Evening journal., 1920-02-03
InsuperabIe Obstacles TO [ cense Plan
Correspondence American Economist.

WASHINGTON. Feb. 3.-Admlnlsta-
tive difficulties in the enforcement Of
proposed licensing laws for the control
OF the Importation Of dyes have been
Impressed upon the subcommittee Of
ehe Senate Finance Committee during
the past week. Experts OF the Tariff
commission and the War Trade Roard
Section Of The State Department have
dissecied the licening scheme, section
by section. A voluminous report deal
ing with its practical application has
been prepared for the committee by dhe
Tariff Commission.
When the Tariff Commission refraius
from taking a position with reference
TO Legislative policy yet it comments
on The difficulties that would be con-
fronted under the operation Of IN
licensing sections OF the LongNvorth
bill constitute a severe indictment Of
the scheme.
The Commissioners report reviews
some fifteen different administrative
questions which may arise II the H.
censing plan Is finally enacted into law
lin discussing these problems the Com
mission urges that whichever admin
stratiye body may be called on 10 ad-
minister the act, Congress should defln-
hely determine the governing rules 50
that so far as possible, II will only re-
main to apply the legally declared IN
tent In sypecfic cases rather than to
init iate policies without statutory
guidance.
Attention is directed by the Com
mission to the exceedingly complex
administrative problems connected
with undertaking 10 determine, as thc
bill requires, what will be reasonable |
terms rs to prices quality and dely- |
cry Of domestic dyes. In The absence |
Of which the importation OF foreign |
dyes may be licensed.
The Commission comments on the |
impossibility Of meeting the unknown |
requirements Of domestic consumers |
and the importance OF stating clearly |
in the law whether licenses are 10 be J
withheld from middle men and specu-
la'ors.
Discussing the provision In the Long
worth bill, which provides for the is
suance OF license 10 import for dOmes-
iic consumption such dyes "as may b.
on reasonable terms as TO
price. quality and delivery" the Com
mission says:
We here encounter gravely imp0r-
tant administrative problems intimate
ly connected with the fundamental
OF policy involved in defining
Ihe circumstances which would justify
the refusal OF a license. or would re
quire the granting Of a license. in any
specific case. Tho Commission here
ventures the opinion TINT whatever
policy Congress may choose to adopi
should be stated as definitely and ex-
eliclly as possible. the duties OF he |
Commission should be confined In the !
light OF information 10 be gathered by
I. 10 the application Of such expressed
policy 10 specific cases
Applicants who are refused licenses
re likely to feel aggrieved and 90
harge mat the Commission Is ruling .
n an arbitrary manner IS exceeding K
IS authority, is acting on the basis OF I '
Incomplete or inaccurate information,
r Is taking an unnecessarily long
ime for investigating specific cases.
ION Fhe other hand. American dye
may be expected TO
ssert that licenses are being issued
90 freely. The complex administra-
I've task must be undertaken immed-
ately after passage OF the act without
flowing time 10 build up an organi-
alton or collect needed information. v
Is therefore probably inevitable that s.
Mistakes will be made. and this adds CT
Drce 10 the recommendation that the CT
ollcy TO be pursued shall be stated as al
as possible by Congress in the pl
wv Itself"
on the question OF definition NJ st
reasonable terms as 90 price" the Ii,
commission points out that one pos m
bic way 70 define reasonable price Sc
ould be IN the terms OF pre-war in d.
lice prices, but that this method We
ould fail IN the case Of new dyes or pc
ixtures. Another method, it is point 81
out, would be to define reasonable st
ices in terms Of current prices Of sa
reign goods delivered In this coun-
y but that the diGcuTiH in this 81,
ould he that unless and until licenses 4 WI
o granted and the goods brought in yo
would be impossible to ascertain it
Ich prices ma
Attention is called 10 the fact that -
Ich a definition, like the ore in the
,udinpr hfu will nrahohf,. - 1tol,.,rt