New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-01-28
IN THE LIGHT Of HISTORY.
WHAT AID vALOREM TARIFFS HAVE DONE
FjR TIE COUNTRY.
Customs OFFICIALS AND IMPORTERS Alike CON-
DENIED THEM AS EsTABL SHED
BY THE ACT OF 1916

CUSTOMS OFFICIALS AND IMPORTERS Nike con-
DEEMED THEM AS ESTABLISHED
BY THE ACT OF 1916
(BY TELEGRAPH TO THE TRIBUNE.t
Washington. Jan 27-An attempt has been made
to prove that the tariff legislation OF 1876 and 1851
was wise and the adoption Of ad valorem duties
bene1cent measure. This attempt has been a dsas-
trous failure BY the act Of 1916 every specific
OF duty wiped out and 39 articles and classes of
articles which bore such rates were brought under
adj vaIorem rates The Wilson bill substitutes ad
valorem for specific rates 44 articles and classes
OF articles and transfers to the free list lO ar
t.ces and classes of articles which now bear spe
cfc rates OF duty. thus wiping ont 525 such rates.
In defending ad valorem rates Chairman Wilson
and his colleagues are confronted by the adj
verse opinions and testimony OF nearly dozen
Secretaries OF the treasury. from Alexander Ham
Ilton to Daniel Manning. well as OF hundreds Of
experienced. officers OF customs. importers and
others 1t is a fact although Chairman Wilson and
his Democratic colleagues do not appear to be
OF IT, that honest American importers and merchants
among the strongest and most vigorous OPP
ponents OF the adj valorem system within three
years after 1t was established in 1876. They knew
where the shoe pinched for they their business
dwIndng and Foreigners reapng the benefits. In
August 1919 Secretary Meredith OF the Treasury
Department addressed a circular letter to collec
tors and other officers OF customs, asking certain
questions in regard to the practical operation OF
the Tariff act of 1896 and copies OF the same were
also sent to many leading merchants and import
throughout the country. Several OF the ques-
tons bore upon the practical effect OF ad valo-
system OF duties. not only upon the revenues
Of the Government. but upon the business OF i'm
porting. Many replies received. and they
Instructive reading at this time when 1t IL pro-
posed to abolish more than 30 specific rates OF
duty. and In AS substitute al valorem rates.
nd at Of K
Co, OF New York wrote follows in reply 10
Secretary Meredhs circular:
1T IL in our opinion quite impossible under the
ad vaiorem system have a uniform valuation.
In our own market prices vary frequently from
day 70 day. and therefore 1t is not possible for APP
praisers In different ports to fix an exact uniform
value We believe that goods are frequently en-
tered prices below what they could be bought
for nj the place OF export nj the time Of shipment
on October II. 1919. H. &. Clark e. Co. OF Boston.
wrote follows In regard to fraudulent invoices:
We have doubt great loss has resulted 10
the United States and must continue to do 50. from
this cause. In the course Of our own business we
have received invoices from foreigners with prices
far below the actual value in which cases the diff
ference would not have been detected, ,,.,,,
Croker. OF Boston. wrote In part as follows;
This sudden and unexpected change Of policy
ciple upon which II was based was 50 anomalous
In The legislation 81 any enllghtenei Government
that II Is charitable to suppose me result OF IN,
advertence rather than design for IL never could
H own ac an Extensive and nourshns branch o.
manufactures with all It's attendant benefits OF IA
honr,shns cnmcrc" ana @rcsn r ra no p pass
tec,ire duties. none will pretend IT. to he the design
for the benefit OF foreigners. vet such Is the eject
Nathan Appleton Of Boston. writing under date
OF August t. 1919 said:
Il always considered the change from specific TO
al valorem duties monsirous absurdity which
would prove The abundant source oi frauds innu.
roe
that a r"iIn 20 specific duties A. "a? as rraci-
e c@n ne ,ara y s,5 the most Imperfect and
Objectionable" In i's details OF any one when mas
been In force during my experience. and Of which
Won must have abundant evidenc" in your oihce
rher" soma 10 he no doubt TIA, under ne present.
