Perth Amboy evening news., 1911-12-20
TAFT ASKS FOR RfDUC-
TON IN WOODEN RATES.


fConfinuet ron pane -
the AS per cent, ad yalorem duty
duty paid on machinery, most OF
which is imported, says the report
American manufacturers pay 70 per
cent. more for The machinery than
do the English. Turning wool into
tops costs eighty per cent more In
America than In England and the
cost OF producing yarn here is about
twice the cost In England.
The figures of the board show that
1T costs from SO to ITO uer cent.
more to turn yarn into cloth here
than In England. The same differ
ence is shown in comparison with
the figures for France. But the diff
ference is not SO wide in a compar-
ison with the German cost.
ain the ready made clothing In
Edustry, the cloth is the largest sin
gle element and Is equal to one-third
of the net Wholesale selling price"
said the report. I'm considering the
Importance of cloth cost to the wear
er of clothing, it Is necessary to bear
in mind the margin between whole
sale and retail price. The retail
price Is usually SO per cent. or more
above the net wholesale price. On
this basis about 25 per cent. OF the
price paid to the retailer gees to the
manufacturer of cloth. The cost of
material, labor and all other expense
undergone in converting material in
to finished garments is so per cent.
of the net wholesale selling price
of the finished product. Out Of the
remaining 20 per cent. the manu-
facturer must pay his selling ex-
pense.
PRESIDENT TAFT'S MESSAGE.
Special by United Press Wire.
Washington, Dec. 20.-In his
message transmitting the report of
the tariff board, President Taft said
in part:
II now herewith submit a report
of the tariff board or schedule K.
The board Is unanimous in Its find
ings. On the basis of these findings
/ now recommend that the congress
proceed to a consideration OF this
schedule with a view to Its revision
and a general reduction of It's rates.
"a l1i6 ICpOII SAO65 LAaL tthC Pt0o
ent method of assessing the duty on
raw woo1-that is, by a specific rate
one the grease pound, /. e., %unscour-
ed-operates to exclude woods of
high shrinkage in securing but fine
quality from the American market
and thereby lessons the range of
woods available to the domestic man
ufacturer; that the duty on secured
wool of 33 cents per pound is pro-
hibitory and operates to exclude the
Importation OF clean. low priced
foreign woods of inferior grades,
are nevertheless valuable ma
terial for manufacturing and which
be imported in the grease
because OF their heavy shripkage.
Such woods, If imported, must be
used to dispiace the cheap substi-
tutes now In use.
THE report shows in detail the
involved In attempting to.
In categorical terms the cost
Of wool production and the great
differences in cost as between differ
emit regions and different types Of
It is found, however, rnar
all varieties in account, the
average cost or production for the
American clip Is higher than
Cost In the chief competing
by any amount somewhat
less than the present duty.
"The finding OF the beard show
in this industry the actual mani
Featuring cost aside frem the ques-
ion of the price of materials, is
much higher In this country than It
s. abroad; that In the making of
yarn and cloth the domestic WOODEN
,r worsted manufacturing has In
general no advantage In the form of
superior machinery or more efficient
+abor to offset the higher wages paid
n this country. The findings show
the cost of turning wool into
yarn In this country is about dou-
ole that IN the leading competing
country and that the cost of turn
lng yarn Into cloth Is somewhat
more than double. Under the pro-
policy a great industry in
the welfare of hundreds of
OF people has been estab-
Iished despite these handicaps.
"In recommending revision and
/ therefore urge that ac-
ton be taken with these facts In
mind to the end that an important
and established industry may not be
jeopardized.
1.-THE tariff board reports that no
equitable method has been found to
levy purely specific duties on wooden
and wersted fabrics and that ex-
for a compensatory duty,
the rate must be ad valorem on such
manufactures. 1t Is important to
realize, however, that no fat ad val
orem rate on such fabrics ca nbe
made to work fairly and effectively.
Any single rate which is high
enough to eaualize the difference tn
manufacturing cost at home and
abroad on highly finished goods in
yolving such labor would be pro-.
hibitory on cheaper goods, in which
the labor cost is q smaller proper
ton of the total value. Conversely,
a rate only adequate to equalize this
difference on cheaper goods would
protection from the fine
goods manufacture, the increase in
which has been one OF the striking
features of the trades development
in recent years. ], therefore, recon-
mend that in any revision the Inn
portanee of a graduated scale of AID
valorem duties on cloths be carefully
considered aud applied.
"It Is ne part OF the function OF
the tariff board to propose rates Of
duty. Their function lis merely to
present findings of fact on which
rates OF duty may be fairly deter
mined In the light of adequate
knowledge III accord with the seo-
nomic policy to be followed. phia