Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-06-03
new AGREEMENT CRITICISED
ALLEGED USURPATION BY THE
EXECUTIVE BRANCH.
Concession to Germany Which, It Is
Asserted, Virtually Nullifes
the Tariff Law.

Another case of alleged uSurpatiOn by
the executive branch of the government is
being discussed in connection with the new
tariff agreement with Germany The sub
ject was first brought to the public atten-
ton by violent protests from business in
tereSts bat now another feature Of the
case is under consideration.
Broadly stated the proposition is that
the Secretary of State and the Secretary
of the Treasury can make an arrange
mcnt and frame regulation which viz
tuaily nullifieS in the of one country
the tariff which Congress has enacted.
executive branch performs a function
which, under the Constitution, only Con-
gress is authorized to perform.
Opportunities for differentiation.
The business interests complain because
it is alleged that under this pretext GER
tain classes of German goods will be I'M
dervalued and.brought into the country in
competition with American wares, which
are supposed to be protected by the tariff.
differentiation Is a favorite weapon of
assault against the tariff wall by the for
eign producer. This government main
tainS a corps of men abroad and d board
of appraisers in New York to prevent I'M
LIBERALIZATION.
The agreement with Germany provides
in the first section that German wares,
sold only for export, or sold only in the
home market in such limited quantities as
not to eStablSh a market price, shall be
valued at the export price, That is,
that the manufacturer turning out a spe-
cial brand size, shape or what not, differ
ent from the article made for the home
market, can fix his own price upon 1t, and
that price the American tariff appras ers
shall accept when levyng tie tariff duty.
Thus. though the general tariff may apply
to the article IN question, mat article Wa
have been valued lower than articles of the
same class imported from other countries
and the amount of tariff duty is CORE
spondingly less.
Secretary Shaw, when he was at the head
of the Treasury Department. refused to
agree to this plan. He held that it would
result in differentiation, and he doubted
the constitutionality of a treasury reguia
ton which would nuliy law of Congress.
May Be Tested in the Courts.
1t is said that the new arrangement will
certainly be tested in the courts of Ameri-
can manufacturers, and there is likelihood
of the action of the Secretary of State and
Secretary of the Treasury being questioned
and criticised in Congress The latter fea-
ture of the case will doubtless attract much
attention.
From the utiltarian viewpoint, the new
arrangement is expected to be compensa-
tory. A tariff war with Germany has been
avoided, but in doing so, it is claimed, the
their authNrity. The main principle, how
ever, of alleged invasion of the domain of
the legislative by the executive branch will
yet have to be looked into, it is said
State Department Interpretation.
The State Department is mailing today
to United States consuls in all parts of the
world copies of the new customs regula-
tons which were issued Saturday in ac-
cordance with the terms of the recent tariff
arrangement with Germany. The interpre-
tation of the State Department is that
these regulations, so far as they apply to
United States ports, are universal in their
application. AS these regulations are all
in the line of relaxation, to a more or less
extent from the rigid regulations which
have heretofore prevailed, their announce
ment is looked upon practically a change
of policy on the part of this government to-
ward both American importers and foreign
exporters.
The more liberal treatment to be accorded
in passing United States customs officials
1t is believed, will do much toward COM
mercially re-establshng the United States
in the favorable regard of foreign nations.
Although the new regulations are regard
ed as more liberal, in that they abolish
some of the methods which have been re-
garded harsh in the administering of the
customs laws, the department holds that in
no sense are they to be regarded as a re-
Taxation against fraud or attempts 20 evade
the payment of duty by differentiation.