The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1915-05-29
lGT Will LOWER DUTIES.
CUSTOMS COURT sUsTAINs FIVE
PER CENT. REDUCTION
CLAUSE.

Act VIII Go To Supreme Court
Decision Means Rcfundlng OF si5,-
100000 OF Duties.
Washington. May 26.-The socalled
"hve per cent" clause of the tariff
law. granting n reduction OF duties to
that amount on goods imported In
American ships. was sustained to-
day by the customs court, which held
also that the 5 per cent. rebate must
be granted ON all goods imported In
ships OF those countries with which
the United States has favored ma
ton" treaties.
As such treaties exist with the prin-
cipal countries of the world the vir-
tual effect OF the decision Is to re-
duce the customs revenue by per
cent.
III tho decision Is sustained by the
Supreme Court of the United States.
approximately $4,000. 900 In duties al
ready collected must be refunded.
In dissenting opinion Judge Dew
ries pointed out that the majority
decision means that goods imported
In about $500 foreign vessels OF IA
vored nation countries shall receive
this reduction In customs duties. Five
per cent OF the estimated customs
would exceed sl1, 900. 900 and In years
to come this total would grow to
even crater proportions. Moreover,
IL was pointed out. the decision. AZ
II stands tho test I'm tho supreme
court. Is retroactive to the extent that
applies TO importations into the
United Sttaes since approval OF the
Undergood-simmons law more than
two years ago. including goods enterd
In bond and subsequently withdrawn
without payment OF this rebate.
oficials realized that the decision
may have a profound effect upon the
fiscal policy OF the United States. Att
the present the actual working bal
ance In the treasury Is under s15,-
100000. though possibly $4,000, 900
is available to be added to this II
necessary.
With an announced deficit I'm the
postal revnues. and no increase I'm
Internal revenue or customs receipts
In sight. talk OF the necessity for an
issue OF Panama canal bonds was re- |
vived In view Of the prospect of re-
ducea customs revenues and the ne
cessity OF refundlng millions already
cclsevssds--rho payment OF saae Sso,-l
100000 into the treasury duo from
the Income tax, however. IL counted
on to delay any such emergency for
several months.
Today's decision OF the customs
court In part sustained the ruling of |
the board Of general appraisers ana
In part reversed that body. In ad,.
diton to Its findings regarding goods
from abroad. the court held that mer-
chsndise from Cuba is entitled to |
reduction. OF 20 per cent. ad valorem.
as provided by the Cuban preferen-
tial treaty with the United States and
to the further. discount Of per cent.
from that amount.
The government. importers and
American and foreign ship owners
were parties to the suit. The govern
ment held that the clause applied to
goods imported In ships of favored
nations as well as those dying the
American fag. therefore that section
must be held entirely imperative un-
less the favored nation treaties were
sbrogated. The importers were In
terested particularly In the granting
or the rebate. Former Attorney Gen
erai McReynolds held the clause in
operative because of the conflict with
existing treaties and In conformity
with this opinion the rebate has never
been paid In any case. although i'm
porters accepted the assessed duties
In many Instances under protest.
The main plea before the court on
the part Of the American ship owners
was that tho favored nation treaties
we're. In fact. imperative. In this
connection the majority decision said:
by no department OF the govern
ment have these provisions ever been
repudieted or denounced as unconsti-
tutional. or denied force and effect.
90 far as we can ascertain. On tho
contrary. they have during all the
time since their negotiation been
recognized. respected and enforced.
To now hold them invalid for any
reason. I'm view OF these circum-
stances. would IN any event be to