PAR. 1005. (a) Cordage, including cables, tarred crúntarred, composed of three or more strands, each strand composed of two or more yarns:

(1) [wholly Wholly or in chief value of manila (abaca), sisal, henequer, or other hard fiber[s], [three-fourths of 1 cent] 22 cents per pound; and in addition thereto, on any of the foregoing smaller than three-fourths of one inch in diameter, 15 per centum ad valorem; [cordage, including cables, tarred or untarred,]

(2) wholly or in chief value of sunn, or other bast fiber [s], but not including cordage made of jute, 2 cents per pound;

(3) wholly or in chief value of hemp, [22] 34 cents per pound.

(b) Cords and twines (whether or not composed of three or more strands, each strand composed of two or more yarns), tarred or untarred, single or plied, wholly or in chief value of manila (abaca), sisal, henequen, or other hard fiber, 40 per centum ad valorem.

PAR. 1006. Gill nettings, nets, webs, and seines, and other nets for fishing, [composed] wholly or in chief value of flax, hemp, or ramie, and not specially provided for, shall [pay] be subject to the same duty per pound as the highest rate imposed in this Act upon any of the thread, [twine,] twines, or cord of which the mesh is made, and in addition thereto, 10 per centum ad valorem.

PAR. 1007. Hose, suitable for conducting liquids or gases, [composed] wholly or in chief value of vegetable fiber, [17] 1912 cents per pound and [10] 15 per centum ad valorem.

PAR. 1008. Woven [Fabrics] fabrics, [composed] wholly of jute, [plain-woven, twilled, and all other,] not specially provided for, not bleached, printed, steneiled, painted, dyed, colored, [nor] or rendered noninflammable, 1 cent per pound; bleached, printed, stenciled, painted, dyed, colored, or rendered noninflammable, 1 cent per pound and 10 per centum ad valorem.

PAR. 1009. (a) Woven fabrics, not including articles finished or unfinished, of flax, hemp, or ramie, or of which these substances or any of them is the component material of chief value (except such as are commonly used as paddings or interlinings in clothing), exceeding thirty and not exceeding one hundred threads to the square inch, counting the warp and filling, weighing not less than four [and one-half] and not more than twelve ounces per square yard, and exceeding twelve inches but not exceeding [twenty-four] thirty-six inches in width, 55 per centum ad valorem.

(b) Woven fabrics, such as are commonly used for paddings or interlinings in clothing, [composed] wholly or in chief value of flax, or hemp, or of which these substances or either of them is the component material of chief value, exceeding thirty and not exceeding one hundred and [ten] twenty threads to the square inch, counting the warp and filling, and weighing not less than four and one-half and not more than twelve ounces per square yard, 55 per centum ad valorem; [composed] wholly or in chief value of jute, exceeding thirty threads to the square inch, counting the warp and filling, and weighing not less than four and one-half ounces and not more than twelve ounces per square yard, 50 per centum ad valorem.

(c) Woven fabrics, in the piece or otherwise, wholly or in chief value of vegetable fiber, except cotton, filled, coated, or otherwise prepared for use as artists' canvas, 55 per centum ad valorem.

PAR. 1010. Woven fabrics, not including articles finished or unfinished, of flax, hemp, ramie, or other vegetable [fiber] fiber, except cotton, or of which these substances or any of them is the component material of chief value, not specially provided for, 40 per centum ad valorem.

PAR. 1011. Plain-woven fabrics, not including articles finished or unfinished, wholly or in chief value of flax, hemp, ramie, or other vegetable fiber, except cotton, weighing less than four [and one-half] ounces per square yard, 35 per centum ad valorem.

PAR. 1012. Pile fabrics, whether or not the pile covers the entire surface, [composed] wholly or in chief value of vegetable [fiber other than] fiber, except cotton, [cut or uncut, whether or not the pile covers the whole surface, and manufactures in any form, made or cut from any of the foregoing, and all articles, finished or unfinished, made or cut from such pile fabrics: If the pile is wholly cut or wholly uncut, 45 per centum ad [valorem.] valorem; if the pile is partly cut, 50 per centum ad valorem.

