Vernon County censor. [volume] (Viroqua, Wis.) 1865-1955, 1912-01-03

Is prchisitory. In general they are as.
sessed at rates as high as. or higher
than. the duties paid on the clean content
OF woods actually imported. They should
be reduced and so adjusted to the rate
on wool as to bear their proper proportion
to the real rate levied on the actual wool
imports.
Some Duties Prohibitory.
The duties on many classes OF wool
manufacture are prohibitory and greatly
in excess of the difference in cost OF pro-
duction here and abroad. This is true OF
tops, OF yarns with the exception of
worsted yarns Of very high grade), and
OF low ana mediem grade cloth OF heavy
weight
On tops UP to - cents a pound In value.
and on yarns OF IS cents in value. the
rate is loo per cent, with correspondingly
higher rates for lower values. On cheap
and medium grade cloths, the existing
rates frequently run to $50 per cent and
on some cheap goods TO over 80 per
cent.
On the other hand. the findings show
that the duties which run 10 such high ad
valorem equivalents are prohibitory, since
the goods are not imported, but that the
prices OF domestic fabrics are not raised
by the fun amount OF duty. On a set OF
one yard samples OF 16 English fabrics
which are completely excluded by the
present tariff rates. Il was found that the
total foreign value was $lsA; the duties
which would have been assessed had these
fabrics been imported. 1850. the foreign
value plus the amount of the duty, SllS.54;
or a nominal duty OF 1S3 per cent In fact,
however. practically Identical fabrics OF
| domestic make sold at the same time at
S69,1e. showing an enhanced price over the
foreign market value OF but 81 per cent.
Would Reduce Duties.
Although these duties do not increase
| prices of domestic goods by anything like
their fun amount. II is none the less true
| that such prohibitive duties eliminate the
| possibility OF foreign competition, even in
time of scarcity. SO that they form a temp
/ taton TO monopoly and conspiracy to con-
/ troll domestic prices, that they are much
/ In excess of the difference in cost OF pro-
| duction here and abroad, and that they
should be reduced to a point which &C
cords with the principle.
| The findings Of the board show that in
4 this Industry tho actual manufacturing
/ cost aside from the question OF the price
| OF materials. is much higher in this coun-
| try than Il is abroad: that in the making
| of yarn and cloth the domestic wooden
/ and worsted manufacturer has in general
\ no advantage in the form OF superior ma
| chinery or more efficient labor to offset
the higher wages paid In this country.
| The finds show that the cost OF turning
wool into yarn in this cou etry is about
| double that In the leading competing
1 country and that the cost OF tirning yarn
| into cloth Is somewhat more than double
| Under the protective policy great Indus
! try. involving the welfare of hundreds OF
thousands OF people has been established
| despite these handicaps.
In recommending revision and reduce
| ton l therefore urge that action be Ia
| ken with these facts in mind. to the end
that an important and established indus
| try may not be jeopardZed
The tariff board reports that no equita-
| BILE method has been found 10 levy purely
specific duties on wooden and worsted fab
RIGS. and that, excepting for compensa-
| tory duty, the rate must be ad valorem
ON such manufactures. II Is important TO
| realize. however, that no nat ad valorem
rate on such fabrics can be made 70 work
! fairly and effectively. Any single rate
which is high enough to equaiize the diff
ference in manufacturing cost at home
and abroad on highly finished goods in
| volVing such labor would be prohtbitory
on cheaper goods. In which the labor cost
| Is a smaller proportion OF the total value.
| Conversely "a rate only adequate 10 equal
| lie this difference on cheaper goods would
| remove protection from the nne goods
manufacture. the increase in which has
been one of the striking features OF the
trade development in recent years. |
| therefore recommend that in any revision
the Importance OF a graduated scale of ad
vaiorem duties on cloths be carefully con-
sidered and applied.
| Praises Work of Committee.
venture TO say that no legislative
| body has ever had presented to Il a more
complete and exhaustive report than this
| on so difficult and complicated subject
| as the relative costs of wool and woolens
u DE-. .FsNf IN laE
thoroughness, industry, impartlality and
| accuracy Of the men engaged In its ma
| king They were chosen from both polit-
| ical parties, but have allowed no partisan
| spirit to prompt or control their inquiries.
| They are unanimous In their findings.
| feel sure that after the report has been
| printed and studied the value Of such a
compendium of exact knowledge In re-
spect TO this schedule Of the tariff VIII
| convince all of the wisdom OF making
| such a board permanent in order that
| II may treat each schedule of the tarin
as Il has treated this. and then keep it's
| bureau OF Information up to date with
| current changes in the economic world.
| 1t is no part of the function OF the tar
jn board TO propose rates OF duty. Their
| function is merely to present findings OF
| fact on which rates of duty may be fairly
determined In the light of adequate
| knowledge in accordance with the eco
nomic policy 10 be followed. This Is what
the present report does.
The findings OF fact by the board show
angie reason FOR the revision downward
Of schedule K. in accord with the pro-
tcctive principle. aWd present the data
as TO relative costs and prices from which
may be determined what rates will fairly
| euuallze the difference In production COSTS
/ recommend that such revision be pro-
| ceeded with at once.
| CSigneD WILLIAM II. TAFT.
| The White House, Dec, 20, 1911.