The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-04-11
FAVORED NATION
!. CLAUSE IS NO BAR
It Will Not Restrict United
States in Making Agreement
With Canada.
CUSTOMS COURT RULES
Far-Reaching Decision Made in
Comparatively Uninlpor-
tant Case

Court. in decision to-day, hold in eff
:. feet that the so-callcd Favored nation
clause In existing commercial treaties
with England, France AMI Germany
does not restrict the United states in
F.! erecting the proposed reciprocity
agreement with Canada
+ The courts decision was brought
out by comparatively unimportant
contest over the rate Of ,'uty which
should be imposed in Wn!Skey impor
eel from England and France. The point
involved is the same raised in opposi-
ton TO the proposed Canadian reciproc-
( ity agreement by those who claimed
ii was practically forbidden by the
| favored nation" clause.
Protest Payment.
~ ID. Shaw & Co. . tiim "f New
York importers. protested payment or
duty on whskey from England al the
rate of $s25 per gallon. holding thcs
were entitled TO a rate If $1.T5, which
is imposed on whiskey and other spirits
from France. The essence OF their
claim WAS that under the most fay
ored nation clause with Great Britain.
importa tons from England arc en-
titled to be entered at the same RAJ
% 'iuty levied upon such merchandise
When imported from France and the
other Countries with whom similar
treaties have been executed.
The treaty with England was nego-
tiatcd in 1915 and indefinitely extend
ed in lS21. The treaties with France,
Italy and Germany. forming the basis
of the importers claim, were put in
effect by the President under the tariff
act of 1897
Under the last named treaty. in
view OF reciprocal and equivalent con-
cessio;is the rate on whiskey from.
J France was fixed at 81 "a a gallon. The
J "A thnt ny &c -
| treaty is ore of mutual considei'a ton
! and concession.
| The Importers claim Was that the
concession Of tho lower rate. OF duty
| to France was a special favor within
the puryiew OF The treaty with Eng
! land.
| Citing several germanc decisions by
! the Supreme Court. tho court held that
! the portion OF the tariff act OF 1897
| which gave to the President authority
| 10 ncgotiatc commercial reciprocity
| agreements with other nations, was
not in conilici with the "favored ma :
! ton" clause Of tho treaty With Eng
| land This portion of the decision.
! when Was unanimous, is interpreted
! as removing Que of The greatest OBJ
stacles yet raised against the proposed
agreement With Canada II SAYS:
section three Of the tariff act OF
1887 was a general law; its attitude
toward every nation was uniform. Ii
offered no special favor to France. Ger
many italy or any other country. Ii
was equally Within the oppcrtuntt!
, Of England to negotiate reciprocity
/ treaty us it was within the opportun!ty
OF France.
No violence to Treaty.
'Wc think that in logic OF effect the
ncgotiation Of a treaty upon a con-
sidcration does no violence TO thar
treaty provision With England. The
reciprocity treaty with France is one
founded uNon mutual considcra tions
tic considerations given in exchange
therefor by France II This country
should concede 10 Great Britain with
out consideration what it has conced-
cd to France for consideration. It
would not he conccding 10 England a
favor 1t conceded to the other country.
but i; WOULD 30 conceding to England
more than il conceded To the other
country, because England in such case
gives no consideration for the conccs-
sion for which France gave consid-
Grafton
The extension of the sl75 rate up
on spirituous liquors in this case to
England without any mutual conces
sion therefrom WOULD be conccding not
what was conceded France, but some
thing more than was conceded France
ana therefore cannot be within the
purvicw of tho most favored nation
clause Of the treaty with His Britar
mic Majesty without considcra ton
which has not been given.
If the convention with England in
the particulars considered was per Sc
executed or was by legislation stated
executed. it does not contemplate and
is not contravenal by treaties based
upon mutual considerations such as
tho reciprocal convention of 1898 with
France If the treaty with england
! is not sclf-executing, or If it has not
been executed by the legislation of
| Congress noted. the question is not
! one for the courts, but is a political
one for the Legislative and executive
| departments of the government"
| The action of the customs authori-
| ties In refusing to extend the lower
! French duty to imports from England
| was sustained.
| The principle really involved was
| whether the favored nation clause in
| the treaty with England automatically
f! gave TO that nation the same ndvant.
| ages as were extended TO France By
| the reciprocity agreement OF 1898. The
| court decides that it did not The
/ same principle is held 10 cover the
| situation which exists with regard to
| the proposed reciprocity agreement
| with Canada.