PAR. 1013. Table [damask] damask, [composed] wholly or in chief value of vegetable [fiber] fiber, [other than] except cotton, and all articles, finished or unfinished, made or cut from [manufactures composed wholly or in chief value of】 such damask, [40] 45 per centum ad valorem.

PAR. 1014. Towels and napkins, finished or unfinished, [composed] wholly or in chief value of flax, hemp, or ramie, or of which these substances [are,] or any of them [is,] is the component material of chief value, not exceeding one hundred and twenty threads to the square inch, counting the warp and filling, 55 per centum ad valorem; exceeding one hundred and twenty threads to the square inch, counting the warp and filling, 40 per centum ad valorem; sheets and pillowcases, [composed] wholly or in chief value of flax, hemp, or ramie, or of which these substances [are,] or any of them [is,] is the component material of chief value, 40 per centum ad valorem.

PAR. 1015. [Fabrics] Fabrics, with fast [edges] edges, not exceeding twelve inches in width, and articles made therefrom; tubings, garters, suspenders, braces, cords, tassels, and cords and tassels; all the [foregoing composed] foregoing, wholly or in chief value of vegetable [fiber] fiber, [other than] except cotton, or of vegetable [fiber] fiber, [other than cotton] except cotton, and india rubber, 35 per centum ad valorem; [tapes] tapes, [composed] wholly or in part of flax, woven with or without metal threads, on reels, spools, or otherwise, and designed expressly for use in the manufacture of measuring tapes, 30 per centum ad valorem.

PAR. 1016. Handkerchiefs, [composed] wholly or in chief value of vegetable [fiber] fiber, [other than] except cotton, finished or unfinished, not hemmed, 35 per centum ad valorem; hemmed or hemstitched, or unfinished having drawn threads, [45] 50 per centum ad valorem.

PAR. 1017. Clothing, and articles of wearing apparel of every description, [composed] wholly or in chief value of vegetable [fiber] fiber, [other than] except cotton, and whether manufactured wholly or in part, not specially provided for, 35 per centum ad valorem; shirt collars and cuffs, [composed] wholly or in part of flax, 40 cents per dozen and 10 per centum ad valorem.

PAR. 1018. Bags or sacks made from plain woven fabrics of single jute yarns or from twilled or other fabrics [composed] wholly of jute, not bleached, printed, stenciled, painted, dyed, colored, [nor] or rendered noninflammable, 1 cent per pound and 10 per centum ad valorem; bleached, printed, stenciled, painted, dyed, colored, or rendered noninflammable, 1 cent per pound and 15 per centum ad valorem.

PAR. 1019. Bagging for cotton, gunny cloth, and similar fabrics, suitable for covering cotton, composed of single yarns made of jute, jute butts, or other vegetable fiber, not bleached, dyed, colored, stained, painted, or printed, not exceeding sixteen threads to the square inch, counting the warp and filling, and weighing not less than fifteen ounces nor more than thirty-two ounces per square yard, six-tenths of 1 cent per square yard; weighing more than thirty-two ounces per square yard, three-tenths of 1 cent per pound.

PAR. 1020. Inlaid linoleum, 40 per centum ad valorem; all other [Linoleum,] linoleum, including corticine and cork carpet, 35 per centum ad valorem; floor oilcloth, 20 per centum ad valorem; mats or rugs made of linoleum or floor oilcloth shall be subject to the same rates of duty as herein provided for linoleum [or] and floor oilcloth.

PAR. [1022] 1021. Common China, Japan, and India straw matting, and floor coverings made therefrom, 3 cents per square yard; carpets, carpeting, mats, matting, and rugs, [made] wholly or in chief value of [cotton,] flax, hemp, or jute, or a mixture thereof, 35 per centum ad valorem; all other floor coverings not specially provided for, 40 per centum ad valorem.

PAR. [1023] 1022. Matting and articles made therefrom, [made of] wholly or in chief value of cocoa fiber or rattan, [8] 10 cents per square yard; [mats, made of pile mats and floor coverings, wholly or in chief value of cocoa fiber or rattan, [6] 8 cents per square foot.

