Montpelier examiner. [volume] (Montpelier, Idaho) 1895-1937, 1911-12-29

than. the duties paid on the clean conten.
of woods actually imported. They shou.u
be reduced and so adjusted 10 the 80
on wool as TO bear their proper proportion
to the real rate levied on the actuai woo'
imports
Some cutles Prohibitory'~
The duties on many classes OF wool
manufacture are prohibitory ana sreu1ss
in excess of the difference in cost OF pro-
duction here and abroad This is true OF
tops of yarns with the exception OF
worsted yarns of a very high graoel' anu
of low and medium grade cloth OF heaNy
weight.
on tops up to So cents pound In value.
and on yarns OF 65 cents In Naiue, uo
rate Is 100 per cent. with Correspondence
higher rates for lower values. on cheap
and medium grade cloths. the existing
rates frequently run to $50 per cent; anu
on some cheap goods to over W VS.
cent
On the other hand, the findings show
that the duties which run to such hisn az
valorem equivalents are prohibtory' sinSs
the goods are not imported but that the
prices of domestic fabrics are not raises
by the full amount of duty. on SCI "
one yard samples OF 16 English lapriSs.
which are completely excluded py .ue
present tariff rates, II was founu that ~
total foreign value was SilA. the uuuos
which would have been assessed mao thesS
fabrics been imported, $500, the toreish
value plus the amount of the duty, SIZES
or a nominal duty of 1888 per cent. In iae.,
however, practically identical fabrics Oh
domestic make sold at the same time
$50. rs, showing an enhanced price over inc
foreign market value of but 81 per cent
Would Reduce Duties.
Although these duties do not increase
prices of domestic goods by anything hAe
their full amount. It Is none the less tru2
that such prohibtive duties eliminate INV
possibility of foreign competition. even IN
time of scarcity. so that they form temp
taton to monopoly and conspiracy toKeon-
troll domestic prices: that they are fach
in excess of the difference in cost OF pro-
duction here and abroad. ana that they
should be reduced to a point which &C
cords with the principle.
The findings of the board show tnat IN
this Industry the actual manufacturing
cost. aside from the question OF the price
of materials is much higher In this coun-
try than 1t is abroad: that In the making
of yarn and cloth the domestic Wooien
and worsted manufacturer has IN geherai
no advantage In the form OF superior ma
chinery or more efficient labor 10 onset
the higher wages paid in this country.
The finds show that the cost OF turning
wool into yarn In this country 10 about
double that in the leading competing
country, and that the cost OF turning yarn
into cloth Is somewhat more than ooupie.
Under the protective policy great INDUS
try involving the welfare OF hundreds OF
thousands Of people has been estaohsheo
despite these handicaps.
In recommending revision and reduc-
ton therefore urge that action be ia
ken with these facts in mind, 10 tne emu
that an important and established INDUS
try may not be jeopardized.
The tariff board reports that no eQuita-
BILE method has been found to levy purely
specific duties ON wooden and worsted fab
RIGS, and that, excepting for compensa-
tory duty, the rate must be ad vaiorem
on such manufactures. 1t Is important TO
| realize, however. that no fiat ad valorem
| rate on such fabrics can be made TO work
fairly and effectively. Any single rate
| which is high enough to equalize the dir-
| ference in manufacturing cost at nome
and abroad on highly finished goods in
| volving such labor would be prohibitory
on cheaper goods. In which the labor cost
| is smaller proportion of the total value.
| Conversely, rate only adequate to equal
ize this difference on cheaper goods would
| remove protection from the fine gooosf
manufacture the increase in which has
been one of the striking features of the
| trade development in recent years.
therefore recommend that in any revision
the Importance of a graduated scale OF ad
valorem duties on cloths be caretully con-
! sidered and applied.
| Praises Work of Committee.
venture to say that no legislative
| body has ever had presented to 1t a more
| complete and exhaustive report than this
| on so difficult and complicated a subject
| as the relative costs of wool and wooens
| the world over. II Is monument to the
| thoroughness, industry, impartiality and
| accuracy of the men engaged In its ma
king. They were chosen from both polit-
ical parties. but have allowed no partisan
| spirit to prompt or control their inquiries
They are unanimous in their findings. I
feel sure that after the report has been
printed and studied the value of such a
compendium OF exact knowledge In re-
spect to this schedule OF the tariff will
convince all of the wisdom of making
such a board permanent. in order that
1t may treat each schedule of the tariff
as 1t has treated this and then keep its
| bureau of information up to date with
current changes in the economic world.
1t is no part of the function of the tar
If board to propose rates of duty. Their
function is merely TO present findings of
fact on which rates of duty may be fairly
determined in the light of adequate
knowledge in accordance with the eco
nomic policy to be followed. This Is what
the present report does.
The findings of fact by the board show
ample reason for the revision downward
of schedule X, In accord with the pro-
tective principle. and present the data
as to relative costs and prices from which
may be determined what rates will fairly
equalize the difference In production costs.
recommend that such revision be pro-
ceeded with at once.
tSigned) WILLIAM H. TAFT.
The White House. Dec. 90 191l