Omaha daily bee., 1921-08-01
CraveTinle
Ahead For
Tariff Bill
Hearings OH Dye Embargo
Scheduled for Wednesday;
Definite Action Planned
American Valuation.
May AdoptDavisS
BY ARTHUR SEARS HENNING.
Chicago Tribune Omahs Bee Leased Wire.

By ARTHUR SEARS HENNING.
Chicago Tribune Omaha Bes Leased Wire.
Washington, July 5l.-This will
be a critical week in the considera-
ton by congress of the provision OF
the Fordney tariff bill for the valua-
ton Of imports. not at the lower
price abroad, but at the higher price
Of such articles in this country. 7
At the senate finance committed
hearings tomorrow and Tuesday,
hearings tomorrow and Tuesday,
porters against this provision, which,
would produce an endless spiral oil
increasing prices, not only OF thd
foreign, but Of the competing articles
of American production.
After hearings on the dye embargd
Wednesday the committee will
spend the remainder OF the week inn
executive session to take definite ac-Y
ton on the dye and American valua-
ton questions. The prospect is that
the committee either will eliminate
the American valuation provision or
modify materially the form in which
it was passed by the house.
Favor Davis Plan. N
Members of the committee want,
to ascertain the views Of both mans
ufacturers and importers on the pro-
posal made last week by George {!
Davis, special agent of the customs
service in charge of the New York
district, relative to modified form
of the American valuation plan. Sew
eral of the republican members Of
the committee who favor the prin-
ciple OF American valuation are in
clined to the belief that the Davis
scheme is feasible. ->"
Mr.. Davis was strongly opposed
to the adoption of the American val
uation as contained in the Fordney
bill because of the administrative
difficulties involved. His suggestion
was the foreign valuation system
should continue, but that if any man
ufacturer makes an article which
has its counterpart in foreign arti-
Gle, he shall be given the opportun-
Try to establish its compatibility
before customs officials. After the
fact OF compatibility has been es-
tablished, appraisers would be in-
structed to appraise the foreign ar
'ticle as tho price of the domestic ar
t;cle at The price of the domestic AZ
cnafges ana expenses and profit.
Mr.. Davis suggested tentatively that
the profit be limited to 8 per cent
and miscellaneous expense items to
8 per cent.
Additional Provision.
Mr.. Davis plan involves another
feature. This has to do with con-
signed goods when foreign markets
are closed to the American. buyers.
In such cases the agent or branch
house is situated in this country and
all business has to be transacted with
the foreigner in this county.
Mr.. Davis suggested that this class
of merchandise should take the
American selling price of the i'm
ported article after substracting the
duty, freight and insurance and in
case of commission, not more than
o per cent, or for actual purchase by
TIE agent, not to exceed 8 per cent
tor expense and 8 per cent profit.
Thus far no importers have been
heard on this scheme. The argument
advanced in its favor is that in such
cases as it is applied, the exchange.
factor is eliminated, but without
causing administrative difficulties or
turning the customs machinery nm,
side down. The chief argument ad-
vanced for the American valuation
plan has been that it would meet the
exchange situation, making it DOS.
sible to equalize duties on similar ar.
ticles from foreign countries, while
the strongest objections have en,s
phasized the administrative difiicul.
ties involved. .-s. 80
In case the Davis suggestion d
approved, it will be necessary to re-
wise the ad valorem rates back to the
foreign valuation basis. The ad
Vaiorenl rates in the Fordnev bill
we're scaled down about one-third be-
low the level which was considered
necessary under the foreign valuation
plan. Adoption of the Davis schems
would mean an increase Of the adj
Ialorem rates. but in cases where tho
iuties would be assessed on tha
American value less deductions tho
same degree of protection would bt
provided.