T"iifejaEc" !(1r', TV' "" ""?'v !,T,t1' '"jt" rv?'s,iTi-
-
NOVEMBER 24, 1911
7
Practical Tariff Talks I
George T. Murray of Berthold, N. D., sends
to The Commoner copieB of letters passing
between himself and Senator McCumber, in
which the topic for discussion includ&l sevoral
phases of the tariff question. Mr. Murray writes
in substance: "I have been trying for six
months to harmonize his position with reference
to the duty on the wool in a suit of clothes with
the tariff law, but can not. Will you try?" Sena
tor McCumber's statement was that the "duty
on the wool in the cloth in the ordinary suit
of clothes, costing, say, $45, would be from
63 cents to $1.25." The duty on tho wool in
a suit of clothes is dependent, naturally, upon
the amount or quantity of wool in it, The
value of the wool in a suit depends upon the
quality used. Wool, before it can be utilized
in cloth-making must be scoured or cleaned,
what remains Is pure wool. The duty on scoured
wool is 33 cents a pound, and in order, there
fore, to find out the original duty on the wool
in a suit of clothing one must multiply tho
-amount of scoured wool by 33 cents. This
amount of wool varies according to tho weight
of the cloth and. the extent of the adulteration
by using cotton yarn with woolen yarn. In the
latter case, however, the duty is Just the same
as if the yarn were all wool, another tariff trick.
But, as will be seen later, this duty, as finally
paid by the consumer has grown much greater.
Where Mr. Murray became mixed was in com
puting the duty upon the cloth. There is ample
excuse for this confusion. The wool tariff is a
mass of complexities, and designedly so. The
same tariff is levied upon wool regardless of
how much it shrinks, and at each step in the
process of manufacture duty is piled upon duty,
all for the advantage of the manufacturer; until
only an expert can compute what the result is.
Cloth is not made from wool, but from woolen
yarn. The finest woolen goods are the worsteds.
There are four processes in the making of this
;TiHd,..pf.goods. . First, the unwashed wool is
scoured or cleaned. Then it is combed, the
result of which process is known as tops. These
tops are then spun or twisted into yarn, and tho
yarn woven into cloth. Wool is divided into
several classes, each bearing a different rate- of
duty. The tops vary in value as the wool varies
in quality. There are two divisions, one for
tops valued at not more than 20 cents a pound
and pne for tops valued in excess of that figure.
Reduced to easily understood figures the cheaper
tops carry a duty of 24 cents a pound and 30
per cent ad valorem, and the dearer ones 36 2-3
cents a pound plus 30 per cent ad valorem.
Yarn,, which is the next step in the manufac
turing process, is divided for the purpose of
duty levying, into two classes, that valued at
thirty cents a pound and that valued above
thirty cents a pound. On the theory that it
takes two and a half pounds of unscoured wool
to make one pound of the cheaper yarn tho
duty is two and a half times the 11 cent a pound
duty on unscoured wool, or 28 cents. It is
figured that on theJ more valuable yarn it re
quires three and a half pounds of unscoured
wool to make jone pound of yarn, and the rate
-is,- therefore, 38 cents a pound. These are
what are knpwn as compensatory duties, that
Is to compensate the manufacturer for the added
price put on the wool by the tariff, and in addi
tion there Is the protective duty, which on the
cheaper yarn is 3U per cent of its value and
on the dearer 40 per cent.
But suits are not made from yarn, but from
cloth, and here a higher rate of duty is Imposed.
SThere .are three rates upon cloth. . The first
applies to cloth not exceeding forty cents a
pound in. value, the second on cloth valued at
between -forty and seventy cents a pound, and
-the-third to'cloth above seventy cent3. -Reduced
to- actual flgurs and avoiding the technical
definition, -thf cheaper grade carries a fluty of
g&. cents a pound and 50. per cent ad valorem;
rthe: next cheapest 44 cents a pound and 50 per
cenfc a& talbrem, and the third, 44 cents a
pound andH5B percent ad valorem.' Ajl of these
compensatbr duties are heavily overloaded in
theinterest of" the manufacturer, and the net
T8iiit,i8ra- piling up of the duty above all
wasdnv Ail of 'which simply means this, that
'i every step' in the manufacture of the cloth
and at every handling from cloth to the finished
article a profit Is added on every duty paid or
The Commoner.
levied, so that in tho end when tho suit roachos
tho wearer tho original duty of 33 cents a pound
has grown to largo proportions. Tho original
duty is supposed to satisfy tho wool growor; tho
remainder is absorbed by tho manufacturer.
