The Bridgeport times and evening farmer., 1921-12-09

IlStOn, who was the prlnclpdl Spedher at the dinner last evening Of the Bridgeport Manufacturers Associa- ton, vigorously defended the so-call- ed American Valuation Plan now will undoubtedly become law dur ing the life of the present Congress. The argum ents set forth in the Con- gressman's address follows:
 Congressman TOrdney'S Address.
 "A most perplexing problem that has presented itself to the committee in its effort to draft a bill that will afford a reasonable degree of protec- ed, results from the existing abnor- nal discrepancy in production costs in various foreign countries of the world and the present system of as- sessfng ad valorem duties on foreign values. An. ad valorem rate that would afford a reasonable degree of protection against one country under the present system on account of the variance in foreign values might af- ford no protection whatsoever against the importation of similar comm odities from some other coun- try. The committee, early in its con- sideration of the tariff, came to the conclusion that the only equitable basis for assessing ad valorem du- ties is on the value of the commodity or of a comparable commodity in the American market, rather than the value of the imported goods in the country of origin.
 the necessity for the so-called Amer ican valuation proposal.
 When an ad valorem duty Is as- sessed on an article the amount of duty in dollars and cents is deter mined by multiplying the rate by the value of the article. The value of the amount of duty to be paid as the rate itself. If either the rate or N1e value is variable the degree Of protection will be variable. If either the rate or the value Is beyond the control of Americans the amount of duty and the amount of protection will be beyond the control of Ameri- cans.
 Tn 1882, Assistant Secretary F,nench of the Treasury Department recommended the adoption of home valuation.
 Assessing ad valorem duties on production costs in America. where accurate information is obtainable, will obviate the necessity of relying on the importers invoice. It will remove the premium which now ex- ists on dishonesty and will save the honest merchant from the unfair competition of interruptions import CTS with which he must contend un- der the present practice of assessing duties on foreign values.
 "A further argument against for eign valuation is that 1t affords the least degree of protection when pro- lection is most needed. If prices abroad are high the necessity for al a but when prices abroad decline the danger to American industries and the need of adequate import duties decrease.
 ''If we are to have @ stable tariff law we must have a stable basis for the assessment of ad valorem duties. Conditions abroad at the present time extremely abnormal. Price huc- tuations are very violent and discrep- ancies in prices in the various coun- tries are perhaps greater than at any time during the history of this na- tion.
 II. Is a practical imposslbi1fty to fix an ad valorem rate to be based on foreign values that will afford even reasonable degree of protection against countries where protection is most needed. The assessing of ad valorern duties on American values is logical and extremely equitable, show that an ad valorem duty of about 20 per cent. on American val ues amounts to 150 per cent or more on the foreign value of the article. about the only thing he proves Is a tremendous discrepancy In prices here and abroad and she absolute necessity of abandoning foreign val nation as a basis if we are to have a tariff law that will protect American industries under the present chaotic worldwide conditions.
 importers and retailers who spec ialize in the handling of the products of foreign labor are very active in their opposition to tariff legislation. They have elected to make the Amer of attack. In every instance they base their argument on the asSump- ton that the price in America will be the foreign price, plus transporta- tion charges, plus import duties, plus a very liberal and arbitrary profit to the importer. To me, there is some thing un-Anerican in the very basis of their argument. Their assump- 1inr, hof hn fnro jcro arfi Pl yy-tI T- tr01 prices in the American market Is one thing to which I most strenuously object.
 The importers argument seems to be that we must allow the importers a wide margin for profit and that the American manufacturers deserve no word in regard to the possible bene- ficial effect on prices of increased do- nestle production.
 "A recent report by the Depart ment of Commerce clearly shows the general trend of foreign tariff legis- Iation since the armistice to be toward increased import duties. The reasons ascrfbed for such tariff ad- Vances are depreciation of exchange, resulting in intensive competition from certain countries. the tend ency toward economic sebf-sufhciency for national reasons; general move ment for tariff revision in order to meet new economic conditions; and a desire to increase revenue from customs
 ''Under the existing tariff law, competitive foreign goods are offered in the domestic market at far less than our cost of production, and the ineyitab bIe result has been to curtail manufacturing and increase unem- ploment
 "Fo1. the nine months ending Sep tember of last year, imports amount ed to s4 435S.0OO, O,00O.- For the cor responding nine months of this year imports were but s1,S72.000,O 900 Present imports, it is thus seen amount to about 42 per cent. of what the were one year ago. The decline in prices and the emergency tariff might be alleged to cause the de- crease, but the decrease has not been confined at all to articles covered ir the emergency act and the falling of of imports seems out of proportion to, the decline in prices One year