Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1911-12-21

bly, 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, 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 ran TO such high
ad valorem equivalent are prohibtory,
since the goods are not imported, but
that the prices of domestic fabrics are
not raised 10y the fun amount of duty.
On a set of one yard samples of IL Eng
fish fabrics, which are completely On
cluded by the present tariff rates. it
was found that the total foreign value
was Sil.A; the duties which would have
been assessed had these fabrics been
imported, $3.50; the foreign value plus
/ the amount of the duty. S1N.74; or a
nominal duty of 1873 per cent In fact,
however, practically identical fabrics of
domestic make sold at the same time at
s6s75 showing an enhanced price over
the foreign market value OF but g. per
! cent
! DUTIES ELIMINATE COMPETITION.
although these dutie. do not increase
prices of domestic goods 10y anything
like their full amount. it Is none the less
true that such prohibitive duties eliminate
the possibility of foreign competition
even in time of scarcity, that they form
a temptation to monopoly ana conspira-
cies to control domestic prices; that they
are much in excess of the difference in
cost Of production here ami abroad ana
that they should be reduced to a point
which accords with this principle.
The findings of the board show that in
this industry the actual manufacturing
cost, aside from the question Of the price
of materials is much higher in thi.; coun-
try than it Is abroad, that in the making
of yarn and cloth the domestic wooden or
worsted manufacture las in general no
advantage In the form of superior ma
chnery or more efficient labor to offset
the higher 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 cOmpet-
! Ing country, and that the cost of turning
| yarn into cloth is somewhat more than
double. Under the protective policy a
great industry, Involving the welfare Of
| hundreds Of thousands OF people has been
established despite these handbags.
In recommending revision and reduc-
ton 7 therefore urge that action be taken
with these facts in mind, to the end that
an important and established industry
may not be jeopardlzed.
GRADUATED SCALE NECESSARY.
Tile tariff board reports that equitable
method has been found 20 levy purely
! specific duties on WOODEN ana worstcd
fabrics, ana that excepting for a com
| pensatory duty the rate must be ad
valorem on such manufactures 1t is i'm.
portant to realize. however. that no HAT
I'D valorem rate on such fabrics can be
made to work fairly ana effectively. Any
single rate which Is high enough tc
equaliza the difference in manufacturing
cost at home and abroad on highly
finished goods involving such labor would
be prohbitory 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 or
cheaper goods would remove protection
from the fine goods manufacture the in
crease in which has been one of tn,
striking features of the trades develop
ment in recent years | therefore recon
mend that In any revision the importance
of "A graduated scale OF ad Valoren
duties on cloths be carefully considered
and applied
~ venture to say that no legislativ,
body has ever had presented to il "A more
complete and exhaustive report than thu
on so difficult and complicated "A subiec
as the relative costs of wool ana wooden!
the world over, 1t Is a monument to thu