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About Omaha daily bee. (Omaha [Neb.]) 187?-1922 | View Entire Issue (Dec. 21, 1911)
MlK UEE: OMAHA. THURSDAY. DECKMnKU 21.
TAFT SAYS WOOL DUTY HIGH
President Send Report of Tariff
Board n Schedule K to Home.
REDUCTIONS ARE RECOMMENDED
'I e port dkfwi the Difference of Coat
of Pro4atlon aad MiaalarUr
Brlwrta Valtea State
(Continued from Page On.)
ble part of the wool thus Imported la the
nelsht of the wool of thla hundred pound"
after soourlnff. If the wool shrinks 80
,wr cent, aa some wools do. then the duty
In Kurh a case would amount to til on
twenty pounds of scoured wool. This, of
course, would be prohibitory. If the wool
shrinks only 50 per cent. It would be 111
on fifty pounds of wool, and this In near
lo the average of the grand bulk of wools
that are Imported from Australia, which
Is the principal source of our Imported
"These discriminations could be over
come by assessing a duty In ad valorem
terms, but this method Is not open to
these objections: first that It Increases
administrative difficulties and tenda to
decrease revenue through undervaluation
and, second, that sa prices advance thu
at valorem rata increases the duty per
pound at tha time when the consumer
most needs relief and the producer can
hest stand competition; while if prices
decline the duty Is decreased at the time
when the consumer Is least burdened by
the price and the producer most needs
Hoty on Scoured Content.
"Another method of meeting the dif
ficulty of tmtliiK the greased pound is to
as os s a specif lo duty on greased wool
in terms of Its scoured content. This
obviates tha chief evil of the present
system, namely, the discrimination due to
the different shrinkages, and thereby
tends greatly to equalize the duty. The
board reports that this method Is feaa
abla In practice And could be administered
without great expense. The scoured con
tent of the wool Is the basis on which
users of wool make their calculations,
tmd a duty of this kind would fit the
usages of the trade. One effect of this
method of assessment would be that, re
gardless of the rate of duty, there would
be an Increase In the supply and variety
of wool, by making available to the
American market wools of both low and
fine quality now excluded.
"The report shows In detail the diffi
culties Involved to state In categorical
terms the cost of wool production and
the great differences In cost as between
different regions and different types of
wool. It Is found. However, that taking
all varieties in account, the average cost
of production for the . whole American
clip is higher than the cost In the chief
competing county by an amount some
what less than the present duty.
"The report shows that the duties on
noils, wool wastes and shoddy, which are
adjusted to the rate of 33 cents on
scoured wool is prohibitory. In general
they are assessed at rates as high or
higher than the duties paid en the clean
content of wools actually imported.
"They should be reduced and so ad
justed to the rate on wool as to bear
Ihelr 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 tha difference In cost of pro
duction tiere and abroad. , ; - ,
Thiols true of tops, of yarns (with the
exception of worsted yarns of a very
high grade) and of low and medium grade
cloth of heavy weight.
'.On tops up to 52 cents a pound In
value and on yarns of G3 cents in value,
the rate is 100 per cent, with correspond
ingly high rates for lower values. On
cheap and medium grade clothes the ex
isting rates frequently run to 160 per cent,
and on some cheap goodH to over 300 per
cent. This Is largely due to that part
of the duty which is levied ostensibly to
compensate the manufacture for the en
hanced cost of his raw material due to
duty on wool. As a matter of fact, this
compensatory duty, for numerous classes
of.goods, Is much in excess of the amount
needed for strict compensation.
"On the other hand, the findings show
that the duties which run'Vt such high
Hd valorem equivalents are prohibitory,
nines the goods are not Imported, but that
the prices of domestic fabrics are not
raised by the full amount of duty. On a
set of one yard samples of sixteen Eng
lish fabrics, which are completely ex
cluded by the present tariff rates, it was
found that the total foreign valua was
ltt.8; the duties which would have been
assessed had these fabrics been imported,
7C90; the foreign value plus the amount
of the duty, 1118.74, or a nominal duty of
1S3 per cent. In fact, however practically
Identical fabrics of domestic make sold
at the'same time at 169.76, showing an
enhanced price over the foreign market
i'f but 67 per cent.
"Although these duties do not Increase
prices of domestic goods by anything like
their full amount, it is none the less true
that such, prohibitive duties eliminate the
possibility of foreign competition, even in
time of scarcity; that they form a
temptation to monopoly and conspiracy
lo control domestic prices.;, that they are
much in excews of the difference in cost
rf'f production here and abroad, and that
they should be reduced to a point that
accord with this principle.
