New Britain herald., 1915-05-27
k[DHI[ U[AU0L u
 TARIFF LAW UPHELD
Applies to Goods Imported In Shps
 of "faVeTed Nalions."

Washington, May 27.-The so-cailed "5 per cent clause of the Underwood7 Simmons tariff law, granting a ret duction of duties to that amount 9n goods imported in American ships. was sustained yesterday by the cus- toms court, which held also that the per cent. rebate must 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 ef- feet of the decision is virtually to reduce the customs revenue by Der cent. tEkH
 Must Return s15,OO0,0O0.
 If the decision is sustained by the supreme court of the United States. to which it will be appealed, approx imately sl5, 1000. 900 in duties already | collected must be refunded. In a dissenting opinion, Judge De yries pointed out that the naJoflty decision means that goods imported 7 in about $500 foreign vessels of fa- vored countries shall receive this re- | duction In customs duties. Five per cent of the estimated customs rever nue for the present fiscal year would exceed s11, 100000, and in years tc | come this total would grow to evon greater proportions. Moreover it waa pointed out in the supreme court, M | that the decision, If it stands the teM retroactive to the extent that it ap- plies oimportations into the United States since approval of the Under wood Simmons law more than two years ago. including goods entered in bond and subsequently, withdrawn without payment of this rebate.
 Effect on Fiscal Policy. Government officials realize that the decision may have a profound eff | feet upon the fiscal policy of the United States.
 At present the actual working bal- ance in the treasury is under s1b,v 900, 900, though possibly 10000. .0001 is available to be added to this if necessary. With an announced de- flct in the postal revenues. and ncl increases in internal revenue or cvs-| toms receipts now in sight, talk of thsI necessity for an issue of Panama Ca.I nal bonds was revived in view of thc| prospect of reduced customs revcpuesI and the necessity of refunding mfl-l lions already collected. The pay*l | treasury due from the income tax 5 however, Is counted on to delay aud , such emergency for several months. } Today's decision of the custoni4 , court in part sustained the ruling oQ the board of general appraisers and the part reversed that body.
 20 Per Cent Reduction for Cube.
 In addition to it's findings regard
 ing goods from abroad. the court heiX that merchandise from Cuba is enI titled to a reduction of go per cerl/ ad valorena, as provided by the CIoa& preferential tronty with the Unite1I States. and to the further discount oI per cent. from that amount,
 The government importers an& American and foreign ship owner were parties to the suit. The govern ment hold that the clause applied t
 goods imported in ships of favored
 nations as we'll as those flying thM American flag; therefore that the tsccX ton must be held entirely inopcray tive unlass the favored nation troatis
 were abrogated. Tho importers werz ing of the rebate. ilx-Attorney GenI
 eral McReynoids held the clause ir
 operative because of the conflict wit
 existing treaties, and in conformit
 with this opinion the rebate has hevs j.been paid in any case. although In
 porters accepted the assessed dut.s in many instances under protest
 Treaties Arc Inopcrstive.
 I The main plea before the court o | the part of American rfip owners ws