New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-10-09
Discount of 5 Per Cent on
Goods Brought In in American
Bottoms Cause of Trouble.
WILSON FAV0RS CHANGE
Folk After Call at White House
Gets in Touch with Sim
mons and Underwood
Hint of Joker in Bill.
IErom The Tribune BUREAU

ure or the new tarlN law Wnlcn grams
discount Of per cent Of the customs duty
on goods brought into this country IN
ships carrying the American flag, or In
other words. American bottoms" The
rest OF the nations OF the world are ex-
pected forthwith to lodge protests or IN
qulries, according TO whether or not they
have treaties with the United States
which are being violated. and the Wash
ington government is greatly agitated
thereat. There was much activity In Of
fetal circles to-day, and IL seems that
the outcome OF IT all will be the repeal In
a few days OF the troublesome section OF
the tariff law.
The President is understood, on such
good authority as to make 1t certain. 10
! favor repeal. The State Department as
| represented by Ex-Governor Folk. It's So
| licitor. desires repeal Treasury Depart
ment officials with whom Mr.. Folk dis
cussed the matter this evening think re-
peal is the only way out OF an intoleraole
position. Senator Simmons, chairman OF
the Finance Committee, with whom the
| former Governor had talk, holds the
same view and tonight Mr. FOLK talked
with Representative Oscar Underwood
who is in Atlantic City, on the telephone
10 find out what the House OF Represen-
tatives, as represented by Mr.. Underwood
thinks about t. II is believed that he
| too, will favor the repeal of the section'
and in consequence the scene Of dipIo-
matte activity will probably be trans
| ferred to the Capitol at an early date
Await McReynolds's Views.
In the meantime, however, the tarlH
law has gone into effect and the obnoX-
ious section which discriminates against
/ foreign nations in violation OF reatles'
which threatens TO do no one good least
Of all the United States, would be opera
tive. The Secretary OF the Treasury
/ however. met the situation this afternoon
/ by suspending the operation OF that par
ticular section. pending an opinion on
/ by the Attorney General,
| The French government last summer
when the clause was first suggested III
| Congress. threatened TO impose retalld'
/ tory tax, and yesterday and asan to-day
the French Charge d'Affaires. in an In
formal manner. reiterated this attitude
! at the State Department. France mas
law recurring retaliation in the event OF
discrimination by another nation.
! Germany was not backward about
making a written protest. In her com
munication 10 the State Department she
objected TO the preferential rights granted
! American vessels. Germany had parucu-
| larly strong feeling on the subject on ac-
count Of the contention which had been
aired in the American press and In Con-
eress that the treaty with Germany.
which entitled that country 10 equality OF
treatment applied only to Prussia, which
was practically all there was 10 what IL
now Germany when the treaty was MADE
nearly century ago This view that a
| treaty made then does not Apply 10 al
that Germany comprises now will not be
accepted by the German government ana
there are high officials OF this government
who take precisely the same stand. Ger
many further declares in certain terms
! that the matter is not one 70 be settled
/ by American courts. There are elements
| OF conflict in this, in the view OF authori-
ties. but inasmuch as it IS likely that the
matter will be settled by repeal OF the
law. they probably will not come up
Would Be Blow at Britain.
The enforcement OF the clause would be
a blow at Great Britain. The British
treaty which gives reciprocal tariff treat
ment 10 England specifies goods from
British territories in Europe. and there
would be a consequent discrimination
against Canada. India. Australia, New
! Zealand and other dominions Of Great
Britain. Such result. officials believe,
would be most unfortunate and would
only add to the irritation which exists In
England over the Panama Canal tolls
matter.
! Solicitor Folk went 10 the White House
this afternoon and after a conference
with the President on the subject set
about trying 10 reach the leaders OF the
House and the Senate to procure repeal.
He declined to say that the President had
directed MIN to do so, but 1t is of course
probable that he would not take such
action II the President did not approve
Folk Issues Statement.
This evening Mr.. Folk issued the follow
ing statement explaining the situation:
IF the view is taken that under the 5
per cent provision ii Is necessary for the
Treasury Department to give American
vessels that rebate on all goods which
they carry. then it would seem clear that
the same rebate must be given TO all ma
tions having treaties with the United
States which expressly provide for re-
ciprocal equality Of duties on goods
shipped in the vessels Of each of the con-
! tracing governments. In view OF the fact
that the United States has such treaties
with all the leading maritime nations OF
the world, except Brazil, France and Rus
STA, practically all goods imported into the
United States except those shipped In
brazilian, French and Russian vessels.
will be entitled TO the per cent rebate
n the duties provided for by the tariff
act. 1t would therefore. appear that the
rates provided by the act will be scaled
per cent on all goods imported into the
United States, except those carried in the
vessels Of Brazil, France and Russia.
THE above observation is subject 10
this modification. however; goods shipped
| in British vessels would be entitled, under
the treaty between Great Britain and the
United States, to a rebate only on such
| articles as are the growth, product or