BLANKETS AND FLANNELS. Paragraph 6 of the bill H. R. 11019 provides that— ou blankets and flannels, composed wholly or in part of wool, the duty shall be thirty per centum ad valorem: Provided, That on flannels composed wholly or in part of wool, valued at above fifty cents per pound, the duty shall be fortyfive per centum ad valorem. This paragraph takes the place of paragraph 379 of the act of 1909 (exactly the same as the corresponding paragraph, No. 367, of the act of 1897), which reads: On blankets, and flannels for underwear composed wholly or in part of wool, valued at not more than forty cents per pound, the duty per pound shall be the same as the duty imposed by this section on two pounds of unwashed wool of the first class, and in addition thereto thirty per centum ad valorem; valued at more than forty cents and not more than fifty cents per pound, the duty per pound shall be three times the duty imposed by this section on one pound of unwashed wool of the first class, and in addition thereto thirty-five per centum ad valorem. On blankets composed wholly or in part of wool, valued at more than fifty cents per pound, the duty per pound shall be three times the duty imposed by this section on one pound of unwashed wool of the first class, and in addition thereto forty per centum ad valorem. Flannels composed wholly or in part of wool, valued at above fifty cents per pound, shall be classified and pay the same duty as women's and children's dress goods, coat linings, Italian cloths, and goods of similar character and description provided by this section: Provided, That on blankets over three yards in length the same duties shall be paid as on cloths. The following comparative statement shows at a glance the rates on blankets and flannels in each of their various classifications as established under the present law and the act of 1897, with the specific compensatory duties translated into the actual figures intended and provided for: Classification. Act of 1897. Rate of duty under Act of 1909. Blankets: Valued not more than 40 cents per pound. Valued more than 40 and not more than 50 cents per pound. Valued at more than 50 cents per pound. More than 3 yards in length Valued not more than 40 Valued more than 70 cents Weighing over 4 ounces per Valued more than 50 and not Valued more than 70 cents The new paragraph (6) follows the phraseology of the acts of 1909 and 1897, with very slight changes. As in the new paragraph only one ad valorem rate of duty is applied to all blankets and only two different ad valorem rates to all flannels, all the words in the present act are omitted which relate only to the compound duties and various classifications which are abolished. The words "for underwear" are also omitted after the word "flannels," in the first line of the paragraph, in order that the provisions of the new paragraph may apply clearly and unmistakably to all flannels for whatever purpose used. The new paragraph is a condensation and simplification of the former one, without changing the descriptive phrases in any way except as above noted, and these changes have the effect of including all blankets under the rates provided for in the new paragraph. The proviso in paragraph 379 of the present act, "that on blankets over 3 yards in length the same duties shall be paid as on cloths," has the effect of making such blankets dutiable under paragraph 378 of the present Schedule K, instead of under the paragraph covering blankets and flannels. This proviso is omitted in the new paragraph (6), so that all blankets of wool shall be dutiable under this paragraph. Similarly, the sentence in paragraph 378 of the present Schedule K, making flannels valued at above 50 cents per pound dutiable at the same rates as women's and children's dress goods, and so forth, is amended so that flannels of this higher rate shall pay an explicitly stated rate, under the paragraph on blankets and flannels. It is generally most desirable to make no separate classifications as to value with different rates of duty among articles of the same kind or sort, but an exception to this wise rule, which is otherwise followed throughout the bill H. R. 11019, is made in the case of the more expensive flannels, which really, in general, constitute a practically different sort of fabric than the cheaper flannels and are to a great extent used for different purposes, although called by the same name. By far the largest part of the imports of flannels in recent years are of these more expensive fabrics, which go into articles of clothing used principally by the well-to-do classes. In the fiscal year 1910, 89.44 per cent of all the imports of flannels were of those valued at above 50 cents per pound. It is the intent of the new paragraph (6) to reduce as far as possible the tax burden on the cheaper flannels used or desired by the persons of small means, and at the same time to encourage the greater importation of these cheaper flannels for the sake of greater revenue; also to impose a good but not unfair revenue rate on the more expensive