Bridgeton pioneer., 1913-11-20

Attorney General, In opinion Sent 10
Secretary McAdoo, Holds That Per
Cent Duty Clause In Tariff Law Is
imperative by Its Own Terns-lessI
Test Probable.
The provision of the new tariff law
authorizing a discount of per cent on
all goods imported in American ves-
sells is made null and void by its own
terms. qualifying its application. The
qualifying language is that nothing in
this subsection shall be so construed
as TO abrogate or in any manner i'm
pair or affect the provisions of any
treaty concluded between the United
States and any other foreign nation. -
This is the opinion Of Attorney Gen
eral McReynolds, submitted in re-
sponse to the inquiry of Secretary Nc
Adoo of the treasury department and
just made public in Washington by
Mr.. McAdoo.
At the same time Secretary McAdoo
announced that in accordance with it
collectors Of customs would be direct
ed to continue to disregard the sub
section, as they were instructed to do
Oct g. Entries held up pending the
decision now will be liquidated, leav-
ing importers who desire to insist upon
getting the per cent discount to pro-
test, with the right of finally carrying
the question to the court of customs
appeals.
Ends Protracted Discussion.
This ends, for the present at least,
the protracted discussion over the pro-
posed differential duty provision. the
subject of much debate in congress
while the tariff was under eonsidera-
ton. The attorney general gave his
opinion TO Secretary McAdoo ten days
ago, but it was withheld to allow con-
sideration by the treasury officials.
Mr.. McReynolds held:
THAT the per certum discount to
American vessels only, which was the
primary object of the subsection in
question, cannot be given without i'm
pairing the stipulation of existing
treaties between the United States and
various other powers and that conse-
Quently the subsection by the express
ed terms Of the proviso is imperative" :"
Twentythree nations have treaties
with the United States under which
they claimed their ships had a right
TO the differential in common with
American ships. These included Great
Britain, Germany, France, Austria
Hungary, Italy, Japan. Belgium, Den
Norway and Sweden.
Several foreign governments, includ-
ing those of Germany, France and
Spain. made strong protests to the
state department against the proposed
discrimination, and there were some
indirect threats of a trade war If the
preference duty was enforced.
Efforts We're made by some of the
administration leaders Immediately
after foreign protests were received to
have congress repeal the provision.
Representative Underwood. chairman
Of 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.
$4,000, 900 Loss In Duties.
Allowance of the discount to ships Of
those nations claiming equal rights
with American bottoms would have re-
suited in an estimated loss of S10,OOO,-
600 annually in customs duties. This
would have created a deficit instead Of
surplus in the treasury, as has been
estimated by the tariff trainers.
Rehabilitation of the American mer-
chant marine was the expressed pur-
pose of those who had the provision in
serted. They claimed it would oper-
ate as an incentive to the construction
Of ships in the United States, since
shippers of goods in American built
bottoms would get the per cent re-
duction and the American shipowners
would be assured of an increase of
business
Importers who are dissatisfied with
the opinion of the attorney general
may protest to the collector of GUS
toms at the port of entry, who will
lay their objections before the board
of general appraisers. In case the
boards decision is unsatisfactory 10
the appellant the cast may be carried
to the court of customs appeals for