The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1911-12-20
Congress- Hears From the Tariffs
Board Which Submits it's Report
on the Wool Question and
the Duties.
COMPETITIVE INDUSTRY
Profit In High Price Of Clothing Il
Laid at the Door OF the Re-
taller Who Reaps the
Harvest.

WASHINGTON, Dec Declaring
many of the schedules in the Payne
Aldrich tariff to be ''prohibitive,' the
report of the tariff board on wool
was submitted to congress today by
President Taft.
AS to the differences in cost of pro-
duction at home and abroad it sets
forth that in nearly every woolen
product from the dirty fleece up to
/ the finished worsted cloth, 1t costs
much more to produce wool and wool
en- goods in America than any other
country on earth.
1t costs 19c to raise pound OF
wool in Ohio and in Australia con-
siderably less than four cents. These
j differences continue throughout the
woolen industry. While American Ia
bor is much higher paid than in Eu-
rope, the board finds that it is not as
efficient as that in European mills.
About one dollar of every four paid
to the retailer af mems eloshing goes
to the manufacturer Of the cloth. A
J suit retailing for $23 is sold at whole
+ sale by the manufacturer for $16.50. 1t
, costs him $14.32. Thus in general,
> the manufacturer of cloth and cloth
: ing is absolved by the board from the
, greater part of profit in the high cost
+ of clothing, and it is attributed to the
retailer.
o The board states, however, that the
q high duties on wool have not resulted
n in retail prices as high as might be
y I expected. Competition has kept
q prices down This competition was
stimulated when the high duties made
v wooden manufacture very profitable
n Then foreign capital came in and
q built mills. For all wooden entries
/. the board recommends specific dutie!
q instead of the present method of as
!. sessing ad valorem rates. The ad va
a loren system makes duties high whel
prices are high and the consume
most needs relief although the pre-
ducer is best able to bear competition
When prices are low and the con
u sumer has need of foreign competl
tion. then under the ad valorem sys
d TEN duties are low and the foreigl
competition comes in.
The board advocates Specific du
ties" as the best and easiest way t.
i offset the difference IN cost of pre-
to duction here and abroad. Because o
f. the difficulty in classifying fabrics
r. however, the board recommends
IL common specific and ad valorem dut
III on wooden cloths, a low ad valorer
n rate on cheap goods, increasing to tn
N highest rate on expensive goods. Ea
ne actly the reverse policy was adopte
he by the trainers of the Payne-Aldric
wv tariff
lie Experts for the board studied voc
growing in Australia, South Americ;
he South Africa, Great Britain and othe
ed European countries and In 173 cou1
Ia ties in 10 states in this country
We The report reads: THE result of tn
ed raw wool investigation establishe
the fact that it costs more to gro
wool in the United States than in an
other country, that the merino WOO
e. required In such great volume by oil
Tor mills are the most expensive of a
p wools produced; that the highest a
ed erage cost of production of such wo
to- in the world is in the state of Oh
re- and contiguous territory; and th
nd the lowest average cost of simili
nd wool. is in Australia"
ith Deducting the proceeds from Il
ex- sales of lambs and mutton, whit
usually balance the expense of Il
re. flock. the average cost of fine meril
he wool in the United States is IL cen
ICE per pound The entire wool crop
fine and coarse wolls costs nine al
one-haif cents pound to produce.
In South America the cost is
e. tween four and five cents.
ne. The Australiasian costs are cons
my erably below the South American.
rol The report says: The present du
Ind of 33 cents per pound on scour
an wool is prohibitive. preventing eff
ian tually the importation of clean, lc
priced foreign woods of the low
grades that would be exceeding
useful in the manufacture of wool,