The Washington herald., 1913-10-16
MR. MREYNOLDS'
opinion AWAITED
He May Differ with State and
Treasury Department
Interpretation.
TREATY RIGHTS AT STAKE
Russia, France, and Brazil Likely to
Be Victims of Tariff Dis
elimination.
TREATY RIGHTS AT STAKE

Attorney General McReynolds will
interpret the per cent discriminatory
duty clause in the tariff law differently
than the State and Treasury Depart
ments have construed 1t, according 10
3ntimatiOns yesterday. The impress
sion is growing that the Attorney
General will hold that the per cent
reduction in duty shall not be granted
to American vessels in cases where IL
would conflict with the treaty rights
of any nation.
Under the Interpretation put upon
% the law by State and Treasury De-
parment officials, 5 per cent reduction
was TO be granted TO American ves-
sells in all cases, and the same reduc-
ton to the ships of foreign govern
Inents with which the United States
had treaties guaranteeing them against
any discriminating duties. Under the
construction which Mr.. McHeynolds is
likely to put upon the law. the deduc-
tion will not be granted at all in
cases where such treaty guarantees
exist.
This would mean tina: there are only
three countries, Russia, France, and
Brazil, against which the discrimna-
tory duties could be applied. This in
depreciation would save the govern
ment an estimated loss of about S1O,-
100000 a year, but would be likely to
lead to tariff complications, not only
with these three countries, but with
other nations as we'll
Firm Against Repeal.
IL was learned yesterday that President
Wilson will stand with Chairman Under
wood against any effort to repeal this
section of the tariff law. This stand of
the President undoubtedly means that the
clause as finally interpreted by the Attor-
ney General will be enforced, and that in
cases where foreign nations seriously OBJ
ject the present commercial treaties with
them will have to be abrogated.
Great interest was expressed yesterday
IN statements attributed to Mr.. Under
wood that Congress in granting this per
cent discount intended to give the Presi-
dent reason for abandoning the present
existing ship treaties with many of the
large maritime nations. Mr.. Underwood
insisted that the provision represented a
carefully considered scheme to rehabili-
tate the American merchant marine in
the same way that the merchant marine
was built up before the present CONNER
cial treaties were negotiated He be-
lieves that the United States should get
rid of these treaties providing for reci-
procal oversee commerce.
II this was the intent of Congress, II is
remarkable TACT InaI nO"neFe was IL
disclosed in the course of the debate
that the rebate clause was intended as
an excuse for abrogating these treaties.
In fact, the clause was given only a cur
sory consideration in Congress and Mr..
Underwood explained it merely as a
measure designed to upbuild American
shipping.
Opinion Due Soon.
Solicitor Folk. OF the Department Of
State, yesterday talked informally with
officials of The Department of Justice, and
was informed that Mr.. McReynolds'
opinion would be rendered in a few days.
1t is the expectation at the State and
Treasury Departments that their view.
that the discount must be given TO most
foreign shins if given to American ves-
sells, because of treaty obligations of the
United States, VIII be upheld by the At
tOrney General