The Chanute times. [volume] (Chanute, Kan.) 1897-1913, 1911-12-29


increases administrative difficulties
and tends to decrease revenue
through under valuations and, sec
ond, 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; Whlle 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.
Another method of meeting the oil
ficulty of taxing the grease pound Is
to assess a specific duty on grease
wool in terms of secured content
This obivates that chief evil OF the
present system namely, the discrlma-
ton due to different shrinkage ana
thereby tends to really equalize the
duty, the board reports that this meth
cd is feasible in practice and could
be administered without great eX-
pense The secured content of WOOL
is the basis on which users OF WOOL
make their calculations, and a duty
of this kind would fit the usages or
trade. One effect of this method or
assessment would be that regardless
of rate of duty, there would be an In
crease in the supply and variety OF
wool by making available to American
market woods of both low and fine
quality now excluded.
The report shows in detail the diff
ficulities involved in attempting to
state in categorical terms the cost
of wool production and the great diff
ferences in cost between different re-
gions and different types of wool.
1t is found, however that, taking all
varities in account, the average cost
of production for the whole American
clip is higher than the cost of any
competing country by an amount
somewhat less than the present duty.
The duties on many classes of wool
manufactured are prohibitory and
greatly in excess of difference in cost
of production here and abroad. This Is
true of tops, of yarns with exception
of worsted yarns of a very heavy
grader and of low and medium grade
cloth of heavy weight.
On tops up to So cents pound in
value, and on yarns of Go cents in
value, the rate is 100 per cent, with
CORRESPONDENCE higher rates for lower
values. On cheap and medium grade
cloths, the existing rate frequently
run to $50 per cent, and on some
cheap goods to over 200 per cent.
This is largely due to that part of duty
which is levied ostensibly to COM
pensate the manufacturer for the en-
! HANGED cost of his raw material due
to the duty on wool. AS a matter OF
| fact. this compensatory duty, for num-
erous 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 yalOrem equivalents are
prohibitory, since the goods are not
imported, but that the prices of do
nestle fabrics are not raised by the
! full amount of duty. On a set Of
vineyard samples of l6 English fabrics
which are completely excluded by the
/ present tariff rates, it is found that the
total foreign value was SALSA; the
duties which would have been assess
ed had these fabrics been imported
5000; the foreign value plus the
amount of duty S11S.74 or a normal
duty of 1873 per cent, in fact however,
practically identical frabrics of domes-
tic make sold at the time at $69.75,
showing an enhanced price over the
| foreign market value of but 81 per
cent
Although these duties do not in
crease prices of domestic goods by
anything like their full amount, it is
none the less true that such prohibit
tive duties eliminate the possibility
of foreign competition even in time of
scarcity so that they form tempta-
ton to monopoly and conspiracies to
control domestic prices, that they are
much in excess of the difference in
and that they should be reduced to
point which accords with the prin-
ciple.
The findings of the Board show that
in this industry the actual manufac-
turing cost, aside from the question
of the price of materials, is much
higher in this country than it is
abroad; that in the making OF yarn
and cloth the domestic wooden or
worsted manufacturer has in general
no advantage in the form of superior
machinery or more efficient labor to
offset the higher wages paid in this
country. The findings show that the
cost of turning wool into yarn in this
country is about double that in the
leading competing 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