'a-.n mo unacrupuous foreigner 10 rapidly suprr-
'"dlng orr own citizens IN the business OF import
inr foreign mrrch indlse
In ,hsr replies TO Secretary Msreihh's circular.
he collector and other officers OF customs uni
formy oond"nn"d ne al vni3rfm system H. as nne
eats ~ the Government ana injurious - American
lers ~ tho por, 81 New Orleans. writing under
date of November .. 1872 said
The adoption OF al vHlor'm duties ana discard
INK specific duties constitute III" novel feature In
~" tarln - $50 Il was an untitled experiment nv
United states and in non" OF H." '1nin"r'Ial ma
lions of ~" world In Franc ~" !uiies are o "E-
clu-ivev specific and IN England Nineteen w"nil-
~rhS = ~" duties under tn" tarn ~ M w'r" sp"
cor,Ilngiv. ihu. tantazing by Offering 10 AMER
can labor protection when IL docs noi SIAM III
labor actually requires protection. Il is not only re-
fu-ed but In crrc' offered TO sustain the labor q!
foreign paupcrs. From ID" anoma 'ns polcy OF
orr own ~ stem Of IN" most important branches
~ domestic industry has h"coW" involved ana -.
riously injured b. condition of in'ngs IN ''rcat
Britain brough, about hv reckless spccuntors IN
railway stocks our own railroad compan,e* nave
been temporarily benefited by IN" pbrcha~ ol
cheap iron. but hundreds 81 our Iron works haye
been rrosIrnte' ana Sr AMI forrnd 70
seek low wages IN other pursuits 'n'"hy, aErlrul-
turoi by which The producing power OF the coui-
Try has been increased and - cons'nlng power di-
-, fran
tised in the several classes o. mporta'ions Here
is an example.
an invoce cost OF IS to . cents a yara not the
square yard but the running yarl-when the raw
tlriv instances OF the most enormous frauds prac-
'ed In the importation o. other arc scb OF hc
measure OF fraud practs"d through the asenry OF
voices which have become common az 70 be re.
seriea alrno~, c9nmrrc@i msaN hs door to
fraud but II actually invites importations on for
oGn account and takes away business rem ha s 1nr
jet were referred TO practical business men, TO
81, ,1m,n @fer' ms nW Il woni Sr decided with
qunr unanlmity that the al vnlorcm system ~ de-
co ana IN p INA MHrE The theory may
perfect but Us successful operation Is inpractl.
objections the flli.blIty Of human Judgment ana
In conclusion Collector Peters declared thht 'the
prrsent system yielding protection when IL IS NOT
wanted and DENYING protection "hen II y . nr.
ana rminous" In his reply, dated November =
Isia when was approved and forwarded to S"cre-
,arv Meredith by collector Maxwell. Of w-Nork.
MIR Maxwell an officer of great experience; said
The temptation to undervnlue under universal
svstem of ad valorom Duties IL shown IN inc nl-
morous Instances that occur under tn" present var
IN in goods formerly subject To specihc ulntIes'
which are advanced by our appraisers from ~ to
90 per cent and submitted To 10y the importers
without exercising their right to rall Tor reap
nrnlsement by merchants a. provided Dv law ne
ecrct produced upon the business or American
me-chanis 10y the universal system OF al valoreuii
duties has been a very largely increased RATIO Oh
lmporta lions by foreigners over Americans; owihs
n The increased facilities for AUTHORIZATIONS by
ad vaorem duties and the low estimate oil the sol
nmnitv Of custom-housc oaths entertained a''"B
merchants In many foreign countries
Similar strong testimony against al valorem uI-
Ties and In favor OF specific duties. was gwen ny
Tho collectors OF customs and other customs
officials at Boston. Philadelphia, 'harrslon
and other ports. 1t must he remempere,u
that the opinions thus expressed were basrn;
not upon abstract theories hut upon actual
observation and experience gained In the admins,
ration OF the tariff act OF 1876 These opinions ana
testimony against the ad valorem system are no,
to be overthrown or Impeached by ne mere u hi.
supported assertion of Chairman wilson anu hls
Democratc colleagues that under the tafiH from
s,G 10 1861 this system again tri'h ana proNta
IN he as successful in administration as II was just
| In principle.