The searchlight., 1911-12-29
TAFT FOR Low WOOL
PRESIDENT TRANsMITs FINDINGS
OF THE TARIFF BOARD TO
CONGRESS IN MESSAGE.
DEMOCRATIC VIEW IS SUSTAINED
In Document Which Urges . General
Reduction Of Schedule K and
Retention Of the Tarl1
Board.

To the Senate and House Of Repre-
setatives:
In my annual message to congress
December. 1909. l stated that under
Section Of the act Of August 5. 1903,
I had appointed . 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 glossary or en-
cyclopedia of the existing tarin 90 ~
to render its terms Ineligible to the
ordinary reader, and then to invesu-
gate Industrial conditions and costs OF
production at home and abroad with
a view to determining to what extent
existing tariff rates actually exemplify
the protective principle. viz: That
duties should be made adequate, and
only adequate. to equalize the differ
ences in cost Of production at home
and abroad.
In the last session Of the sixty.f1rst
congress bill creating q 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 be-
cause Of slight differences on which
agreement was not reached before ad-
journment. An appropriation act pro-
vided that the permanent tariff board,
II created by statute, should report to
congress on schedule X in December,
1911.
In my message Of August II, 1911,
accompanying 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, a detailed
report on wool and wool manufactures
with special reference to the relation
of the existing rates of duties to re-
lative costs here and aboard, public
policy and a fair regard to the in
terests of the producers and manu-
facturers 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 informa-
ton, that l 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 and
reasonable protective policy; that such
legislation might prove only temper
airy and inflict upon a great industry
the evils Of continued uncertainty.
/ now herewith submit a report OF
the tariff board on schedule X. The
board Is unanimous in its findings. On
the basis of these findings l now
recommend that the congress proceed
to a consideration of this schedule
with a view to its revision and a
general reduction OF is rates.
The report shows that the present
method of assessing the duty on raw
wool-that is by a specific rate
on the grease pound, 1. e., unsecured
operates to exclude woods OF high
shrinkage In securing but fine quality
I from the American market and there.
! by lessons the range Of woods avail
able to the domestic manufacturer;
| that the duty on secured wool of 3S
cents per pound is prohibitory and
operates to exclude the importation OF
| clean, low priced foreign woods OF In
/ ferior grades, which are nevertheless
valuable material for manufacturing
and which cannot be imported In the
grease because of their heavy shrink
age. Such woods. II imported, might
be used to displace the cheap sub
stitutes now in use.
To uaEa tho pranadfpU nh q
littler palmer, take the instance Of q
hundred pounds Of first class wool i'm
ported under the present duty, which
Is lie a pound. That would make the
duty on the hundred pounds s1l. The
merchantable part of the wool thu.
imported Is the weight of the wool o
this hundred pounds after securing
II the wool shrinks so per cent, a.
some woods do, then the duty in sucl
case would amount to $11 on q
pounds Of secured wool; this, O
course. would be prohibitory. II tn,
wool shrinks only so per cent, 1t woul,
be sl1 on so pounds Of wool, and thi
IL near to the average Of the grea
bulk Of woods that are imported from
Australia, which is the principa
source of our imported wool.
These determinations could be over
come by assessing a duty in ad yalol
EN- terms. but this method is open 4
the objection. first, that, 1t increase
administrative difficulties and tends I
decrease revenue through under-ya
nation due to different shrinkages, an
vance, the ad valorem rate increase
the duty per pound at the time whe
the consumer most needs relief an
the producer can best stand compet
ton; while IL prices decline the dut
is decreased at the time when the cor
sumner Is least burdened by the pric
and the producer most needs protet
ton.
Another method Of meeting the dil
nculty of taxing the grease pound I
to assess q specific duty ON greas
wool in terms of its secured content
This obviates the chief evil Of th
|, present system. namely. the discrim
/