The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-05-27
DECISION TO CUT U. s.
INCOME $1O,OO0,OOO.
Customs Appeals Court Also
May Force Refund Of
S2O,OOO,OOO.
MEANS S7,OOO,OOO DEFICIT
Sustains Discount Even When
Ships Of Treaty Nations
Carry Goods.

WASHINGTON. May es.-A decision
handed down to-day by tho United
States Court of Customs Appeals vir-
tually makes a 6 per cent. reduction in
the duties levied under the Underwood
Simmons tariff law. The decision in
wolves between $4,000, 900 and s20.-
100000 in duties already collected under
tho present tariff law.
Unless the decision is reversed in the
higher court the United states Treasury
will be obliged to refund this large
amount TO importers and its revenues
from the Underwood Simmons law will
be reduced by about sl0.00O.000 a year.
While the actual payment of this
s15.000,000 or $40. .000. 900 is likely to be
STAYED off for the present. through an
appeal from to-days decision, 1t IN
reality lays this obligation on the Treas
ury and further complexities the situa-
tion that has arisen through the grow
ing Treasury deficit.
The decision has fulfilled the warnings
given to Democratic leaders in Congress
when the tariff bill was being drafted to
the effect that II would operate to bring
about practically a general . pc" cent.
reduction in the customs revenues.
Leader Underwood in the House ami
other Democratic leaders refused 10 look
at the matter in that light, although
John Bassett Moore, who was then
counsellor for the State Department,
LII.
must apply to all countries with which
the United States had the so-calle1
favored nation treaties
Not Opposed by Wilson.
Although this opinion was expressed
by the state Department. President VIII
son refrained from taking any very de-
termined stand in regard to the provision.
The paragraph in the tariff bill which
IL construed by the Customs Court pro-
vides for a 5 per cent. discount on all
duties imposed on goods imported in
American vessels. To this was added
the proviso that nothing in the para
graph should be constructed as abrogat-
ing or in any manner impairing the pro-
visions OF any treaty to which the United
States Is a party.
After the Underwood Simmons law
had passed and the Treasury officials
were confronted with the task of ad-
ministering IL they reached tine conclu-
sion that the paragraph. If enforced,
would have to apply not only to goods
imported IN American bottoms but also
10 goods entering the United States In
vessels fiying the flags Of Governments
with which the United States had the
so-called commercial treaties. Such
treaties We're In force with nearly all Of
the large nations except France and
Russia. In addition to these. imports
from Mexico and Canada by rail would
not OF course be affected.
The decision threatens to involve the
United States in serious trade difficult
ties with France. France has warned
the United States that II would be
bound To levy countervailing duties on
the vessels OF this Government carry
ing goods to French ports.
The Treasury officials. realizing that
they could i'll afford to lose the 10000
600 In revenue involved decided that the
paragraph was imperative. They con-
tended that the paragraph. construed in
the light of its legislative history, pre-
cluded the allowance of any discount to
any merchandise until the treaties ar
fcted had been terminated.
DiscOunt tIausc tphei".
The beard OF appraisers in New YORK
held that merchandise imported in yes
sells of American registry was entitled
to the per cent discount, but that the
imported in vessels OF Tor
eign registry was not entitled To thls
benefit. In all cases where merchandise
was under bond for warehous!ns when
the tariff law took effect the board held
Il was not entitled to the discount.
The United States Court OF Customs
Appeals now sustains the board of APP
praisers in their ruling that the . per
cent. discount applies to goods imported
in American bottoms. but overrulcs the
boards other findings. In short, the
court holds that the per cent. discount
applies both to goods shipped in Amer!'
can vessels and 10 goods imported IN