The Richmond Virginian. (Richmond, Va.) 1910-1920, 1911-12-21

and Gcncsnl reduction o. ~ rafes.
The report shows that the present
method OF assessing the duty on raw
wool--this 10. by q specific rate on
the grease pound Il. o. unsecured
operates to exclude woods Of high
shrinkaEe in securing but ttne quality
from the American market and there
by lessons the range or WOODS avail
able tn the domestic manufacturer;
that the duty on secured wool OF 50
cents per pound Ia. prohibitory ami
operates to exclude tho importation
of clean. low-priced foreign woods OF
inferior grades. which are neverths-
less valuable material for manufac-
turing. and which cannot be import
ed In the grease because OF their
heavy shrinkage. Such woods, X
imported. might be used to dispiace
the cheap substitutes now IN use.
To make the preceding paragraph
q little palmer, take the instance or
a hundred pounds Of f1rst-claxs wool
imported under the present duty,
which is 1 cents pound. That
would make the duty on the hun
dred pounds $11 The merchant
able part Of the wool thus import
ed is the weight OF the wool Of this
hundred pounds after securing. II
the wool sh Kinks so per cent. as
some woods do. then the. duty in
such case would amount to Sill
ON 20 pounds OF secured wool. This.
of course. would be prohibitory. II
the wool shrinks only so per cent.
1t would be $1l on so pounds Of wool,
and this is near to the average Of
the great bulk OF woods that are
imported from Australia. which Is
the principal source of our import
ed wool.
These Determinations could be ov-
ercome by assessing a duty In ad
valorem terms. but this method Ia
open to the objection. first. that 1t
increases administrative difficulties
and tends to decrease revenue
through undervaluatton; and. Sec
ond. that as prices advance. the ad
valorem rate increases the duty per
pound at the time when the consumer
most needs relief and the producer
can best stand competition; 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.
Another method of m Getting the dif-
ficulty of taxing the grease pound
Is to assess a specific duty on grease
wool in terms of It's secured content.
This obviates the chief evil OF the
present system. namely. the discrim-
ipation due to different shrinkages.
and thereby tends greatly to equalize
the duty. The board reports that this
method Is feasible In practice and
could be administered without great
expense. The secured content of the
wool Is the basis on which users of
wool make their calculations, and
duty Of this kind would fit the
usages Of the trade. One effect Of
this method of assessment would be
that. regardless of the rate of duty,
there would be an increase in the
supply and variety OF wool by max
ing available to the American mar
ket woods of both low and fine
quality now excluded.
The report shows in detail the diff
ficulties involved in attempting to
state in categorical terms the cost OF
wool production and the great diff
ferences in cost as between different
regions and different types OF wool.
1t is found, however, that taking all
varieties 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.
Duty on Shoddy ProhibitOry.
The report shows that the duties
on noils. wool wastes, and shoddy,
which are adjusted to the rate OF 3S
cents on secured wool are prohibit
tory in the same measure that the
duty-aa- secured Meel Is pfehihitery.
In general, they are assessed at rates
as high as. or higher than. the duties
paid on the clean content OF WOODS
actually imported. They should be
nd adi 81 ha te
! on wool as to bear their proper pro-
| portion to the real rate levied on the
| actual wool imports.
| The duties on many classes Of wool
| manufacture are prohtbitory 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 grade). and OF low and
| medium grade cloth of heavy weight.
! On tops up to SO cents a pound in
| value. and on yarns of IS cents In
value, the rate Is 100 per cent with
correspondingly higher rates for lower
! values. On cheap and medium grade
cloths, the existing rates frequently
run to 3 per cent. and on some
I cheap goods to over 20 per cent. This
| is largely due to that part Of the
| duty which is levied ostensibly to
| compensate the manufacturer for the
| enhanced cost OF his raw material due
| to the duty on wool. As matter
| OF fact, this compensatory duty, fol
numerous classes of goods. Is much
in excess Of the amount needed for
strict compensation.
! On the other hand. tho findings
show that the duties which run tc
such high ad valorem equivalents are
| prohihitory, since the goods are not
| imported, but that the prices OF do.
mestic fabrics are not raised by the
full amount OF duty. On q set oil
1-yard samples OF 1S English fabrics
! which are completely excluded by
| the present tariff rates, IL was found
| that the total foreign value was
s4I.s4; the duties which would have
I been assessed had theSa fabrics beer
imported. $3.50; the foreign value
plus the amount Of the duty. $11S.74;
or nominal duty Of 1873 per cent
In fact, however. practically Identical
fabrics OF domestic make sold at the
same time at $S9.7S, showing an en-.
HANGED price over the foreign market
value Of but 81 per cent.
Temptation 10 Monopoly.
Although thees duties do not In
crease prices Of dOmesaau gOods by
anything like their full amount, :,
II mono the less true that such pro.
hihuvc duties eliminate tho possibility
Of foreign competition. even In time
OF scarity; that they form . tempta-
tion to monopoly and conspiracies to