C. Q. D.
A WALL STREET VIEW
From tho New York Sun: As a domagoguo
Mr. Bryan grows worse with ago. President
Taft would no doubt give his cordial assent, if
assent were necessary, to tho publication by
Mr. Bryan of any "written and verbal recom
mendations" of Mr. Justico Whlto for chief
justice of tho supreme court and of Govornor
Hughes of New York for associate Justice which
aro within Mr. Bryan's knowledge; but as to Mr.
Taft's making a clean breast of all or any recom
mendations which ho may have recoived, tho
president of tho United States will of courso not
comply with Mr. Bryan's impudent demand, and
nobody knows it bettor than Mr. Bryan.
Mr. Taft's reasons for preferring Mr. Justico
White to Mr. Justice Harlan for chief justice,
which Mr. Bryan affects to regard as truckling
subservience to tho trusts, woro published at tho
time of tho appointment Mr. Justice Harlan
at seventy-seven was, in the president's opinion,
too old to undertake tho greater responsibilities
and do tho work that naturally falls to the chief
justice of tho supreme court. Mr. Taft was
deeply interested in reforms in civil procedure
in the federal courts and believed that no mem
ber of the supreme court was bettor qualifiod
by knowledge and experience to draft tho
changes needed than Mr. Justice White, who,
although only twelve years tho junior of Mr.
Jus'tlco Harlan, was a man of great vigor of
mind and body. The president had said on tho
subject of tho reform of procedure:
"Speaking generally, the improvement of the
administration of justice, civilly and criminally,
in the matter of its prompt dispatch and the
cheapening of its use for tho poor man is the
most important question before tho American
people."
As to tho Hughes appointment, Mr. Taft made
it in spite of tho fact that the governor of New
York had urged the legislature to reject the
federal income tax amendment, which was ono
of tho Taft policies. Governor Hughes argued
that "the power to tax incomes should not bo
granted in such terms as to subject to federal
taxation the incomes derived from bonds Issued
by the state Itself or those issued by municipal
governments organized under tho state's
authority." He held that "to place the borrow
ing capacity of the state and of its governmental
agencies at the mercy of tho federal taxing
power would be an impairment of tho essential
rights of the state."
Mr. Bryan blacklisted the Hughes appoint
ment when it was made. "He is understood,"
said the personal organ, "to bo a close per
sonal friend of Rockefeller." Mr. Bryan fol
lowed the remarkable bit of "evidence" of un
worthlness with such rubbish as this:
'It will be remembored also that he was tho
first prominent man to oppose the Income tax,
and his opposition came after Mr. Rockefeller
had announced hostility to the income tax
amendment."
Mr. Bryan also denounced the appointee be
cause "he vetoed the bill for the reduction of
railroad rates after a New York legislature, and
a republican legislature at that, had passed tho
reduction bill." Mr. Bryan, being simply a
loose mouthed and unscrupulous demagogue,
refused to recognize the independence and
courage of an act for which the governor of
New York was praised by fair minded men
irrespective of party. It Is painful to see him
ranting about the 'supreme court like a sand
lots orator.
-
TWO OASES Df POINT
A reader of . The Commoner sends in tho
following:
"President Taft has asked that a' single trust
or .combination in restraint pf trade between
the, states be named that would not come, within
the Sherman anti-trust act as construed ia'the
opinions of Chief Justice White in the Stand
ard Oil and Tobacco cases, and that ought to be
held to come within that act, I.mame two and
refer the president, as my authority- for so doing,
to the opinions of the chief, justice (n, tp capee
mentioned and to his opinion, when an associato
Justice, m the Trans-Missouri case CI 6 IT. S.
290), and to his dissent intho Joln't-Tra'filc'case
(171 U. S. 505). 573-574. . ..
