Dewey County advocate. [volume] (Timber Lake, S.D.) 1910-1913, 1911-12-29
PRESIDENT SAYS
RATES TOO HIGH
Chief Executive Urges Downward
Revision of Schedule K.
MESSAGE SENT TO CONGRESS

Document Upholds Protective Princi-
pie But a. the Same Time Most
ArdentIy Supports Recommen-
dations Of Tariff Board.
Washington. President Taft trans
mitted to congress the report OF the
tariff board ON schedule K. Accom-
panying the report, the chief execu-
tive sent to the national legislature
the following message:
To the Senate and House Of Representa-
tlves:
In my annual message to congress, De-
cember, 1909. stated that under section
: OF the act Of August s. 1909, 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 tho exist
ing tariff 20 a. to render its terms intel
ligible 10 the ordinary reader, and then
to investigate industrial conditions ana
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 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 Sixty-flrst con-
gress q bill creating permanent tariff
board OF five members, of whom not
more than three should be OF the same
political party. passed each house. but
failed OF enactment because OF slight oif-
ferences on which agreement was not
reached before adjournment. An appro-
priation act provided that the permanent
tariff board. IL created by statute. should
report to congress on schedule K In De-
cember. 1911.
Presidential Appointments.
Therefore, to carry out 20 far a. lay
within my power the purposes OF this
bill for q permanent tariff board. APP
pointed In March, 1911, . board of five,
adding two members Of such party affli-
alton AZ would have fulfilled the statu-
tory requirements. and directed them to
make q report to mo on schedule K OF
the tariff act In December OF this year.
In my message Of August II. 1911. &C
companying the veto Of the wool bill. I
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. q 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 q 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 was not myself possessed at that
time Of adequate 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 . great
industry the evils Of continued uncer-
tainty.
Advocates Reduction Of Rates.
now herewith submit . report Of the
tariff board ON schedule K The board 10
unanimous In its findings. On the basis
Of these findings I now recommend that
the congress proceed to consideration
Of this schedule with . view to it, revi-
sion and q general reduction Of its rates.
Tho report shows that the present
method Of assessing the duty on raw
wool-this 10. by the specific rate on the
grease pound, I. 9, ACKNOWLEDGEMENTS 20
exclude woods Of high shrinkags In
securing. but nns quality. from the
American market and thereby lessons the
range Of woods 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-prfced foreign woods Of In
ferior grades, which are nevertheless val
liable material for manufacturing. and
- a.
becAa,De 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 q 1T
tie palmer. take the instance Of q hum
dred pounds Of hrst-class wool imported
under the present duty. which II II cents
a pound. That would make the duty ON
disc part Of the wool thus imported 10
the weight Of the wool Of this hundred
pounds after securing. II the wool
shrinks 90 per cent. a. some wool does.
then the duty in such case would
amount to I'll on - pounds OF secured
wool. This; Of course. would be prohibit
tory. II the wool shEinks only 80 per
cent. It would be I'll on 20 pounds Of
wool. and this 10 near to the average Of
the great bulk Of woods that are imported
from Australia. which II the principal
source Of our imported wool.
These determinations could be over.
come by assessing q duty In "a valorem
terms. but this method II open to the OBJ
lection. first. that II increases administra-
live difficulties and tends to decrease
revenue through undervaluation: and.
second. that a. prices advance. the id
valorem 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 II decreased At the time
when the consumer II least burdened by
the price and the producer most needs
protection.
Method That Meets Difficulty.
Another method Of meeting the diff
Guilty Of taxing the grease pound 10 to a.
cess q specific duty on grease wool In
terms Of its secured content. This obvi-
ates the chief evil of the present system.
namely. the discrimination due to differ
ent shrinkages. and thereby tends great
iy to equalize the duty. The board re-
ports that this method II feasible in prac-
and could be administered without
Feat expense.
The report shows in detail the difficult
ties involved In attempting to state in
CATEGORICAL terms the cost of wool pro-