The Raymer enterprise., 1911-12-28
PRESIDENT SAYS
RATES TOO HIGH
Chief Executive Urges Downward
Revision Of Schedule K.
MESSAGE SENT TO CONGRESS
Document upholds Protective PrlneI
pie But At the Same Time Most
ArdsntIy Supports Rseommsn-
datlons Of Tariff Board.

| Pe OoS u tU0 OeWO inns WooS
ArdsntIy Supports Rseommsn-
datlons Of Tariff Board.
Washington.-Presiden 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 Represents.
| tivss:
In my annual message to congress. De-
cember. 1908. l stated that under section
Of the act Of August s. lsp. had ap-
pointed a 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
a. glossary or encyclopedia Of the exist
Ing tariff so n to render its terms intel
ligibls 10 the ordinary reader. and then
to investigate industrial conditions and
costs OF production at home and abroad.
with q view to determining to what ex-
tent existing tariff rates actually exem-
plify the protective principle. viz: That
duties should be made adequate. and only
adequate. to equalize the difference In cost
OF production at home and abroad.
further stated that ] believed these In
vestigations would be OF great value a. a
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 sixty.nrst con-
gress bill creating a permanent tariff
board OF five members. Of whom not
moro than three should be Of the same
political party. passed each house. but
failed OF enactment because Of slight dif-
ferences on which agreement was not
reached before adjournment An appro-
priation act provided that the permanent
tarif board. II created by statute. should
report to congress on schedule X In De-
cember. 1911
Presidential Appointments.
Therefore. to carry out 30 far a. lay
within my power the purposes Of this
bill for q permanent tariff board. ap-
pointed In March. 1911. . board OF hve.
adding two members Of such party affili-
ntion as would have fulfilled the statu-
tory requirements, and directed them to
make report to me on schedule X Of
the tarifr act In December Of this year.
In my message Of August II. 1911, ac-
companying the veto Of the wool bill.
said that. In my Judgment. schedule X
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 fair regard
TO the interests Of the producers and the
manufacturers on the one 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
tina OF adequate knowledge Of the facts
to determine whether or not the proposed
act was In accord with my pledge to
support a fair ana reasonable protective
policy. that such legislation might prove
only temporary and intiict upon a great
Industry tho evils OF continued uncer.
tainty.
Advocates Reduction Of Rates.
! now herewith submit a report OF tho
unanimous in Its findings. On the basis
Of these findings now recommend that
the congress proceed to O consideration
OF this schedule with view to Its revi-
sion and a general reduction OF Its rates.
The report shows that the present
method OF assessing tho duty on raw
wool-this 10. by the specific rate on the
grease pound. l. O.. unscoured-operates to
exclude woods Of high shrinkage In
securing. but hne quality. from the
American market and thereby lessons the
range Of wools available to the domestic
manufacturer: that the duty on unsecured
wool Of - cents per pound II prohibitory
and operates to exclude the importation
Of clean. low-priced foreign wools OF In.
ferior grades. which are nevertheless val.
liable material for manufacturing. and
which cannot be imported In the grease
because OF their heavy shrinkaEe. Such
woods. II imported. might be used TO dis.
place tho cheap substitutes now In use
To make the preceding paragraph \ IT.
tie palmer, take the instance Of q hun
dred pounds OF hrst-class wool imported
under the present duty. which Is II cents
q pound. That would make the duty on
the hundred pounds I'll. The mcrchan.
disc part Of the wool thus imported ID
the weight Of the wool Of this hundred
pounds after securing. II the wool
ahrinka % per cent. as some wool does.
then the duty In such a case would
amount to I'll on 70 pounds Of secured
wool. This. Of course. would be prohibi.
tory. II the wool shrinks only 80 per
cent, Il would be III on 30 pounds Of
wool. and this IL near to the average Of
the great bulk Of woods that are imported
from Australia. which 10 the principal
source Of our imported wool.
These determinations could be over
come by assessing duty In ad valorem
terms. but this method 10 open to tho OBJ.
lection. hrst. that II increases administra-
tive difficulties and tends to decrease
revenue through differentiation: and.
second. that as prices advance. the ad
vaiorem rate increases the duty per pound
at the time when the consumer most
needs relief and the producer can best
stand competition: while II prices de.
cline the duty 10 decreased at the time
when the consumer 10 least burdened by
the price and the producer most needs
protection.
Method That Meets DIffieulty.
Another method OF meeting the din.
Guilty OF taxing the grease pound Ii to a..
cess u specific duty on grease wool In
terms Of Its secured content This oby,.
ates the chief evil Of the present system,
namely. the discrimination due te differ.