Watertown leader. [volume] (Watertown, Jefferson County, Wis.) 1909-1911, 1911-12-29

/ Is prohibitory. In general. they as
sessed at rates as high as, higher
] than, the duties paid on the clean content
Of woods actually imported 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.
Some Duties Prohibitory.
| The duties on many classes of wool
manufacture are prohibitory and greatly
! in excess of the difference in cost of pro-
duction 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 y cents pound in value,
and on yarns of So cents in value the
rate is 100 per cent, with CORRESPONDENCE
higher rates for lower values. On cheap
and medium grade cloths, the existing
rates frequently run to $50 per cent. and
on some cheap goods to over 200 per
cent
On the other hand, the findings show
that the duties which run to such high ad
valorem equivalents are prohibtory, since
the goods are not imported, but that the
prices of domestic fabrics are not raised
by the full amount of duty On set of
one yard samples of 16 English fabrics,
which are completely excluded by the
present tariff rates, it was found that the
total foreign value was $41S4; the duties
which would have been assessed had these
fabrics been imported, $3.50; the foreign
value plus the amount of the duty, $118 "A;
or nominal duty of 1S3 per cent. In fact,
however, practically identical fabrics of
domestic make sold at the same time at
SOY 70, showing an enhanced price over the
IL OF
Would Reduce Duties.
Although these duties do not increase
prices of domestic goods by 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, so that they form a temp
taton to monopoly and conspiracy to con-
troll domestic prices; that they are much
in excess of the difference in cost of pro-
duction here and abroad, and that they
should be reduced to a point which ac-
cords with the 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 this coun-
try than it is abroad; that in the making
Of yarn and cloth the domestic wooden
| and worsted manufacturer has in general
no advantage in the form of superior ma
cnlneIy or more eIHClenL ldDOE W OnSet
the higher wages paid in this country.
The finds show that the cost of turning
wool into yarn in this country is about
double that in the leading competing
country, and that the cost Of turning yarn
into cloth is somewhat more than double.
Under the protective policy a great indus
try, involving the welfare of hundreds Of
thousands Of people has been established
despite these handicaps.
Tn
ton I therefore urge that action be ia
ken with these facts in mind, to the end
that an important and established indus
try may not be jeopardized.
The tariff board reports that no equita-
bic method has been found to levy purely
specific duties on wooden and wOrSted fab
RIGS, and that, excepting for compensa-
tory duty the rate must be ad valorem
on such manufactures. 1t Is important to
realize. however, that no fiat ad valorem
rate on such fabrics can be made to work
fairly and effectively. Any single rate
which is high enough to equalize the diff
ference in manufacturing cost at home
and abroad on highly finished goods in
volving 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 equal
ize this difference on cheaper goods would
remove protection from the fine goods
! manufacture, the increase in which has
been one of the striking features of the
trade development in recent years.
therefore recommend that in any revision
the Importance of a graduated scale of ad
Valorem duties on cloths be carefully con-
sidered and applied.
Praises Work of Committee.
I venture to say that no legislative
body has ever had presented to it a more
complete and exhaustive report than this
on so difficult and complicated subject
as the relative costs OF wool and Woolens
the world over. 1t is a monument to the
thoroughness, industry, impartiality and
accuracy of the men engaged in its ma
king. They were chosen from both polit-
ical parties, but have allowed no partisan
spirit to prompt or control their inquiries.
They are unanimous in their findings.
feel sure that after the report has been
printed and studied the value Of such a
compendium of exact knowledge in re-
spect to this schedule of the tariff will
convince all Of the wisdom Of making
such board permanent, in order that
it may treat each schedule of the tariff
as it has treated this, and then keep it's
bureau of information up to date with
current changes in the economic world.
1t is no part of the function of the tar
iff board to propose rates of duty. Their
function is merely to present findings of
fact on which rates of duty may be fairly
determined in the light of adequate
knowledge in accordance with the eco
nomic policy to be followed. This is what
the present report does.
The findings of fact by the board show
ample reason for the revision downward
of schedule K, in accord with the pro-
tective principle, and present the data
as to relative costs and prices from which
may be determined what rates will fairly
equalize the difference in production costs
I recommend that such revision be pro-
ceeded with at once.
(SignedS WILLIAM II. TAFT.
The White House. Dec. 20, 1911.