Evening star., 1934-05-27
HIGHER RUG TARIFF,
ORDERED BY ROOSEVELT,
HELPS u. S. TEXTILES
Continued From First Page.)

Continued From First Page)
value of. cotton Except grass or rice
straw. other than chenille. imitation
Oriental. and ragu rugs OF the type
commonly known as hit-and-miss. 20
per cent ad valorem. but not less
than cents per square yard.
Fees Begin June 10.
The fee on cotton imitation ORR
entail rugs will be made effective on
June 10. The fees on chenille rugs
and the other rugs. will be made ef-
fective on the same date, unless dur
ing the period May IL to May 81
from Japan to the United States
should exceed 10000 square yards. in
which case they will be made effective
as soon after May 81 as possible.
In addition, exporters OF cotton
rugs from Japan to the United States
have indicated that, with view to
cooperating with the national indus
trial recovery movement in the United
States. they will on and after June
l, limit exports to the United States
as follows:
l-On chenille rugs. wholly or in
chief value of cotton. to CSC. 900
square yards per annum, provided
that if the exports from Japan to
the United States between May IL
and May 81, exceed 10000 square
yards, the excess shall be deducted
from this annual quantity.
2-On hit-and-miss rag rugs,
wholly or in chief value Of cotton,
to 3,250,000 square yards per an
mum.
3-On rugs wholly or in chief value
of cotton Except grass and rice
straw, other than chenille, imita-
ton oriental, and rag rugs of the
type commonly known as hit-and-
miss. to 4,07o,000 square yards per
annum
Industry Held Vitally Interested.
Gardner, explaining what the in
creased rates meant, declared the cot
ton textile industry as a whole was
vitally interested in this case.
Gardner. who argued the case for
higher rates on cotton rugs before the
Tariff Commission January %. said the
action of the President, coming At a
time when tariff bargaining was at
the forefront, was ''reaSSuring and
heartening' both to the textile in
duStry and industry in general.
While he did not say so, it is
pointed out in other quarters that
the raising of rates in this case
serves to make it clear that it will
be difficult from a practical stand
point for the State Department under
the new tariff bill to reduce on in
duStrial products in making trade
agreements.
The Presidents decision to exer-
else the authority given him in sec
ton 3-E of the national industrial
recovery act and increase the pres
ent duties on imported cotton rugs
is Of far-reaching Importance to the
cotton textile industry of this coun-
try. AS to chenille rugs, importations
in 1888 were 1,074,000 square yards.
The quota set up in the Presidents
proclamation limits this to 900
square yards per annum. On top
of the present ad valorem duty of 40
per cent, there is an additional fee
of IS cents per square yard on pres
ent values, the 40 per cent ad val
orem equals about 10 cents per
square yard and the increase in duty
is, therefore, about $50 per cent.
Decision Called Heartening.
"The importation of hit-and-miss
rugs has been at the rate Of 4.000, 900
square yards per annum. This has
been reduced to quota OF 3,250,00o
square yards. There has been no fee
added to the present duty on this
type.
"The cotton textile industry as a
whole has been vitality interested in
this case. 1t Is the first case affecting
a basic industry which has been de-
cided by the President on the pro-
visions of section 3-E Of the national
industrial recovery act. The decision
will be interpreted by the industry
as showing that the President is fully
conscious of the peril to American
labor and American industry resulting
from uncontrolled importation from
countries whose standards of living
are lower than ours. and whose in
dustries operate without codes and
without limitation of hours or mini
mum wages. Coming at q time when
tariff bargaining is in the forefront
Of national thought, this decision Is
reassuring and heartening, not only
to the textile industry, but to in
dustry In general"