New-York tribune., 1908-11-24
BIG FRAUDS ALLEGED
CHINA SCHEDULE UP.
Manufacturers accuse Importers of
UnderUdIuatiOR.
From IN. Tribune srr.,u.l


Washington. Nov. 8.-Strong evidence pre-
sented to the Ways and Means Committee to-day
by American manufacturers of china and earthen-
ware that the United States government is being
defrauded Of great amount OF money annually by
importers OF these articles. who understate the
value OF their shipments In order TO escape
part OF the customs duties. Representative Payne
agreed with the nufacturers that there have
been many cases OF undervaiuation. and it is GER
tain that If any method Of stopping the practice
can be devised II will be put into the tariff bill by
the Ways and Means Committee.
THE weight OF evidence shows" said Mr. Payne
that there has been a great deal OF fraud. China
ware comes into this country differentiation
and there is no way to punish the foreign offend
ers- What we desire is to secure valuation on
this side. that punish those who are
guilty OF perjury
1t is evidently Mr.. Payne's plan to frame the law
that the duties VIII DE relative to the wholesale
price in this country. This does not meet with the
entire approval OF the manufacturers. who urged
that specific duty be placed these articles. In
stead OF the ad valorem duty in force at present.
With regard to the present tariff rates, there was
a wider difference OF opinion among those who ap-
peared to-day. The wholesalers and importers
urged a reduction OF the duty. while the manufact-
urers requested that II be left unchanged, provid-
ing that the law framed to prevent
differentiation.
Jerome Jones. of Boston George W. Kinney, OF
Cleveland. and E. H. Pitkin, of Chicago, repre-
sented the wholesalers. and based their arguments
for reduction the assertions that the present
duty is prohbi.ive; that the pottery industry OF
this country has reached state OF maturity which
no longer requires much protection. and that
prices to the consumer would be greatly reduced
by an increase Of imports and keener competition
The manufacturers, headed by William Burgess,
of Trenton. n. j., president Of the American Pot
ters' Association showed that the cost OF labor in
the United States is more than 30 per cent OF the
cost of the entire product and that the wages are
175 per cent higher than in England, and still pro-
portionately higher than in the other competing
countries. He quoted figures showing that before
the framing of the Dingley bill Great Britain
of the largest exporters to this country, and
although since that time her exports have not ma
teriaIly increased. those OF Germany, Austria and
Japan have made great gains He showed that
the imports from all sources have increased much
more than the increase in American production,
and on this fact he based his main plea for re-
tention of the present tariff The specific duty
required in his opinion. to prevent differentiation
is l cent pound avordupois on plain white
china, cents decorated china. rs cents on
white earthenware and 2lR cents decorated
earthenware. To show that there are many in
stances OF uHdervalua tion he presented figures
from the German export books which show that
than $4,000 worth Of china has been sent
here from that country, while American import
books show that little more than '5ooo.ooo worth
has been received.
E. H. Pitkn, Of Chicago. declared in favor OF
the duties OF the Wilson bill per lower than
dUCtion in the tariff the cheap grades OF crock
cry would to the consumer saying at the
same time that it would not be fair TO the Amer
lean manufacturer
w. E. Wells, OF Newell w. Va. favored an in
crease in the imported china.
Champ Clark declared that alleged undervalua-
tion is the only argument the manufacturers pre-
sent for an Increase in the tariff. IF this under
valuation Of invoices could be broken up. he said,
the pottery men of the United States could stand
for a reduction in the tariff
No. they couldn't declared the witness
Why couldn't they. If they being souged by
this undervaluation?' pursued Mr. Clark
Because they are not being gouged by all OF
the importers" the reply
Charles T. Casey, OF Cambridge Ohio, desired a
special type of corking utensils specifically men
toned in the tariff law, and W. c. Wilson, Of Phil
adeIphia asked that the duty bauIite used in
ma king alum. aluminium and paper, be doubled.
Saying that so per cent of the kaolin. or china
clay imported Is used In the manufacture OF a
grade of paper in which American kaolin cannot
be used, John Richardson OF Boston. requested that
English china clay be put the free list
Henry o. Auer, of Cleveland, asked that crude
fuler's earth which is the free list. be
distinctly defined tariff. A more clearly
defined description of frebrick was requested by
James z. McCloskey of Pittsburg.