The Oskaloosa herald., 1911-12-21


would be s11 on so pounds of wool
and this is near to the average Of th'
great bulk of woods that are imported
from Australia, which is the principal
source of our imported wool.
These determinations could be
overcome by assessing a duty in ad
salorem terms. but this method is
open to the objection. first, that it In
creases administrative difficulties and
tends TO decrease revenue through un.
LIBERALIZATION; and, second, that as
prices advance, the ad valorem rate in
crcases the duty per pound at the time
when the consumer most needs relief
and the producer can best stand COM
petition; while if prices decline the
duty is decreased at the time when
the consumer is least burdened by the
price and the producer most needs
protection.
Method That Meets Difficulty.
Another method of meeting the diff
Guilty of taxing the grease pound is to
assess a specific duty on grease wool
in terms of its secured content. This
ohyiates the chief evil OF the present
system, namely the discrimination
due TO different shrinkages, and there
by tends greatly TO equalize the duty.
The board reports that this method is
feasible in practice and could be ad'
ministered without great expense. The
secured content of the wool is the
basis on which users of wool make
their calculations, and a duty of this
Kind would fit the usages of the trade.
One effect of this method Of assess
ment would be that. regardless of the
rate of duty. there would be an in
crease in the supply and variety of
wool by making available to the Amer
ican market woods of both low and
fine quality now excluded.
The report shows in detail the diff
culties involved in attempting to state
in categorical terms the cost of wool
production and the great differences
in cost as between different regions
and different types OF wool. 1t is
found, however, that, taking all varie-
ties in account, the average cost of
production for the whole American
clip is higher than the cost in the
chief competing country by an amount
somewhat less than the present duty.
The report shows that the duties on
noils, wool wastes, and shoddy, which
are adjusted to the rate of SO cents
on secured wool, are prohibitory in the
same measure that the duty on secured
wool is prohibitory. In general, they
are assessed at rates as high as, or
higher than, the duties paid on the
clean content Of woods actually i'm
ported. They should be reduced and
SO adjusted TO the rate on wool as TO
bear their proper proportion TO the
real rate levied on the actual wool i'm
ports.
Some Duties Prohibitory.
The duties on many classes of wool
manufacture are prohibitory and
greatly in excess of the difference in
cost of production here and abroad.
This is true OF tops. of yarns with the
exception Of worsted yarns Of a very
high gradel, and of low and medium
grade cloth of heavy weight.
On tops up to 80 cents pound in
value. and on yarns of 60 cents in
value, the rate is 100 per cent, with
correspondence higher rates for low
er values. On cheap and medium
grade cloths. the existing rates fire.
qucntly run to $50 per cent. and on
some cheap goods TO over 200 per
cent This is largely due TO that part
OF tie duty which is levied ostensibly
TO compensate the manufacturer for
the enhanced cost of his raw material
due 10 the duty on wool. AS matter
of fact. this compensatory duty. for
numerous 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 prohibi-
tory. since the goods are not import
ed, but that the prices of domestic
fabrics are not raised by the full
amount Of duty. On a set of one yard
samples of Is English fabrics, which
are completely excluded by the pres
ent tariff rates, it was found that the
total foreign value was s41.S4 the du-
ties which would have been assessed
had these fabrics been imported
$3.50; the foreign value plus the
amount Of the duty, $11s.7i or NOM
inal duty Of 1S3 per cent. InFfact
however. practically identical fabrics
Of domestic make sold at the same
time at S69I5. showing an enhanced
price over the foreign market value of
but e. per cent.
Would Reduce Duties.
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 pro-
hibitive duties eliminate the posi-
bility OF foreign competition. even in
time OF scarcity, so that they form d
iCmptatiop 10 monopoly and conspira-
cies to control domestic prices: that
they are much in, excess of the differ
ence in cost Of production here and
abroad, and that they should be re.
duccd 10 point which accords with
the principle.
The findings of the board show that
In this industry the actual manufactur-
ing cost, aside from the question OF