The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-11-10
Su bs ection Of New
: Tariff Law Is Null
lifted.
OPINION GIVEN
BY M'REYNOLDS.
Brings to End, for Present at
Least. Long-Drawn-Out Discus
sion Over Proposed Differen-
tial Duty Provision, Against
Which Many Nations
Made Protests.

Washington. November a-Attorney
General McReynolds has decided that
IN" subsection or the new tariff law
authorizing discount Of 5 per cent
on al goods imported in American yes
se!S is nullihed by it's proviso that
nothing in this subsection shalt be so
construed os TO abrognte Or In an.
inhnner impair or affect the provisions
o' any treaty concluded between tho
United States and any foreign nation :"
Secretary AIcA5iou. Of the Treasury
Department. made public the Attorney
IeheraIs opinion to-day, and an
nounced that III accordance with It, col
iectors of customs would be directed
10 continue to disregard the suhsec-
non, as they were instructed to do on
Octnhcr s. Entries held up pending the
decision now Will be liquidated leaving
! importers who desire To insist upou
getting the 5 per cent discount to PRO
, test, with tho right finally of carrying
| tie question 10 the Court OF Customs
| Appeals.
This ends. for the present at least
the long drawn out discussion over the
proposed differentiai duty provision.
the subject OF much debate in Congress
while the tariT was under considera-
Ton. The Attorney General gave his
/ opinion TO Secretary McAdoo ten DAYS
ago. but ii was withheld until to-day
TO allow consideration by tho Treas
ury officials.
Opinion OF McRcynoIds.
sir. McReynolds held:
That the . per centutn discount to
American vessels only. which was the
primary object OF the subsection in
question, cannot he given without i'm :
pairing tho stipulations of existing
treaties between the United States and
various other powers and that conse-
/ qucntly the subsection. by tho ex-
| pressed terms of the proviso, is inopera-
tive"
| Twenty-threo nations have treaties
/ with the United States under which
/ they claim their ships had right to
the dinerential in common with Ameri-
can ships. These included Great Brit
ain. Germany, France, Austria Hun
gary. Italy. Japan. Belgium, Denmark.
Greece, the Netherlands, Spain. Norway
and sweden.
Several foreign governments. includ-
Ing those OF Germany. Franco and
spain. made strong protests TO the
State Department against the proposed
discrimination, and there were some
indirect threats of trade war IL the
preference duty was enforced
Efforts were being made by some OF
the administration leaders immediately
after foreign protests We're received to
have Congress repeal tho provision
/ Representative Underwood chairman
or the House Ways and Means Commit
tee. and the original champion OF the
Clause. however. expressed himself as
opposed to such action and the Presi-
dent did not urge it,
Would Create Deficit.
Allowance OF the discount TO ships of
those nations claiming equal rights
with American bottoms would have re-
suited in an estimated loss OF $4,000
600 annually in custom duties This
would have created Il deficit instead OF
q surplus in the Treasury, as has been
estimated by the tariff rcforiners
( Rehabilitation Of the American mer-
chant marine was the expressed pur-
/ pose OF those who had the provision in
serted. Thoy claimed it would operate
as an incentive to the construction of
ships in the United States. since ship
pers OF goods in American-bu.lt bot
toms would get the : per cent reduc-
! ton and the American ship owners
would be assured ot an Increase OF
! business
| Importers who are dissatisfied with
! tho opinion of the Attorney General
may protest to the collector Of customs
at the port of entry. who viii lay their
objections before tho Board OF Cen
eral Appraisers.
In case tho boards decision is un-
satisfactory 10 the appellant, the case
may be carried TO the Court OF Customs
/ Appeals for Anal disposition.