Cost of Manufacturing.
"The findings of the board show that
In this Industry the actual manufacturing
cost, aside from the question of the price
vt materials, Is much higher in thla coun
try thun It U abroad, that in the making
it yarn and cloth the domestic woolen or
worsted manufacturer has in general no
udvantage in the form of superior ma
chinery or more efficient labor to offset
the higher wages paid in thla country.
Ulie findings show that the cost of
weaving wool into yarn in this country
Is about double that in the leading com
petition country, and that the cost of
turning yarn into cloth is somewhat more
than double. Under the protective policy
a great Industry, involving the welfare
of hundreds of thousanda of people, h
been established despite thesa handicaps.
"In recommending revision and reduc
tion, I therefore urge that action be taken
with thesa facts in mind, to the end Uiat
an Independent and established Industry
may not be jeopardized.
Fabrics Difficult Problem.
"The tariff board reports that no
equitable method has been found to levy
purely specific duties on woolen and
worsted fabrics, and that, excepting for
a compensatory duty, the rate must be
ad valorem on such manufactures. It Is
Important to realise, however, that no
flat ad valorem rate on such fabrics can
be made to work fairly and effectively
A single rat which la high enough te
equalise the differences in manufacturing
tust at home and abroad on highly fin
Ished goods involving such labor would
be prohibitory on cheaper goods. In which
the labor cost Is a smaller proportion of
the total value. Conversely a rate only
adequate to equalise thla difference on
cheaper goods would remove protection
from the fine goods manufactured, the
Increase In which has been one of the
striking features of the trades develop
ment In recent years. 1 therefore recom
mend that In any revision the Importance
of a graduated scale ef ad valorem duties
cm cloths be carefully considered and ap
plied. 'I venture to say that no legislative
body has ever had presented to it a more
complete and exhaustive report than this
on so difficult and complicated a subject
as tha relative matter of wool and wool
ens the world over. It Is a monument to
the thoroughness. Industry, Impartiality
and accuracy of the men engaged In Its
making. They were chosen from both
political parties, but have allowed no par
tisan spirit to prompt or control their In
quiries. They are unanimous In their
findings. I feel sure that after the report
hss been printed and studied to this
schedule of the tariff will convince all
the wisdom of making such a board, per
manent In order that It may treat each
schedule of the tariff as It has treated
this, and then keen Its bureau of Informa
tion up to data with current changes In
the economic world.
o Rates Proposed.
"It is no part of the function of the
tsrlff board to propose rates of duty.
Their function Is merely to present find
ings of fact on which rates of duty may
be fairly determined In the light of ade
quate knowledge in accord with the eco
nomic policy to be followed. This Is what
the present report does.
The finding of fact by the board show
ample reason for the revision downward
of schedule K in accord with the protsc
tlve principles and present the data as
to relieve costs and prices from which
may be determined what rates will fairly
equalise the difference in production
costs. I recommend that such revision
be proceeded with at once."
REPORT ON WOOL SCHEDULE
(Continued from Page One.)
gins. It costs 100 per cent more to make
cloth from yarn in the United States than
It does in England and France. The pres
ent system of fixing the same ad valorem
rates of duty on different grades of fab
rics is condemned aa unfair.
The board holds that a fair solution
would be the adoption of a graduated
scale under which the ad valorem rate
properly assessed on goods of low value
should then Increase progressively ac
cording to slight Increment of value, up
to whatever maximum rate should be
The board's figures would seem to show
that the "prohibitory duties" do not af
fect the American consumers so much as
would be inferred by the us of those
words; for while the duties on sixteen
samples of foreign cloth selected by the
board averaged 184 per cent, the actual
excess of the domestic price over the
foreign price was found to be 47 per cent
a the result of domestic competition.
At the present time the industry in gen
eral is on a competitive-basis," the re
Cost and Profit of Clothes.
The cost of a suit of clothes from the
back of a sheep to the back of a man Is
computed In the report and the profits
which accrue In the process are traced
to their sources. For purposes of com
putation the board takes a suit of clothes
retailing at !3 and wholesaling at $16.50.
This is said to represent fairly the suit
of clothes worn by the average American.
The farmer receives for the wool In
such a suit 12.23 and his profit is 68 cents;
the manufacturer of cloth receives for
his product $1.78 and his profit is 21 cents;
the wholesale clothing dealer recelv for
his product 816.60 and his profit Is 12.18;
the retail clothing dealer receives (28 and
his profit Is 86.60. The figures are aggregate.
Extracts from the report follow.
