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The Commoner
VOLUME 11, NUMBER Jj
evidenced by an effort to pass a
tariff-commission bill in tho fill or t
session of tho Sixty-first congress
in which many of both parties united.
"Such a bill passed both houses.
It provided for a commission of fivo
members to bo appointed by tho
prosldont, not moro than three of
whom woro to belong to the same
party and gave thorn tho power and
made it their duty to investigate tho
operation of tho tariff, tho compara
tive cost of production at homo and
abroad and liko matters of Impor
tance in fixing tho torms of a revenue
measure and roquirod them to report
to tho executive and to congress
when dirocted.
"Several, not vital amendments
woro made In tho senate which
necessitated a return of tho bill to
tho house, whore, because of the
limited duration of tho session, a
comparatively small minority wero
able to prevent Its becoming a law.
"Upon the falluro of this bill, I
took such stops as I could to make
tho tariff board I had already ap
pointed a satisfactory substitute, pro
tected tariff commission. I asked
for $25,000 to continue 'tho work
until Juno 1, 1912, the alternative
to be applied to tho board I had ap
pointed unless a tariff commission
bill was passed.
"In this appropriation bill, tho
non-partisan tariff commission, if
created and appointed was decided
to make a report on schedule K, by
December 1, 1911. Accordingly I
added two members to tho tariff
board from tho opposition party and
directed the board to make a re
port on schedule K, by December 1,
next. Tho board differs In no way
from the tariff commission as it
would have been, except in its power
to summon witnesses, and I am ad
vised by the members of the board
that, without this power, they have
had no difficulty in securing tho in
formation they desire.
"The board took some months to
investigate the methods pursued In
other countries in procuring infor
mation on tariff subjects and to or
ganize its forces. In October, 1910,
its work of investigation began with
a force of forty that has now in
creased to eighty. In addition to the
'glossary' which Is near completion,
and other work connected with 'fur
nishing information in connection
with the enforcement of the maxi
mum and minimum clause of the
Payne tariff act, and In respect to
the Canadian reciprocity measure its
attention has been especially called
to comparative cost, as to schedule
K, (wool and woolens) under sched
ule M, (paper and pulp) and under
schedule I, (cotton manufactures.)
-me report on schedule M, (pulp
and paper) has already been sent to
congress. Full reports on wool and
cotton will be submitted to congress.
They also have directed an Investi
gation into metals which, it is hoped,
can be submitted to congress at its
first regular session In time to per
mit their consideration and legis
lative action if necessary."
Tho president, after quoting from
a report of the tariff commission con
tinued: "I have thus reviewed the history
of the movement, establishment of
a tariff commission or a board, in
order to show that the real advance.
and reform In tariff-making are to
bo found in tho acquiring of an ac
curate information as to the pro
posed tariff changes under each
schedule before they are adopted,
and further to show that if delay In
the passage of a bill to amend sched
ule K can be had until December,
congress will then be in a possession
of a full and satisfactory report upon
the whole schedule.
"This brings mo to tho considera
tion of the terms of the bill pre
sented for my approval. 'Schedule
K is the moBt complicated ' schedule
In the tariff. It classifies. raw wool
with different rates from different
classes; it affords tho manufacturer
what is called a compensatory duty
to make up for tho increased price
of raw material ho has to use, due
to the rate on raw wool, and for the
shrinkage that takes place in Bcour
Ing the wool for manufactures; and
It gives him, In addition, an ad
valorem duty to protect him against
foreign competition with cheap
labor.
"The usages which prevail in
scouring the wool, In making tho
yarn and in tho manufacture of
cloth present complication of techni
cal detail that prevents anyone not
especially informed concerning wool
growing and manufacture from
understanding the schedule and the
effects of changing tho various rates.
"If there ever was a schedule that
needed consideration and investiga
tion and olaborate explanation by
experts it Is schedule K. There is
a widespread belief that many rates
In tho present schedule are too high
and aro in excess of any needed pro
tection for the wool growers or
manufacturer. I share this belief
and have so stated in several public
addresses. But I have no sufficient
data upon which I can guago how
schedulo K ought to be amended or
how its rates ought to be reduced,
in order that tho new bill shall fur
nish the proper measure of protec
tion and no more.
