Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-10-12
Administration Splits on Interpre-
tation of Subsection Granting
Imports in Vessels Of United
States 5 Per Cent Reduction.
Evasion Similar to That Practiced
Under DingIey Law, Says John
Temple Graves, Utterly lmpos-
sibIe Under Underwood Act
BY JOHN TEMPLE GRAVES

ny oO11N AGuA4 A44d VIM v GAAS.
WASHINGTON. Oct. Ills the ad-
ministration reluctant to enforce sub
Section of Paragraph of Section
of the new tariff act?
Is the possible reduction Of upward
OF SIC. 200, 900 in the customs revenue
the reason?
The State and Treasury Depart
ments already are divided in their in
depreciation of the subsection and the
manner of it's enforcement is shroud-
ed in doubt.
One would scarcely think there
could be reasonable basis for misin-
depreciation of the sub section. which
reads;
THAT q discount Of 8 per centrum
on all duties imposed by this act shall
be allowed on such goods. wares and
merchandise as shall be imported in
vessels admitted to registration under
the laws of the United States;
Provided that nothing in this sub
section 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"
Act Includes All Duties.
Vessels admitted 10 registration
under the laws OF the United States
are American vessels, in legal par
lance vessels of the United States"
Imports in all such unduestionably are
allowed "a discount of per centum
on ALL duties imposed by this act"
As to the proviso. Nothing in the
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" literally this
proviso applies 10 imports in foreign
vessels
To be sure. to allow the discount on
imports in American vessels and re-
fuse to allow it on imports in the YES
sells of any foreign nation entitled by
treaty to the same rates of duty as
imports in American vessels must pay
! would be TO abrogate or impair such
treaty.
Courts Might Take Hand.
Even if an attempt were made TO
deny to imports in American vessels
the per cent discount in respect to
such imports from countries with
. which we have treaties that entitle
imports in their vessels to the same
rates that imports in American YES
sells are entitled, the courts would
quickly put an end to any such at
tempted revision.
What led to the addition of the pro-
viso to the sub section?
An opinion of the counselor of the
State Department, voicing an opinion
that very insidiously had become
widespread, that the subsection
would conflict with treaties, az, as
seems to be the case, it is intended by
| the sub section TO allow the discount
only on merchandise imported in
| American registered vessels"
~ was TINS view NAleAt ltu the SENATE
Finance Committee TO drop the sub
/ section from the bill and led the SEN
ate to concur in such action. In con-
ference, therefore, the provso was
added in order that there could be no
possibility of conflict with any exist
| ing treaty
Rights Fixed by Treaties.
| These treaties can only be impaired
! by denying TO imports in vessels ar
fected by such treaties the rights
guaranteed therein ana the terms OF
such treaties entitle imports in YES
sells affected by them to the payment
Of mo higher or other duties" than
imports IN American vessels pay.
What remains? A careful stuov of
the provisions Of every treaty COZ
Guided between the United States and
/ FOREIGN nations. 50 that Imports in the
vessels of such ma ions shall. where
therein provided pay no other or
higher duties ham i5- i,nports in
American vessels r17"
How, Tor example San the State