The Birmingham age-herald., 1909-04-27
NEW ANALYSIS OF
 THE PAYNE BILL
Chairman AIdrich Has Framed
 Up Simple Bill
HOW TO RAISE REVENUE
Payne Method of Applying Rates is Substituted by Better Plan which Will Overcome Many of the
 Objections.

Washington. April 26.-Some of the ad- will be submitted to the full membership ministration features of the tarin bill of the Senate finance committee Tomor- row they will include the substitute for the maximum and minimum feature of the Payne bill, which has been worked out by Chairman Aldrich and approced by the republican members after having been perfected with the aid of Senator's Root and Curtis and others who have given the subject careful study.
 The substitute for the Payne method of applying rates fixed by the bill is much shorter than the House provision and it is believed by members of the committee to eliminate many of the features that have provoked objections chiefly in regard to the means of the retaliation against countries that have failed to give to the United States the Benefit of their most favorable rates. The Senate plan makes the established rate the minimum and provides for a maximum of 25 per cent additional as is done by the Payne bill, but the term maximum and minimum is avoided and the prices aiven in ad- 'S'AANiHA2 scribed briefly the amendment will pro- vide the following:
 Duties will be collected on all articles imported from foreign countries at the rates named in the Senate bill and 9 per cent additional from countries which as sess against goods from this country rates which are unequal and unreciprocal" The established rates will continue in eff feet until March S1, 1910, and thereafter unless the President by proclamation puts into effect the additional rate of 9 per cent of the established rate. This will be done only on the President receiving sat- isfactory evidence that a foreign country is discriminating against the United States One of the chief objections raised against the maximum and minimum fea- ture of the Payne bill was that the maxi mum rates automatically went into force whenever foreign country failed to give to the United States the best rate given to any other country.
 As a number of European countries give special rates to dependencies, the pros perity of which demanded the continuance of this from force, and that the United States would be compelled to put into force maximum rates when it would be a disadvantage to this country to do so By placing discretionary power with the President, it is believed, this objection would be avoided The Senate bill does not use the expression common to legisa- tion and treaties bearing on the most favored nation" clauses. but provides for the use of the maximum rates In retaia- tion when a rate has been charged against this country that Is found to be unequal and unreciprocal." The Presi- dent, who will be advised by tariff board to be provided for in another section, has authority to say when a rate is unequal and unreciprocal"
 The very important innovation of talk ing articles from the free list and fixing rates of duty that must be paid on them by coutries which discriminate against the United States Is provided by an- other clause of the Senate substitute. It Is expected that only a few articles will be named on this trading list.
 The provision of the house bill amond- ing the present law in retaliation of col lection of ad yalorem duties has been amended materially. Under the present law the values of articles dutiable at an ad valorem rate are fixed in accordance with the wholesale price or market value at the time of exportation from the coun- try whence imported. Because it Is often difficult to establish what is the whole sale rate abroad, the amended bill will say that the foreign wholesale rate will rule when there Is an established open market for the class of goods in ques- ton. otherwise the duties will be col lected on the values at the wholesale rates in the United States. It is as- serted that this change will do away with great amount of under valua- l tion.
 The drawback feature of the Dingley 1 law will be raised for enactment instead 1 Al II. strikes out the Identification require I ment