Omaha daily bee., 1911-12-21
TAFT SAYS WOOL DUTY HIGH
President Sends Report of Tariff
Board on Schedule X to House.
REDUCTIONS ARE RECOMMENDED
Ueport shows the difference OF Cost
of Production aud Manufacture
Between United states
ana Abroad.
CONTINUED from Page one.)


Der cent. as some wools do. then the duty
in such a case would amount to 81 on
twenty pounds Of secured wool This, of
course, would be prohibitory. If the wool
shrinks only 80 per cent, It would be s11
on fifty pounds of wool, and this is near
10 the average OF the grand bulk OF woods
that are imported from Australia, which
is the principal source of our imported
wool.
These determinations could be over
come by assessing duty I'm ad valorem
terms, but this method is not open TO
these objections; first that Il increases
administrative difficulties and tends to
decrease revenue through undervaluatlon
and. second, that as prices advance the
ad 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
decline the duty is decreased at the time
when the consumer is least burdened by
the price and the producer most needs
protection.
Duty on Secured Content,
ANOTHER method OF meeting the diff
ficulty Of taxing the creased pound is TO
assess a specific duty on CREASED wool
in terms of it's secured content This
obviates the chief evil of the present
system, namely. the discrimination due TO
the different shrinkages, and thereby
tends greatly to equalize the duty. The
board reports that this method is feas-
able in practice and could be administered
without great expense. The secured con-
tent of the wool is the basis on which
users Of wool make their calculations,
and a duty of this kind would fit the
usages Of the trade. One effect OF this
method Of assessment would be that re-
gardless of the rate of duty, there would
be an increase in the supply and variety
of wool, by making available to the
American market woods Of both low and
fine quality now excluded.
THE report shows in detail the diff
culties involved to state in categorical
terms the cost of wool production and
the great differences in cost as between
different regions and different types of
wool. 1t 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 county by an amount some-
what less than the present duty.
The report shows that the duties on
nols, wool wastes and shoddy which are
adjusted to the rate of 90 cents on
secured wool is prohibitory. In general
they are assessed at rates as high or
higher than the duties paid on the clean
content of woods actually imported.
They should be reduced and so ad-
Justed to the rate on wool as to bear
their proper proportion to the real rate
levied on the actual wool imports.
Some Duties PrOhibitory.
The duties on many classes OF wool
manufacture are prohibitory and greatly
in excess of the difference in cost of pro-
duction here and abroad.
This Is true OF tops, of yarns Cwith the
exception OF worsted yarns OF a very
high grade) and Of low and medium grade
cloth Of heavy weight
ION tops up to SO cents a pound IN
value and on yarns of 65 cents in value
the rate is 100 per cent, with correspond-
ingly high rates for lower values. On
cheap and medium grade clothes the ex-
isting rates frequently run to I5O 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 ostensibly TO
compensate the manufacture for the en-
hahced cost Of his raw material due to
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
ad valorem 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 a
set of one yard samples Of sixteen Eng
hsh fabrics, which are completely ex-
eluded by the present tariff rates, il was
found that the total foreign value was
al.S4; the duties which would have been
assessed had these fabrics been imported.
F"@; the foreign value plus the amount
OF the duty, NlS74, or a nominal duty Of
lSS per cent. In fact, however practically
Identical fabrics of domestic make sold
at the same time at $6s.75, showing an
enhanced price over the foreign market
Of but 81 per cent
Although these duties do not increase
prices OF domestic goods by anything like
their fun amount IL is none the less true
that such prohibitive duties eliminate the
possibility OF foreign competition, even in
time OF scarcity; that they form a
temptation to monopoly and conspiracy
TO control domestic prices;, that they are
iiANNA Ah NAANao VI llt ullleTGnCe IN cost
OF production here and abroad, and that
they should be reduced to a point that
accords with this principle.
Cost of Manufacturing.
The findings of the board show that
in this industry the actual manufacturing
cost, aside from the question OF the price
Of materials, is much higher In this coun-
try than it is abroad, that in the making
Of yarn and cloth the domestic wooden or
worsted manufacturer has in general no
advantage I'm the form OF superior ma
chinery or more efficient labor to offset
the higher wages paid in this country.
The findings show that the cost OF
weaving wool into yarn in this country
is about double that in the leading com
petition country, and that the cost of
turning yarn into cloth is somewhat more
than double. Under the protective policy
a great industry, involving the welfare
Of hundreds OF thousands OF people. has
been established despite these handicaps.
In recommending revision and reduc-
ton, therefore urge that action be taken
with these facts in mind TO the end that
an Independent and established industry
may not be jeopardized.
E.k-so. n1eff.uIs u-nhI.v,