Omaha daily bee., 1909-04-03
Minimum Rates Are to Be Applied to
All Countries for One Year.
MAXIMUM GOES IN EFFECT THEN
President to Except Countries Giving
United States Lowest Rates.
PROVISION IS CONSTITUTIONAL
Principle Is Upheld by Supreme
Court I'm Case Growing Ont of
the Mckinley Tariff
Act.

WASHINGTON, April a-President Taft
was informed today of the senate program
for the administration of the new tariff
bill 1t provides that a minimum tariff shall
apply TO all countries for one year. At the
end of that time the maximum rates will
go into effect against all countries. which
in the opinion Of the president are not
giving the United States their best tariff
rates.
The president is understood to favor
strongly this idea of application OF tho
maximum and minimum principle and II is
believed that It will be the plan finally
agreed upon. The plan of administering
the minimum and maximum rates in the
house bill as it now stands, is said to
be more indefinite and less effective than
the one proposed by the senate finance
committee.
Taft Confera with Aldrich.
Prior to the cabinet meeting today Presi-
dent Taft had a conference with Chairman
Aldrich of the senate finance committee
and Secretary of the Treasury Macveagh.
Senator Aldrich assured the president that
the committee is making most satisfactory
progress with the tariff bill and said there
would be little or no delay in taking the
matter up in the senate following vote
In the house.
The administrative features of the senate
bill were then taken up for discussion,
which will be resumed at the White House
next week. Senator Aldrich left for New
York today and the finance committee
will not meet during his absence.
There have been more or less apparently
authentic reports current from time to
time to the effect that majority sentiment
In the senate was opposed to the minimum
and maximum principle as enunciated In
the Payne bill. President Taft has not
shared this belief and today he received
definite assurances as to the correctness
of his position when Senator Aldrich out
lined to him his own position and that OF
the majority of the finance committee, as
to the plan Of administration to be pro-
vided for in the senate measure which
has, further. the support Of supreme court
decision as to its oonstitutionality.
Details of the Plan.
The difference between the minimum and
maximum rates will be 20 per cent. II is
planned that for a period of nine months
or one year the minimum rate, (which will
be fixed as the protective rate, shall apply
to all countries without distinction or dis
elimination. At the end of this period the
maximum rates automatically will go into
effect against all countries, which, In the
opinion Of the executive, are not giving ia
the United States the benefit OF their most
favored nation clauses In other words
II will require affirmative action by the
president, after thorough inquiry, to give
TO any nation the benefit OF tho minimum
American rate. II, In the general inquiry
which viii be made during the probation
ary" period. the president finds that GER
tain nations are discriminating against the
United States he will merely refrain from
issuing proclamation regarding these
countries and the maximum rate henceforth
will apply TO them.
This plan gives to the executive complete
power of inquiry and decision. The SUI
preme court of the United States in a case
involving the constitutionality Of the Nc
Kinley tariff act decided that congress by
similar method Of administration was ir
nowise delegating it's authority to the
executive Congress will fix absolute rates
which will apply under conditions which Il
prescribes and no executive discretion will
rest with the president.
Another matter discussed at the Whit,
House conference today and which will b'
taken up again next week. had to do will
what plans shall be adopted in the admins
trstive section of the new bill TO preven
| absolute under valuation. The president
| believes with the Treasury department otn
cials that gross frauds have been prac
ticed on :he government in the past unds
existing methods and considers 1t OF su
preme Importance that a fixed standard d
valuation should be prescribed.