New-York tribune., 1905-02-05
TARIFF MAY BE READJUSTED.
FAR REACHING EFFECT OF ATTORNEY GENERAL
MOODYS DRAWBACK DECISION.
Under 1t Manufacturers Engaged Export Trade May
ticaLy Free Rae Materials.
tFnoM THE TRIBUNE BUREAU.

tFRoM THE TRIBUNE BUREAU
Washington, Feb. 4-Free hides, free wool,
free Iumber-in word, free raw and partially
manufactured materials OF every sort and de-
scription-are at the disposal Of American
manufacturers engaged in the export trade, as a
result of the ar-reachins drawback decision OF
Attorney General Moody, the text of which was
published only in The Tribune of February 3.
The full significance of the Attorney Generals
decision becomes evident only in the light of the
policy of Secretary Shaw. previously outlined in
these dispatches, beginning far back as The
Tribune of November 90 at which time the
Secretary OF the Treasury. not entirely certain
that the Dingley act furnished authority for
such extensive drawbacks. advocated through
The Tribune revision of the tariff law which
would enable American manufacturers seeking
to upbuild their export trade to import all the
materials which entered into the exported I'm
ished products practically duty free BY the
provisions of the circular of instructions issued
to-day by the Secretary of the Treasury. pur-
suant TO the opinion of the Attorney GeneFai,
manufacturers may import every class of ma
terial, pay the duty at the time of its importa-
ton and recover 90 per cent Of such duty when
it is shown that the imported article is con-
tanned in a finished product subsequently ex-
ported.
INDUSTRIES THAT MAY BE AIDED.
Among the industries which Secretary Shaw
has pointed out as certain 70 be materially ben
efted is the boot and shoe industry of New
England. Heretofore the tanner has been aole
to Import hides tan them, and then secure the
drawback when they were exported. but serious
difficulties confronted the manufacturer WhO
converted the imported hides into shoes ana
then applied for the drawback. Now ne can I'M
port hides tan them. manufacture tnem 1n'o
boots and shoes and obtain the drawback oy
showing the amount Of imported material IN tne
exnorted product To secure the drawback he
need only keep his books according 10 tne sSS-
tenn prescribed by the Treasury Department.
IJoro+ofora wire manufactured In whole or in
mart from Swedish iron was entitled TO the
drawback but IL the imported ore was manu-
fact,lred into stoves and other commodities OF 4
similar character the drawback was denied
Now the drawback probably be oolalhe"
on every stove sewing machine. boiler, locomo-
tive or other finished product which can De
sht.,vra 10 contain any imported material
The California fruit Industry will be mate
rally benefited if tinplate is imported and
made into cans, which. when filled with domestic
fruit and exported. will then be entitled to lhe
drawback 1t is even suggested as an extreme
case that the manufacturer who imports his
coal and utilizes its energy exclusively IN the
production OF goods for export may claim
drawback equivalent to 90 per cent of the duty
paid on the coal when the finished product is
exported
DINGLEY ACT MAY NOT NEED CHANGE
med al a
authority to grant such extensive drawbacks has
hitherto appealed to Secretary Shaw as the
strongest reason in favor of some readjustment
of the existing tariff laws and it is possible so
far-reachins is the principle enunctated by the
Attorney General, that it may remove the I'M
mediate necessity of any change in the DnSley
act Whether the proposed extensive granting
of drawbacks will have the effect of curtailng
the revenues TO extent which will render
tariff readjustment imperative it is impossible to
determine at this time
The legal proposition set forth by the Attor-
ney General is that the section of the Dingley
act which provides for drawbacks and declares
that the imported material shall so appear in
the completed articles that the quantity or
measure thereof may be ascertained" may be
so construed that the term appear shall mean
that knowledge which comes to the mind as
result of evidence as we'll knowledge derived
from the exercise of the Senses" The Attorney
General further says:
In my opinion, where IT is proposed to export
A product manufactured in the United States
from a combination of domestic material and
foreign material which has paid duty. and Gus
toms officials identify the foreign material
and can ascertain to their satisfaction by the
evidence of books of accounts or otherwise the
quantity or measure of foreign material actually
present I'm the completed article, the exporter is
entitled to receive a drawback OF 80 per cent OF
the duties paid upon the imported material thus
ascertaned to be present in the completed ar
tcle.
While the current exports of boots and shoes
amount 10 So 23S.94O a year. the exports of
woonen goods are comparatively small as yet
but with free Australian or Argentine wool at
their disposal the extent TO which the American
manufacturer can build up export trade in
manufactured woollens is declared to be meal
culable.
While the application OF the Minneapolis mil
Iers for a drawback on imported wheat used as
a component part OF flour manufactured for the
export trade resulted in the Attorney Generals
decision published yesterday, it viii be seen
that the principle enunciated is OF an Importance
out of all proportion to the issue which caused
il II is even possible that the Hansbrough
amendment to the Sundry Civil bill, published in
this mornings Tribune, may be adopted without
affecting the general proposition.
The decision of the Attorney General is clearly
q triumph for Secretary Shaw. who has from
the first contended that the protective system
should stop with the domestic market and
should not in any way be permitted to hamper
the efforts OF the American manufacturer who
sought to extend the export trade OF the United
States The Secretary has insisted that it was
the intention of William Mckinley and other
great tariff experts that the American exporter
forced TO compete with the foreigner on his
own ground should be able TO avail himself OF
s.oi..,, mo tsrtols absoIuteIv free rf dutv