The Washington herald., 1911-12-24
STATEMENT BY McCLu RE.


STATEMENT BY McCLI RE.
lie makes d comparison of interest
charges in this country and Australia,
which is a big producer of wool. Secre-
tary MvClure'S statement. in part. is as
follows
The full report of the tariff board IS
not as yet published, but a synopsis Gov
eriuE the most important parts has been
printed. This shows the cost of wool
production in the West to be not less
than II cents a pound In arriving at
this cost. the board very clearly states
that a charge for interest on investment
has not been included either in the cost
Of producing domestic on foreign wool.
The report however. shows that the
averHC" interest CharG" in the West is
!" per cent, whIlc in Australia it is but
> per cent Nuv- i'm order to determine
what "A pound Of wool is actually costing
the Western wool grower, interest, not
only on the sheep, but on the investment
i'm lands and equipment. must be included.
The report of the tariff board shows the
average cost OF our sheep to he $50 4
head. and the Western flOckmaStcr has
an investment IN lands and equipment to
maintain these sheep Of at least $40 per
head. This would give a total invest
mrnt per sheep at $40. which. with 10 per
cent interest. would make il necessary
I" add anoth"r dollar per head.
Interest Not included.
The cost Of production of wool rep
rc>entS - per cent Of the income from
the sheep. so W. would have to add 20
cents t" cost Of producing an average
Western fleece. With this interest charge
included, the report clearly shows that
the American wool grower has been los
ing money.
when the word went out that the
American wool grower was getting s.
for the wool in a suit OF clothes. many
Western 7OCkmasterS did not understand
it. But the suit Of clothes which the
tariff board has used as sample was
made out of Onc-hah block Ohio wool,
for which the grower received y cents
per pound Now. had this suit been
mad Of Western wool, for which the
grower mas received on an average about
Il cents per pound it will be seen that
he is receiving about y 60. instead OF s. %,
from the suit Of clothes.
when everything is understood. it will
hc seen that the American wool grower
must have adequate protection or else
quit tn" sheep business forever.
The board has indOrsed the idea OF
placing the wool duty on the secured
basis. and this is one thing for which
the wool growers have been cOntcndng
for Tn" past YEAR
Democrats Outline Plans.
Representative Underwood yesterday
outlined the Democratic programme for
the revision OF the tariff. which will he
taken up imm adiat"ly after the holidays
At the same time the Republicans will
begin work on a bill Of their own. al
though they rannot hope to pass it,
The Democrats of tn" WAYS and
Means committee will start work on
Schedule X soon as we can check the
report of the ta~:ff board. said Mr. IN
dorwuOd
We propose 10 frame tariff based
on the differenC" in cost of production ~
"ome and abroad and We are willing to
take the tariff boards figures. so far as
they ma" he correct. in our tariff making
ours will be d tariff for revenue, based
on this principle. Republican protection
means n tariff with profits thrown in.
which make the rates in many cases
TrohihitUry, as admitted in the Presi-
dents message and the tariff board re-
port.
Revise Six Schedules.
The Democratic House proposes to re-
wise the wool. cotton, chemical, iron and
riccl. and metal schedules The tariff
board has furnished a mass OF data on
the wool schedule. and will follow about
January Il with report on cotton. These
reports will hC interesting sidelights on
the general tariff controversy
Republican members OF the Ways and
Means Committee contend that the tariff
heard report justifies a protective tariff.
even though il recommends material re-
ductions in the Payne law rates.
The insurgents OF the House will re-
fuse to stand by their Republican col
leagues unless they propose a bill that
really makes reductions especially in
Schedule X.
The insurgents have no representation
on the Ways and Means Committee. so
they will remain quiet until both bills
arc presented 20 the House If the Payne
substitute approNimates the rates in the
present lawn other words, il the Re
publican leaders insist on but n slight
lowering Ct the rates-the insurgents will
turn I'm and vote with the Democrats, as
they did hast session. II the Payne sub
stitute proposes real reductions. the in
surgents will stand with the party, so as
10 present united front TO the country
in the campaign of 1912.
There is no insurgency on the Demo-
cratic side Of :he House. The Demo-
cratic rank and file will stand solidly
behind any bill presented by the majority
OF the Ways and Means Committee. de-
spite the fact that a few OF the Demo-
Gratis personally favor free raw wool.