The Idaho Springs siftings-news., 1911-12-30
Chief Executive Urges Downward
Revision of Schedule K.
MESSAGE SENT TO CONGRESS
Document Uphoids Protective Prinet
pie But at the Same Time Most
Ardsntly Supports Rseommsn-
dations Of TariR Board.

tariff board on schedule X Accom-
panying tho report, the chief execu-
uvs sent to the national legislature
The following message:
To the Senate and House Of Representa-
Adves:
In my annual message to congress. De-
eembsr, 1909 I stated that under section
Of the act of August 8. 1909. I had ap-
pointed . tariff board OF three members
to cooperate with tho state department
IN the administration of the maximum
and minimum clause OF that act. to make
. glossary or encyclopedia Of the exist
ing tariff 20 a. to render Its terms intel
hs1bls TO the ordinary reader. and then
to Investigate industrial conditions and
costs of production at home and abroad.
With . 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
aAequats. to squalizs the difference in cost
ef production at home and abroad
further stated that believed these In
vestigations would be OF great value - q
boAs for accurate legislation and that
could from time to time recommend to
eongress the revision Of certain sched-
uoss in accordance with the findings OF
- board.
In the last session of the Sixty -nrst con-
Gsoss q bill creating a permanent tariff
board OF nve members. of whom not
Wore than three should be of the same
po)itical party. passed each house out
failed OF enactment because OF slight oif-
fsrences on which agreement was not
reached before adjournment. An appro-
priation act provided that the permanent
tariff board. II created by statute. should
. report to congress on schedule X In De-
Acember, 1911
Presidential Appointments.
Therefore. to carry out SO far ~ lay
within my power the purposes Of this
hill for q permanent tariff board. I ap-
pointed in March. 1911. a board OF nve.
adding two members Of such party affli-
alton a. would have fulfilled the statu-
tory requirements. and directed them to
make . report to me on schedule n OF
the tariff act in December Of this year
In my message of August II. 1911, ac-
conppanyinK the veto OF the wool bill.
sald that in my Judgment. schedule
should be revised and the rates reduced
My veto was based on the ground that.
1nce the tariff board would make. In
ecember. a detailed report on wool and
Aoi manufactures. with special refer
Vye to the relation OF the existing rates
R6uties to relative costs here ano
Toad. public policy and a fair regard
10 the interests of the producers and the
manufacturer on the ono hand and OF
the consumers on the other demanded
that legislation should not be hastily en-
acted in the absence of such information:
that was not myself possessed at that
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 inhict upon grea'
industry the evils of continued uncer-
tainty.
Advocates Reduction Of Rates.
now herewith submit q report Of the
tar,n board on schedule K. The board Is
H. And
Of these findings I now recommend that
The congress proceed to consideration
ok this schedule with view to Its revt-
s1on and q general reduction Of Its rates.
method Of assessing the duty on raw
wool-this IL. by tho specific rate on tho
Rroase pound, l. O., unscoured-operates to
exclude woods Of high shr1nkage in
securing. but fne 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 IL prohibitory
ard operates to exclude the importation
Of elean. lowpriced foreign wools OF IN
fefaor grades which are nevertheless val
nable material for manufacturing. and
vh1ch cannot be imported in the grease
bseauss Of their heavy shrinkage. Such
woods, II imported. might be used to dis
place the cheap substitutes now IN use
To make the preceding paragraph lit
lie palmer, take the instance OF q hun
AIRED pounds of frst-class wool imported
>der the present duty. which II II cents
round That would make the duty on
hundred pounds 81. The merchan-
"a part Of the wool 'hus imported is
ehs weight Of the wool Of this hundred
pounds after securing. II the wool
shrinks % per cent. as some wool does,
then the duty in such a case would
amount to III on 20 pounds OF secured
wool This, of course. would be prohibi-
eory. II the wool shrinks only 20 per
cent, It would be I'll on 30 pounds of
vool. and this IL near to the average Of
the great bulk of wools 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 10 open to the OBJ
Section. first that 1t increases administra-
t1ve difficulties and tends to decrease
revenue through undervaluation: and.
eecond, that as prices advance tho ad
vnlorem rate increases the duty per pound
at tho time when the consumer most
needs relief and the producer can best
stand competition: while II prices de-
eiins the duty 10 decreased at the time
,when the consumer IL least burdened by
the price and the producer most needs
protection.
Method That Meets Dlf,euIty.
Another method of meeting the diff
calty Of taxing the grease pound is to as
csso q specific duty on grease wool In
Narms Of its secured content. This obvi-
a etee the chief evil Of the present system.
namely, the discrimination due te differ
|ent shrinkaees, and thereby tends great
q to eoualize the duty The board re-
,prts that this method IL feasible in prac-
ice and could be administered without
reat expense.
The report shows in detail the difficult
II involved in attempting to state in
ategorical terms tho cost of wool pro-
nction and the great differences in cost
between different regions and different
nes of wool It IL found however. that.
ling all varieties in account. the aver
cost Of production for the whole
ertcan clip II higher than the cost In
chief competing country by an
mt somewhat less than the present