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SCHEDULE 11.-WOOL AND MANUFACTURES OF.

Your committee has adopted in the wool schedule the plan for fixing the duty per pound on the clean scoured content. This method will more properly protect the woolgrowers than would be the case if the duty were levied on the weight of the unwashed wool. The compensatory duties on manufactures of wool are in proper proportion to the wool used to produce the quantity contained in the manufactured product. In the compound rates specific rates represent the compensatory rates on wools and the ad valorem rates the protective duties for conversion costs.

Paragraph 1101 is intended to cover wools used in the manufacture of carpets. This paragraph has been amended by the addition of a proviso to permit manufacturers of carpets to import wools under bond (without actually depositing the amount of duties). Upon proof that the wool so imported was used in the manufacture of floor coverings, they will be able to secure the cancellation of the bond. Through this method the carpet manufacturer will have free carpet wool, and in instances where wool is used in the manufacture of other than floor covering the woolgrower will be protected through the imposition of the duty provided.

Paragraph 1102 has been amended by providing rates upon clothing wools according to the shrinkage of such wools. This amendment will simplify the determination of clean-content weight of imported wools. The rates herein provided are the equivalent of 33 cents per pound on the clean content.

The value-dividing lines, where the rate of duty is made dependent upon the value per pound, in the various paragraphs of this schedule, have been changed from American to the foreign valuation basis.

Paragraphs 1117 and 1118 provide duties on rugs; carpets, and floor coverings. The compensatory rates in these paragraphs of the House bill have been stricken out, because they are unnecessary, since the proviso attached to paragraph 1101 provides for free wool for floor coverings manufactured in the United States.

SCHEDULE 12.-SILK AND SILK GOODS.

This schedule provides, as far as practicable, specific rates. In certain instances your committee has provided a minimum ad valorem rate. In many instances the specific rates will not apply at the present time, due to the cost of raw silk, but it is believed as prices approach normal the specific rates will be applicable.

Paragraph 1201: The phrase "including total or partial degumming" has been inserted to insure the assessment of duty on such silk as has undergone the process of degumming This process of manufacture is an important and expensive step in the manufacture of silk, but under a recent decision of the Board of General Appraisers was held not to constitute a manufacture. The words "or silk and artificial silk" have been added so that noils made of silk and artificial silk shall be classified for duty under the provisions of this paragraph, where they properly belong.

In paragraph 1202 the phrase "or silk yarn and artificial silk" has been inserted to insure the classification of yarn in part of artificial silk under the provisions of this paragraph.

Paragraph 1206 has been extended to include hatters' plush for men's hats. Your committee recommends that the free provision in paragraph 1453 of the House bill be stricken out. Hatters' plush is now utilized largely in the manufacture of women's hats, and no determination of ultimate use can be made at the time of importation. The free provision for hatters' plush for men's hats has been the source of much dispute and no doubt a considerable quantity imported into the United States has been used for purposes other than men's hats. It is therefore deemed proper that it should not be exempted from duty.

Paragraph 1210 of the House bill has been stricken out, for the reason that the importation of silk shirt collars is of minor importance. In the absence of a special provision these collars will be classified under paragraph 1212, which includes clothing and articles of wearing apparel of every description.

Paragraph 1211 has been stricken out because the determination of the rate of duty on component materials of shirts makes the paragraph difficult of administration. Through the elimination of this paragraph shirts will fall under the provisions of paragraph 1212.

Paragraph 1215: Provision has been made for "partially manufactured artificial silk waste." The insertion of this provision is recommended to provide a rate of duty with a proper differential from that recommended for yarns and threads.

SCHEDULE 13.-PULP, PAPERS, AND BOOKS

Paragraph 1300 imposes a duty of 5 per cent upon chemical wood pulp. The House bill permits the free entry of both chemical and mechanical wood pulp under paragraph 1610. It is the belief of your committee that in order to equalize competitive differences in the manufacture of chemical wood pulp a 5 per cent rate is necessary. Your committee has adopted the policy of the House bill in recommending the free entry of mechanical wood pulp and standard newsprint paper.

Paragraph 1302 is amended to specifically provide for wallboard. In paragraph 1306 of the House bill the rates imposed upon paper lithographically printed are the same as those imposed by the act of 1909. The larger part of the cost of paper lithographically printed is in the labor cost. In view of the great difference in labor cost in countries having a greatly depreciated currency, it is recommended that the rates in the House bill be increased 50 per cent.

SCHEDULE 14.-SUNDRIES AND THE FREE LIST.

The House bill placed hides upon the free list in paragraph 1582. Paragraph 1427a of the sundries schedule imposes a duty upon cattle hides of 2 cents per pound if raw or uncured or green or pickled and 4 cents per pound if dry. This duty is necessary to equalize the difference in competitive conditions. The imposition of a duty upon hides makes it necessary to provide compensatory duties

upon leather made from cattle hides and upon the various leather manufactures, such as shoes and harness.