PAR. [1021] 1023. All [woven articles] manufactures, [finished or unfinished, and all manufactures] wholly or in chief value of vegetable [fiber] fiber, [other than] except cotton, [or of which such fibers or any of them is the component material of chief value,] not specially provided for, 40 per centum ad valorem.

SCHEDULE 11.-WOOL AND MANUFACTURES OF

REPORT OF THE SUBCOMMITTEE

JAMES C. MCLAUGHLIN, Chairman
WILLIS C. HAWLEY

C. WILLIAM RAMSEYER

Among the schedules of the tariff law which it has been the duty of the Ways and Means Committee to consider are those relating to the sheep, lamb, and goat industry, the wool, hair, and meat products of these animals, and the manufactures of wool and meat products. In framing this schedule and determining rates of duty to be imposed, the committee has observed the consistent policy of the Republican Party to encourage and protect these industries of production and manufacture and our people engaged in them. In order to afford this encouragement and protection, it has been necessary to change some of the duties provided by the present law, to change the description and classification of some commodities, and to clarify some of the administrative provisions, in the belief that administration of the law, including decisions of the courts, will be more satisfactory.

The first paragraph, 1101, of the schedule relates to unimproved coarse wools and hair of the camel. These wools, including camel's hair, are used in the making of carpets, rugs, and other floor coverings, and if so used are not dutiable. There is a very small production of these wools, known as carpet wools, in this country; they must be imported. A very large part of these wools are coarse, too coarse most of them for use in making cloth; some of them, however, may be used in making cheap cloth. Camel's hair can be used in carpets and in finer cloths and in making press cloths.

These coarse, unimproved wools, as the law describes them, are dutiable but only nominally so; that is, the paragraph provides for their admission to this country under bond and under regulations prescribed by the Secretary of the Treasury, and if within three years (the committee changes the time to four years) they have been used in the making of yarns to be used in the manufacture of carpets, rugs, and other floor coverings, the duty shall be remitted. If, however, any part of them so imported under bond are used for other purposes, full duties shall be levied and collected, and in addition thereto a penalty of 50 cents per pound shall be imposed.

The world's production of these wools is about 800,000,000 pounds, less than one-half of which enters world channels of trade. Sixty per cent of our imports of these wools come from China, British India, and Asia Minor. Smaller quantities come from the United Kingdom, Argentina, and other countries.

Paragraph 1101: The wording is changed in the interest of clarity and of simplicity of operation. All wools of 40s or coarser in grade are added in order to enlarge the supply of raw materials available to domestic carpet manufactures; wools and hair of the camel are made dutiable at 24 cents per pound of clean content in the interest of symmetry of duties in paragraphs 1101 and 1102. This form of the duty does not increase the present average tariff on carpet wools; it merely changes the form of the duty. An additional duty of 2 cents is placed on sorted wools or matchings, for the protection of domestic

wool sorters against cheaper labor in foreign countries. An additional year is added to the time granted domestic manufactures of floor coverings under the bonding provision.

Paragraph 1102 is perhaps the most important part of this schedule, certainly the one concerning which there has been the widest difference of opinion. It relates to improved wools of sheep and the_hair of the Angora goat, Cashmere goat, alpaca, and like animals. From these wools and hairs practically all cloths and other manufactures of wool and hair, except carpets and cheapest clothing, are made.

Before discussing the question as to whether or not the duty of 34 cents measures the difference between costs of production at home and abroad, and of the measure of protection it will give to domestic producers of wool and manufactures of wool, some facts and figures should be presented as evidence of the effect of the present duty of 31 cents, and the condition of the sheep, lamb, and wool industry in this country as compared with conditions under the free wool act

of 1913.

Statistics are often tedious, but in this instance they are interesting and significant as they show improvement of domestic conditions since 1913. The present law, in force since September 21, 1922, has been helpful and has in large measure remedied the serious condition of our wool producers and manufacturers of wool imposed upon them by the Act of 1913, which permitted wool to be imported free of duty. The present law with its protective duty has encouraged farmers and ranch men greatly to increase their flocks and the production of wool and lambs; and manufactures of wool products, except in the finer kinds of wool textiles, have been benefited.

