Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1907-02-10
Rrrr1na TIE fREr PORT.

Secretary shaw's proposition for
creating bonded zones for export
manufacturing is meeting opposition
from those who apparently look upon
It as theoretical innovation. scheme
to aid manufacturers in certain lines
without interfering with tariff
schedules. Newspaper criticism of the
plan has been generous, the general
contention being that the bonded zone
plan is simply a shield against alleged
popular sentiment for tariff revision.
AS a matter of fact, the bonded zone,
or free port, proposition is not original
with Secretary Shaw. but was sug-
gested first for this country by the
late Edward Rosewater, then editor Of
The Bee, as a result of his observation
of the free ports OF Germany during
his trip abroad in 1891. Bills drawn
at his instance we're introduced in the
Fifty-third congress, in 1894, and ia
vorably reported by the committees in
both the senate and the house, al
though they failed of securing FINAL
consideration. The measures were
sponsored by Senators Frye and
Chandler, and backed by proposal
from the late Austin Corbin to estab-
lish free zone at Fort Pond bay, on
Long island. Mr.. Rosewater reported
on his study OF the free port systems
at Bremen, Hamburg and other points
to the senate committee considering
the measure. Only the sudden death
of Mr.. Corbin put an end to the agita-
ton for free ports at that time.
Secretary Shaw's proposition is sim
ply a revival of the plan then urged
for encouraging American msnufac-
turing for export trade, the need Of
which is even more urgent now. The
proposition does not conflict with any
policy of the government, but, In fact,
simply extends the present bonded
warehouse system by which imported
materials used in the manufacture of
goods for export are relieved from the
payment of customs duties or internal
revenue taxes. AS elaborated by Sec
rotary Shaw, this plan is as follows:
Suppose instead Of a bonded factory we
bond a well defined section Of land, con.
tanning, II you please, several thousand
acres. Within this bonded territory all
kinds OF factories could be built and into
this zone all kinds of raw material could
be entered without the payment OF duty.
This port should. of course, contain no
dwellings. l would allow free coal and
every other element of manufacture, ex-
cept labor, TO be entered free.
Competition is keen in the export
trade and experts in trade affairs con-
tend that the facilities for shipping
and transshipping merchandise, un-
hampered by burdensome customs
regulations, contribute quite as much
to the success of manufacturers in free
port as does relief from tariff fees.
The establishment of these bonded
zones would also bring to them the
manufacturing establishments now
conducted by Americans in other coun-
tries, for foreign trade, thus increas-
ing employment for American work
men. The free ports at Hamburg,
bTeIuSub sOOpSuhdBSn anu, sObhOi 1u
ropean points have been marvelously
prosperous, adding materially to the
shipping industry where they are To-
Gated and proving notable factors in
the general growth and development
of these cities.
The drawback feature of the pres
ent tariff laws was intended to meet
this demand, but It's cumbersome
operation causes costly delay and ex-
pense incidental to the entry of the
raw materials and to the rebate when
goods manufactured from them are
scheduled for exports All this would
be obviated by the bonded zone plan,
under which goods would be subjected
to tariff and customs regulations only
when entered for home consumption
instead of for export. The free port
idea is both practicable and desirable
and deserving of early and serious
consideration by our government.
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