these are often known as "countable cotton cloth" because subject to progressive rates of duty based on the average yarn number, in the ascertainment of which the threads have to be counted. The actual average yarn number in any cotton cloth is the total yards of warp and filling yarn, used in making a pound of the cloth, divided by 840. This is obvious since cotton yarn is numbered according to the number of 840-yard hanks which weigh 1 pound. However, in weaving there is a contraction or "take-up" in the length of the yarn due to the necessity of the warp and filling yarns bending out of their course to pass around each other at the points of intersection; this take-up varies according to the number of threads per square inch and according to the size of the yarns. The length of the yarn in the cloth is always less than the length of the yarn as spun; but there are such variations between cloths in the percentage of take-up in weaving that in the Acts of 1913 and 1922, the effective yarn length, that is, the length of the yarn in the woven fabric was used as a basis for assessing progressive rates of duty. This is known as the "straightline" method. At the public hearings the committee was requested to substitute as a basis the length of the yarn in the cloth plus 121⁄2 per cent. Careful consideration was given to this request but it appears that 122 per cent is much in excess of the average take-up in weaving and, furthermore, that there is such variation in take-up from cloth to cloth that it is advisable, in lieu of attempting to estimate this average, to continue the use of the straight-line system and to obtain the differentials desired by adjustments in the rates of duty. This adjustment is obtained by having the rate on the yarns progress at thirty one-hundredths and the rate on the cloth progress at the rate of thirty-five one-hundredths of 1 per cent ad valorem, thus establishing a differential between the plied or finished yarns and cloths of all classes. In levying duties on countable cotton cloths there are used progressive rates of duty; that is, each successive yarn number is assessed an additional thirty-five one-hundredths of 1 per centum ad valorem. For instance, on unbleached cotton cloth having an average yarn number of 1 the duty is 10.35 per centum ad valorem, on unbleached cotton cloth having an average yarn number of 2 the duty is 10.70 per centum ad valorem, on unbleached cotton cloth having an average yarn number of 3 the duty is 11.05 per centum ad valorem, etc.

Next to countable cotton cloth the principal imports under Schedule 9 are tapestries and other Jacquard-figured upholstery cloths; yarn; pile fabrics, mainly velveteens; gloves; and hosiery.

CHANGES IN RATES

The committee has increased the duties on cotton yarn; cotton sewing thread and handwork cottons; countable cotton cloth; cloth, in chief value of cotton, containing silk; cloth, in chief value of cotton, containing wool; tapestries and other Jacquard-figured upholstery cloths; velveteens; Jacquard-figured quilts or bedspreads made of single fabrics; and chenille rugs. It has decreased the duties on tire fabric and warp-knit fabric in the piece. It has recommended that women's unembroidered warp-knit fabric gloves, of which commercial production in this country has practically ceased, be placed on the free list. It has made no change in the duties on other manufactures

dutiable under Schedule 9 except that certain compound duties have been changed to equivalent ad valorem duties; this latter change simplifies the work of administration without affecting the protection afforded.

For instance, in paragraph 901 the ad valorem rates in the Act of 1922 applied to cotton yarns in the amount of $3,690,941, whereas the specific provisions brought in only $42,187 in revenue. It is therefore apparent that a specific rate only causes confusion and additional labor in administration.

On the ad valorem basis the rate of progression on yarns per number per pound has been changed from one-fourth of 1 per cent ad valorem to three-tenths of 1 per cent ad valorem; and the limit to which progressive rates apply has been changed from No. 80 yarn to No. 90 yarn. This change gives an increase in protection to spinners of coarse yarns and a more substantial protection to spinners of fine On both single yarn and ply yarn the ad valorem rates begin at the same points as in the Act of 1922, but at No. 90 they show an increase of 7 per cent ad valorem.

Paragraph 904 (new): Paragraph 904 is a consolidation of two paragraphs in the Act of 1922, namely, 903 and 906. This change has been made in order that all countable cotton cloths should be in the same paragraph. The ad valorem system of levying duties has been followed in this paragraph for cotton cloths for the same reason as explained in connection with yarns.

