The Birmingham age-herald., 1912-03-28
It's Report Is Untenable, Says Ways and Means
 Committee
REPORT INCOMPLETE, SAYS MIR. UNDERWOOD
Charge Is Made That Board Gathered Information With the Idea That The Present Tariff Must
 Remain Unchanged

Washington, March 27.-That the tarif board in it's report 10 Congress on the wool schedule proceeded upon an entirely erroneous theory and that it's report was ''untenable' is the conclusion of the dem- ocratic members of the ways and means committee of the House as set forth in a report prepared by Representative Un- derwood, chairman of the committed, in connection with the reintroduction of the wool bill placing a 20 per cent ad valorem duty on raw wool.
 This bill, which after slight revision in l conferences last summer, was vetoed by President Taft, who gave then as his principal reason for exercise of the veto power that the tariff board had made no report on the subject Last December | the board reported and the democratic members of the ways and means com- mittee. after an analysis of this report, rentroduced the old bill claiming that there was nothing in that report to justI- fy any change.
 Summarizes Conclusions
 Summarizing the conclusion of the com mittee. Chairman Underwood says:
 "A careful and painstaking analysis of the wool report of the tariff board die tates conclusions as follows:
 ''The theory of applying tariff duties according to the difference in the cost of production in this and in foreign eoun- tries, upon which the board has projected and prepared it's report, is entirely er- roneous and untenahle. Furthermore. If this theory could have been systemati- cally and carefully applied it would not have afforded trustworthy results for guidance In preparing tariff legislation.
 "The boards report is fragmentary and incomplete, and rests an incorrect statistical basis. Hence 1t has no claims to confidence for the results set forth therein, even should the reliability of the theory of the cost of production be con- ceded.
 Data FragmentOry
 Those persons who are willing to over look the lack of theoretical soundness and of statistical accuracy, will find the data of the report too fragmentary and ineom- plete 10 admit of conclusions with refcr- ence to rates of tariff duty. Even under the most favorable interpretation of the report, conclusions as to duties eau ba lreached for only a, few paragraphs of the wool schedule, aud for these paragraphs l it Is not possible to formulate definite l conclusions, because the figures vary widely and seriously lack uniformity and comparability. So much is this the case l that justification is apparently afforded 1 in the report for rates that are in conflict with one another. It is thus seen that the report leaves the question of the tariff duties on wool as much unsolved as be- fore the tariff board was formed. Justifies No Chance
 50 far as conclusions can be drawn from the boards report, 1t furnishes noth- ing to justify any change in the rates proposed in the present bill.
 Tn making the computations from which have resulted the rates as justified by the tariff boards data, the most ex- pensive and difficult conditions indicated by the data as attending production have been employed with view to being more than just in the conclusions. The necessi- ty of projections to equalze the difference in the cost of production beyond the rates carried by this bill exists in but few n- stances, and these are in all probability the result of high costs which have been presented by the board and used in the computations.
 "In preparing this bill of last session and H. R. 22l95 of this session no inten- tional provision was made for protection. the endeayor being to reduce and adjust rates with a view to producing the largest amount of revenue consistent with the proper consideration of the consumer It is believed that the rates of this bill ap- proach very closely, at least, to the best revenue producing points, and that rates should, If enacted into law, permit such quantities of imports as will effectively regulate domestic prices. Such competi- ton would be important service to tho people, as it would encourage increased ffr, fnu more nearly normal the conditions of supply and demand. The report of the tariff board, so far as 1t admits of con- clusions, shows that the rates which meet the consumers needs also sufficiently sat- sfy those of the producer"
 Further Delay Inexpedient
 After reviewing the democratic attempt of last year to secure revision of Inc wool schedule and the Presidents veto. the committee quoted the report on the original wool bill to the effect that 1t would be trihing with the people to give further consideration to republican coun- sells of more delay in this matter.
 Notwithstanding this conviction" the report continues, the democratic maJor- ity of the House of Representatives, im- patient to respond 10 the demands of the people for the speedy revision of a schedule of indefensible rates. was forced to delay further effort to respond to the protests of the American people,"
 The message of the President submit ting the report of the tariff. board and his recommendations that the board s' findings be used as a basis for reduc- ton of rates, is then quoted, and tho committee comments:
 "The committee has made careful an- alysis of the report of the tariff board in order to interpret the findings and to discover in what particulars the commit tees bill of the last session was defec- tive or failed to adjust the duties in equitable and proper manner. This 'tn- alysis has failed to reveal anything that requires q single change in the rates fixed in the committees bill. and the commits tee Is constrained to present again tho results of its investigations of last sun.- mer, as embodied in the bill presented to the House at that time,
 Findings Insignificant
 "As shown in the analysis, the data of the report of the tariff board have been found to be diffuse and unsystematic. to present insignificant findings and. as stated. to afford the committee no valA reason for any change in it's recomnlenp dations of last session with regard to tho rates of Schedule K
 The report of the committee furth&p states that the tarff boards report large. ly consisted of study of what is callc1 comparative cost of production of woo8 and manufactures of wools in various countries, and of this it says:
 "The view, that the proper basis for tariff duties is found by comparing money costs of production. rests upon the opinion that money costs represent the relative degrees of sacrifice involved in turning