The Washington times., 1912-03-26

total conversion cost and in some cases
four or five times the difference.
There Is considerable difference III
this country between the price at which
the manufacturer sells his goods and
the price paid by the consumer, in
other words, the middeman gets
handsome profit. This difference Is more
noticeable here than in England. Goods
which sell at the mill at ana cents
reach the consumer at about 1j cents"
Explaining how the American sNS-
tenn of fixed prices initiates against
the ultimate consumer, the Tariff Board
reports:
The result Is that under the existing
system Of distribution the effect of any
change in cost of production or in mill
price cannot be determined except in
relation to the set price of the retail
trade. In some cases a reduction of
cent yard in the mill price might be
just enough to enable the jobber to sell
at a price which would bring the goods
within lower retail class thereby
possibly saving as much as cents
yard to the consumer. In another case
a reduction in price of , or cents
Yard might not be sufficient to bring
the cloth into the lower class, and in
this case the whole reduction in mill
or both, while the consumer would pay
the same price as before.
when the mill price Is 10 cents per
| yard, the fabric is thrown into differ
consumer at 10 cents An increase Of
the mill price from 10 TO llIa cents would
probably not affect the price 10 the con-
sumner. when. however. the mill price
% cents. further increase in the
mill price OF cents in this case would
not change the price to the consumer
How 1t Works.
with a mill price OF u cents the con-
cit 70 ntli
Where the mill price is, however Is
cents, the cloth enters another classii-
cation, and probably reaches the con-
sumner at g or So cents. 1t will be seen.
then, that an increase OF cents. from
12 cents to a cents, does not affect the
25- cent retail price, while an increase
of cent, from 1872 cents to l51a cents,
may increase the price to the consumer
by 10 cents.
Figures are presented in the report
| showing that although labor costs in the
| cotton industry 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.
Greeted With Applause.
The reading of the Presidents Mes
sage or the cotton schedule was greet
ed with applause on the Republican side
Uf the House
II enjoy greatly the applause from
| the other side on the receipt Of mes
sage and report recommending reduc-
tion in the cotton tariff" said Congress-
man Underwood, the majority icader.
will not the gentleman join with us
then in an appropriation to retain tic
tariff board permanently?' retortcd
| Congressman Payne, author of the pres
ant tariff law.
"Tha gentleman has rcpudlatcd his
own position by introducing a wool bill
in the House recently which carri IS
some rates even higher tnan those II
the existing law" said Mr.. Underwood
while the Democrats hoWled al the sus.
Eestion that the Republican wool bill
did not follow the Tariff Board report
After this interchange, Representative
| Underwood moved to refer the Presi.
dents message and the cotton report
to the Ways and Means Committee
with instructions to print such parts OF
the fun report as the board indicated
| were relevant. II was ordered that 5, ,oU
| copies be printed