RATE OF PROGRESSION ON CLOTHS

The rate of progression in cloths is thirty-five one-hundredths of 1 per cent ad valorem and the limit has been raised from No. 80 yarn to No. 90 yarn. The same ratio of increase prevails with the cloths further advanced than in the gray.

There has been no change made in the additional ad valorem rates of duty provided for certain special cloths, namely, cloths woven with eight or more harnesses, or with Jacquard, lappet, or swivel attachments, and cloths, other than the foregoing, woven with drop boxes, but the total rates applicable to such cloths have been increased to the extent that the basic rates have been changed. The courts have held that the additional rate provided for cloths woven with drop boxes does not apply to cloths woven with circular boxes, even though the fabrics produced are identical. The term "woven with drop boxes" has therefore been changed to "woven with two or more colors or kinds of fillings"; this latter term will include fabrics woven with either drop boxes or circular boxes.

VARIOUS PROPOSALS

Paragraph 905 (new): Paragraphs 905 and 906 are new, although the subject-matter of 905 is in the existing law. It will be noted that the term "rayon" has been substituted for "artificial silk." The definition of "rayon" is found under the new schedule numbered 13. Paragraph 906 (new) provides for "Cloth, in chief value of cotton, containing wool" a rate of 60 per cent ad valorem. These goods are now dutiable, without specific mention, at 40 per cent ad valorem under the general provisions of paragraph 921. Imports of such cloths, valued at more than $1,000,000 in 1928, have increased to a

point where they warrant specific mention. Imports in 1928 aver-
aged, on the basis of data obtained from the New York customs,
about 50 cents a linear yard, or nearly 60 cents a pound. If entirely
of cotton such cloths would pay, under the new rates, approximately
20 per cent ad valorem; if entirely of wool they would pay, under the
new rates, 26 cents per pound and 40 per cent ad valorem, equivalent
to about 83 per cent ad valorem. They contain, as a rule, about
two-thirds cotton and about one-third low-grade wool or shoddy.

This is entirely a new product since the present law was written
and it has become a very serious factor in competition with woolen
goods, although being an article in chief value of cotton. Paragraph
910 (new) is the same, except for a slight change in the wording, as
paragraph 911 of the Act of 1922; there has been no change made
in the rate of duty.

Paragraph 911 (new) is a revision and amplification of paragraph 912 of the Act of 1922 and covers what are known collectively as "household articles of cotton." In the new paragraph the rates of duty on quilts or bedspreads have been differentiated on the basis of Jacquard or non-Jacquard-figured cloths instead of on the old basis of double or single cloths. This has been done to include at the higher of the two rates the increasing importation of Jacquardfigured quilts woven with one warp and one filling. With the exception of this change and an increase of 10 per cent ad valorem on blankets not Jacquard-figured, the rates provided in this paragraph are the same as those provided in the Act of 1922. In addition to the non-Jacquard-figured blankets heretofore here included, there has been brought over, from old paragraph 909, Jacquard-figured blankets and also Jacquard-figured napped cloth. In addition to the towels heretofore here included, there has been brought over, from old paragraph 921, Jacquard-figured towels, not terry-woven.

Paragraph 912 (new) is the same as paragraph 913 of the Act of 1922 except that certain compound rates have been changed to ad valorem rates on the basis of recorded data for imports under the Act of 1922, and that belting for machinery has been transferred to a separate paragraph.

Paragraph 913 (new) provides for "Belts, belting, and ropes, for the transmission of power." These articles have been dutiable, as belting for machinery, with smallwares under paragraph 912 of the Act of 1922. There has been no change made in the rate of duty.

Paragraph 914: The rate of duty on warp-knit fabric, imports of which are small and principally of a special type of underwear fabric not made in this country, was reduced from 55 per cent ad valorem to 45 per cent as valorem. No change was made in the 35 per cent ad valorem rate applicable to other knit fabric.

