The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1912-04-02
LOWER COTTON TARIFF.

The report of the Tariff Board on the
cotton schedule is fully endorsed by
President Taft. According to that report
there is little or no reason why there
should be any tariff at all placed upon
cotton goods. First of all, we raise
the cotton, and can control this raw
| product for the world. All that We
have to do is to have a market price
of our own slightly in advance OF what
other nations can pay, and our cotton
manufacturers would have the cotton
world at their mercy; and the same
would happen if they would enlarge
their plants. take all the cotton we
raise. and make it into cloth, Besides
| that, as the Board shows, the labor cost
in producing cotton goods is less in
| this country than il is abroad. There
fore, there would appear to be no rea.
son whatever, except il may be In
some special or peculiar case, why there
should be any tariff upon cotton man
ufactures.
The Board blamcs the system of dis.
! tribution and the combines in restraint
Of trade for the high prices OF cotton
| goods, these prices being, in fact. high
or than cotton prices abroad. Presi-
dent Taft says on this point that ''the
prices paid by consumers in this coun-
try are higher than abroad, even where
the prices received by the manufac
49,,
This is the result of system of dis,
tributon under which the margin be-
tween tho manufacturers price and the
retail price is much greater than
| abroad. This is partly due both to the
higher cost Of distribution and to the
established practice in the cotton re-
tail trade Of selling fabrics at custom
airy fixed or set prices, =
And President Taft gets right to tho
root of the matter on every point in.
volved when he says;
The effect OF the present tariff in most
cases is not much to add the duty TO
the domestic manufacturers price as TO
secure him the American market. and in
the case of most articles OF widest con
sumption TO prevent the competition OF
NAL abnormal times. On account OF
the more costly methods OF distribution
In this country from producer to con-
sumner, the latter pays a decidedly higher
retail price than the European consumer
even in the case OF fabrics on which the
cost Of production and the mill prices
arc as low here as there.
That is the gist Of the whole ques.
ton. The practice denounced places
the American market under the com
plete control of the cotton manufac
turers and their agencies for distribu
ton. The result is not only unduly
enhanced prices to consumers in this
country for cotton goods. prices far be.
vond what they ought to be, but the
result is crippling our exports Of cot
ton goods. We are not exporting now
more than about fifty per cent Of the
value of cotton goods that were an
nually exported prior to the passage of
the present bunko tariff law. lmme-
diatelv upon the enactment Of that
measure, the cotton manufacturers got
together, formed a close combination,
and raised prices everywhere. with the
result that the export ot cotton goods
has been sadly crippled. The cotton
mills appear to be managed on the
basis that they can make more money
by running short time and charging
high prices for goods than by running
full time and charging reasonable
prices.
AS TO the comparative cost of max
ing cotton fabrics in this country and
abroad, the Tariff Board says:
On account Of the different mill methods
in this country, the domestic labor cost OF
weaving on a large variety OF plain fab
rics OF wide consumption is reduced be-
low the foreign cost Except IN the case
OF various manufactured articles. some
of which were produced in this country
TO a very slight extent. the American in
dustry supplies practically the whole con-
sumption. Mill prices are in many cases
as low In this country as In the worlds
markets. Where higher I'm the case
rarely higher by anything like the whole
amount OF duty
The probability is. Judging by this.
that the scale of wages paid to en-
ployees in cotton mills is as low as the
European scales. Indeed. Judging from
the developments in consequence OF the
Lawrence strike. il is likely that for
eigu labor is very largely employed In
the cotton mills. as it was shown to be
in the wooden mills. The main fact
brought out, however. in this extract
Is, that the American market is re-
served 10 the cotton manufacturers
combine absolutely, by a tariff higher
than there is any need of imposing.
And this bears out the statement as
above, that the cotton manufacturers
can make more money by limiting their
production TO an amount but little in
excess of the home demand than by
running on full time and catering TO
the world s demand.
The bunko tari1 law of 1909 made