New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-11-10
NO TAR|EF PREFERENCE
FOR AMERICAN VESSELS
McReynoIds Declares 5 Per
Cent Discount Clause To
Be imperative.
WOULD ABR0GATE TREATIES
Foreign Governments Lodged
Strong Protests-Plan Was
to Rehabilitate Mer-
Y chant Marine.
WOULD ABROGATE TREATIES
rFrom The Tribune Bureau.l

Washington. Nov. 9.--As predicted by
The Tribune ten days ago, the Attorney
General, in an opinion given at the re-
quest Of the Treasury Department, holds
that the subsection OF the Underwood
Simmons tariff law providing for per
cent discount on all duties on goods, wares
and merchandise imported In American
vessels is imperative.
Announcement of the ruling of Attor-
ney General Mercy holds was made to-day
by the Secretary Of the Treasury, who
will instruct collectors OF customs to con-
tinue TO observe the instructions issued
october 5 to make no allowance OF dis
count on duties and to proceed with the
liquidation of entries. leaving importers
who are dissatisfied with such liqudations
to protest under provisions of Paragraph
y Of Section of the tariff act, which
provides for an appeal to the board of
nine general appraisers or to the United
States Court of Customs Appeals
1t is the opinion Of Mr.. McReynOlds that
the per cent discount to American YES
sells only. which. II is now asserted, was
the primary object OF the subsection In
question, cannot be given without impair
ing the stipulations of existing treaties
between the United States and other ma
lions, and that consequently the sub-sec-
ton is imperative under the expressed
Aerms of the proviso. which says:
THAT nothing in this subsection shall
be so construed as to abrogate or in any
manner impair or affect the provisions OF
any treaty concluded between the United
States and any foreign nation"
Officials of the Treasury Department
believe that the question will be made the
subject OF further tests, and that the de-
cision OF the Attorney General will not be
regarded as final by importers.
Twenty-three nations have treaties with
the United States under which they
claimed their ships had a right to the
differential in common with American
ships These included Great Britain, Ger
many. France. Austria Hungary, Italy,
Japan. Belgium, Denmark, Greece. the
Netherlands. Spain. Norway and Sweden.
Several foreign governments. including
those OF Germany. France and Spain,
made strong protests 10 the State Depart
ment against the proposed discrimination,
and there were some indirect threats OF a
trade war II the preference duty was en-
forced.
Efforts were made by some OF the adj
mlnistratIon leaders Immediately after
foreign protests were received TO have
Congress repeal the provision. Repre-
sentative Underwood. chairman Of the
House Ways and Means Committee and
the original champion OF the clause, how
ever, expressed himself as opposed TO
such action. and the President did not
urge It
Allowance OF the discount 10 ships OF
those nations claiming equal rights with
American bottoms would have resulted in
an estimated loss OF SO. 10000 annually in
customs duties. This would have created
- deficiency, instead OF an increase in the
Treasury. as has been estimated by the
tariff trainers.
Rehabilitation OF the American mer-
chant marine was the expressed purpose
OF those who had the provision inserted.
They claimed IL wouli operate as an In
centive to the construction OF ships in the
United States. since shippers OF goods in
Amercan-built bottoms would get the o
per cent reduction and the American ship
owners would be assured of an increase
OF business