Paragraph 915: This paragraph has been changed by the elimination of any provision for warp-knit fabric gloves for women. This change is due to changes in the warp-knit fabric glove industry since the framing of the Tariff Act of 1922. Production of sueded (warpknit) cotton gloves was undertaken here during the World War and in 1919 attained an output of about 1,500,000 dozen pairs; with the resumption of imports from Germany domestic production declined and in 1927 amounted to oply 28,108 dozen pairs. Sueded warpknit fabric gloves, whether imported or domestic, are used almost entirely by women. Since this industry has seemingly been un

Γ

economic in the United States, sueded gloves for women have been transferred to the free list in order that the consumers, mainly women of moderate means, should not be unnecessarily taxed. It will be recalled that President Coolidge did not follow the report of the Tariff Commission in reference to cotton gloves as he did not consider the cost should be raised to persons using them. There are only one or two domestic producers and their small output is so exceptionally well styled that they are able to compete with imported gloves on the basis of quality or novelty rather than price. Men's and boys' warp-knit fabric gloves have been retained in paragraph 915 because of the possible effect of duty-free imports of these on the domestic production of circular-knit gloves for men and boys. In effect there has been no change in the rate of duty on these because the bracket in the Act of 1922 providing for warp-knit gloves, singlefold, unshrunk and unsueded, and having less than 40 rows of loops per inch in width on the face of the glove, applied mainly to warpknit fabric gloves for men and boys and included but few used by women. There has been no change made in the rate of duty on circular-knit gloves, nor in the rate of duty on gloves made of woven fabric.

Other changes in the schedule which have been made by the committee have been for the purpose of better protection where importations showed increases and also for the purpose of simplifying and clarifying the schedule.

The committee has been aided by the experts of the Government through the Tariff Commission and legal authorities. It feels that the cotton schedule is improved both in phraseology and in protection to one of the key industries of America.

The changes made by this bill over the Tariff Act of 1922 are as follows:

[Matter stricken is inclosed in black brackets; new matter is in italic]

SCHEDULE 9.-COTTON MANUFACTURES

PAR. 901. (a) Cotton yarn, including warps, in any form, not bleached, dyed, colored, combed, or plied, [of numbers not exceeding number 40, one-fifth of 1 cent per number per pound; exceeding number 40 and not exceeding number 120, 8 cents per pound and, in addition thereto, one-fourth of 1 cent per number per pound for every number in excess of number 40; exceeding number 120, 28 cents per pound: Provided, That none of the foregoing,] of numbers not exceeding number [80] 90, [shall pay less duty than] 5 per centum ad valorem and, in addition thereto, for each number, [one-fourth] three-tenths of 1 per centum ad valorem; [nor of numbers] exceeding number [80] 90, [less than 25] 32 per centum ad valorem.

(b) Cotton yarn, including warps, in any form, bleached, dyed, colored, combed, or plied, [of numbers not exceeding number 40, one-fourth of 1 cent per number per pound; exceeding number 40 and not exceeding number 120, 10 cents per pound and, in addition thereto, three-tenths of 1 cent per number per pound for every number in excess of number 40; exceeding number 120, 34 cents per pound: Provided, That none of the foregoing,] of numbers not exceeding number [80] 90, [shall pay less duty than] 10 per centum ad valorem and, in addition thereto, for each number, [one-fourth] three-tenths of 1 per centum ad valorem; [nor of numbers] exceeding number [80] 90, [less than 30] 37 per centum ad valorem [: Provided further, That when any of the foregoing yarns are printed, dyed, or colored with vat dyes, there shall be paid a duty of 4 per centum ad valorem in addition to the above duties].

(c) Cotton waste, manufactured or otherwise advanced in value, cotton card laps, sliver, and roving, 5 per centum ad valorem.

PAR. 902. Cotton sewing thread, [one-half of 1 cent per hundred yards] 25 per centum ad valorem; crochet, [darning,] embroidery, darning, and knitting.

cottons, put up for handwork, in lengths not exceeding eight hundred and forty yards, Lone-half of 1 cent per hundred yards:] 25 per centum ad valorem. [Provided, That none of the foregoing shall pay a less rate of duty than 20 nor more than 35 per centum ad valorem. In no case shall the duty be assessed on a less number of yards than is marked on the goods as imported.]

