The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1911-12-20
$ Schedule K is Placed at
Top of Toboggan Slide


displace in large measure the cheap
substitutes now SO frequently employ
ed in that.
The Payne-Aldrich law bases its
raw wool duties on the assumption
that greasy wool when cleaned
shrinks an average of two-thirds. This
shrinkage allowance is much too
high, the board finds. The average
shrinkage OF imported woods is about
As per cent, and of all domestic
wools between 55 and SO per cent.
The rates on wool waste, rags and
shoddy are called prohibitive and the
report states that the present tariff
practically excludes from importation
all tops and yarns except the most ex-
pensive worsted yarns.
The same is true" 1t says, "of
low grade wool and cloth for mems
wear A considerable quantity OF the
fine and expensive fabrics are import
ed. In the fiscal year 1911, these
did not constitute three percent OF
the total consumption of the use"
1 The report then discusses the rela-
tive merits of specific duties levied on
weight and ad valorem duties. These
duties are applied in common to fa-
brics and the result is that on cheap
goods the Payne-Aldrich specific
duty Is some times in excess OF the
total value of raw material on the
basis of cost and production in this
country.
Consequently" the board says,
"the nominal duty on certain cheap
fabrics, If imported-which is impos-
sible under the existing duty--is
commonly as high as $50 per cent ad
, valorem, and in some cases even over
J 200 per cent. Much of the objection
: to the present compensatory duty as
r excessive would be removed by put
ting the duty on wool on the secured
I Cor cleaned) basis instead of on the
= grease pound. The duty in that case
g would be adjusted to the actual wool"
e But prices in this country have not
\ been increased by the full amount or
l. these prohibitive duties, the board
s finds.
The board said that goods assessed
d at from $50 to 200 per cent, and
IS thereby prohibited, were sold in this
A country at price Of domestic compe-
e. tition, 1T says.
1t "At the present time" says the re-
i, port, "the industry In general is on
b. competitive basis"
le In reference to the higher cost OF
st production of wooden cloths and yarns
le in this country, one element is the 40
per cent ad valorem duty paid on ma
lie chinery, most of which is Imported,
I'd says the report. American manufac-
oe turers pay 70 per cent more for the
pt machinery than do the English.
as Turning wool into tops costs so per
de cent more in America than in Eng land,
lie. and the cost Of producing yarn here
nd is about twice the cost in England.
es The figures of the board show thai
es 1t costs from 60 to ITO per cent more
as to turn yarn into cloth here than II
va england. The same difference Is
en- shown in comparison with the figures
Ter for France. But the dinerence Is mo-
ro- SO wide in comparison with the Ger
On man cost.
an ''In the ready made clothing indus
I'll. try, the cloth Is the largest single
VS. element and is equal to one-third o
gn the net wholesale selling price" sait
the report. "In considering the i'm
1u- portance Of cloth cost to the wearer 0
to clothing, it is necessary to bear II
ro. mind the margin between wholesale
of and retail price. The retail price i
cs, usually 80 per cent, or more than tn
net wholesale price. On this pasl
lty about 25 per cent of the price paid tn
EN- retailer goes to the manufacturer o
he cloth. The cost of material, labor an
Jx- all other expense undergone in cor
ted verting material into finished gal
lch ments is so per cent of the net whole
sale selling price of the finished PR
ool duct. Out of the remaining 20 pc
ca, cent the manufacturer must pay hi
lel selling expense
uh- Presidents Message.
WASHINGTON, Dec. lD.--In hi
ehe message transmitting the report OF tn
nes tariff board, President Taft says
~ part:
my Il now herewith submit a report {
ois the tariff board on schedule K. tt
our boord ;s ,nanimous in its findings q
an the basis of these findings, I now re
aN- ommend that the congress proceed
ooi consideration of this schedule wit
mo a view to it's revision and gener
ndl reduction of its rates.
iiaf THE report shows that the pre-
ent method of assessing the duty {
.he raw wool--this is, by specific ra
Itch on +ha greasa Mound ie. unsecured
tne operated to exclude woods of his
mo shrnkage in securing but fine qualit
'hts from the American market. and the'
p by lessons the range of wools ave
anu able to the domestic manufacture
that the duty on secured wool OF
be- cents per pound is prohibitory al
operates to exclude the importati'
lsid- of clean, low priced foreign woods,
inferior grades, which are neyertt
duty less valuable material for manufs
lred turing and which cannot be import
fec in the grease because of their hea