The Barre daily times. (Barre, Vt.) 1897-1959, 1912-03-28
Declares 1t Has Proceeded on
Entirely Erroneous Theory
ITS POSITION "UNTENABLE"
1t Is Duty of Federal and State Govern
ment to Begin Policy of Supervising
the Organization and Management
of Big Corporations.

Washington, d. c., March 2s.-That
the tariff board in its report to Con-
press on the wool schedule proceeded
upon an entirely erroneous theory and
that its report was "untenable," is the
conclusion of the Democratic members
of the ways and means committee OF
the House as set forth in a report pre-
pared by Representative Underwood,
chairman of tie committee, in connec-
ton with the introduction of the
wool bill placing 20 per cent adyalorem
duty on raw wool. The report was sub
united yesterday afternoon.
This bill, after slight revision
in conference, last summer, was vetoed
BY President Taft, who gave them 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 committee, after an analysis Of
thi, report reintroduced the old bill,
claiming that there was nothing in that
report to justify any change.
Summarizing the conclusion of the
committee. Chairman Underwood said:
"a careful and painstaking analysis
OF the wool report on the tariff board
dictates conclusions as follows:
"The theory of applying tariff duties
according to the difference in the cost
of production in this and in foreign
countries, upon which the board has pro-
jected and prepared its report, is en-
tirely erroneous and untenable. Fur
thermore, if this theory could have been
Systematically 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 on an in
correct statistical basis. Hence it has
no claims to confidence for the results
set forth therein, even should the re-
liability Of the theory OF the cost of
production be conceded.
"Those persons who are willing to
overlook the lack of theoretical sound
ness and of statistical accuracy, will
find the data of the report too frag-
mentary and incomplete to admit of
conclusions with reference to rates of
tariff duty. Even under the most ia
vcrable Interpretation of the report, con-
illusions as to duties can be reached for
only a few paragraphs of the wool
schedule, and for these paragraphs it ISL
not possible to formulate definite con-
illusions, because the figures vary wide
~, and seriously lack uniformity and
compatibility. So much is this the
case that justification is apparently af
forded in the report for rates that. are
in conflict with one another. 1t is thus
seen that the report leaves the ques-
80 he {ariH d1,fiau
lmuch unsolved as before the tariff board
was formed.
$50 far as conclusions can be drawn
from the boards report, it furnishes
nothing to justify any change in the
rates proposed in the present bill.
'In making the computations from
which have resulted the rates as justi-
fled by the tariff boards data, the most
Expensive and difficult conditions indi-
Gated by the data as attending produc-
Itior have been employed with view |
ito being more than just in the conclu-
Isions. The necessity of projections to !
Iequalize the difference in the cost of |
production beyond the rates carried by |
lthi. bill, exists in but few instances, |
and these are in all probability tho re-
suit of high costs which have been pre-
scented by the board and used in the com-
quotations.
"In preparing this bill of last session
Innd H. r. 22l95 of this session, no in
tentional provision was made for pro-
lection, the endeavor being to reduce
and adjust rates with view to pro.
dlieing the largest amount of revenue
persistent with the proper consideration
of the consumer. 1t is believed that |
the rates of this bill approach very close
Nv, at least, to the best revenue pro-
ducing points, and that rates should,
if enacted into law, permit such guam.
titles of imports as win effectively regu-
ate~domestic prices. Such competition
would be an important service to the
people, as it would encourage increased
and production by making
more nearly normal the conditions of
supply and demand. The report of the
!