Wausau pilot. [volume] (Wausau, Wis.) 1896-1940, 1912-01-02
PRESIDENT SAYS
RATES T0O HIGH
Chief Executive Urges Downward
Revision of Schedule K.
MESSAGE SENT TO CONGRESS
Documer. upholds Protective Princi-
Pile But at the Same Time Most
Ardently Supports Recommen-
cations of Tariff Board.

Washington President Taft uens-
mitted to congress the report of the
tariff board on schedule K Accom-
panying the report. the chief execu-
tive sent to the national legislature
the following MESSAGE
To the Senate and House of Representa-
tives:
In my annual message to congress, De-
cember. 1909 / stated that under section
of the act of August ), 1903 / had APP
pointed a tariff board of three members
20 cooperate with the state department
in the administration of the maximum
and minimum clause of that act to make
a glossary or encyclopedia of the exist
ing tariff so as to render it's terms intel
lgible 10 the ordinary reader and then
TO investigate industrial conditions and
Gusts of production a home and abroad,
with = view to determining to what eX-
tent existing tariff rates actually exem-
pIify the protective principle, viz: That
duties should be made adequate. and only
adequate, to equalize the difference in cost
of production at home and abroad.
/ further stated that believed these in
designations would be of great value as a
basis for accurate legislation, and that
should from time to time recommend to
congress the revision of certain sched-
2les in accordance with the findings of
the board.
In the last session OF the Sixty first con-
sress a bill creating a permanent tariff
board of five members. of whom not
more than three should be of the same
political party, passed each house. but
failed of enactment because of slight diff
ferences on which agreement was not
reached before adjournment. An appro-
priation act provided that the permanent
tariff board. if created by statute, should
report TO congress on schedule X in De-
cembeT, 1911
Presidential Appointments.
Therefore. to carry out so far as lay
within my power the purposes OF this
bin for a permanent tariff board. I APP
pointed in March, 1911. board of five.
adding two members of such party affili-
alton as would have fulfilled the statu-
tory requirements, and directed them to
make a report to me ON schedule * of
the tariff act in December of this year
In my message of August II. 1911. ac-
companying the veto of the wool bill, ]
said that, in my judgment. schedule X
should be revised and the rates reduced
My veto was based on the ground that,
since. the tariff board would make, in
December, a detailed report on wool and
wool manufactures. with special refer
ence to the relation of the existing rates
of duties to relative costs here and
abroad. public policy and a fair regard
to the interests of the producers and the
manufacturers on the one hand and OF
the consumers on the other demanded
that legislation should not be hastily en-
acted in the absence of such information:
that l was not myself possessed at that
time of adequate knowledge of the facts
to determine whether or not the proposed
act was III accord with my pledge to
support a fair ana reasonable protective
policy; that such legislation might prove
only temporary and infiict upon great
industry the evils of continued uncer-
tainty
Advocates Reduction of Rates.
/ now herewith submit report of the
tariff board on schedule X. The board is
unanimous in its findings. On the basis
Of these findings / now recommend that
the congress proceed to a consideration
of this schedule with a view to its revi-
sion and a general reduction of its rates.
The report shows that the present
method of assessing the duty on raw
wooI-this IS by the specific rate on the
grease pound, i. e, ACKNOWLEDGEMENTS to
exclude woods of high shrinkage in
securing but fine quality, from the
American market and thereby lessons the
range of woods available to the domestic
manufacturers tlldl lIlc uuAN vi uiiSSOuAc "
wool of SO cents per pound Is prohibitory
and operates to exclude the importation
of Clean low-priced foreign woods of in
ferior grades, which are nevertheless val
liable material for manufacturing, and
which cannot be imported in the grease
because of their heavy shrinkage. such
wools If imported. might be used to dis
place the cheap substitutes now in use.
To make the preceding paragraph lit
VaSfa Of q
dred pounds Of first-class wool imported
under the present duty which is II cents
a pound That would make the duty on
the hundred pounds Sill. The merchan-
disc part of tie wool thus imported is
the weight of the wool of this hundred
pounds after securing. If the wool
shrinks so per cent, as some wool does,
then the duty in such case would
amount to 81 on 90 pounds of secured
wool. This. of course. would be prohibit
tory. If the wool shrinks only so per
cent. it would be $1l on 30 pounds Of
wool and this is near to the average OF
the great bulk of woods chat are imported
from Australia. which is the principal
source of our imported wool
These determinations could be over
come by assessing a duty in ad valorem
terms. but this method is open to the OBJ
lection first, that it increases administra-
tive difficulties and tends to decrease
revenue through differentiation; and,
second that as prices advance, the al
valorem rate increases the duty per pound
at the time when the consumer most
needs relief and the producer can best
stand competition: while If prices de-
cline the duty is decreased at the time
when the consumer is least burdened by
the price and the producer most needs
protection.
Method That Meets Difficulty.
Another method of meeting the diff
cult Of taxing the grease pound is to as
I cess d specific duty on grease wool in
! terms of its secured content. This obvi-
ates the chief evil of the present system,
namely. the ~ ,criminatisn due to differ
emit shrinkages, and thereby tends great
! " to equallze the duty. The board re-
porfs that this method is feasible in prac-
| tice and could be administered without
! great expense.
The report shows IN detail the difficult
/ ties involved In attempting to state in
categorical terms the cost Of wool pro-
duction and the great differences in cost
as between different regions and different
| types of wool. II is found. however, that,
| taking all varieties ii account. the aver
age cost of production for the 'gpole
| American clip is higher Than the cost in
the chief competing country by an
1 amount somewhat less than the present
1 duty.
The report shows that the duties on
4 noils, wool wastes. and shoddy. which are
Exploded Fiction.
rr1 Io,ex rrava1au+ belief thar the