Omaha daily bee., 1911-12-21

In the western part OF the United states |
where about two-thirds Of the sheep OF
the country are to be found the fine and |
fine medium woois carry an average |
charge OF at least II cents per pound. in
terest not included. II account Is taken |
OF the entire wool production Of the coun- |
try including both fine and coarse woods. |
the average charge against the clip is |
about sh cents per pound. In South |
America the corresponding charge is be- |
tween 4 and cents per pound.
Taking Australia as a whole II appears |
that charge OF "A very few cents per
pound lies against the great clips OF that
region in the aggregate While the board |
cannot. therefore, undertake 20 name an
exact figure In that case II il certain
that Australia's costs at large fall materi-
ally below the South American.
The board finds that the present
method Of levying the duties upon raw
wool is defective in that It operates, by
reason OF the varying shrinkage OF the
different kinds OF wool, TO prevent the
Importation OF many heavy conditioned
sorts. which. II imported, would add sub
stantislly to the stock OF sound staple
available for the manufacture of wooden
fabrics. There is no valid reason for the
discrimination that now exists as being
the woods OF class I CMerino and cross
bred) and class II tE;nslish medium and
luster) and that these two classes could
properly be consolidated.
"The present duty OF 80 cents per pound
on secured wool is prohibltive preventing
effectually the importation OF clean low
priced foreign wool OF the lower grades
that would be exceedingly useful in the
manufacture of woolens in this country,
and IL so might displace in large measure
the cheap substitutes now so frequently
employed in that industry. The fact that
such cheap woods are OF such heavy
shrnkage that they cannot be imported
in an unsecured state emphasizes all the
more the prohibitive character OF the
present secured pound duty.
objection to Ad VOIOrem Rate.
That an ad valorem rate is open to
grave difficulties from the point of view
OF administration and revenue, in the case
OF a crude, bulky commodity like wool
produced in many remote regions and
finding its way into the markets through
so many various channels of trade.
That Furthermore, an ad vRlorem rate
would give high duty per pound when
prices are high; that Is. when the con-
sumer most needs relief and the pro-
ducer is most able to bear competition.
With low price OF wool the duty per
pound would be low: that is at the time
when the consumer has less need of com
peting woods and the producer is least
able to bear competition.
THE rates of schedule X are based on
the assumption that woods in tine grease
shrink an average of 66ss per cent. While
It is true that considerable quantities OF
wool do shrink that amount the average
is well below that figure. Certain very
heavy woods grown at the South African
cape and in certain districts of Australia,
South America and the western United
States shrink as high as 10 to 75 per cent.
THE cost of manufacturing wooden
yarns and cloth in the United States is
much higher than in EEfope. The main
elements of cost OF production are cost
of plant. material and labor The cost
OF erecting and equipping both woolen
and worated mills is much higher In this
country than in England.
Effect of the Duty.
1.-THE material is increased in price by
the duty on raw wool. The manufacturer
who imports his wool must pay the
, full amount of the duty. Woods grown
in the United States are increased in
value by the duty, but not by the full
extent of the duty. Wages are much
higher in the United States, but wages
are in themselves no necessary indication
OF relative cost of production. Frequently
| It is found that high wages and low
labor cost 20 together.
1T appeors that this particular indus
| try is one I'm which the high elements Of
costs in this country are not in general
offset by any particular advantage or
any marked superiority in the efficiency
OF labor. To a certain extent, European
countries have the advantage OF us in
this latter regard.
1T may be said then. that. taking the
industry as a whole, the American manu-
facturer practically has no advantage in
efficiency OF labor and equipment over
his foreign competitor. On certain spe-
cialties the largest and most efficient
| American mills are able by skillf1l organ
ization materially to reduce the difference
in cost"
The Investigation was begun in 1910
and haA been pursued at home and