Evening journal., 1915-11-05
UNDERWOOD TARIFF AND DIAMOND sMUGGLING.

THAT the Underwood tariff rates on diamonds have
given rise to a great deal Of smuggling which
the Federal Government is powerless to prevent is
The opinion Of quite number Of the jewel importers
OF the country.
The diamond schedule occupies ap unique position
in the tariff. A diamond represents a very highly con-
centrated piece Of wealth and the methods adopted by
smugglers 10 beat Uncle Sam his rightful reve
by neaking diamonds into his domain without pay
ing the duty have formed the basis many thrilling
Sunday supplement story.
The Republican party, adopting the practical view,
has always levied comparatively low duty on cut
damonds-lO per cent-on the ground that given the
choice between paying the low duty and running the
risk of being detected in the act Of smuggling the
owner OF diamonds would take the former That the
Republicans were justified in taking this view is at
tested by the fact that during the last year of the
operation Of the Wilson Democratic bill 1894, the
regular imporiatons entering through the custom
house down to s2,6Oo0O0 The revenue collected
$4,000. under 25 per cent. duty upon finished
jewels and 10 per cent duty on the rough whereas
the three previous years under Republican laws.
when there duty the rough and 10 per
cent. duty the finished goods the amount
ed to nearly s1,5OO,OOO. the average.
The Republican law OF 1909 retained the former Re
publican rates and an appreciable revenue real
lied from diamonds but when the Underwood law was
framed experience counted for naught rough diamonds
were made duabe at 10 per cent and cut diamonds at
20 per cent The Democrats the excuse that dia
monds luxury, and should carry high duty,
and to this plea they sacrificed what little
sense they possessed.
Dr. Ludwig Nissen, OF New York city, than whom
greater jewel expert in the world exists said at the
hearing on the Underwood bill 1--WE claim that under
a 10 per cent duty the be collected We
claim that under higher duty than 10 per cent they
caunot collected The for smuggling would
be so great that the government could not possibly
dafao Vr nguro on
diamonds. pearls. precious and semtprecious stones
for 1911 and 1912 under Republican law and for 1914
under Democratic law and normal times According
him total imports Of these goods for 1911, cal
endar year amounted to S475OOOOO OF which dia-
monds amounted to nearly s26.OOOOOO At the pre-
vang rates OF duty the government collected $3S0O
900. In 1912, calendar year. imported these goods
10 the value S49OO0OOO Of which cut diamonds made
up nearly s23 900 OOO and we collected duty Of S4-
100000. For each OF these years imported nearly
$1OO 600. worth Of miners and glaciers diamonds,
which come an free of duty For the calendar year
1914 under Democratic law import to the amount Of
but S197O0OOO recorded which, at the higher rates
of duty-1O per cent miners and glaciers dia-
monds. and 20 per cent cut stones-gave us reye-
nue. OF S3600O00.
Importers of precious stones who study the trade in
its minuest details satisfied that the government
import figures for 1914 are far correct and that
millions of dollars worth of being smuggled
in without the payment of cent Of revenue. When
the diamond schedule being considered the COM
mtee gave Dr. Niessen that steps would be
taken by the government to render smuggling thing
of the past the possibility of which he seriously ques
toned No further steps have been taken in that d-
rection. Il is but another instance where the Re
pubcans acted on good advice, and the Democrats
passed Il by UNDECIDED to the deriment OF the public
revenue and the decentralization Of trade