Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1915-05-27
FIVE PER CENT CLAUSE
OF TARIFF LAW UPHELD
Rebate Also Held to Apply to Goods
Imported in Ships Of Favored
Nations"
MAY EFFECT U. s. FISCAL POLICY
If Customs Court Decision Is Sus-
tanned by Supreme Court, Approxi-
mately S15,OOO,OOO i'm Duties AL
ready Collected Must Be Refunded.

WASHINGTON. May 26.-The So
called 80 per cent" clause of the tarifr
law. granting a reduction OF duties to
that amount goods imported in
American ships. was sustained to-day
by the Customs Court, which held also
that the per cent rebate might be
granted on all goods imported In ships
OF those countries with which the
United States has favored nation"
treaties.
AS such treaties exist with the prin-
cipal countries of the world, the virtual
effect Of the decision is to reduce the
customs revenue by per cent.
II the decision is sustained by the
Supreme Court of the United States, ap-
proximately s15.ooo.ooo In duties al
| ready collected must be refunded
In dissenting opinion, Judge de
Nries pointed out that the majority
decision means that goods imported in
about $500 foreign vessels of favored
! nation countries shall receive this re-
duction In customs duties. Five per
cent of the estimated customs revenues
for the present fiscal year would ex
ceed Sl1.o0O.0 600. and in years to come
this total would grow to even greater
proportions.
DECISION RETROACTIVE ON
IMPORTS FOR TWO YEARS
Moreover. it was pointed out. that
the decision if it stands the test in
the supreme Court, is retroactive to
the extent that 1t applies to importa-
tions into the United States since an
proval OF the Cnderwood-Sim law
more than two years ago. including
nj IT,
withdrawn without payment of this
rebate.
Officials realize that the decision NAV
have profound effect upon the fiscal
policy of the United States. AT pres
ent the actual working balance in the
Treasury is under $4,000, 600. though
possibly s4O,00o.OO0 is available to be
added to this if necessary
In addition to it's findings regarding
goods from abroad. the court held that
merchandise from Cuba is entitled to
reduction OF 90 per cent ad valorem.
as provided by the Cuban preferential
treaty with the United States. and to
the further discount of per cent from
that amount.
The government importers. American
and foreign ship owners. were parties
to the suit. The government held that
the clause applied to goods imported
IN ships OF favored nations as we'll as
those flying the American flag. there
lore, that section must be held entirely
imperative unless the favored nation
treaties were abrogated The import
ers were interested particularly in the
granting of the rebate.
MAJORITY DECISION
on THE MAIN FLEA
The main plea before the court. on
the part of American ship owners. was
that the favored nation treaties were
In fact. in operative. In this connec-
ton the majority decision said:
by no department of the govern
ment have these provisions ever been
repudiated or denounced as unconsti.
tutional or denied force and effect as
cXecutory merely. so far as we can
ascertain. On the contrary, they have.
during all the time since their neeotia
tion, been recognized. respected and
enforced. To now hold them invalid
TOT any reason, in view of these cir
cumstances. would in any event. be to
assume grave responsibility. and to
defeat them in the face of the conten-
tion of the Department OF State. tho
treasury and Department OF Justice
would he little less than usurpatiop.
fortunately. the duty of repudiatine
them can by no stretch of AUTHORITY
rest with us, for the very statutes
which we are now constituting In turn
recognized their existence and binding
force. and declares in effect that thev
snail not thereby be abrogated nor in
any manner affected or impaired"