The Hawaiian gazette., 1917-03-09
THE ADVERTISERS SEMl-WEEKLY
"A Saving Decision

merchant marine indirectly is knocked out while
the United States. treasury gains some millions OF
dollars now and from fifteen to twenty millions
ANNUALLY so long as the present tariff prevails
| There was possibility of a decision which would
have effected vertical cut in the tariff of five
percent had the contentious of some Of the parties
to the suit been sustained. Frt.....,
| The so-called five percent" cases came before
the Supreme Court through clause in the tariff
law which authorized reductions of FIVE percent on
duties on all merchandise imported in American
ships. All nations with which the United States
has the so-called favored nation" clause in COM
mercial treaties protested against the provision
a discrimination and violation of treaty provi-
sions. Nations which did not have such treaties
also made protests, and the operation of the law
was held up while the cases were taken through
the lower courts and up to the Supreme Court.
Meanwhile, the regular duties were collected,
until the federal treasury amassed between $25,-
100000 and $30,000,o00 which has been held ready
to return to importers in case the court decided
the clause was invalid. ...
The twenty-five nations with which the United
States has commerce and navigation" treaties
guaranteeing reciprocal exemption from dscrim-
mating duties are; Argentine, Austria-Hungary,
Belgium, Bolivia, China, Colombia Korea Costa
RIGA, Denmark, France, Germany, Great Britain,
Greece Honduras, Italy, Japan, Liberia, Neither
lands, Norway Paraguay, Spain and Sweden.
The most important countries without such trea-
ties are: Brazil, Bulgaria, Chile, Mexico, Nicara-
qua, Portugal Rumania, Russia, Uruguay, Vene-
zuea and Switzerland. NY 80"
The discount clause, designed to stimulate the
American merchant MARINE was compromise be-
tween the senate and house when the present
Underwood Simmons Act was adopted October 3,
1918. 1t provides: . -
That a discount of FIVE per centum all duties
imposed by this act shall be allowed such goods,
and merchandise shall be imported in vessels
admitted to registration under the laws of the United
States provided that nothing in this subsection shall
be construed as to ebrOgate or in any manner impair
tween the United States and any foreign nation. g
The proyiso was added upon insistence of the
senate that straight out preference and discrimi
nation to American shipments would abrogate the
existing treaties of the twenty-five treaty ma
tons" ..-... .... .~' 49, "a
President Wilson did not personally intervene
in the dispute between the house and senate, but
after enactment of the law the attorney general
decided it was void and imperative as dscrimina-
tory and violative of the treaties Upon this ruling
the treasury department has refused all discount
claims, collecting full tariff rates ~
Upon appeal of many New York importers, fur
ther division OF opinion as to operation of the
clause arose. The board of customs appraisers
held it operative only to imports in American ships
The importers appealed to the customs court,
which held that the discount should be given not
only upon such imports but also upon those in
vessels of the treaty nations" The senate proviso
was held by this court to extend the discount to
these foreign nations.
From this ruling the department of justice APP
pealed to the Supreme Court where fourteen cases
we're twice argued, in February, 1916 and again in
February, 1917, The government sought, first, to
have the clause declared wholly void, or inopera-
tive and suspend during the terms of the treaties,
both as to imports in American and foreign YES
sells at least have the discount granted only to
American shipping 1t was contended that the
extension of the discount to foreign vessels would
nullify the designed effect to aid American ship
ping, The government also contended that the
discount aided importers more than vessel owners
and operated merely to decrease federal revenues
without substantially aiding the United States
merchant marine. ..aE
The importers sought to have The discount APP
piled both to American and foreign vessels CON
tending that an application to American vessels
alone would conflict with the foreign treaties and
possibly invoke counter determinations and inter-
national commercial dissenson.