Evening star. [volume] (Washington, D.C.) 1854-1972, 1904-06-30
TAX ON MACHINERY
Amendment Of # ! Philippine
Tariff is Desired u
COMMISSIONS REPORT
FACTS IN THE N NATTER : HAVE
BEEN SENT 70 CONGRESS.
High Duty Imposed Was the Result Of
Observation-Disclosures
ton is Sought.
BY VIM. e. CURTIS.

BY VIM e. CURTIS
Special Correspondence Of The Evening Star and
Chicago Record Herald.
~ MANILA. May 20. 1904
Congress should amend the Philippine
tariff act 80 as to correct an obvious mistake
made at the time Of Its passage. and repair
the damage done to the interests of tho
islands. Secretary Taft has all the facts in
his possession. and laid them before the
committees OF Congress long ago. with reo-
concentrations in which he is unanimously
supported by members Of the commission.
the customs officials. the business men of
all nations here and every other person who
has the welfare Of these islands at heart.
Last fall Gov. Taft appointed commits
sion Of six. three customs officials and three
business men. to revise the tariff and inves-
tigate the many complaints that have been
made from time to time concerning duties
on specific articles. The commission met,
solicited advice and informat ton, held open
sessions. which were we'll attended by bust
ness men, and compiled a report, which,
with stenographic reports OF the hearings
ana other papers and documents was car
ried to Washington by Secretary Taft The
committee consisted Of Col. H. B. Mccoy,
deputy and acting collector Of customs who
has the confidence and respect Of every
BODY, ana Is recognized as the ablest and
IL
Deputy Collectors Pulliam and Stanley also
served and furnished much valuable in
formation. The native member was Senior
francisco Reyes. president Of the Filipino
cnamoer or commerce, one OF the foremost
business men in the Philippines; Morris E.
Lowenstein represented the American Inn
porters. and his familiarity with the practi.
caa WORKINGS or the tariff made him very
usefuL The sixth commissioner was Frank
l.. strong. formerly of Chicago and chief
engineer OF the Illinois naval reserve. who
served as volunteer chief engineer in
DeWeys fleet until the close OF the Snanieh
war, when he settled in Manila He erected
the 100000 cold storage plant for the eov
| ernment in Manila. installed the machInerv
OF the public printing office. and is now
building a government laboratory and
Workshop at the prison.
A Unanimous Report.
The committee worked in perfect har-
mony; It's report was unanimous and. ex
cepting a few details. received official as
Wei as popular Enforcement, and hence
Eohsress IS sare In adopting it's recon-
mendations. 81: mn
Mr.. Strong put the Situation in a terse
and taking way the other dav when ha
SAID: Earnest efforts have been made TO
induce capital to invest In manufacturing
enterprises In the Philippines. Let US state
II, riel pam ith language what the invitation
plant can be equipped with an outlay of
$4,000 for machinery. Let us say distinct
~ to the man considering our invitation
that Defore he can receive his machinery
from the custom house the government
that invited him TO come here and helm
develop these islands viii demand a fine Of
$1,000, known as duties Ahfne of $4,000
would be heavy one for a:criminal Is 1t
as such that we welcome the man whom
We have invited TO assist I'm sVeiopfne the
great natural resources OF this country; to
give employment to labor aild TO add to our
RI :rf no y,
and other Asiatic countries welcome Amer
lean machinery with a duty of but 5 per
cent: Siam demands but per cent The
Philippines. the particular ward of the
United States. whose manufacturers have
cheerfully borne their share of the vast
sums that have been expended here, places
bar OF 70 per cent upon the goods these
same manufacturers would be glad to send
us. ~ - 't
TT Is believed that the present tariff on
machinery was an error unwittingly made
by Congress, and not the slightest doubt
is entertained that Congress will willingly
and promptly rectify that error and other
errors clearly pointed out in the commit
tees report. That report received the care
full scrutiny of the commissioners before
1t was forwarded. with the changes their
added wisdom suggested. The desired
changes should soon become embodied in
the present tariff" ,...-.-
Due to Misunderstanding.
The printed record of the various steps
leading to the enactment of the Philippine
tariff law leaves no doubt that the 20 per
cent duty placed upon machinery was. as
Mr.. Strong suggested, due to the misun-
Outstanding of a recommendation made by
Charles H Conant at that time q news
paper correspondent in Washington and
now connected with the Morton Trust Com
pany, New York. Being considered an ex-
pert on such matters. Senator Aldrich asked
him to examine the bill it stood for err
commended a proviSo that none of certain
articles classified in certain paragraphs
without naming any of them, should pay
less rate of duty than 20 per cent ad
valorem. He referred to typewriters,
monographs. cash registers, sewing ma
chimes and similar articles. but whoever
formulated his suggestion into an amend
ment made it cover all machinery OF what
ever elaSS-every steam engine, the full
equipment Of machine shops. planning mills
printing presses, mining plants, agricultural
implements and machinery and all sorts OF
labor-saving machines and devices, which
We're admitted free into Porto Rico and
were intended to bear the lowest rates OF
duty mentioned in the Philippine tariff.
This intention is expressed In numerous
forms and places. 1t was based upon knowi-
edge of the needs of the islands, the de-
sire to encourage the development of their
natural resources and the Introduction OF
mechanical industries Nobody connected
with the legislation had any desire to shut
labor-saving machinery out of the islands.
The committees of Congress know all
about this, and there is no objection from
any source against its correction. Indeed.
it must be corrected If the people of the
Philippines to have any prosperity.
Duty Imposed on Machinery.
In order to promote the hemp. sugar. rice.
tobacco copra and other agricultural in
dustries Congress placed the nominal duty
of one-eghth Of cent a pound upon ma
chinery and implements used for preparing
the vegetable products, Of the islands for
the market. The paragraph in question
reads as follows: an 80
"245-Agrcultural machinery and appara-
tus, machinery and apparatus for pile driv-
ing. dredging hosting making or repair
Ing roads. for refrigerating and ice making.
for making sugar. preparihg rice or hemp
and other vegetable products Of the islands
for the markets. 100 k1os5 p cents"
When people commenced ito import ma
chinery under this paragraph, expecting to
pay the rate of duty naBed Solicitor Shus-
ter decided that this Paragraph covered
only the first machines or implements used
in preparing agricultural products for mar
ket and that all other implements and ma