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 4 Abroad. (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 wool. "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 protection. 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 fixed. 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 port says. 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 In cost." The Investigation was begun In 1910 and ha been pursued at home and "war ' QDE2 PISE- U U'J U L'J V17 Vl'JU U UUU P mm STEM IV SSL. 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. 18" 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 ' M&ydeim BirotMeirs 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 Talking New Model Machine 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 needle. 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 TeUrHon.,: '&'05 1311 FARNAM STREET, OMAHA sass 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 for 88.88 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 'or 88.78 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 ovr nio 94.00 , . gl,OS .V.p. 9S.TB 99.00 98.88 94.00 vbczax moss 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. MANILLA CIGARS 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 91.T8 nam 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 J Bessgs. box of 100 88.50 Yankee Couaul (Juniors), box of S'i for 86o 8!dnbrr After Dinner, box of ?S for 81.88 Carman After Dinner, box of 60 fur 83 OU Bl,,t'a WhIt thre '). r"x 91.88 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 N BABTABD FBABMACT 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 ( 1 M u