The Dawson news. (Dawson, Ga.) 1889-current, 1915-06-01
DECISION OF CUSTOMS
COURT MEANS BIGLOSS
If SUSTAINED APPROXIMATELY
SIS, 900 IN DUTIES COLLECT
ED MUST BE RETURNED.
BIG REDUCTION IN REVENUES
In Prospect as Result, and May Have
Profound Effect on the United
States Fiscal Policy. The Parties
to the Suit.

to the Suit.
WASHINGTON, D. C.-The So
called "fve-per-cent clause" of the
tariff law, granting a reduction of
duties to that amount on goods i'm
ported in American ships was sus-
tanned today 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 nation" treaties.
AS treaties exist with the princi-
pal countries of the world the vir-
tual effect of the decision is to re-
duce the customs revenue by 8 per
cent.
If the decision is sustained by the
supreme court of the United States
approximately 100000 in dut es
already collected must be refunded.
Dissenting Opinion.
In a dissenting opinion Judge de
Vries pointed out that the majority
decision means that goods imported
in about $500 foreign vessels Of
favored nation countries shall receive
this reduction in customs duties. Five
per cent of the estimated customs
revenues for the present fiscal year
would exceed $11, 100000 and in
years to come this total would grow
to even greater proportions. More
over, it was pointed out that the de-
cision, if it stands the test in the SUI
preme court, is retroactive to the eX-
tent that it applies to importationS
into the United States since approval
of the observation-disclosures law more
than two years ago, including goods
entered in bond and subsequently
withdrawn without payment of this
rebate.
Officials realize that the decision
may have a profound effect upon the
fiscal policy of the United States. AT
present the actual working balance
Ill the treasury is under SIS, 900, goo,
though possibly $40,00O,000 is avail
able to be added to this, if neces-
sary.
With an announced deficit in the
postal revenues and no increase in
internal revenue or customs. receipts
in sight talk of the necessity for
an issue of Panama canal bonds was
revived in view of the prospect of
reduced customs revenues and the
necessity of refunding millions al
ready collected. The payment Of
some $80,0OO,OOO into the treasury
due from the income tax, however is
counted on to delay any such emer-
gency for several months.
Today's decision of the customs
court in part sustained the ruling of
the board of general appraisers and
in part reversed that body. In ad-
dition to its findings regarding goods
from abroad the court held that mer-
chandise from Cuba is entitled to a
reduction of 20 per cent, ad valorem,
as provided by the Cuban preferential
treaty with the United States, and to
the further discount of 5 per cent
from that amount.
Parties to the Suit.
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 we'll as those flying the
American flag, therefore that section
must be held entirely imperative I'M
abrogated. The importers were in
terested particularly in the granting
of the rebate. Former Attorney Gen
eral McReynolds held the clause in
operative because of the conflict with
existing treaties, and in conformity
with this opinion the rebate has new
er been paid in any case, although
importers accepted the assessed du-
ties in many instances under protest.
The main plea before the court on
the part of the American ship own
ers was that favored nation treaties
were in fact inoperative.