Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-10-19

fined. graded. manura ctured or mixed
with other foreign and domestic mer--
chandise for re-export. II. however.
il should be determined that any OF
these goods were to be marketed in
the United States instead OF abroad.
then the payment of duties would be
enforced.
But it is expected that comparative
ly little of these goods will ever en-
ter the American markets for con-
sumption in this country. Enemies
OF the project, however, have insisted
that the free zones should be called
dumping zones."a that cheap for
eign produced goods will be dumped"
into them and kept there free of duty
until the domestic market appears
right" for unloading the goods in
competition with the American-made
articles.
Free Zone Investigation.
The tariff commission intrusted the
investigation of the subject OF free
zones in American ports to Commits
sioner William Kent. and very thor
ough investigation was made. Hear
ings were held in New York. Phila-
delphia. San Francisco. New Orleans
and other places. Great commercial
bodies of the country, particularly in
the ports. have advocated the estab-
lishment Of these free zones. or for
eign trade zones. as they prefer to
call them. Among the advantages
set down by them are the following:
1. Simplification of entry and clear
ance of vessels carrying these goods.
2. The equalization of inbound and
outbound traffic; ships entering these
free zones will be able to find car
goes to carry away with them after
they have delivered those they are
bringing in.
3. The encouragement of dealings
in foreign products for transshipment.
4. The stimulation of manufacture
ing of foreign goods for re-export.
5. The sterilization of transship-
ment trade under varying tariff poll
cies. At present American merchants
who import goods later to be export
ed must reckon the costs OF the bond
ing and drawback systems, which
change sometimes with a change in
the tariff laws.
6. Miscellaneous advantages in
Guiding removal of the time limit on
bonding-at present three years: tho
provision Of adequate space and facil-
titles for exhibiting goods and sam
Piles and reductions in the cost OF
drayage and handling goods.
All of these advantages were set
forth in the report submitted by the
tariff commission to the ways and
means committee.
Claims Of Opponents.
Opponents Of the plan for free zones
insist that il one port. or half dozen
ports. on the Atlantic coast should
be granted the privilege of establish
ing free zones. then every port. and
perhaps every interior city manufac-
turing goods for export. should be
given the same privileges. They claim
that the plan Is not practical and
would break down.
But it has been established on good
authority that the transshipment
trade of the world is worth seeking.
1t has been estimated that this trade
runs into billions of dollars each
year. And American business men
would like to see this country get
large share of this trade. II American
ports desire to compete successfully
with European and Asiatic ports for
T, this transshipment business. 1t 10
! claimed that they must have free
zones, so that they will not be ham,
pered by the enforcement Of the Gus
! toms laws. -
While the foreign-produced goods
| were in an American free port IL
would be up to the government om-
Gals to see that they were not snug
gled into the country duty free. 1t 10
said that this could readily be ac-
complished; that the free zone would
be separated from the remainder OF
the port by some kind of barrier
and that it should be easy to prevent
blockade running.