"Nor have I Information satisfy
ing me that the bill presented to me
for signature will accomplish this
result. The parliamentary history
of tho bill is not reassuring on this
point. It was introduced and passed
in tho house as providing a tariff for
revenue only and with tho avowed
purpose of departing from a protec
tive tariff policy.
The rate of duty on raw wools
of all claBses was changed from a
specific duty of 11 cents a pound to
20 per cent ad valorem. On the
average for the importations of the
last two years, this Is a reduction
from 47.24 per cent to 20 per cent.
Rates on cloth were reduced in tho
mill from the present average duty
or, y.zY per cent to 40 per cent, and
on wearing apparel from 81.31 per
cent to 45 per cent.
"The bill was defeated in the
sonate and so was a substitute intro
duced as a protection measure. The
proposed substitute fixed the duty on
raw wool, nrst class, at 40 per cent,
and on a second class of carpet wools
at 10 per cent and on cloths at 60
per cent and on wearing apparel at
the same rate.
"On re-consideration, a compro
mise measure was nassed 1, t.h
senate which was a compromise be
tween the houBe bill and the senate
substitute bill, In which the rate on
first class wool was fixed at 35 per
cent, carpet wool 10 per cent, cloth
and wearing apparel 55 per cent.
"In conference between the two
houses, the rate on all classes of raw
wool was fixed at 29 per cent, this
being an increase in carpet wools of
9 per cent as compared with the
houso bill, and of 19 per cent as fixed
in the senate bill. The conference
rate on ciotnes and wearing apparel
was fixed at 49 per cent.
"No evidence as to the cost of
production here or abroad was pub
lished and the compromise amend
ment in the sonate was adopted with
out referenco to or consideration by
a committee.
"I do not mention these facts to
criticise the method of preparation
oi me Din, out I must needs refer
lu tuein io snow tnat the congres
sional proceedings make available
for me no accurate or scientifically
acquired information, which enables
me to determine that tho bill sup
plies the measure of protection prom
ised in the platform on which I was
elected.
"During the years in which the
Wilson bill was in forc the wooVin
manufacturers suffered. Many mills
wero compelled to shut down. Theso
wero abnormal years, and it is not
necessary to attribute tho hard times
solely to tho taTiff act of 1894.
"But it was at least an addition
to other factors operating to injure
the woolen business. It is tho only
experience we have had for a gene
ration of a radical revision of this
schedule, and, without exaggerating
its importance, one pledged to a
moderate protection policy may well
hesitate before giving approval with
out full information to legislation,
which makes a more radical reduc
tion in the protection actually af
forded tho manufactures of wool
than in tho Wilson act.
"Nor does the hesitation arise only
for fear of Injury to tho manufac
turer. Manufacturers are ablo to
continue their business and buy wool
from domestic wool-growers, but the
latter will have no benefit from the
tariff that is supposed to protect
them, because they will have to sell
in competition with foreign wool.
Hence the wool-grower is as much
interested in the protection of tho
manufacturer as he is in his own.
"It may well be that conditions
of manufacture in this country have
changed so as to require much less
protection now for the manufacturers
than at the time of the Wilson bill,
but in view of the possible wide suf
fering Involved by hasty action,
based on insufficient knowledge, the
wise course, In my judgment, is to
postpone any change for a few
months needed to complete the pend
ing inquiry.
"When we have tho accurate in
formation which justifies such ac
tion, I shall recommend to congress
as great a reduction in schedule K
as tlie measure of protection, already
stated, will permit. The failure of
the present bill has not been re
garded, therefore, as taking away the
only chance for reduction by this
congress.
"More than a million of our coun
trymen are engaged in the produc
tion of wool and the manufacture
of woolens. Large communities are
almost wholly dependent upon the
prosperity of the wool-grower and
the woolen manufacturer.
