APPENDIX.

Since the preparation of this survey the tariff act of 1922 has been enacted. It changes the classifications and provides rates of duty different from those fixed in the act of 1913, but the effect of these differences on the relationship of the domestic to the foreign industry can not be definitely measured until imports have been recorded under the new provisions.

The text of the act of 1913 and of the act of 1922 relating to bags of jute or cotton follows:

Act of 1913.

PAR. 281. Bags or sacks made from plain woven fabrics, of single jute yarns, not dyed, colored, stained, painted, printed, or bleached, 10 per centum ad valorem.

PAR. 284. All woven articles, finished or unfinished, and all manufactures of flax, hemp, ramie, or other vegetable fiber, or of which these substances, or any of them, is the component material of chief value, not specially provided for in this section, 35 per centum ad valorem.

PAR. 266. All articles made from cotton cloth, whether finished or unfinished, and all manufactures of cotton or of which cotton is the component material of chief value, not specially provided for in this section, 30 per centum ad valorem.

Act of 1922,

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 rendered noninflammable, i 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. 921. All articles made from cotton cloth, whether finished or unfinished, and all manufac tures of cotton or of which cotton is the component material of chief value, not specially provided for, 40 per centum ad valorem.

A further comparison, relating to rates and differentials on jute fabrics and bags or sacks made from such fabrics, follows:

The act of 1913 provided a 10 per cent differential on bags or sacks made from nonprocessed, plain woven fabric of single jute yarn, and this differential is the same in the act of 1922. When the same sort of bags or sacks are made from processed fabric, however, the differential is 5 per cent in the act of 1922 as against 25 per cent in the act of 1913. The 25 per cent differential in the act of 1913 did not result from legislative intent but existed rather by reason of the fact that these articles were not specially provided for and fell under the basket paragraph (284) at 35 per cent ad valorem, while the fabric from which they are made was specially provided for at 10 per cent ad valorem in paragraph 279.

Other differentials provided in the act of 1922 did not exist under the act of 1913. It should be noted that domestic manufacturers have held that the production of jute bags other than burlap in the United States could not be profitably undertaken in competition with India without a differential between the duty on the twilled cloth. used in the manufacture of such bags and the duty on the finished bag (p. 21).

Bags produced in the United States are printed with various brands, as ordered, whereas, owing to India's limited facilities for printing and the fact that an additional duty of 25 per cent ad valorem was levied on printed bags under the act of 1913, imported bags have been unprinted (p. 20). The act of 1922, as before pointed out, levies an additional duty of 5 per cent on bags made from fabric which has been printed or otherwise processed.

The jute manufacturing industry in India is primarily engaged in the production of cloth. The domestic industry encounters competition in but one class of bag, the California or Pacific coast cental, which is a standard bag, unprinted, that is used in large quantities.

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