Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-05-16
Washington
Y Y LETTER
BY H. 3. WALKER
UNEASY OVER TARIFF
BY II
star sIaR Correspondent.
Star Bureau,
Metropolitan National Bank Bldg.


are today amazedly discussing the
remarka BILE statement of Chairman
Oscar Underwood, author of the
yesterday. In this statement Mr..
Underwood said in effect that it is
the purpose of the administration to
investigate every industry affected
by the tariff, and if it is found that
the duties now proposed are not really
sufficient to enable that industry to
live, the rates will be later increased.
Taking this statement at its face
value, the Interpretation placed upon
it is that the new Democratic idea
of a competitive tariff is merely
another name for protective tariff.
The only difference to be discovered
between it and the Progressive pro-
posal of a protective tariff based on
the difference in cost of production is
that the Progressives and Progress
sive Republican tariff revisionists
want to make the Investigations first
and then reduce or increase the tariff
to- the point disclosed as being neces-
sary for the protection of American
workmen and American consumers,
while the Democrats propose to re-
duce the tariff first, and then inves-
tigate to find out whether they have
reduced it enough or too much.
Is the Country Deceived?
There is a growing belief. too, that
the Underwood bill, despite President
Wilson's sanction. is not what the
country supposes it to be. Not a few
good administration Democrats are
beginning to be trifle uneasy over
disclosures of the Inconsistencies and
determinations in the measure
There is ill-concealed uneasiness,
for instance, concerning the dis
guised ship subsidy proposal en-
bodied in the bill. Two years ago
Congress granted permission for all
ships, wherever built. to come under
American registry. within five years
after their construction. In the pend
ing bill, it Is proposed to make a
discount or rebate of per cent. on
all duties on goods imported In YES
sells admitted to American registra-
ton,
1t is urged by Underwood and other
advocates of this plan, that in this
way the incentive will be offered for
the building up of an American mer-
chant marine without any cost to the
American public.
Apology for Subsidy.
This per cent rebate, Mr. I'm
derwood said in a speech in the
House, "woud give the American
ship-owner in payment of duties of
from $1,000 900 to $15,O00,000 a year.
This would not fall as a burden upon
any one. 1t. of course, would enable
the American ship-owner to charge
nearly the amount of the dlscrimi-
mating duty as additional freight
rates, but it would not increase the
cost of goods imported into this
country a dollar over what they are
today"
While there are Democrats and
Republicans who agree with this
reasoning, there are many who con-
slider it specious. This latter group
points out that the argument is very
much the same as the ancient and
a abandoned Republican high tariff
argument that the foreigner pays the
taxes. 1t is asked what real differ
ence there Is in giving these millions
Indirectly to ship-owners in the form
of tariff rebates, leaving a deficit in
revenues to be made up from other
sources, or in giving the ship-owners
the millions direct from the treasury,
in the form of a bounty or subsidy.
Bremner's Suggestion.
eff we were honest about all this
protection and subsidy business, "
said Representative Robert G. Brem-
ner, of New Jersey, the other day,
I'VE would abolish the tariff entire-
ly. find a form of direct taxation by
which to raise revenue. and stop all
the graft that comes from indirect
taxation. Then, If we wanted to pro-
tect manufacturers or ship-owners
it would be just as cheap and much
more direct and simple, to just fix
the profits they should be allowed to
make. and appropriate enough money
out of the treasury. in the form of a
bonus, to make up the losses and
guarantee the profits of everybody
who now wants protection
There is a growing question in the
minds of many Progressive and radi-
cal Democrats as to why Under
wood should be allowed to make q
tariff law. They recall that in the
Baltimore convention last summer
the chairman of the ways and means
committee was pointed out and de-
nounced as the tool and candidate Of
preda tory wealth and special inter
ests. and that the entire opposition
to him as a presidential candidate
was hasad on this charge that hf
was the representative of the re-
dictionary wing of the party.
In the light of this history, it |.
being seriously asked why President
Wilson, as the leader of the Progress
sive wing of the party. should hav'
consented to put his 20, X" on {
tariff bill which. aside from the WOO
and sugar schedules, is admitted t.
be wholly of Underwood's making.
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