"The result of the raw wool Investiga
tion established the fact that It costs
more to grow wool In the United States
than in any other country; that the me
rino wools required In such great vol
ume by our mlllji are the most expensive
of all wools produced: that the highest
average cost of production of such wool
in the world is in the state of Ohio and
contiguous territory, and that the lowest
average cost on similar wool Is in Aus
tralia. Cost of Producing Wool.
"It Is not possible to state In exact
terms the actual cost of producing a
pound of wool considered by Itself for
the simple reason that wool Is but one
of two products of the same operation.
In the western part of tne United States
where about two-thirds of the sheep of
the country are to be found, the fine and
fine medium wools carry an average
charge of at least It cents per pound. In
terest not Included. If account Is taken
of the entire wool production of the coun
try. Including both fin and coarse wools.
the average charge axaJnst the clip Is
about 4 cents per ' pound. In South
America the corresponding charge is be
tween 4 and t cents per pound.
"Taking Australia as a who! It appears
that a charge of a very few cents per
pound lies against the great clips of that
region In the aggregate. While the board
cannot, therefore, undertake to nam an
exact figure In that ran It la certain
that Australia' costs at large fall materi
ally below the Mouth American.
"Tha board finds that the present
method of levying th duties upon raw
wool Is defective In that It operates, by
reason of the varying shrinkage of th
different kinds of wool, to prevent th
Importation of many heavy conditioned
sorts, which, if Imported, would add sub
stantially to the stock of sound staple
available for the manufacture of woolen
fabrics. There Is no valid reason for ths
discrimination that now exists as being
the wools of class I (Merino and cross
bred) and class II (KngMsh medium and
luster) and that these two classes could
properly be consolidated.
"Tha present duty of 3S cento per pound
on scoured wool Is prohibitive, preventing
effectually the importation of clean low
priced foreign wool of the lower grades
that would be exceedingly useful in the
manufacture of woolens in this country,
and If so might displace In large measure
the cheap substitutes now so frequently
employed in that industry. The fact that
such cheap wools are of such heavy
shrinkage that they cannot b imported
in an unscoured state emphasises ail the
more the prohibitive character of the
present scoured pound duty.
Objection to Ad Voloresi. Rate.
"That an ad valorem rate Is open to
grave difficulties from tha point of view
of administration and revenue. In th case
of a crude, bulky commodity like wool,
produced In many remote regions and
finding Its way Into the markets through
so many various channels of trad.
"That, furthermore, an ad valorem rate
would give a high duty per pound when
prices are high; that la, whn the con
sumer most needs relief and the pro
ducer la most able to bear competition.
With a low price of wool the duty per
pound would be low; that Is at th time
when th consumer ha less need of com
peting wools and the producer is least
able to bear competition.
"The rates of schedule K are baaed on
the assumption that wools In the grease
shrink an average of 6654 per cent. While
It Is true that considerable quantities of
wool do shrink that amount the average
Is well below that figure. Certain very
heavy wools grown at th South African
cap and In certain district of Australia,
South America and th western United
State shrink as high a 70 to 76 per cent.
"The cost of manufacturing woolen
yarn and cloth In tha United States 1
much higher than, In Esfbpe. Th main
elements of cost of production ar cost
of plant, material and labor. Th cost
of erecting and equipping both woolen
and worsted mills is much higher In this
country than in England.
Effect of tha Duty.
"The material Is Increased In' price by
the duty on raw wool. The manufacturer
who imports hi wool must pay the
full amount of the duty.- Wools grown
In the United States sre increased In
value by the duty, bat not, by the full
extent of the duty. Wage are much
higher In th United States, but wages
are in themselves no necessary Indication
of relative cost of production. Frequently
It Is found that high wages and low
labor C03t go together.
"It appeors that this particular Indus
try Is one In which the high elements of
costs in this country are not in general
offset by any particular advantage or
any marked superiority In th efficiency
of labor. To a certain extent, European
countries have th advantage of us In
this latter regard.
"It may ba skid then, that, taking th
Industry a a whole, th American manu
facturer practically ha no advantage In
efficiency of labor and equipment over
his foreign eompetitor. On certain spe
cialties the largest and most efficient
American mill ar able by skillful organ
isation materially to reduce th difference
The Investigation was begun In 1910
and ha been pursued at home and
U U'J U L'J V17 Vl'JU U UUU
started off Monday morning with a good crowd of eager bargain seekers, everyone expressing delight rind astonish
ment at the wonderful price and easy term Inducements we are offering.
You! no matter what your income may be, can, during this pale, afford a piano in your home.
