Okolona messenger. (Okolona, Miss.) 1900-current, 1911-12-28

i8 prohibitory. In general. they are as
sessed at rates as high as. or 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 ProhIbltory.
TIL 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 a very high grade), and
of low and medium grade cloth of heavy
weight.
On tops up to 50 cents a pound in value.
and on yarns Of 65 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 $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 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 Oh
one yard samples of 16 English faorlcs'
which are completely excluded by the
present tariff rates. It was found thai the
total foreign value was S41.84; the duties
which would have been assessed had these
fabrics been imported, 1880; the foreign
value plus the amount of the duty, ]llS't4'
or a nominal duty of 1888 per cent. In tact,
however, practically Identical fabrics OF
domestic make sold at the same time at
ESQ TX akArve-- n. o-AaNAAI nwfCa nUnP the
foreign market value Of but 81 per cent
Would Reduce Duties.
Although these duties do not Increase
prices of domestic goods by anything X
their full amount, 1t 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 n 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 aeN
cords with the principle.
The findings of the board show thai In
this industry the actual manufacturing
| cost, aside from the question Of the price
of materials, is much higher In this coun-
try thar 1t 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
chinery or more efficient labor to onset
the higher a paid in this country.
The flnds 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.
In recommending revision and reouc-
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 a compensa-
tory duty, the rate must be ad valoreR
on such manufactures. 1t is important to
realize. however, that no fiat ad valorem
rate on such fabrics can be made to worE
fairly and effectively. Any single rate
which is high enough to equalize the dlt-
ference In manufacturing cost at nome
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
lie this difference on cheaper goods Woulo
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
,nI-z- a"kIo, ~ nIONho ha Oarnfn1lV Nnn.
sidered and applied.
Praises Work Of Committee.
I venture to say that no legislative
body has ever had presented to 1t a more
complete and exhaustive report tina this
on so difficult and complicated a subject
as the relative costs Of wool and woolenE
the world over. 1t is a monument to the
thoroughness, industry, impartiality ant
accuracy of the men engaged In Its ma
king. They were chosen from both poht'
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 beer
printed and studied the value OF such 6
compendium of exact knowledge IN re
spect to this schedule Of the tariff VIII
convince all of the wisdom OF making
such a board permanent, in order tina
1t may treat each schedule or the tarlr
as II has treated this, and then keep 1T
bureau of information up to date Will
current changes in the economic world.
1t is no part of the function Of the tar
If board to propose rates Of duty. Thei
function is merely to present findings o
fact on which rates Of duty may be fairl!
determined in the light Of adequate
knowledge in accordance with the eco
nomic policy to be followed. This Is Tha
the present report does.
The findings of fact by the board shoV
ample reason for the revision downward
Of schedule X. in accord with the pro
tective principle. and present the dat,
as to relative costs and prices from whicl
may be determined what rates Will fairl!
e~qualize the difference in production costs
1 recommend that such revision be pro
ceeded with at once.
(Signed) WILLIAM II. TAFT
The White House, Dec. 20, 1911.