New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-08-11

To the Editor of The Tribune.
Sir: Apropos of your editorial in
to-day's issue on american Valua-
ton" the writer, who served as a
District Attorney under Presidents Nc
Kinley, Roosevelt and Taft, and Spe-
cial Assistant to the Attorney Gen
eral, has made some study of the
american valuation" provisions as
contained in the Fordney bill, known
as H. R. 1856, now pending before the
Senate Finance Committee.
Your editorial treats the proposed
new method as if it were simple
change from valuation of goods for
import duty on market value at the
foreign place Of export to valuation a.
the place of import into the United
States after importation. In other
words, as if it were the same method
known as the "home valuation" put in
force by the tariff act of March 9 1888,
and repealed within a few years there
after
That act. as construed by the Su-
preme Court {Aldridge VS. Williams, {,
Howard, 81, made the valuation the
market value 1T the place of import"
the "home port" of entry. The pres
ent bill bases the "American valua-
ton" on wholly different and revolu-
tionary principle. The market value
at the port Of entry is not made the
criterion. In Section 400. Title ", it
provides for different kind of valua-
ton for iilportations falling under two
classes:
(a) Those Of like kind and compct-
tive with American products and OBJ
those of unlike kind but comparable
in use to American products.
For those under class (a) the
valuation is to be taken at the whole
sale price ''n the ordinary course of
trade ''in the principal market or
markets of the United States" 1t is
not based upon the market price at
which an importer at Ne York or San
Francisco, fer instance, may sell after
importation to wholesalers in some in
terror city, which the greater Ameri-
can production may make the prin-
cipal market for such product. but
upon the wholesale price to the re-
taller at such principal market
wherever situate. Upon all imported
products sold at such place the mar
kct price must include under the act
all costs, charges and expenses" to
such principal market. which ncces-
sarlly includes transportatio to such
place and the wholesalers and ante
cedent Importers profits. 1t does not
necessarily follow and would not fol-
low as to many products TAT the city
of the largest port importations would
be the pri. n wholesale market Gin
the ordinary course of trade" One
city may be SUCH principal market for
one product, another city for another.
Again, for those products coming
under Glass the criterion is the cost
to the producer, wherever produced in
this country, of products of unlike
kind but comparable in use, whether
actually sold or offered for sale, or hav.
ing market value or not; thus as to
many products fixing the estimated
cost of production at undetermined in
terror points as the criterion of valua
ton for dutv.
All these things arc left by the act
to administrative determination of
custom house officials, and instead
OF simplifying valuations multiply
complications and leave the business
community up in the air.
sIt is mere than doubtful whether
the principal market markets" pro
vision is constitutional. Article /.
Section 8, Clause | of the Constitu