Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1912-03-28

fabric; in the case Of many cloths Of
plain weave, the American cost o.
weaving seems to be lower than the
foreign cost, due to the greater mum
Der of looms tended per weaver in this
country This reduces the labor cost
per ward, despite the higher earning
of the American weaver. This con
clusiOn is further substantiated by the
fact that cloths of this description are
held by the domestic manufacture In
this country at prices as low as those
charged by the foreign manufacturer
in his own country. In proportion,
however as the fabric becomes more
: complicated land therefore permits OF
fewer looms per weaver), the Amer.
: lean cost of production increases. In
the case of most fancy fabric of com.
plicated weave, the cost of weaving is
higher in this country, but on such
fabrics the present duties are in excess
of any difference in cost, and in many
cases are in excess Of the total cen
version cost in this country
1.-THE report further shows that in the
case Of large variety of fabrics which
permit of the use of many looms per
weaver the prices at which goods are
sold by the American manufacturer
are as low as the prices charged by
the foreign manufacturer in his own
market and in many cases lower.
Under the existing system of dis
tribution, slight reduction of duties
would in some cases materially reduce
the price to the consumer, while in
other cases a large reduction Of the
duties would not change the price to
! the American consumer at ALL
| In the cost OF raw material, the
board reports there is practically no
advantage possessed by either
country. Comparing. all of the yarns
selected by the board as samples the
English labor cost was found to be
on an average of practically seven
eighths OF the American In two mills
selected.
It was not possible for the board
with the time and money at it's dis
posal, to investigate each Of the items
Of the cotton schedule and it's work
was confined to yarns, threads, tex
tile fabrics and such specialties as
tapestry, plush, hosiery, table damasks |
and the like.
Labor Costs and Wages.
Figures are presented to show that |
although labor costs in the cotton in |
dustry are in many cases lower in |
the United States than in England, yet |
the actual hourly earnings in this
country are in most of the principal
occupations much greater. The con-
clusion is that on many plain fabrics
the cost of production in this country
Is not greater.
The report gives some figures show
Ing the difference in cost of cotton
fabric at the mill and the cost to the
consumer. Cloth sold at the mill at
or cents yard reaches the con-
sumer at Is cents yard Some ex-
amples are given.
I'm 1908 a quilt sold at the mill for
62k cents was sold to the consumer
at 81. In 1910 the mill increased tho
price to rs cents and the price to the
consumer went up to $3.50"
The board argues, however, that in
some cases reduction in mill price
might have no reduction for the con-
sumner. A study Of comparative stats
tics seems to show that the English
consumer buys cheaper because there
is less profit between the mill men
and the retailer.
In determining costs the board did
not take into consideration the item
OF interest upon investments, but the {
cost figures do allow for depreciation.
Variation In American Costs.
Taking all the mills covered by
the investigation in each country
there were wider variations in the
American costs secured than in the
English costs, due partly to the fact
that the English mills are all in the
Manchester district where wages and
other conditions are we'll standardized,
while the American costs were taken
from mills covering a much wider
area, with much greater differences in
labor and other conditions. Another
reason for the wider variation in
American cost is that the English
mills for which figures are secured
are all Of modern and efficient type,
while some of the American mills in
cluded were old and of low efficiency"
Discussing duties in their relation
to cost of weaving and finishing the
report says:
1.-THE ratio of the duty to the con-
version cost bears little relation to
The ration of the duty to the foreign
market value. Thus, in some cases,
luties which are less than thirty per
cent ad valorem will be one and a
lalf times the total American con-
,ersion cost, while in other cases
luties Of nearly fifty per cent ad
,alorem will be only threefourths Of
he American conversion costs. In the
greater number of cases, the duties
ire greater than the total domestic
.ost Of spinning and weaving"
One of the most interesting results
# the investigation is to be found in
he facts included in the report re-
,arding the different methods of dis
in the two countries and
he greater margin which exists be-
ween the price at which the manu-
acturer sells his goods and the
rice at which the consumer buys
hem in. this country as COM
AIRED with similar prices in =
England. The ratio Of the tariff to the
rices paid by the consumer can only
q understood by fully compromising
he Significance in trade of the
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