Sued inducements as we offering, consisting as it does of the highest Piano qualities at a lower
price than has ever been offerod in Piano selling history, and tha extraordinary easy and convenient terms,
makes it possible to place in every home a high-grade, standard instrument.
A Piano Is a Homo necessity
Necessary as an article of furniture; necessary to the home adornment; necessary for tho entertainment of visitors;
necessary for the amusement of the home circle; necessary for the completion of the children's education. In fact, a
piano in this day hns become I
A Real Household necessity
Remember, we have put the January Clearing Sale Prices on the pianos, which means that instead of waiting
until after Xmas, you can save from thirty-three and one-third to sixty-five per cent on your piano purchase by buying
of us now. THIS SALE IS UNUSUAL, but judging by
tho crowds who were hero Monday, we will be able to do
what we started out to do, which was to sell every piano,
consisting of over three hundred, which are on our floors,
between now and Saturday night at 10 P. M. "We will
make deliveries, if necessary, all day Christmas, so if you
cannot come before 9 o'clock Saturday night, we will see
that that much wanted Christmas present will be deliver
ed on Santa Clans day. '
We request of you that before buying, you investi
gate what we have to offer.
A better plan would be to look over the offerings of
other houses; find out what they have to sell; their prices and terms; then allow us to prove to your entire satsif action
THAT THIS IS THE PLACE-ABOVE ALL PLACES TO OBTAIN A REAL PIANO BARGAIN.
Playek Pianos at Cost Tho Cheering Xmas Gifts
Prices range from $350.00 up, for full 88-note players, in all the favorite wood casing. Every instrument guaran
teed and 25 rolls of your favorite music free.
For an Xmas Gift What Would Be
Nicer and Better Appreciated Than a
TZr-fc 7;? Talking
V IlUI V 1UIJL UAGL Machine
We have them in different styles and woods; also a full line of Violins, Mandolins, Guitars, Cornets, Accordeons,
Violin Cases, Violin Bows, Music Rolls in fact, EVERYTHING IN MUSIC at '
abroad. In the United (States expert In
vestigators visited 1,200 wool growers In
nineteen states and ITS oountles. Special
gents worked in Australia, South Amer
ica, England and on the European con
tinent. Figures were gathered from mills
also. A large portion of th report Is
devoted to wages, efficiency and em
ployee. A large proportion of machinery
used 1 made abroad. Of the 86.000 people
employed In the Industry In this country
63 per cent were born In foreign oountrle
and mora than 88 per cent had no pre
vious experience In mechanical Industry.
Honor Come ta Wilson.
CRE8TON. Ia.. Deo. 20. Special.) A.
Latimer Wlleon of thl city, who has been
snleoted aa on of tho Judge for the In
ternational Stock show held In Chicago
for several years, was last week elected
as one of the directors of the English
Horse association, also waa made a mem
ber of the Delglan Draft association, both
of which met last week In Chicago dur
ing the live stock show. Mr. Wilson and
his partner are among the largest Im
porters of horses In the United mates.
PROMINENT MAN CHARGED
WITH MURDERS OF FOUR
PORTLAND, Ore., Dec. 20,-Nathan R.
Harvey, a man of some prominence and
wealth, has been arrested for tho murder
of the "our members of the HIU family
here last June. The arrest was made at
OreRon City. The crime created great
excitement and was that of a degenerate.
There is No Other
Just Like this
THIS is the, first talking ma
chine of this class to be
offered at the price or anywhere
near it and we believe it is
the best that is likely ever to
be offered at its price or near it.
Tho cabinet work Is of the high
est possible cra.ftmansb.lp the
wood used being either selected
grain quartered oak or strongly
marked, genuine mahogany, hand
polished. No finer finish la applied
to a tbousand-dollsr piano. The
instrument is about nineteen
Inches square and thirteen Inches
high. When the top, which la
especially deep, is raised, the sur
face of the turntable is on a level
with tho opening, thus being easily
accessible. The turn-table Is re
volved by a powerful three-spring
drive motor. Tho sound waves are
led through the tone-arm and
through a scientifically constructed
tone-chamber where they are
greatly amplified, and then thrown
out through the opening, subject
at will to regulation In volume by
the opening or closing ot the little
doors. The tone volume of this
Instrument Is astonishing, and tho
tone quality Is unexceptionable.
