St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-12-03

: abandoned the Specific Duty |
in Favor of an Ad Valorem
Duty Defect in the Present |
Customs Act-Rerorrn I'm the
Internal Revenue.
WASHINGTON, Dec. 2-The Demo
cratic members OF the ways and means |
committee were in session three hours |
thas afternoon, reviewing the tariff hi IL
TOT the purpose of correcting typo
graphical errors and other minor in
eongruities. The subcommittee on in
terna! revenue reported that its labors
were not yet complete. and that it would
De lmpassibie to report their schedules
before some time next week, the chief
under which the commit
Tee labors being the inpossibiIity of
nXlng rates of taxation until the reve-
hue estimates under the new bill are so
Tar completed as to indicate the prob
able deficit under its operations. The
democratic members did net enter into
the hnal discussion of the income tax
question that was anticipated, the chief
reason being because of the absence of
no conclusion should be reached in the
absence of any Democratic. member
as the committee is nearly divided
on some of the phases Of the
proposition. The uncertainty as to the
amount of deficit under the new bill
and the possible difficulty or meeting
tnls deficit have given rise again to dis
cussion as TO the wisdom of making the
income tax general in character and APP
pllcable to all individual incomes in ex-
cess of 5000 per annum. instead of re-
stricted to corporations and SUGGESTIONS
only. So that at this time the
INCOME TAX PLAN
still IN very indefinite condition.
Au argument has been provoked by
authority of the ways and means COM
mlttee, showing, from Democratic
-stanopoinst, the necessity of the changes
effected by the new administrative bill
Just reported by Chairman Wilson and
his colleagues. This argument gives
full explanation Of the reasons why the
committee in its recent tariff. bill
abandoned the specific duty in so many
cases in favor of an ad valorem duty.
-
contends, is charged with the grave re-
sponsibility of effecting a complete re-
vision of the existing customs tariff, to
the end that the burdens of taxation,
rendered heavier by the Mckinley bill.
may be lightened. The Mckinley bill.
however, was not the only Legislation
OF the Fifty-tirst congress which
caused dissatisfaction among mer-
chants and importers. Tne pass
age of the customs administrative
act. involving. as it did, an entirely
new departure in customs administra-
ton, probably caused in the mercantile
world, temporarily, at least. as great or
greater annoyance than did even the
Mckinley bill. Great pressure will UNI
doubtedly be brought to secure its re-
peal, as well as that of its twin sister
Such move would receive support
from many merchants. regardless of
their political Affiliations. 's-
Continuing, the circular SAYS: 'At the
present day, the proper administration
sand Interpretation of the customs laws
becomes politically of the most vital I'M
pertance to the Democratic party.
Radical tariff reductions are imperative:
but an enormous revenue. at least $780,
100000. yearly, must
- STILL BE RAISED
through the tariff for the support of the
| government. 1t will be plain. upon re-
Election, that this vast amount can only
be collected by a rigid Interpretation
and administration of any new law
which is to be substituted for the exist
ing tariff.
1.-The effect or specific duties is almost
completely to stop the importation of
| lower grades of goods which are used in
| by far the greater quantities; thus mnch
revenue is lost and the cost to the
| masses unduly increased; this effect Is
seen upon almost ali of the goods OH
| which specific duties are levied.
| AID valorem duties, on the other hand,
| levied on the value of the imported
! goods, are the fairest. most equitable
kind of duties. The rate is absolutely
| the same on all grades of goods of the
same kind; but the disadvantage of
such duties is that they offer great
| temptation to importers to under
| value goods on entering them in
our ports. As result, many goods
get. into the country at lower
rates than are legally due. thus dis
terminating against merchants VINO pay
| full dutiable rates. The policy of the
| Democratic party when in power, from
| earliest times, has been to substitute
| adj valorem for specific duties. This
was shown in the celebrated Walker
tariff in 1916, which consisted of ad
vaiorem duties; this same tendency is
shown in the Springer wool bill, passed
by the house of representatives, which
placed wool on
THE FREE LIST,
! changing the duty upon woolenS wholly
| from specific to ad valorem."
( The following aFa n0iptQd ont DC ha
principal defects of the present customs
administrative act:
1.-The right of trial by jury upon
questions OF fact. arising upon the ques-
ton of classification, has been taken
away from the importers.
/ THE government is allowed to appeal
from any decision Of the circuit court to
the circuit court OF appeals, while the
importer can only appeal provided the
circuit court thinks the question in
volved is of sufficient Importance to
warrant an appeal.
1.-The existing law levies duties upon
the value of all crates. sacks and cover
ings, and boxes in which the imported
| goods are stored, thus increasing the
total duty levied.
''In case the value as determined BY
the appraisers exceeds the value entered
by the importer by more than 10 pei
cent, penal duty of 2 per cent ON the
| appraised value, In addition to the cor
rected legal duty, is levied for every ]
per cent that such appraised value ex
ceeds the value declared in the entry.
4 The importer is not allowed as Of
s. right to be present at the hearing before
the board Of general appraisers upon
questions of classification.
III Judgment is rendered by the court:
) IN favor Of the importer upon an ap
| peal, the excess of duties is refunded tc
: him without allowance of interest or
: Costs.
4 THE present law repeats all damage
allowance upon goods in transit"
+ Most OF the above objections are re
moved by the new administrative acI
il prepared by
THE DEMOCRATS