flannels used largely by the wealthy and which are now almost the only flannels being imported. The present specific and compensatory duties on blankets and flannels are unequal and unfair and encourage the deterioration of fabrics in the same way as do similar duties on yarns and cloths, and in the comments above concerning yarns and cloths these abuses have been discussed. For the year ending June 30, 1910, the imports of all the articles included under the provisions of paragraph 6 amounted to $168,889.82, and the duties collected thereon amounted to $161,412.70, the average ad valorem equivalent of the duties being 95.57 per cent. Of these imports, the blankets amounted to $145,995.47 in value, the thereon amounted to $33,767.77, the average ad valorem equivalent of the duties being 73.42 per cent. The total imports of all flannels amounted to $122,894.35 in value, and the duties collected thereon amounted to $127,644.93, the average ad valorem equivalent of the duties being 103.87 per cent. As has been stated, 89.44 per cent of these imported flannels were of the class valued at above 50 cents per pound. The average unit of value of these more expensive flannels ranged from 61.4 to 87.2 cents per pound, and the ad valorem equivalent of the duties thereon ranged from 105.44 to 121.62 per cent. Of the cheaper flannels, of which the imports have been comparatively small, the unit of value, in the imports of 1910, ranged from 36 to 45 cents per pound, and the ad valorem equivalent of the duties thereon from 91 to 108 per cent. The lower duties provided for in paragraph 6 constitute a reduction of more than half of the present rate on the more expensive flannels (105.44 per cent ad valorem on the great bulk of the importations of 1910) and of about two-thirds of the present rate on the cheaper flannels (108 per cent on most of the imports of 1910). On the basis of the imports of 1910 the lower rates would result in duties to the amount of $67,155.25. However, a comparison of the imports in prior years under both high and low rates, and of the ratios of the imports to domestic consumption in the respective years, in the manner already described with reference to articles in preceding paragraphs, indicates that the probable imports of all blankets in 1912 under the proposed lower duties would amount to $95,900, or about 1 per cent of the estimated domestic consumption; also that the probable imports of all flannels would be $162,500, or about 4 per cent of the domestic. consumption. The total of the estimated imports is $258,400, and at the new rates provided for, the total duties on these imports of blankets and flannels would amount to $101,700, or about two-thirds of the amount of revenue collected on this group of articles in the fiscal year. DRESS GOODS, COAT LININGS, ITALIAN CLOTHS, AND SIMILAR ARTICLES. Paragraph 7 of the bill H. R. 11019 provides that— on women's and children's dress goods, coat linings, Italian cloths, bunting, and goods of similar description and character, composed wholly or in part of wool, and not specially provided for in this act, the duty shall be forty-five per centum ad valorem. This paragraph takes the place of paragraphs 380 and 381 of the act of 1909. These paragraphs made no change whatever from the act of 1897 in the specific part of the compound duties, but only as to the articles included "when weighing over 4 ounces per square yard," provided that the ad valorem duty (imposed in addition to the specific duty) should be 50 per cent less 5 per cent, instead of 50 per cent, as established in the act of 1897, as has been stated. This trifling change effected no actual reduction of duty. The scope of the change and its effect on the ad valorem rate on actual imports are stated above in this report in reviewing the few changes made by the act of 1909 (on page 6). Paragraphs 380 and 381 of the act of 1909 are as follows: 380. On women's and children's dress goods, coat linings, Italian cloths, and goods of similar description and character of which the warp consists wholly of cotton or other vegetable material with the remainder of the fabric com posed wholly or in part of wool, valued at not exceeding fifteen cents per square yard, the duty shall be seven cents per square yard; valued at more than fifteen cents per square yard, the duty shall be eight cents per square yard; and in addition thereto on all the foregoing valued at not above seventy cents per pound, fifty per centum ad valorem; valued above seventy cents per pound, fifty-five per centum ad valorem: Provided, That on all the foregoing, weighing over four ounces per square yard, the rates of duty shall be five per centum less than those imposed by this schedule on cloths. 