There has been material increase in the number of sheep in every State in which the sheep and wool industry is the principal or a significant part of the business of our people. As appears by a brief of the National Grange, as of January 1, 1922, the sheep of this country numbered 36,186,000, whereas on the 1st of January, 1928, there were 44,545,000, an increase of 8,359,000, or 23 per cent. This increase is significant because in the 10 States in which the sheep industry is not-for many years has not been-large, it appears that between January 1, 1922, and January 1, 1928, there has been a reduction of some 60,000 sheep. The large increases have been in the range States, and there has been no decrease in any State in which the production of sheep and lambs has been or is an important part of farming.

The increase of production of wool in this country is evidence of the helpful influence of the Act of 1922. The world production of wool for use in clothing in 1922 was about 2,000,000,000 pounds; in 1927 the production was 2,600,000,000 pounds. In 1922 there were produced in the United States 263,713,000 pounds; in 1928 our production was nearly 350,000,000 pounds, an increase of 33 per cent. But even now, under quite favorable conditions since the enactment of the law of 1922, the United States has little more than 11 per cent of the sheep, and ranks third among the sheep-raising countries of the world. All of which makes it necessary for us to import, and for some years to continue to import, a great deal of wool.

Under the Act of 1913, a free trade law as far as wool was concerned, the average annual importations of wool were 274,000,841 pounds, whereas the average annual importations under the Act of 1922 have

been only 172,000,920 pounds, a reduction of 102,615,000 pounds, or almost 32 per cent. This reduction was in part due to the protection given by the Act of 1922, in part to the fact that dresses and other clothing of wool have not been worn as much as in former years. Studies for the purpose of learning domestic costs of production have been made by agricultural colleges, separately and in cooperation with woolgrowers' associations, in seven of the range States, the region in which more than two-thirds of the wool of the country are produced. From these data on flocks comprising 1,815,506 sheep in these seven States, representatives of the woolgrowers appearing before the committee have reached the conclusion that the average cost of production. of wool is 38.98 cents per pound in the grease. According to these figures, with a clean yield of 40 per cent, that is, 40 pounds of clean content per 100 pounds of wool as shorn from the sheep, and a cost as estimated by the growers of 2.5 cents per grease pound to land the wool in Boston, this means a cost of $1.062 per clean pound landed in Boston. The woolgrowers' figures appear on page 6177 of the hearings, volume 11.

The committee is not able to accept this estimated cost of production submitted by representatives of the wool growers. It was reached by taking the simple average of costs of production in the States in which investigations were made. The average cost should be weighted according to the number of sheep for which returns were secured. In estimating the cost of production over a large area, or in a large number of States, it is not right to take the cost of production in States in which a relatively small number of sheep are found and where the cost of production may be large and attach as much importance to it as to the cost of production in a large area or in a number of States in which large numbers of sheep are found and where costs of production are relatively low.

The committee arrives at a weighted average cost per pound for these seven States by weighting the State average costs by the number of sheep studied in the respective States. That is, the average cost per pound in each State is multiplied by the number of sheep studied in arriving at this cost. The sum of the amounts thus derived is divided by the total number of sheep studied in the seven States. On the basis approved by the committee in reaching the cost of production, the cost is found to be 37 cents per pound in the grease. With a clean yield of 40 per cent, this means 92.5 cents per pound of clean content, and with a cost of approximately 5 cents per clean pound to land this wool in Boston (woolgrowers give this cost as 2.5 cents in the grease), the principal market for domestic wool, the Boston landed cost is 97.5 cents per pound of clean content.

In determining the duty to be imposed on importations of wool, the committee has endeavored to learn as nearly as possible differences between costs of production of domestic and foreign wools and has given consideration to the character of these wools and to relative prices at which they are bought and sold in foreign countries and in this country. There has been no official investigation of costs of production of wool in Australia, hence it has been necessary for the committee to make use of such information as is available from other

sources.

In 1916 the British and Australian Governments, acting together in the matter, purchased the Australian wool clip as a war measure, beginning with the clip which came to the market during the fall and