The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1911-12-22

wool is the basis on which users of
1 wool make their calculations, and a
duty of this kind would fit the usages
of the trade. One effect of this me-
thod of assessment would be that, re-
| CARELESS of the rate of duty, there
would be an increase in the supply
and variety of wool by making avail
| able to the American market woods of
both low and fine quality now exclud-
ed
The report shows that the duties on
noils, wool wastes, and shoddy, which
are adjusted to the rate of 33 cents on
secured wool, are prohibitory in the
same measure that the duty on scour-
ed wool is prohibitory. In general,
they are assessed at the rate as high
as or higher than, the duties paid on
the clean content of woods actually inn
| 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
| imports.
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 very
high grade), and of low and medium
grade cloth of heavy weight.
On tops up to So cents pound in
value, and on yarns of IS cents, the
rate is 100 per cent with correspond
ingly higher rate for poor values. On
cheap and medium grade cloths the
existing rate frequently runs to $50
per cent and on some cheap goods to
over 200 per cent. This is largely
due to that part of the duty which is
levied ostensibly to compensate the
manufacturer for the EXCHANGED cost
of his raw material due to the duty on
wool. AS matter of fact, this COM
pensatory duty on numerous classes of
goods is much in excess of the amount
needed in strict compensation.
On the other hand, the findings
show that the duties which run to
high ad valorem equivalents are pro-
hibitory, since the goods are imported,
but that the prices of domestic fabrics
are not raised by the full amount Of
duty. On a set of 1 yard samples of
16 English fabrics, which are COM
pletely excluded by the present tariff
rates, it was found that the total for
eign value was SALSA; the duties
which would have been assessed had
these fabrics been imported, $3.50;
the foreign value plus the amount of
the duty, $11S74; or nominal duty
of 1873 per cent. In fact, however,
practically identical fabrics of domes-
tic made sold at the same time at
$69.75, showing an enhanced price
over the foreign market value of but
CT per cent
Although these duties do not in-
crease price of domestic goods by
anything like their full amount, it is
none the less true that such probihi-
tive duties eliminate the possibility
of foreign competition even in time Of
scarcity so that they form a tempta
ton to monopoly and conspiracies to
control domestic prices, that they are
much in excess of the difference in
cost, of production here and abroad,
and that they should be reduced to a
point which accords with the principle
Ii The findings of4thet 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 manu-
facturer has in general no advantage
In the form of superior machinery or
more efficient labor to Offset the high
er wages paid in this country. The
findings show that the cost of turn.
ing wool into yarn in this country is
about double that in the leading com.
peting country, and that the cost of
turing yarn into cloth is somewhat
more than double. Under the protec.
tive policy great industry, involving
the welfare of hundreds of thousands
of people, has been established despite
these handicaps.
In recommending revision and re
duction l therefore urge that action be
end that an important and established
industry may not be jeopardized. The
tariff board reports that no equitable
method has been found to levy purely
specific duties on wooden and worsted
fabrics and that excepting for com
pensatory duty, the rate must be ad val
orem on such manufactures. 1t is i'm
portant to realize, however, that no flai
ad valorem rate on such fabrics can be
made to work fairly and effectively.
Any single rate which is high enough
to equalize the difference in manufac.
turing cost at home and abroad on
highly finished goods involving such
labor would be prohibitory on cheaper
goods, in which the labor cost is a
smaller proportion of the total value.
Conversely, a rate only adequate to
equalize this difference on cheaper
the fine goods manufactured, the in
| crease on which has been one of the
striking features of the trade develop
ment in recent years. / therefore rec
ommend that in any revision the i'm
portance of a graded scale of ad val
orem duties on cloths be carefully con-
sidered and applied.
1t is in no part of the function of
the tariff board to propose rates of
duty. Their function is merely to pre-
| sent findings of facts on which rates
of duty may be fairly determined in
the light of adequate knowledge in ac-