The Barre daily times. (Barre, Vt.) 1897-1959, 1911-12-20
A REDUCTION OF
DUTIES ON WOOL
RECOMMENDED

in categorical terms the cost OF WOO
production and the great differences IN
cost as between different regions and
different types of wool. IL is found
however, that, taking all varieties in
account, the average cost Of production
for the whole American clip is higher
than the cost in the chief competing
country by an amount somewhat less
than our present duty
"The report shows that the duty on
oils, wool wastes and shoddy which
are adjusted to the rate of 33 cents
on secured wool are prohibitory in the
same measure that the duty on secured
wool is prohibitory. In general, they
are assessed at rates as high as, or
higher than, the duties paid on the clean
content Of woods actually imported,
They should be reduced and so adjust
ed to the rate on wool as to bear their
proper proportion to the real rate levied
on the actual wool imports.
"The duties on many classes Of wool
manufacture arc prohibitory and great
ly in excess of the difference in cost
of production here and abroad. This is
true Of tops, OF yarns with the excep-
tion of worsted yarns OF very high
gradel and of low and medium grade
cloth of heavy weight
"0n tops up to 50 cents a pound in
value, and on yarns Of GO cents in value,
the rate is 100 per cent, with CORE
spondingly higher rates for lower yolues,
On cheap and medium grade cloths, the
existing rates frequently run to l50 per
cent, and on some cheap goods to over
200 per cent This is largely due to
that part Of the duty which Is levied
ostensibily to compensate the manufac-
turer for the enhanced cost of his raw
material, due to the duty on wool, As
a matter of fact. this compensatory
duty. for numerous 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
adyalorem equivalents are prOhibitory
since the goods are not imported, but
that the prices Of domestic fabrics are
not raised by the full amount of duty.
On set of one yard samples of is Eng
lish fabrics, which are completely ex-
cluded by the present tariff rates, it
was found that the total foreign value
was S4Is4; the duties which would
have been assessed had these fabrics
been imported, S7690; the foreign value,
plus the amount of the duty SllST4;
or nominal duty Of 1888 per cent. In
fact, however, practically identical fab
RIGS of domestic make sold at the same
time at SG9.75, showing an enhanced
price over the foreign market value
of but G7 per cent.
although these duties do not increase
the price Of the domestic goods by any
thing like their full amount, it Is none
the less true that such prohibitiVe du'
ties eliminate the possibility of for
eign competition, even in time of scare
ity; that they form a temptation 70
monopoly and eonspiraeies to control do
nestle prices; that they are much in
excess Of the difference in cost of pro-
duction here and abroad and that they
should be reduced to point which ae-
cords with this principle
''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 it is abroad; that
in the making Of yarn and cloth, the
domestic woolen or worsted rnanufac-
ture has in general no advantage in
the form Of superior machinery or more
efficient labor to offset the higher wages
paid in this country The findings show
that the cost of turning wool into yarn
in this country is about double that in
the leading competing country, and that
the cost of turning yarn into cloth Is
somewhat more than double. Under the
protective policy, great industry, in
yolving the welfare of hundreds of peo-
pie, has been established, despite these
handicaps
Recommends Graduated Scale
"In recommending revision and re-
duction, | therefore urge that action be
taken with these facts in mind, to the
end that an important and established
industry may not be jeolparized
"The tariff board reports that an
equitable method has been found to levy
purely specific duties on wooden and
worsted fabrics and that excepting for
a compensatory duty, the rate must be
advalorem on such manufactures. 1t
is important to realize, however, that
no fiat advalorem rate on such fabrics
can be made to work fairly and effec-
lively. Any single rate which Is high
enough to equalize the difference in man
ufacturing cost at home and abroad on
highly finished goods involving such la
Isr,, ha l. oh
goods, in which the labor cost is
smaller proportion of the total value.
Conversely, a rate only adequate to
ecualize this difference on cheaper goods
would remove 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 recommend that in
any revision the Importance of grad
uated scale of advalorem duties on cloths
be carefully considered and applied
Commends Tariff Board.
81 venture to say that no legislative
body has ever had presented to it a
more complete and exhaustive report
than this on so difficult and complicated
a subject as the relative costs of wool
and woolens the world over. 1t is a
monument to the thoroughness, indus
try, impartiality and accuracy of the
men engaged in its making. They were
chosen from both political parties, but
have allowed no partisan spirit to
prompt or control their inquiries. They
are unanimous in their findings. / feel
sure that after the report has been
printed and studied, the value of such
compendium of exact knowledge in
resnect TO this schednle Of the thrift