EXHIBIT A.-SOME EXAMPLES OF TARIFF RATES ON ARTICLES BOUGHT BY FARM FAMILIES (RATES IN TARIFF Act of 1930)—Continued

(Note.-Ad Valorem duties are computed on the value of the imported articles.)

The comparative rates of duty under various tariff acts since 1890 are as follows:

Source: Table 6, pp. 13-14, Relation of Duties to Value of Imports, U. S. Tariff Commission, 1932.

EXHIBIT B. ESTIMATED COST OF THE TARIFF

To what extent åre the tariffs a burden on the consumer?

With respect to this question, the attached table shows the value of production for the leading industries and for all manufacturing industries as reported in the Census of Manufacturers for 1935 and 1937; an estimated ad valorem tariff equivalent for the products of each industry and for the total; and the amounts obtained by applying these ad valorem equivalents to the value of production as reported in 1937.

Altogether, this tabulation shows that the tariff added approximately $16,046,412,000 to the value of manufacturing production in 1937, if it is assumed that tariff rates were fully effective—that is, that the prices of the products included in the calculation were raised by the full amount of the estimated tariff. In general, it may be assumed that the result arrived at in this table represents a maximum estimate of the effect of tariff upon the sale of manufacturing production. There is some duplication involved in the census, and some of the raw materials which enter into the production of tariff-protected articles are not themselves directly subject to a tariff.

A second method of calculation would be to apply the estimated ad valorem equivalents to the value added in each of the manufacturing industries, rather than to the total value of the product. This would eliminate the cost of materials and all duplication. Calculated on this basis, the yield would be about $6,455,492,000 instead of $16,046,412,000, since the estimated ad valorem rates weighted on the basis of value added average slightly over 25.6 percent, and since total value added in the manufacturing process was about $25,173,539,000 as compared with the total value of $60,712,872,000 for production in 1937. This type of calculation, however, would tend to understate the effect of tariff, since it would exclude or not allow any tariffs on materials, many of which are either directly or indirectly protected.

If it is assumed that tariff rates are fully effective, such rough estimates as are now available indicate that the cost of goods purchased by farmers is apparently increased somewhere between $650,000,000 to $750,000,000; if 50 percent effective, somewhere between $325,000,000 and $375,000,000; and if 75 percent effective, somewhere between $487,500,000 and $562,000,000.

TABLE 71.-Value of production in major manufacturing industries, 1935 and 1937; estimated ad valorem toriff equivalents, 1937; and estimated tariff rate applied to value of production, 1937

As reported in Census of Manufactures, 1935 and 1937. Estimated ad valorem equivalent on imported commodities corresponding as closely as possible to the commodity groups listed. Except where otherwise noted, the ad valorem rate is the ratio between the calculated duty on the imported commodities and their reported value for 1937. That is, the average tariff for each group is calculated by combining the tariff on the several commodities in the group in proportion to the value of the quantities imported. Somewhat different results might be secured by other methods, as for example, weighting the ad valorem rate for the several commodities by the value of the quantities domestically produced. Basic data from United States Imports and Duties, 1937, compiled by the U. S. Tariff Commission and arranged according to the classifications of the Tariff Act of 1930.

* Estimated tariff equivalent times reported value of production for 1937.

A tariff equivalent for all manufacturing industries is assumed equal to that of the 75 leading industries, which accounted for 77.8 percent of the total value of production in 1937.

Based on 71 industries, since 1935 value figures are not available for items 27, 35, 50, and 66.

TABLE 71.-Value of production in major manufacturing industries, 1935 and 1937; estimated ad valorem tariff equivalents, 1937; and estimated tariff rate applied to value of production, 1937-Continued

Rate assumed equal to that on products of steel works and rolling mills.
Rate assumed equal to that on wearing apparel in general.

TABLE 71.-Value of production in major manufacturing industries, 1935 and 1937; estimated ad valorem tariff equivalents, 1937; and estimated tariff rate applied to value of production, 1937—Continued

Mr. GIFFORD. My farmers get W. P. A. like other people, like most other people.

Mr. O'NEAL. I know your Massachusetts farmers pretty well. There are not many of them on W. P. A.

Mr. GIFFORD. On what?

Mr. O'NEAL. There are not many of your Massachusetts farmers on W. P. A. up there.

Mr. GIFFORD. Our farmers are different.

Mr. O'NEAL. Oh, sure. I am fully aware of that.

Mr. GIFFORD. Our farmers work 14 hours a day, while your wheat farmers work seasonal, probably 8 months a year. They are seasonal farmers. Our farmers cannot understand that kind of farming, because we have farms where we work all the time. We are oldfashioned farmers.

I wonder sometimes how you can say that on these wheat farms, especially these wealthy corporation farmers on wheat, they should take all of this soil conservation money and parity price.

Mr. O'NEAL. My good friend, I want to say this: That American agriculture has been very proud of that New England stock. That is where most of them have come from-New England. They have gone out throughout the country and made the western farmers.

You go to these big farm meetings. You will see, when you see a list of the names of the folks throughout the Corn Belt, particularly in the great West, you will see those New England names. Probably we haven't reached the acme. We don't have any Cabots or Lodges. But you will see the Anglo-Saxons of the old original types that farmed in New England.

I was just up there a couple of weeks ago. I rode over your great area. It is a wonderful country, wonderful homes. I remarked to

TABLE 71.-Value of production in major manufacturing industries, 1935 and 1937; estimated ad valorem tariff equivalents, 1937; and estimated tariff rate applied to value of production, 1937—Continued

Rate assumed equal to that on products of steel works and rolling mills.
Rate assumed equal to that on wearing apparel in general.