The New York herald., 1921-07-13
Would Permit U. S. Capital
to Develop Resources in
Foreign Lands.
BILL STRIKES AT MEXICO
Proposed Compromise Would
Empower Harding to End
Tax When Advisable.
Special Despatch TO The NEW YoRK HERALD
New York Herald Bureau,
Washington. ID. C.. ,July L. (

Washington, ID. c., July IL.
A fight over the protective duties on
oil In the Fordney tariff bill rivalling
the famous Republican battle over the
wool schedule during debate on the
Payne-Aldrich bill In 1909 now appears
probable In the House.
The views of President Harding. con-
tanned In a letter to Mr.. Fordney, that
oil should be left on the free list, IN
order that the policy of the Administra-
tion in encouraging American capital to
develop oil resources in foreign lands
might not be interfered with, caused q
sensation among House members to-day.
An attack on the oil duties is expected
10 start in the House tomorrow with
the backing of a large bloc of Re-
publicans and practically all the Demo-
Gratis. Despite the views of the Presi-
dent, there is considerable sentiment
among Republicans for the oil duties
and the vote is expected to be close.
The rates were inserted in the bill by the
Ways and Means Committee as the re-
suit of to s vote.
A compromise proposal is now being
brought forth by those members, favor
able to the duty. It puts these tariffs
on a reciprocal basis, giving the Presi-
dent power to abandon them whenever
the Mexican Government lifts it's export
tax on oil, and the Executive would be
given power to negotiate for the elimi-
nation OF all oil determinations OF for
eign nations which affect the United
States. 1t will be argued that the pro-
poSal would give the President club
which he does not now possess. to force
the abandonment of the Mexican duties.
Opponents Of the duties, however, say
such a. measure would have little effect
ID
nent might decline to repeal the export
tax and the combination of this charge
and the American import duty would
have a disastrous effect on American
capital invested in the Mexican oil fields.
However. II Is asserted that three
fourths of the Mexican production comes
to the United States and that the Mexi-
can Government cannot afford to lose
the American market
Secretary of Commerce Hoover is said
to be strongly opposed to the oil duties
and is understood to have discussed the
matter with the President before the
latter addressed his letter to the Ways
and Means Committee.
Mr.. Fordney to-day declined to COM
ment on the Presidents letter. and It is
understood that he favors extending the
protective wing TO oil. The House
adopted rule under which a final vote
on the tariff bill would be taken Jan
uary 21, and which allows amendments
10 the oil schedule.
Other sections of the bill which will
be opened up to amendments include the
dye schedule, with its plan for an en-
barge on dyes which can be manu-
factured satisfactorily in this country
the cotton and hide schedules. A move
will be made to strike out the embargo
on dyes, leaving only the tariff duties.
which are said to be about 200 to 500
per cent. higher than In the last Re-
publican law.
The Democrats will be put in an en-
barrassing situation when an amend
ment is offered to place duty of 7
cents a pound on cotton. Conferences
are now being held TO determine what
amendment taking Ii : off the free
list shall be offered
Under the rule the Ways and Means
Committee Is given the right to offer
amendments placing compensatory du-
ties on cotton and leather products in
case a duty Is voted on these two raw
articles.