nominal duty Of Ii per cent. In fact,
however. practically Identical fabrics Of
domestic make sold At the same time at
tesB. showing an enhanced price over the
foreign market value of but 81 per cent
Would Reduce Duties.
Although these duties do not increase
prices Of domestic goods by anything like
their full amount. It IL none the less true
that such prohibitivs duties eliminate the
possibility Of foreign competition, even In
time OF scarcity. % that they form tsmp-
taton to monopoly and conspiracy to con-
troll domestic prices: that they are much
In sxcess OF the difference In cost Of pro-
duction here and abroad. and that they
should be reduced to q point which ac-
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. II much higher In this coun-
try than 1t ID abroad; that In the making
OF yarn and cloth the domestic wooden
and 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 inds show that the cost OF turning
wool into yarn In this country 10 about
double that In the leading competing
country. and that the cost Of turning yarn
Into cloth IL somewhat more than double.
Under the protective policy great indus
try. involving the welfare Of hundreds Of
thousands Of people has been established
despite these handicaps.
In recommending revision and reduce
lion therefore urge that action bs ta-
ken with these facts in mind, to the end
that an important and established indus
try may not be jeopardised.
The tariff board reports that no equita-
BILE method has been found to levy purely
specific duties on woolen and worsted fab
rics. and that. excepting for compensa-
tory duty. the rate must be ad valorem
on such manufactures. It Il important to
realize. however. that no nat ad valorem
rate on such fabrics can be made to work
fairly and effectively. Any single rate
which is high enough to eaualixs the dif-
ference In manufacturing cost at homo
and abroad on highly finished goods In
volving such labor would be prohibitory
on cheaper goods. In which the labor cost
Is smaller proportion Of the total value.
Conversely, Q rate only adequate to equal
ixe this difference on cheaper goods would
remove protection from the fne 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 . graduated scale Of ad
valorem duties on cloths be carefully con
sidered and applied.
Praises Work Of Committee.
venture to say that no legislative
body has ever had presented to It more
complete and exhaustive report than this
on so difficult and complicated q subject
as the relative costs Of wool and woolens
the world over. II ID q monument to the
thoroughness. industry. impartiality and
accuracy Of the men engaged In its ma
king. They were chosen from both polit-
ical parties. but have allowed no partisan
spirit to prompt or control their inquiries.
They are unanimous In their findings. I
feel sure that after the report has been
printed and studied the value Of such q
compendium Of exact knowledge In re-
spect to this schedule Of the tariff will
convince all Of the wisdom OF making
such board permanent. In order that
II may treat each schedule Of the tariff
az II has treated this. and then keep its
bureau Of information up to date with
current changes In the economic world.
II IL no part Of the function Of the tar
IN board to propose rates Of duty. Their
function 10 merely to present findings OF
fact on which rates Of duty may b fairly
determined In the light Of adequate
knowledge In accordance with the eco.
nomic policy TO bs followed. This II what
the present report does.
The findings Of fact BY the board show
ample reason for the revision downward
OF schedule X. In accord with the pro-
tective principle. and present the data
az to relative costs and prices from which
may be determined what rates will fairly
equalixe the difference In production costs.
l recommend that such revision be pro.
ceeded with at once.
tSigned) WILLIAM II. TAFT.
The white House. Dec. n. lSlL