Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1911-12-21


BILE In practice and could be admins
tered without great expense. Tn.
secured content of the wool is the basi
on which users of wool make thei
calculation and duty of this kint
would fit the usuages Of the trade
One effect of this method of assess
ment would be that, regardless OF tb,
rate of duty. there would be an In
crease in the supply and variety o
wool, by making available to tn.
American market woods of both \ low
and fine quality now excluded.
''The report shows in detail the diff
fculties involved to state in categori
cal terms the cost OF wool production
and the great dificulty In cost as be
tween different regions and different
|; TYPES of wool. It is found. however
that taking all variation in account, the
average cost Of production for the
whole American clip is higher than
the cost in the chief compelling coun
try r. an amount somewhat less than
the present duty.
1.-THE report shows that the duty on
Noils woods, wet and shoddy, which
are adjusted to the rate Of thirty-three
/ cents on secured wool is prohibitory.
In general they are assessed at rates
as high or higher than the duties paid
on the clean content of woods actually
imported. -. 49, ~. +.
"They should be reduced and 80 ad-
Ijusted to the rate on wool as to bear
their proper proportion to the real
rate levied on the actual imports.
"The duties on many classes Of wool
are prohibitory and greatly in OK
cess of the difference in cost of pro-
duction here and abroad. M
| "This is true of tops, of yarns, with
the exception of worsted yarns OF a
| very high gradeD and of low and me-
dunn grade cloth of heavy weight.
"On tops up to- 50 cents a pound in
value and on yarns of IS cents in
value, the rate is 100 per cent with
CORRESPONDENCE high rates for lower
values. On cheap and medium grade
clothes, the existing rates frequently
run to $50 per cent and in some cheap
goods to over 200 per cent. This is
largely due to that part Of the duty
which is levied ostensibly to compen.
safe the manufacturer for the en-.
HANGED cost of 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 compen-
sation. 80.
Comparison With English Prices.
ION the other hand the findings
show that the duties which run to
such high ad valorem equivalents are
prohibitory, since the goods are not
imported. but that the prices of
domestic fabrics are not raised by the
full amount Of duty. On a set of one
yard samples Of sixteen English
fabrics, which are completely excluded
by the present tariff rates. it was
found that the total foreign value was
$41.s4; the duties which would have
been assessed had these fabrics been
imported, $500; the foreign value
plus the amount of the duty, $11S.74
or a nominal duty Of 1873 per cent. In
fact, however, practically Identical
fabrics of domestic make sold at the
same time at $69.75. showing an en-
HANGED price over the foreign make
value of but 81 per cent.
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; that they form a
temptation to =. monopoly and con-
spiracy 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 Of
this principle.
Necessary for American Manufacture.
"The findings OF the board show
that in this industry the actual manu-
featuring cost aside from the question
of the price of materials. Is much
higher in this country than 1t Is
abroad. that in the making OF yarn
and cloth the domestic WOODEN or
worsted manufacturer has in general
no advantage in the form Of superior |
machinery or more efficient labor to
offset the higher wages paid in this |
country The findings show that the
cost of weaving wool into yarn in this |
country Is about double that In the |
leading competition 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 estab-
lished despite these handicaps.
I'm recommending revision and re-
duction I therefore urge that action be
taken with these facts in mind. and to
the end that an independent and estab-
lished industry may not be jeopardized.
Urges Graduated Reduction.
"The tariff boards reports that no
equitable method has been found to
levy purely specific duties on wooden
and worsted fabrics and that, except
ing for compensatory duty, the rate
must be ad valorem on such manu-
features. It is important to realize,
however, that no flat ad valorem rate
on such fabrics can be made to work
fairly and effectively. A single rate
which is high enough to equalize the
in manufacturing cost at
home and abroad on highly finished
goods involving such labor would be
on cheaper goods, in which
the labor cost is smaller proportion of
the total value. Conversely a rate
only adequate to equalize this differ
ance on cheaper goods would remove
protection from the fine goods manu-
featured, the increases in which has
been one of the striking features of
troCos Ioxyolopn,onfS In rocorf ! ,