Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1922-08-25
Simmons Prepares Facts And
Figures.

OOUUOO dnuudAiy upOu INC Cousuulcto VI
America is afforded by the Senate Tariff
bill passed last Saturday. This is the
estimate and analysis Of the bill by Sena-
tor F. NJ Simmons. Of North Carolina.
ranking Democrat Of the Finance Commit
tee, and expert assistants. who have figured
the added Ievies possible under the Senate
rates.
A copy Of the Simmons table obtained
carries in last tell-tale column add
tional cost to consumer under the tariff
bill Senator Simmons and his expert as
sistants explained that figures in this
column are reached by taking the annual
consumption Of given article, the ptotec-
ton TO domestic production or manufac- |
lures under the Underwood law. additional |
protection afforded by the Senate bill. and |
the pyramidins profits Of importers. whole |
salers. job5efs and retailers until an arti- |
Gle comes into possession Of the ultimate |
consumer The table is also in the as
sumption that the Underwood and the |
Senate bill rates are fully effective and |
operative.
According to the analysis Of Senator
Simmons. the story is not told by merely set |
ting out the high duty imposed. This duty. |
paid on the competitive foreign article. is
turned over several times before the final
sale Of an article. says Senator Simmons.
The domestic producer or manufacturer
benefits to the extent OF the duty and from
this initial extra profit on down the line /
TO the retail counter there is q succession |
Of handling charges and profits. for which !
the American consumer inevitably pays.
Thus Senator Simmons takes wool cloth
ing The average sd valorem rate in the
Underwood Simmons tariff forrevenue only
law was 3l6 per cent The average rate
in the present Senate bill is rs per cent
Based on annual consumption OF use Of
clothing. the tariff protection to domestic
manufactures under the existing tariff Law
was sees 100000: under the Senate bill
it jumps to S62s. 100000 The estimated
total cost to consumer under the Under
wood bill vas SAT- 900. 900 under the
Senate bill it viii be Sl.l32 900 0O0-sn
increased cost Of $655. 900. 900.
Using q similar process Of figuring. the
sugar bill Of the American consumer may
be increased by SSS7 100000. Sewing
machines. free under the Undeswood-Sim-
mons tariff act. may cost $4,000. 900
mOse in the aggregate under the Senate
bah duties
IL possibly will cost Sl26. 0O0. 900 3D. /
ditiOnal per year to buy cutlery: $4,000 /
600 fox buttons. such as 50 on fathers 4
trousers OF babys dress. S5s3. 900. 900 4
viii be added on cotton manufactures and 1
S655 .0O0. 900 on wool Manufactures
Altogether. said Senator Simmons. 4
conservatively estimate that the Senate 1
bill gives opportunity fox the imposition 4
Of increased costs to the consumer amount
ing TO around 5000 .OOO. 900 annually.
The Fair Tariff League has put the added
burden at $4,000. 900 600. but think
that Is too high. Assuming that the In
derwood-Simmons and FOrdney- McCumber
rates are fully effective as figured out in
the table. there is given opportunity to
lay on IS. 900. OO0. 900 more indirect taxa
ton. il the rsfic viii bear that much.
a careful study Of this bill demon
strates. in view Of conditions here and
abroad. that il was framed with the view
to maintaining not only the present high
prices bot to enable the Industries il pro
tects 70 further advance these excessively
high prices without mourning the riSk Of
foreign competition
In many instances the rates are abso-
Iutely prohibitive. particularly as to the
highly specialized products and these con-
stitute the bulk Of our dutiable manufac-
tured imports American producers OF such
articles protected against foreign competi-
ton need only BY recourse TO certain we'll
known devices and expedients btine about
concert Of action with respect to production
and selling price to enable them to fix and
maintain prices as high as the traffic will
bear. This is obvious. and the consumer
pays toll all along the line. Expressed in
terms Of equivalent ad valOrem rates. the
Senate bill rates are 40 to so per cent
higher than the average rates Of the
Payne-Aldrieh Law. In many instances
they are several hundred per cent higher
than the Underwood Law duties
Such legislation viii inevitably lead to
higher prices. higher cost Of living and the
further mOnopolirstion Of American in
dustries- The uprising in 1908 against
the excessive rates Of the Psyne-Aldrich
bill. levied upon practically no principle
except TO satisfy the demands Of the bene-
fciaries Of protection. not only forced the
Republican party to proclaim and adopt q
fixed rule for measuring the protection to
be accorded. but brought about the over
throw Of that party in 1912. This bill
ignores and utterly repodiates this rule OF
protection measurement
In 1912 the Republican party carried but
two little States. do not wish to venture
into the field Of prophecy. but II this pres
ent bill be adopted before another general
election these rates and their demonstrated
effect will arouse an indignation Of more
portentous proportions than that which
overthrew the party in 1912.
These rates mean further monopolizs-
ton Of our industries. attended with enor-
nous psice-inoesses and cost Of living.
They mean disastrous decrease in our ex-
ports. and just as undue curtailment Of
imports viii tend to industrial monopOliza-
tion and increased prices and higher iiv-
ina costs. so will undue reduction Of our
exports inevitably tend to a reduction OF
production and curtailment Of employment.
In arriving at the effect Of a tariff such
as is shown in this table one must take
into account the turnOvers and not merely
the exaction Of a duty at the customs
house. This duty. whatever il may be.