The Century Illustrated Monthly Magazine (May 1913): Vol. LXXXVI. New Series: Vol. LXIV. May to October, 1913Various
History
The Century Illustrated Monthly Magazine (May 1913): Vol. LXXXVI. New Series: Vol. LXIV. May to October, 1913
Various
Periodicals
In the first place, as already explained, the wool used by the worsted
manufacturer does not shrink as much as that which goes into the cloth
produced by the woolen manufacturer. Yet the compensatory duty is fixed
at a uniform rate for both cloths, which is equivalent to giving to
the worsted manufacturer about twice as much “compensation” as to his
less fortunate rival, and giving him, in most cases, compensation for a
greater loss than he actually sustains.
In the second place, the law takes no account of the admixture of
materials other than wool of which the cloth is made. A cotton worsted
may contain cotton to the extent of one half or more of its total
weight, yet the worsted manufacturer is allowed forty-four cents a
pound “compensation” on the entire weight of the cloth. Mr. Dale,
editor of “The Textile World Record,” quotes a typical instance of a
cotton worsted. In turning out 8750 pounds of this cloth, 3125 pounds
of raw wool were used, the remainder being cotton. Assuming that the
price of the wool in this country was enhanced to the extent of the
duty of eleven cents a pound, the manufacturer would be entitled to a
compensatory duty of 3125 times eleven, or $343.75. But the law, on the
four-to-one theory, allows a compensatory duty of forty-four cents per
pound of cloth, or 8750 times forty-four, which is equal to $3850. The
manufacturer is thus granted an extra protection of more than three and
one half thousand dollars in the guise of compensation for the duty on
wool which never entered the cloth.
In the discussion of the question in Congress, the stand-pat senators
stoutly maintained that the four-to-one ratio was only a fair
compensation to the American manufacturer. But the report of the
Tariff Board, which no one has yet accused of being unfair to the
manufacturers, has settled this point authoritatively by sustaining
in most emphatic terms every charge made here against the system of
levying duties under Schedule K.
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