381. On women's and children's dress goods, coat linings, Italian cloths, bunting, and goods of similar description or character composed wholly or in part of wool, and not specially provided for in this section, the duty shall be eleven cents per square yard; and in addition thereto on all the foregoing valued at not above seventy cents per pound, fifty per centum ad valorem; valued above seventy cents per pound, fifty-five per centum ad valorem: Provided, That on all the foregoing, weighing over four ounces per square yard, the duty shall be the same as imposed by this schedule on cloths. The following comparative statement shows the rates on dress goods in each of the various classifications, as established under the present law and the act of 1897, with the specific compensatory duty translated into the actual figures intended and provided for: Classification. Rate of duty under Act of 1897. Act of 1909. Dress goods: Women's and children's dress goods, Weighing 4 ounces or less per square Valued not exceeding 15 cents Not above 70 cents per Above 70 cents per pound... Valued above 15 cents per Not above 70 cents per Above 70 cents per pound... Weighing over 4 ounces per square Valued not more than 40 cents Valued more than 40 and not Women's and children's dress goods, Weighing 4 ounces or less per square Valued not above 70 cents per, Valued above 70 cents per Weighing over 4 ounces per square Valued not more than 40 cents Valued more than 40 and not 7 cents per square yard and 7 cents per square yard and 8 cents per square yard and 8 cents per square yard and 33 cents per pound and 50 44 cents per pound and 50 44 cents per pound and 55 11 cents per square yard and 11 cents per square yard and 33 cents per pound and 50 44 cents per pound and 50 44 cents per pound and 55 7 cents per square yard and 50 per cent. 7 cents per square yard and 55 per cent. 8 cents per square yard and 50 per cent. 8 cents per square yard and 55 per cent. 33 cents per pound and 50 11 cents per square yard and 33 cents per pound and 50 Paragraph 7 of the bill follows the phraseology of the acts of 1909 and 1897 with very slight changes. In the new paragraph only one ad valorem rate of duty is applied to all classes of dress goods, coat linings, Italian cloths, buntings, and goods of similar description. All the words in the present act are omitted which relate only to the compound duties and various classifications which are abolished. The new paragraph is a condensation and simplification of the former one without changing the descriptive phrases in any way except as noted. The present specific and compensatory duties on dress goods and similar articles are unequal and unfair and encourage the deterioration of fabrics in the same way as do similar duties on yarns and cloths, and in the comments above concerning yarns and cloths these abuses have been discussed. For the year ending June 30, 1910, the imports of all the articles included under the provisions of paragraph 7 amounted to $9,218,374.10 and the duties collected thereon amounted to $9,481,206.75, the average ad valorem equivalent of the duties being 102.85 per cent. Of these imports the average unit of value ranged from 13 to 22 cents per square yard, or from 31 to 94 cents per pound, according to class of goods, and the ad valorem equivalent from 65.10 to 154.35 per cent. As to many of the articles in this group, the imports have been very small, and in these the unit of value in the imports of 1910 ranged from 13 to 18 cents per square yard, or from 32 to 63 cents per pound, according to class, and the ad valorem equivalent of the duties thereon ranged from 103.73 to 154.35 per cent. The principal imports of the articles in this group are of those valued at over 70 cents per pound. These more expensive goods comprised over 75 per cent of the imports of dress goods, etc., in 1910. They were principally in three lots, of which the average unit of value was 20 cents per square yard, 22 cents per square yard, and 94 cents per pound, respectively; and the average ad valorem equivalent of the duty was 94.49, 104.69, and 101.88 per cent, respectively. Of the principal imports of the cheaper goods the average unit of value was 13 cents per square yard, and the average ad valorem equivalent of the duty was 103.73 per cent. The lower duty provided for in paragraph 7 constitutes a reduction of more than one-half of the present rate on the articles in this group and a little more in proportion on the cheaper goods. In the imports of 1910 the average ad valorem rate on the cheaper goods. was about 103.73 per cent and on the more expensive goods 102.01 per cent. On the basis of the imports of 1910 the lower rate would result in duties to the amount of $4,148,268.35. However, a comparison of the imports in prior years under both high and low rates, and of the ratio of the imports to domestic consumption in the respective years, in the manner already described with reference to articles in preceding paragraphs, indicates that the probable imports of all dress goods, etc., in 1912 under the proposed lower duties would amount to $25,408,500, or about 21 per cent of the estimated domestic consumption. At the new rate provided for, the total duties on these imports would amount to $11,433,900, or an increase of about two-tenths over the amount of revenue collected on this group of articles in the fiscal year 1910. |