Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1893-07-28
AID VALOREM DUTIES.
WHY THEY ARE PREFERABLE TO
SPECIFIC RATES.

Specific Duties Compel the Poor to Pay
More Taxes and a Higher Rate Than
Are Paid by the Rich-The Injustice OF
the System Is Inconceivab1e.
Since the special committee of the Re-
form club made public the proposed tar
if bill which it had drafted thousands OF
criticisms have been made, mostly by
Republican papers, on the ad yalorem
system of duties which was adopted by
the committee to the exclusion of spe-
cifc duties. Many importers and man
ufacturers also wrote private letters to
the chairman Of the committee, Mr.. +.
Ellery Anderson, stating that the ad
yalorem system would lead to underval-
uation and fraud and would put pre-
MUM upon dishonesty. They contained
severe criticisms and disapproval, but
these the committee expected to receive
even in greater numbers and in stronger
language than has proved to be the fact.
At special meeting of the committee
held on the Goth of June the question
of the relative merits of the ad valorem
and specific rates was very fully discuss
ed and considered, and the objections
urged against ad valorem duties con-
tanned in the various communications
above referred to were examined at
length. The committee adhered to it's
former conclusion, after weighing all
the respective advantages and objections
applicable to both methods of taxation,
the one against the other, that the ad
valorem system was the best and was
preferable to the system of specific rates.
The committee, however, expressed it's
full appreciation of the great evil result
ing from fraudulent undervaluations,
especially in cases where from the nature
Of the imported articles there was diff
Guilty in determining the true market
value at the time of shipment.
For the purpose Of correcting this evil
as far as possible and of devising sys-
ten of fixing just and staple valuations
it was suggested that radical revision
OF the administrative bill should be
made. The committee proposes to urge
the adoption Of such administrative
measures as will enable the custom house
officials to devise system of valuations
which shall minimize the danger Of I'M
dervaluations and which shall enable
importers to pass their goods through
the custom house under an ad valorem
system which shall yet be substantially
as fixed and unchanging as is claimed to
be the case under the method of specific
rates.
The conclusion of this committee,
which contains several Of the greatest
tariff experts in the country, will 90 far
to compel the adoption of this system
by tho next congress. Many of the
great Democratic leaders who NAV be
responsible for the next tariff bill have
also declared themselves unqualifiedly
in favor of ad valorem duties. Score
tary Carlisle, William L. Wilson and
William M. Springer arc few of those
mentioned
Briefly stated, the objections against
specific duties are:
First-They tax by the yard, pound
or gallon and compel the poor, who
nse cheap goods, to pay more taxes
and higher rate than are paid by the
rich, who use dear goods. It taxes
cloth that costs so cents per yard the
same as cloth that costs SIS per yard. 1t
Is equivalent to taxing land by the acre,
in which case the owner Of an acre Of |
Kansas prairie would pay the same taxes
as the owner of an acre of Manhattan
island. The injustice of such system
Is SO great that worse system is incon-
ceiyable.
Second-They increase the rate Of tax
ms prices Of articles decline and thus |
prevent tho consumer from getting the |
benefit OF falling prices and at the same |
time yield an increasing amount of pro-
lection to manufacturers.
Third-They are more easily iuggled /
with by manufacturers and tariff makers \
who wish to deceive the people. Nearby (
all of the numerous ''jobs" in the Nc /
Kinley bill would have been impossible /
without the aid of specific duties. Thus.
II Mckinley instead Of adding .eas, cents /
per line to the ad valorem duty of 25 per
cent on pearl buttons had proposed TO |
add duty of 500 per cent on, small hut
tons his proposition would never have
got outside of his COMMITTEES room, And \
yet this is what his bill accomplished.
Ad valorem duties, especially wh,sn
high, do encourage differentiation and
discourage honest importers. Thex are h
also not always as convenient, for the \
importer and the collector. Bit the
slight Inconvenience and injustice to
these few cannot be set up. against the
gross injustice that would be lone to the
whole people by the use of. specific duties
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