"In the Trans-Missouri case the supreme
court by a majority vote of one decided that
the railroad traffic association Involved therein
was a violation of tho Shorman net Juntlco
White dissented in a lengthy opinion based upon
tho rulo of roason, and on which ho mado an
argumont In ovory substantial rospect tho aamo
as aro his arguments in tho Standard Oil and
Tobacco cases, mado in support of his dicta in
those cases that the Shorman act should bo con
otruod so as to apply only to unroasonnblo or
unduo restraints of trado botwecn tho statoa.
Now if Justico White's argumont was sound
against tho conclusion of tho court condemn
ing tho combination or association of railroads
involved in the Trans-Missouri case, if his argu
mont was sound in holding that such combina
tion or association was reasonable, and thero
foro not within tho Sherman act, why does not
tho same argument mado by Chief Justico Whlto
in tho lator cases have tho same offoct; and why
does not tho lator nrgument, concurred In by
seven justices, have tho offoct of romoving such
a combination or agreement as that Involved in
tho Trans-Missouri cnBo from tho Sherman act?
"If this bo true, and how can thoro be any doubt
of It, tho samo thing is truo of tho combinatloa
or agreomont involvod In tho Joint-Traffic case,
because there Justico Whlto dissented on the
samo grounds as thoso expressed by him in the
Trans-Missouri caso, without repenting them.
"It will not do for the president to answer this
suggestion by roforrlng to tho decisions (as
distinguished from tho opinions of the court)
in tho Standard Oil and Tobacco cases, tho solo
controversy is as to tho construction of tho
Shorman act given by Chief Justice Whito, not
to support tho decisions or conclusions of tho
court In those cases, but to control tho decision
of future cases."
WORKING OUT OUR OWN SALVATION
Mr. Bryan is exactly right whon he says that
rollef from opprcsslvo taxation must bo had not
by bargaining with other countries, as In the
case of Canadian reciprocity, but by our own
determined effort to promoto equality and Justice
at home.
In our proposed agreement with Canada we
remitted certain taxes upon oursolves on condi
tion that the inhabitants of the dominion should
abolish certain taxes upon thcmselvos. That
was all that it amounted to. Tho stupid refusal
of tho Canadians to do away with any of their
own taxes constitutes no reason why wo, feeling
that wo aro overtaxed, should abandon our
efforts to remove a burden that has becomo
Intolerable.
Reciprocal arrangements aro objectionable
chiefly because they greatly oxtend the power
of government over business and depend not
upon right but upon negotiation. Under tho pro
tective system we build up favored interests at
homo and then, by reciprocal trades, bargain
ings and cozenings, wo make foreign commerce
an affair that is to bo carried on profitably only
as government shall permit A treaty of reci
procity may be as crooked as Schedule K of
the Payne-Aldrich tariff.
Nobody In this country Is bettor qualified to
preach the doctrine of independence, courage
and fairness in taxation than Mr. Bryan, and
wo hope ho will do more of it. St. Louis Republic.
THE FATHER'S EXAMPLE
,From the Pendor (Neb.) Republic: "There is
a story told of a father who took his Jlttle boy
-one morning Into tho city whoro he transacted
his business. When noon came ho took his boy
to a restaurant where he often had lunch. The
iwaitor on receiving tho order, knowing that It
was the father's custom to havo a bottle of
wine, askud the boy what he would take to
drink. The boy replied, "I'll take what father
stakes." The father, realizing the seriousness
of the situation, quietly beckoned the waiter
and countermanded the order."
- A warning: "You are a fine little fellow,'
said a man to the son of a friend as he patted
.the. bpy on the head. After chatting with hint
awhile he asked, In parting, "Well, I suppose
you' are -going to grow up to be a man like
,jrear father" J'That's what ma's afraid 'of,"
(innocently replied the boy. " - -
, i i .
K ' "EXECUTION
'(arcWb'atever else you maysay about Mn.Taft,
"wh&i Wflnds a law on the Vtatute books he fries
to execute it Inst as if rongrcse meant what
'jSw.iHftrji W can't W. don't wish $'&.
'ecue"lt he has a supreme court to 1'execute"
it with nea'tnesi and dispatch. Wayne (Neb')
Democrat
i
J
5
I
91
1
1 '
L- &&&'
