The Birmingham age-herald., 1916-02-01

In a public statement Senator Under wood declares that he can see no good reason for the appointment. in that the business in hand can be discharged by fiscal bodies already in existence, whereas a tariff commission, without commensurate return, would increase the expense of the government by $100,- 900 or more per annum.
 And it is generally whispered
 that the administration will soon
 urge the abrogation of that sec
 tion of the tariff bill which gives
 a discount in custom duties of 5
 per cent on all goods imported in
 American bottoms. While Senator
 Underwood has positively declined
 to discuss this matter at present, 1t
 is known that he considers that
 clause of the tariff bill one of the
 most important. in that 1t has 8
 tendency to increase American
 shipping and build up an American
 marine.
 ABOUT THE TARIFF
 Respecting the republican and "big business" agitation to the end that
 
 tion of the tariff to meet the "revolu- tionized conditions" to follow the con- clusion of European peace, the Pres dent in his letter advocating a tariff commission, declared that he did not think it necessary to ''retouch" the tar if. However, in his New York address he declared that the conditions of the world, on account of the war, had un- dergone an entire change, and that he could not promise that tomorrow will be as bright as today" As to whether or not that statement may be regarded as a prelude to tariff revision sug gestion, is regarded as problematic.
 Should the administration, however, attempt to anticipate possible condi- tions following European peace pacts by reopening the tariff problem, it is safe to predict that it would encounter serious opposition Already Speaker Clark and Leader Kitchin have indi- cated that they will stand firmly on the Underwood tariff, and the author of that legislation has publicly stated that he could see no cause for a revision or material modification.
 THE , PER CENT CLAUSE
 In regard to the clause of the tariff bill which gives a 5 per cent discount in custom duties to goods imported in American bottoms, friends of Senator Underwood, at dinner some days ago, declared that that achievement was one of the finest of the many he had gained.
 James Thompson, editor of the New Orleans Item, and sOn-in-law of Speak CT Clark, was especially enthusiastic in his praise both of the senator and of the legislation. Senator Underwood, in making reply, stated that but for the fact Thomas Jefferson. in one of his messages, advocated such provision, it would have encountered serious shoals in the ways and means commit tee.
 AS a matter of fact" said the
 senator that clause is in the na-
 ture of a subsidy in the interest of
 American bottoms. l realized that
 it would be attacked in caucus as
 undemocratic. Therefore in writing
 the clause l transcribed the very
 language of Jefferson, and when the
 storm broke, l was fortified in be-
 ing able to state and readily prove
 that the idea was that of the
 greatest democrat.
 Thereafter there was no material
 opposition in caucus, and the clause
 was preserved.
 THE SUPREME COURT
 However, since the enactment of the tariff bill the "5 per cent discount" clause has been bitterly assailed
 The court of customs appeals has held that the 5 per cent discount should be allowed, not only on goods imported in American vessels, but, in that no treaty agreement might be violated, should also be allowed on goods inn ported in vessels of nations with which the United States has treaties. The point is now in the supreme court for final judication
 Involved in the suit are claims esti- mated by custom authorities in New York to amount to $26,000,000. and the question of whether or not a subsidy in favor of American bottoms violates any all existing trade treaties.