The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-10-05
Officials Of Treasury
Department Puzzled
Over Differential.
GIVES DECREASE
TO MANY NATIONS
Five Per Cent Cut on Goods in
American Bottoms Automati-
cally Gives Same Privilege to
Those Countries Having
Treaties Providing Same
Treatment for Them.

the Treasury Department are at sea
to know what Congress actually meant
by the provision OF the new tariff law
allowing n 5 per cent reduction of
duties on goods imported in American
ships, with the condition that the diff
ferential should not bo construed to
abrogate or impair any existing treaty
between the United States and for
eign nation. Literally interpreted, 1t
Is declared tho provision would give
per cent decrease to goods in
American bottoms and automatically
grant tho same privilege TO the ships
OF the many nations whose treaties
with the United States guarantee no
discrimination between their vessels
and those of America
This construction. which would be q
horizontal reduction of per cont in
the tariff for Importation from most
OF the great countries of the world.
involves probably $4,000. 900 in revenue
Tor tho government. creating a deficit
instead of n surplus In the treasury. as
has been estimated by the tariff franz
ers The increase question undoubted-
~ VIII be referred to President VIII
son and At,orney-General McReynolds,
and ultimately Will reach the United
States Supreme Court
Strike the First snnE.
The state and Treasury Departments
already arc In consultation over the
effect of the provision-the first snaR
struck In the new law.
Whatever the Interpretation OF tho
provision for nations with these guar
antees OF equality. II is pointed out
other serious questions arise as to
twenty three nations whose treaties
with this country do not guarantee
against discrimination. Countries
which probably will be charged tho
full Underwood duties In any event
are Brazil, Chile. China. Dominican Re-
public, Ecuador, France. German EN-
pire texcel. several German states).
Greece, Sumatra. Mexico. Nicaragua,
Panama, Persia, Peru. Portugal. Russia.
Salvador, Siam, Switzerland. Turkey,
Uruguay and Venezuela. The treaty
with Great Britain does not guarantee
equality OF treatment for vessels of her
colonies. such as Canada and Australia
Take Advantage of New Law.
Treasury officials to-day declared
that the new act was the lowest tariff
law in the history Of the country with
the possible exception OF tho Walker
tariff OF 1876, and its amendatory tarifr
Of 1857
1t is roughly estimated that $780,
100000 worth of merchandise held in
bond soon will be withdrawn and pay
ment OF duty made under the new law
Compared with the Payne -Aldrich act,
this means loss OF Sio.000.00O to the
government. Treasury officials main
taincd that these Withdrawals would
have no perccptible effect upon the
business of the country.
President Goes GoIfinG.
President Wilson went to the golf
links early to-day, according to his
Saturday custom. and when he return
ed TO the White House shortly before
noon, found a pile OF kilograms con
graduating him on tho signing OF the
new tariff bin. The messages came
from chambers of commerce as we'll as
political organizations from various
parts OF the country. Secretary Bryan
to-day indorsed the new tariff law as
the best tariff measure since tho Civil
War
at is a better bill than we wcre able
TO pass twenty years ago. and re-
joice that political conditions are such
as TO make the present law possible"
he said.
Income Tax Most Difficult.
General regulations will DO Issued
within a few days covering the tariff
as 4 whole and these will be- followed
by specific rules regarding each OF
the intricate schedules. The most diff
ticult administrative feature of the
new ACT is the income taX provision.
This entirely new venture will require
the work of experts to draft a work
able plan that will insure the gov
ernment receiving it's lawful dues from
every taxable citizen. William FL. Os-
born. Commissioner OF Internal Rev
enue. to-day began the task OF formu-
lating as simple a plan as possible.
While no official announcement has
been made II Is believed that I. T..
Speer. OF Bangor Pa, at present chiet
OF the corporation tax division OF the
Treasury Department, will be appoint
ed Deputy Commissioner of Internal
Revenue In Immediate charge OF the
income tax.
Increase Clerical Force.
New York. October 4.-The first ef-
feet Of tho new tariff to which Presi-
dent Wilson's signature was written
l...4 l.