Paragraph 1431 has been rewritten to provide the necessary compensatory and protective rates upon the various classes of leather and upon boots and shoes.

In paragraph 1405 a rate of 40 per cent is proposed upon boots, shoes, and other footwear the uppers of which are composed wholly or in chief value of wool, cotton, ramie, animal hair, fiber, or silk, or substitutes therefor, whether or not the soles are composed of leather, wood, or other material.

In paragraph 1653 provision is made for the free entry of raw skins and hides other than cattle hides.

Paragraph 1653a is added to the free list to permit the free entry of skins, other than skins made from cattle hides, when such skins are tanned but not finished. Because of the duty recommended upon hides and leather it has been necessary to provide in paragraph 1435a a sufficient protective rate upon harness, saddles, and saddlery.

During the war a great advance was made in the United States in the manufacture of toys, especially the educational classes of toys. In paragraph 1414 a 70 per cent rate is proposed upon toys. It is believed that this is the lowest rate that will be sufficient to equalize the difference in competitive labor cost here and abroad, and that this rate is necessary if this industry is to be maintained.

Paragraph 1430 proposes the imposition of a 90 per cent rate of duty upon all laces, handkerchiefs, napkins, wearing apparel, and other articles made wholly or in part of lace, and a duty of 75 per cent upon all embroideries, handkerchiefs, napkins, wearing apparel, and all other embroidered articles. These rates are necessary in order to equalize the difference in labor cost of the United States and of countries having a greatly depreciated currency.

Paragraph 1451 imposes a rate of 20 per cent upon photographic cameras and parts thereof, and a rate of one-half cent per linear foot upon photographic and moving-picture films, sensitized but not exposed or developed. In the case of photographic-film negatives, exposed but not developed, a rate of 2 cents per linear foot is proposed, and in the case of such films exposed and developed a rate of 3 cents per linear foot is recommended. The rates upon photographic-film negatives exposed but not developed and exposed and developed are the same as those imposed by the tariff act of 1913.

FREE LIST.

Paragraph 1504 relating to the agricultural implements admitted free of duty has been amended to exclude lawn mowers and to include by specific mention centrifugal cream separators operable by hand power.

Paragraph 1529 is amended to permit the free entry of maps, music, engravings, photographs, etchings, lithographic prints, bound or unbound, charts, and unbound books, which have been printed more than 20 years at the date of importation, and bound books which have been printed and bound more than 20 years at the date of importation. These classes of books were dutiable under paragraph 1310 of the House bill. It is believed that these classes of books and other

articles specified should be permitted free entry as in the past because of their educational value and because there is little if any competition in such articles because of the limited sale of such articles.

Paragraph 1530 is amended to permit the free entry of books and pamphlets printed wholly or chiefly in languages other than English. These articles were also made dutiable under paragraph 1310 of the House bill. Your committee recommends that these articles be returned to the free list, where they have been classed under prior tariff acts, for the same reasons as those given for transferring other books to the free list under paragraph 1529.

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67TH CONGRESS,}

SENATE.

TARIFF BILL.

(REPT. 595, Part 2.

APRIL 20 (calender day, MAY 6, 1922.)-Ordered to be printed.

Mr. SIMMONS, from the Committee on Finance, submitted the fol

lowing

VIEWS OF THE MINORITY

[To accompany H. R. 7456.]

The majority report gives but meager consideration to the operative rates and provisions of the bill and throws but little light upon the theory or principle upon which it was written and its rates ascertained and determined.

It devotes much space to a long-drawn-out Jeremiad over the enforced scrapping of the Fordney American valuation scheme. These lamentations, taken together with the strenuous efforts made. by the committee to obtain data that might have made the retention of this scheme possible, show how eager they were to find a way by indirection, under cover of nominally lower rates, to establish a practical embargo upon importations of many protected products.

It will be noted that there is no direct, positive, or unequivocal statement and no serious discussion of the measure of protection upon which the rates proposed were ascertained and determined.

In view of the fact that unless the rule of measuring the amount of protection to be accorded is definitely fixed it is impossible to test the sufficiency of the rate to accomplish the purpose intended, it is a matter of astonishment that the majority report should have left the Senate and the country to grope in the dark and find as best they can this fundamental principle upon which these rates, so vitally important to the millions of taxpayers, were ascertained and established.

The taxes imposed in this bill are as real as those imposed in the revenue bill. They must be paid by all the people, just as those in the revenue bill must be paid by all the people, and not by the beneficiaries who have demanded and got them. The people must not only pay the taxes on imports which go directly into the Treasury, but they must pay the resulting increase in prices of all the things they buy

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