The motor runs absolutely silently,
and Its speed Is regulated on a
graduated speed-dial. Tbe repro
ducer will accommodate not only
steel needles but tho Increasingly
popular fibre needle. The Instru
ment is completely cablnetted, the
hinge lid completely enclosing the
working parts and practically elim
inating all friction noises from tbe
Now consider Just what we sre
offering you: this Instrument, com
plete and perfect, with sis splendid
Double-Disc records twelve selec
tion for $59 cash, or 97 down
and 93 per month at the same
price, X interest, no en t ran. De
livered at any place you say, at
any time you like, today or the day
before Christmas, vltli a signed
guarantee and the privilege of. re
ceiving your money aaln If yon
deride to hare us call and take the
Instrument and the record hack.
No such offer was ever before
made in Omaha, and we do it now
only because we know the value of
the instrument and because we In
tend to complete the distribution
of 600 of these talking-machines
in Omaha before Christmas.
"On time" for Christmas at 059 at $5 a Month-No Extras!
Call, write or telephone to the
COLUMBIA PHONOGRAPH COMPANY
1311 FARNAM STREET, OMAHA
Cigars for Jen to Smoke
Ladies are invited to consult our cigar experts and make
purchases of cigars for Christmas presents with the express
understanding that if the brand selected is not satisfactory
to the recipient, cigars may be exchanged or money refunded.
Clear Havana Cigars In Prime Condition
I, a I'referenola, box of 60 .... S3. 50
M. 1". B., clear Havana, box of 25
for . . sijoo
Cuba Roma Bouquet, box of 25 11.85
I'lor da Murat Opera, boa of 25, Bl.TS
Flor da Murat Navarre, box of 15
Garcia Perferto Finos, box of 26 88.78
Uarrla Helectoa. box of SO for $4.88
Kl Holano Conchas, box of It 1J0
El Holano Media Perfecto. box of 25
Kl Solano Victoria, box of 68 94.60
Charles th Oreat Purltano Cbleo.
box of HO, for 84.50
"Vasa" Rusktna, box of 60 for 94.00
i:i Pax so (IM ls), box of 60 98.00
W have from 40 to 60 brand clear Havana cigar,
High Grade Domestic and Broad Leaf Cigars
MoDsit a or a Cigars, all sires, at
Hall Mark, Club House, box of 60 for
Lady C arson (fine and mild), box of 25 for ....
Bslo, Imperial Flna (16o size), box of 25 lor ..
Trine Ksrosdea, box of 25 for
Boal Hovsrelgn (a rich amok), box of i5 for
lawrano Barrett, box of 60 for
ChauoeUo Cigar, full Una at
, . gl,OS
V ABOUT 00 B BAWDS CHOICU HSVAWA. DOMESTIC US
BBOAJ LIr OlOABB. OUB M 17 SUDOR US KOt, BOO, 000
OIOABI XE11V SJAMB IB VBSVFBOT OOaUXTIOB.
W ar areata ln Omaha for th leading factory at Mnnll CTCTLIO
LOPEZ XT CIB.
The removal of the duty on clsars from the Philippine Island makes
It possible for us to sell these cigar at less than one-half the former
prices. lh lirport duty formerly wits H it r.r iound and SO per rent
ail valorem W handle these direct from the factory No JUliBEKa
Climatic conditions In the Philippines are most favorable to tha arowth
and curing of tobacco "
l.ut h box bears on bottom an Import slump, showing purt of antrr
e of vessel bringing in that particular shipment, etc.
rresldeuUs. 7o each; 6 for J5c; box
Iioadres, box of 100 98.60
raasUUas, box of fifty 81.60
Media Begallsa, box of 60 .... 11.60
rerfeeto. box of 21 91.88
La rioraatlao, box of 11 .... 9140
XnrlaclblB, box of 25 98.80
BO OTXBB DtrOITED CIOARS CAB BB FBOOUBXD AT in
Bessgs. box of 100 88.50
Yankee Couaul (Juniors), box of S'i
8!dnbrr After Dinner, box of ?S
Carman After Dinner, box of 60
fur 83 OU
Bl,,t'a WhIt thre '). r"x
Cap ad ur a, box of 21 for 5o
Owls, box of 13 for (So
unrem Jostle, box of 25 for 88
El Caultans, box of SO for .... 9148
Nearly 100 brands of hlgli-grude 6c clgurs.
Sherman & McConnell Drug Go.
COBBBB 18tb AND DODOZ ITS.
OWL DRUG CO., Corner 16th 2nd Harney
XOTAIi FHAKlf ACT
4ta aad rarnans.
807-8 V. 18th U
THE TWENTIETH CENTURY FARMER
Is tbo Leading Agricultural Journal of ths west Its columns aro
filled with the best thought ot tho day ln matters pertaining to
tbe farm, the ranch and the orchard, and It Is a factor la Uta
development ot Uio great western countrfe (
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