"Roughly estimating, 5,000,000 of
American people would be injured
or affected by ill-advised reduction
of the tariff,
"I have no doubt that if I were
to sign this bill I would receive the
approval of very many persons "who
favor a reduction of duties in order
to reduce tv cost of living, what
ever the effect on our protected in
dustries, and who fail to realize the
disaster to business generally and
to the people at large which may
come from a radical disturbance of
that part of business dpmpTirtTi ,.
its life on the continuance of a pro
tective taTiff. If I fail to guard as
far as I can the industries of the
country to the extent of p-ItHtut fiT
the benefit of a living measure of
protection, and business disaster en
sues, I shall not bo discharging my
duty. If I fail to recommend the
reduction of excessive duties to this
extent, I shall fail in my duty to
the consuming public.
"There is no public exigency re
quiring the revision of schedule K
in August without adequate informa
tion, rather than in December next
with such information. December
was the time fixed by both parties in
the last congress for tho niiv.miet..
of adequate information on schedule
K with a view to Its amendment.
"Really the public weal is better
preserved and it will be better to
wait ninety days, than to blindly
enact a law which may seriously
injure the industries involved and
the business of the country in
general." '
FREE LIST BILL VETO
In his message vetoing tho farm
ers' free list bill, the president de
clared in hi message that tho bm
was so carelessly drawn that he was
uncertain as to just what articles it
covered. He especially criticised
every section of the bill, and said
the language was too ambitious to
be practical.
Mr. Taft objected to the principlo
in the bill which admits raw ma
terials free and keeps the machinery
necessary to finished product on tho
dutiable list.
Lastly, tho president based his
veto on tho fact that the tariff board
had no opportunity to report on tho
schedules affected by it.
IRON AND STEEL SCHEDULE IN
THE SENATE
Democrats in the senate broke
away from all previous arrange
ments and gave the iron and steel
schedulo a start towards revision.
Tho story Is told by the Associated
Press in this way:
Washington, Aug. 17. A shrewd
move by the regular republicans, as
unexpected as it was effective, today
suddenly threw the democrats into
comploto control of the senate in
their own right and forced them
absolutely to abandon their coalition
with the progressive republicans.
Out of the chaos and uproar came
a bill to revise the cotton tariff of
the Payne-Aldrlch law. It was the
bill aa passed by the house, but
saddled with amendments to revise
the iron and steel, the cotton ma
chinery and chemical schedules of
the tariff law, coupled with a pro
vision for reciprocal free trade in
bituminous coal across the Canadian
river. The bill as amended will go
back to the house and probably will
be sent to conference. If it emerges
from this ordeal and goes to the
white house, it unquestionably will
meet the fate of the wool revision
bill which was vetoed today by Presi
dent Taft.
Democratic votes alone were cast
in favor of the bill. The regular
republicans deliberately absented
themselves from the chamber and
thus left their progressive colleagues
in a hopeless situation. The insur
gents, taken by surprise, wero
thrown into a rage.
Alternately they denounced what
they termed the treachery of the
democrats with whom they had been
in alliance and inveighed against the
regular republicans for tho part
they had played in the new combi
nation. In vain the insurgents Invoked
rules of the senate to compel the
regulars to attend and to cast their
votes. Senatorial courtesy was
tossed to the winds. The insurgents
charged that the democrats had
broken faith, although in caucus last
night tho latter had determined to
carry through an insurgent-democratic
program on the cotton bill,
which would have included the adop
tion of tho La Follette substitute for
the measure. They insisted that tho
democrats had entered into an agree
ment or understanding with the
regulars to leave the progressives in
the lurch.
Neither tho regular republicans
nor the democrats would acknowl
edge that such an understanding
exists, but Senator Bristow of Kansas
boldly declared he overheard a con
versation between Senator John
stone of Alabama, a democrat, and
Senator Penrose of Pennsylvania,
the regular republican leader, that
left no doubt in his mind.
Despite the drastic rules Invoked
many of the regular republicans still
insisted on their right to decline to
vote, and when serious consequences
threatened, they resorted to motions
to be excused, which in several cases
were carried by safe majorities. The
democrats sought to relieve their
new found allies with a blanket mo-
.. - it i,.4- mfl
uon or excuse irom vouug, uuu -
plan failed.
Whatever understanding, the re-
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