Evening journal., 1913-05-02

perity at homo IS the first necessary
factor for Increase OF export trade.
~ is proper to be proud OF the
great trade OF tho world which Is
brought to America by the energy. in
dustry ability and ingenuity Of
American manufacturers and their or
ganlEatons.
A Real Joker.
1T certainly is Joker to have
finished autobles IN the tarif sched-
ules at 45 per cent, and to have au-
tomobile chassis listed at 80 per cent.
lt Is important that according 70 the
records OF the custom house practi-
cally all OF the imports OF motor cars
is IN the form of chassis--thSt Is,
running gear OF the car. without The
body.
The chassis itself is really a COM
pleted automobile. European factor
les only manufacture chassis The
chassis is the car itself from the trade
point OF view.
Especially should il be noted that
the chassis Is the thing the European
manufacturer wants 20 bring in at the
minimum rate Of duty. European mo-
tor car manufacturers do not make
the bodies except to a very small eN-
tent, as bodies are too bulky and too
subject to damage In shipping. and
too expensive to ship by reason Of
their bulk IN proportion to their value
Does 1t seem like a Joker to have
ways and means committee put its
stamp Of approval on the 45 per cent
rate of duty for finished automobiles
exactly as was done by the payne-Ald-
rich bill and then place rate of duty
Of 30 per cent, on the chassis?
THE first clause is of no force and
effect with the second also in the bin
THE real duty il we stop there is
80 per cent.
1T is clear TO any man at all ia
miliar with the production of motor
cars that the chassis is practically the
whole vehicle. II is the part requir-
| ing the ingenuity. the invention, the
expensive material and the elaborate
work Of skilled manufacture. chiefly
! represented in expense by American
! labor at American wages, and Ameri-
can material. There is practically no
material now imported. II is all made
in this country. Magnetic factories.
/ parts makers. etc. etc. have been
! transplanted 10 America and oven mo-
tor car factories also by the present
Payne-Aldrich tariff.
Joker No. ,.
"A joker did we say? Let's read
| further and take up the next clauses
in the new Wilson tariff hill, as far
as IL refers to automobiles
Finished parts OF automobiles, no.
including fires. 20 per cent
That seems like an innocent para
graph.
"But parts OF an automobile make
an automobile A chassis is composed
or parts The accepted phraseology
Of the trade is that parts makers
produce motors. axles. transmissions.
frames. steerings. wheels, magnetos,
etc. The chief cost Of chassis is ia
! the labor and material necessary TO
/ make up these 'parts-not in the
labor necessary to unite them into a
/ chassis. The cost Of joining together
I these parts or sections is indeed a
minor one. 1t is negligible per cent.
OF the chassis cost.
rs a European manufacturer going
to import his product into America as
chassis at 30 per cent duty when he
can ship it at less cost Of freight and
enter IL at a lower valuation for duty
! purposes as parts or sections and
pay duty OF 20 per cent. only. and
have simply to assemble the sections
into chassis at a cost Of approximately
] per cent?
ut is cellar that the foreign manu-
facturer will provide for uniting the
imported parts or sections in Amer
lea. Chassis as such will only be
imported by the foreign manufacturer
without sufficient means to establish
an assembling branch here or by the
casual purchaser who buys abroad.
The first and second clauses there
fore are Of absolutely no force and ef-