PAR. [904] 903. (a) The term cotton cloth, or cloth, wherever used in this schedule, unless otherwise specially provided for, shall be held to include all woven fabrics of cotton, in the piece, whether figured, fancy, or plain, and shall not include any article, finished or unfinished, made from cotton cloth.

(b) In the ascertainment of the condition of the cloth or yarn upon which the duties imposed upon cotton cloth are made to depend, the entire fabric and all parts thereof shall be included.

(c) The average number of the yarn in cotton cloth herein provided for shall be obtained by taking the length of the thread or yarn to be equal to the distance covered by it in the cloth in the condition as imported, except that all clipped threads shall be measured as if continuous; in counting the threads all ply yarns shall be separated into singles and the count taken of the total singles; the weight shall be taken after any excessive sizing is removed by boiling or other suitable

process.

(d) Plain gauze or leno woven cotton nets or nettings shall be classified for duty as cotton cloth.

PAR. [903 904. (a) Cotton cloth, not bleached, printed, dyed, or colored, [or woven-figured, containing yarns the average number of which does not exceed number 40, forty one-hundredths of 1 cent per average number per pound; exceeding number 40, 16 cents per pound and, in addition thereto, fifty-five one-hundredths of 1 cent per average number per pound for every number in excess of number 40: Provided, That none of the foregoing, when] containing yarns the average number of which does not exceed number [80, shall pay less duty than] 90, 10 per centum ad valorem and, in addition thereto, for each number, Lone-fourth] thirty-five one-hundredths of 1 per centum ad valorem; [nor when] exceeding number [80] 90, [less than 30] 411⁄2 per centum ad valorem.

(b) Cotton cloth, bleached, [containing yarns the average number of which does not exceed number 40, forty-five one-hundredths of 1 cent per average number per pound; exceeding number 40, 18 cents per pound and, in addition thereto, three-fifths of 1 cent per average number per pound for every number in excess of number 40: Provided, That none of the foregoing, when] containing yarns the average number of which does not exceed number [80] 90, [shall pay less duty than] 13 per centum ad valorem and, in addition thereto, for each number, [one-fourth] thirty-five_one-hundredths of 1 per centum ad valorem; [nor when] exceeding number [80] 90, [less than 331 442 per centum ad valorem.

(c) Cotton cloth, printed, dyed, or colored, [or woven-figured, containing yarns the average number of which does not exceed number 40, fifty-five one-hundredths of 1 cent per average number per pound; exceeding number 40, 22 cents per pound and, in addition thereto, sixty-five one-hundredths of 1 cent per average number per pound for every number in excess of number 40: Provided, That none of the foregoing, when containing yarns the average number of which does not exceed number [80] 90, [shall pay less duty than 15] 16 per centum ad valorem and, in addition thereto, for each number, [five-sixteenths] thirty-five one-hundredths of 1 per centum ad valorem; [nor when] exceeding number [80] 90, [less than 40] 472 per centum ad [valorem:] valorem. [Provided further, That when not less than 40 per centum of the cloth is printed, dyed, or colored with vat dyes, there shall be paid a duty of 4 per centum ad valorem in addition to the above duties. Plain gauze or leno woven cotton nets or nettings shall be classified for duty as cotton cloth.]

[PAR. 906.] (d) In addition to the [duty or] duties [imposed upon cotton cloth in paragraph 903] hereinbefore provided in this paragraph, [there shall be paid the following duties, namely: On all] cotton [cloths] cloth woven with eight or more harnesses, or with Jacquard, lappet, or swivel attachments, shall be subject to a duty of 10 per centum ad valorem; on all], and cotton [cloths] cloth, other than the foregoing, woven with [drop boxes] two or more colors or kinds of filling, shall be subject to a duty of 5 per centum ad valorem. [In no case shall the duty or duties imposed upon cotton cloth in paragraphs 903, or 903 and 906 exceed 45 per centum ad valorem.]

[PAR. 905. Tire fabric or fabric for use in pneumatic tires, including cord fabric, 25 per centum ad valorem.]