The Birmingham age-herald., 1913-11-10
Discussion Over Proposed
Differential Duty Proyi-
sion Ends for Present
STRONG PROTEST BY
THE FOREIGN POWERS
Twenty-three Nations Claimed Their
Ships Had Right to Differential
Duties in Common With the
American Ships

Washington, November 9.-Attorrey
General McReynolds has decided that the
subsection of the new tariff law author
izing discount of per cent on all goods
imported in American vessels is nullified
by its provlso that nothing in this sub
section shall be so construed as to apro-
gate or in any manner impair or affect
the provisions of any treaty concluded
between the United Gates and any for
eign nation"
Secretary of Treasury McAdoo made
public the Attorney Generals opinion to-
day and announced that in accordance
with it collectors of customs would be
directed to continue to disregard the sub
section as they were instructed to do on
October 8. Entries held up pending the
decision now will be liquidated, leaving
importers WOO desire to insist upon get
ting the per cent discount to protest,
with the right of finally carrying the
question to the court OF customs appeals.
Discussion Ends for Present
This enus, lor the present, at least, the
lons drawn out o4scuss.on over the plo-
Ject oil mucn aeDate IN cong ess wnile the
tariff bil was under consideration. The
attorney General gave his opinIon to Sec
ls1tary McAooo 10 Gays ago, but it vas
wltnneld until today to allow considera-
uon BY treasury officials. Mr.. Mickey
noids held:
'srhat the 5 percentum discount to
Amencan vessels onIy, which was the
primary object OF the subsection in aues-
uon, cannot be given wltnout lmpairlns
the stlpulations of. existing treaties be-
tween the Dnited States and various other
powers, and that Consequently tine sub
~ sctcn. b5 flIc e&f'te ssct l<rfiis Or IT'D
proviso is imperative
Twenty-three nauonszF . have trealies
with the United States under which they
CLAIMED their ships had right to the
dlfferential in common with American
ships. These included Great Britain, Ger
many, France. Austria Hungary, Italy,
Japan. Belgium, Denmark, Greece, rhe
Netherlands, Spain, Norway and Sweden.
Governments Protest
Several foreign governments including
those of Germany, France and Spain,
made strong protests to the state de-
partment against the proposed discrim-
ination and there were some indirect
threats of a trade war If the preference
uuty were enforced
A<iApi 70 NOAt maui ny SoiAiS VI tic dd-
ministration leader Immediately after
foreign protests were received to have
Congress repeal the provision. Repre-
sentative Underwood, the House leader,
and the original champion of the clause.
however, expressed himself as opposed
to such action and the President did not
urge 1t.
Allowance of the discount to ships e f
those nations claiming equal rights with
American bottoms, would have resulted in
an estimated loss OF Sl0,000.0O0 annually
in custom duties. This would have Gre
ated deficit instead of a surplus In the
treasury as had beer estimated by the
tariff fiamers Reha .,ilitation of the
American merchant marine was the OK"
pressed purpose of those who had The
provision inserted. They claimed 1t would
operate as an incentive to the construc-
ton of ships in the United States, since
shippers of goods in American built bot
I.toms would get the s per cent reduction
IAnd American shipowners would be as
sured Of an increase of business.
Importers who are dissatisfied with the
opinion of the Attorney General may pro-
test to the collector of customs at the
port of entry. who will lay their objec-
tons before the board of general ap-
praisers. If the boards decision is an
satisfactory to the appellant the case
may be carried to the court of customs
appeals for final disposition