The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1911-12-28
PRESIDENT SAYS
RATES TOO HIGH
Chief Executive Urges Downward
Revision of Schedule K.
MESSAGE SENT TO CONGRESS
Document Upholds Protective PrircI-
pie But at the Same Time Most
Ardently Supports Recommen-
dations Of Tariff Board.

ngton-President Taft trans
mitted to congress the report of the
tariff board on schedule X. Accom-
panying the report, the chief execu'
tive sent to the national legislature
the following message:
To the Senate and House of Representa-
tives:
In my annual message to congress. De-
cemher 1909, | stated that under section
2 of the act of August 8. 1902 | had APP
pointed tariff board OF three members
to cooperate with the state department
in the administration OF the maximum
and minimum clause of that act to make
glossary or encyclopedia of the exist
ing tariff so as to render It's terms intel
ligibe 10 the ordinary reader and then
TO Investigate industrial conditions and
costs of production at home and abroad,
with view to determining to what eN-
tent existing tariff rates actually eXem-
plify the protective principle viz: That
duties should be made adequate, and only
adequate. to eqlalize the difference in cost
of production at home and abroad
| further stated that | believed these in
vestigations would be of great value as
basis for accurate legislation, and that |
should from time to time recommend to
congress the revision of certain sched-
ules in accordance with the findings of
the board.
In the last session OF the SXtY-first con
gress a bill creating permanent tariff
board Of five members, of whom not
more than three should he of the same
political party, passed each house. but
failed of enactment because of slight diff
ferences on which agreement was not
reached before adjournment. An appro-
priation act provided that the permanent
tariff board If created by statute. should
report TO congress on schedule * in De-
cember, 1911.
Presidential Appointments.
Therefore, to carry out so far as lay
within my power the purposes of this
bill for a permanent tariff board, / APP
pointed in March, 1911. a board OF five,
adding two members of such party afiili-
alton as would have fulfilled the statu-
tory requirements. and directed them to
make report to ne on schedule X of
the tariff act in December of this year.
In my message of August Il, 1911. ac-
companying the veto of the wool bill, /
said that in my Judgment schedule Is
should be revised and the rates reduced.
My veto was based on the ground that,
since the tariff board would make, In
December, a detailed report on wool and
wool manufactures, with special refer
ence to the relation of the existing rates
of duties to relative costs here and
abroad, public policy and a fair regard
to the interests of the producers and the
manufacturers on the enc hand and Of
the consumers on the other demanded
that legislation should not be hastily en-
acted in the absence of such Information;
that I was not myself possessed at that
time of ads quate knowledge of the facts
to determine whether or not the proposed
act was in accord with my pledge TO
support fair ANA reasonable protective
policy: that such legislation might prove
only temporary and infiict upon n great
industry the evils of continued uncer-
tainty.
Advocates Reduction of Rates.
now herewith submit report of the
tariff board on schedule *. The board Is
unanimous IN It's findings. On the basis
of these findings l now recommend that
the congress proceed to consideration
OF this schedule with a view to it's revi-
sion and general reduction OF It's rates
The report shows that the present
method of assessing the duty on raw
wool-this is. by the specific rate on the
grease pound, t. e.. acknowledgements to
exclude woods of high shrnkaGe in
securing, but fine quality, from the
American market and thereby lessons the
range of woods available to the domestic
manufacturer; that the duty on unsecured
wool OF 80 cents per pound is prohbitory
and operates to exclude the importation
OF clean, low-priced foreign woods of in
ferior grades, which are nevertheless val
liable material for manufacturing, ana
which cannot be imported in the grease
because of their heavy shrinkaGe, Such
woods, II imported. might be used to dis
place the cheap substitutes nov In use.
To make the preceding paragraph lit
tie palmer. take the instance Of a hun
bred pounds OF hrst-class wool imported
under the present duty. which is II cents
a pound That would make the duty on
the hundred pounds 81. The mercnan-
disc part of the wool thus imported is
the weight OF the wool of this hundred
pounds after securing. If the wool
shrinks SO per cent, as some wool does.
then the duty In such case would
amount to sll on 20 pounds OF secured
wool. This, OF course, would lie prohibl-
tory II the wool shrnks only 30 per
cent. Il would be 81 on 50 pounds of
wool, and this IS near to the average Of
the great bulk or woods that are imported
from Australia, which Is the principal
source OF our imported wool
These determinations could be over
come by assessing a duty In ad valorem
terms, but this method Is open to the OBJ
lection, first that II increases administra-
tive difficulties and tends to decrease
revenue through differentiation: and,
second. that as prices advance, the nd
yaorem rate Increases the duty per pound
at the time when the consumer most
needs relief and the producer can best
stand competition: while IF prices de-
cline the duty Is decreased at the time
when the consumer is least burdened by
the price and the producer most needs
protection.
Method That Meets Difficulty.
Another method of meeting the dim
Guilty OF taxing the grease pound is 10 as
cess "A specific duty on grease wool In
terms of it's secured content. This obvi-
atcs the chief evil Of the present system,
namely. the discrimination due to differ
ent shrinkaRes and thereby tends great
~ to equali2e the duty The board re-
ports that this method Is feasible In prac-
tice and could be administered without
great expense.
The report shows In detail the Difficult
ties involved In attempting TO state In
categorical terms the cost or wool pro-
duction and the great differences I'm cost
as between different regions and different
types Of wool. II is found. however. that
taking all varieties In account. the aver
age cost of production for the whole
American clip Is higher than the cost In
the chief competing country by an
amount somewhat less than the present
duty.
The report shows that the duties on
noils, wool wastes. and shoddy, which are
,~~~~-~-O~~~~
Exploded Fiction.
The long prevalent belief that the
surface OF the nlanet Mars Il covered