Evening star. [volume] (Washington, D.C.) 1854-1972, 1909-03-21
OPPOSED BY SENATORS
Objection to Inheritance Tax
in the Tariff Bill.
PRESIDENT Is NOTIFIED
Long Conference Is Held at the
White House.
CUBAN RECIPROCITY CLAUSE
It May Be the Cause Of a Great In
ternational Dispute-Important
Amendment Proposed.
PRESIDENT IS NOTIFIED
CUBAN RECIPROCITY CLAUSE

Serious opposition to the inheritance-tax
feature of the new tariff bill will arise in
the Senate, in the opinion of Senator
Aldrich, the republican leader lie is led
10 this view by statements made by a
number of senators who have expressed
themselves on the subject.
Senator Aldrich communicated this fact
10 President Taft in the course OF a long
in which Secretary Knox and Secretary
Macveash participated. The objection of
senators to national inheritance tax
arises from the fact that several ~ the
states now impose such a tax upon their
citizens. The view of the Directing sena-
tors is that a national tax Of this char
acter should be levied only in case of war.
and that the states should deal with the
subject as state-revenue raiser.
Cuban Reciprocity Clause.
That the tariff bill would bring about
a great international tariff war IL en-
acted, because of the section which con-
inues in operation the Cuban reciprocity
treaty, is one of the arguments that Is
being made against the measure. It is
irgeti that foreign countries which would
otherwise agree to give the United States
the benefits of their most-favored-na-
ton clause In return for the minimum
scale of duties provided for in the Payne
nill will contend that the Cuban reel
procity provision is the most -favored-na-
lion clause OF the American tariff. and
viii therefore refuse to enter into a low
tariff agreement with this country.
This difficulty regarding the Cuban
reciprocity treaty and its relation to the
maximum and minimum tariff provisions
of the Payne bill was not overlooked by
the trainers of that measure. The sub
committee which drafted the bill consid-
cred the possibility of the claim being
made that the clause continuing the
treaty with Cuba discrminates against
other nations and would. therefore. not
entitle the United States to the minimum
duties OF other nations. After discussing
the matter It was agreed to allow the
provision TO remain in the bill trpon the
assumption that other countries recognize
the usual relations existing between the
United States and Cuba and would not
object to the lower duties which the
island republic would get. Furthermore,
in support OF this argument 1t is con-
tended that Cuba ships TO this country
articles which do not compete with our
imports from countries of Europe.
Some Difficulties Expected.
There are other difficulties in the way of
operating successfully a maximum and
minimum tariff. Most European nations
have special trade relations on certain
products with their neighboring countries,
and 1t would be inconsistent for the
United States 30 expect these nations to
abrogAte these agreements in order to get
The benefit OF our minimum duties. On the
other hand. the trainers of the Payne bill
have designed the maximum tariff pro-
visions In such way that practically
every country of Europe will be COM
PEELED TO seek our minimum duties in
time The principal object in making the
new bill q maximum and minimum meas
ure was to use this provision as a means
of forcing other countries to grant to
american industries the same opportuni-
ties for trade that they grant to other
countries.
France Is one Of the countries that will
I've most affected by the maximum sched-
ule OF the Payne tariff. The duties i'm
posed By the present law on wines,
per cent in the maximum provision of
the new bill. and this advance would ser
iously affect the importation from France
OF wines. principally on the low grades.
OK the duties. Germany now gives the
United States nearly all the minimum
duties OF her tariff under the provisions
of the German trade agreement but I'M
agreement and give this country all Of
her favorable duties the maximum rates
of the Payne tariff would apply. The
German agreement provides that six
months notice OF its discontinuance must
be given by either country. but it can be
a orogated by mutual consent.
Twenty Per Cent Increase.
The Payne bill placed a maximum duty
Of 20 per cent additional on the articles in
the chemical, tobacco, sugar, agricultural
products. cotton. silk and paper schedules,
with the exception OF coal tar dyes and
extracts for dyeing in the chemical sched-
ule. for which there is no maximum rate
Of duty.
The rates OF the Dingley law are re-
tanned as maximum duties on pig iron,
structural steel, steel billets. iron and
steel plates. steel wire and numerous
other iron and steel products. The maxi
mum duties for the pottery schedule are
. per cent more than the minimum and
for the sundries schedule the Increase is
an addition Of % per centum ad valorem.
The fax and wool schedules have no
maximum duties prescribed.
The principle articles on the free list
for which % per cent ad valorem il
provided In the maximum schedule are
coffee, crude natural camphor. drugs for
dyeing and tanning. hides. iron ore, oils,
including petroleum; tailow and tobacco
stems.
Complaint Of Westerners.
REPRESENTATIVES, OI western states are
claiming that the new drawback provision
in the tariff bill Is discriminating against
the west in favor OF the east The re-
vised drawback section permits manu-
facturers to secure the regular drawback
Of 30 per cent of the duty paid on inn
ported raw material without the necessity
OF using the imported material in the
manufactured product that is exported
a raw material of domestic production
N equal quantity and OF similar char
acter, may be used instead of the i'm
ported material
Western members Of Congress are con-
tending that this tends to give the manu-
facturer at the seaboard a decided advan-
tage over the manufacturer in the in
terror on account OF the freight rates.
one Illustration offered was that of a
Hour manufacturer in Minneapolis who
imports from Canada thousand bushels
OK wheat on which he intends to collect
drawback when II Is exported. He would
lind II more advantageous, under the
new drawback provision. to dispose of his
flour In the local market and purchase
An equal amount of flour at some seaport
Tor expectation
This would ave him the transportation
charges from Minneapolis to the sea-
port. II is said. and the manu- facturer
would at the same time secure his aw-
back on the flour exported. Under the
present law the -four exported would have
TO be made from the imported wheat In
order to secure the drawback.
The ways and means committee claims,
however. that the new drawback Is for
The benefit of the honest exporter who
because Inscriptions manufacturers have
AIKEN ADVANTAGE OF the difficulty of en-