The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1912-03-26
Downward Revision Urged With De.
nand for Further Funds For
Work Of tho Tariff
Board.
AN IMPORTANT ITEM
Set Price System ls Blamed for the
Higher Prices Paid by Ameri-
cans Than Are Paid
Abroad.

limited Press Leased Wire Service. ]
WASHINGTON March 26.- Ac-
commodation for downward revision
of cotton duties and demand for
further funds for the tariff board, were
contained in message sent to con-
gress today by President Taft, trans
mitting the boards report on cotton.
The message was vigorous defense
of the tariff board and demand for
an emergency appropriation of $4,000
a month for the board to contribute
its work. In the house. the democrats
have practically determined that all
appropriations for the board will be
cut off, and the presidents message
4 was the opening gun of the fight for
| its existence. The report itself was
a detailed discussion of conditions in
the cotton industry her. and abroad,
but the labor element of cotton pro,
/ ductiop received but scant attention.
The conslusions reached by the board
! were:
'.On account of the different mill
methods in this country. the domestic
labor cost of weaving on a large varie
4 ty Of plain fabrics of WIDE consump-
tion is reduced below the foreign cost.
Except in the case OF few special
4 fabrics and in the case Of various
manufactured articles, some OF which
4 were produced in this country to be
a very slight extent, the American in
dustry supplies practically the whole
consumption Mill prices are in many
cases as low in this country as in the
worlds markets Where higher, as in
the case OF the finer classes of produc-
tion, they are rarely higher by any
thing like the whole amount of the
duty.
''The effect OF the tariff then, in
most cases, is not too much to add
the duty to the manufacturers prices
as to secure him the American mar.
ket and In the case or most articles
Of widest consumption, to prevent the
competition of the foreign manufac
turer either in normal or abnorma
times. Owing to the more costly meth
DDS of distribution in this country
from producer to consumer, 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 price are as
/. low here as there"
81 This cost Of production is blamed
' by the report for exorbitant percent
7 ages swallowed up in the transaction
] of getting cotton goods from the mil
to the consumer. Reviewing his ef
l forts to secure ''non-partisan" tarif
Il information, the presidents comment
8 follows.
e Il now recommend that congress:
e proceed to consideration of this sched
/ ule with view to its revision and /;
J. reduction of its rates.
0 Il base this recommendation on
platform on which I was elected, tha
y reasonable protective tariff shoult
be adjusted to the difference In cos
1 Of production at home and abroad.
il "The report shows the difficulty o
stating in general terms the differ
ence in cost Of production for grea
variety of cotton manufacturers. Il
the case of ordinary warp and film.
yarns, forming the bulk of the produc
tion of the domestic industry, the for
eign cost of turning cotton into yarl
is shown to be about 70 per cent o
!. the domestic cost. The duty on th
yarns is two or three times in exces
: Of the difference in cost Of production
On some highly specialized yarns tn
!. duty about equalizes the difference
:, In many cases, however, on the highe
grades of yarn. which are produced i
this country, the duty is In excess @
the difference in cost of productio
: though by a much less amount tha
; in the cost of ordinary warp and fill
:. ing yarn /"
The president detailed the rset
price system and following the re
> port, blamed it for the Aigher price
paid by Americans than are the rule
:. abroad.
"Under the existing system OF di.
= tribution," he continued, "a slight r.
, duction of duties would in some onse
materially reduce the price to tn
consumer. while in other cases larg
reduction of the duties would nc
change the price TO the american col
lo sumer at all
The pressure under which the il