Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1921-07-26
EXPERTS DISAGREE AS TO coon
OF AMERICAN VALUATIONS AS
PROPOSED IN F0RDNEY TARIFF

aShlngton, July 25.-DiSa greement
of experts as to the practicability of
American valuation provisions propos-
ed in the Fordney tariff bill marked
the first consideration given the meas
urc today by the Senate finance com
mlttee. The committee heard state
ments by Thomas Walker Page, chair
man, and William Burgess, a mem
Der of the tariff commission. but their
views differed widely as to what Ell
feet the suggested basis of levying
import duties would have on the con-
sumner on the one hand and on the
manufacturer and merchant on the
other
Mr. Page contended the new plan
meant higher prices on American COM
modities which compete with imports
subjected to the import tax, while his
colleague on the commission he'd that
pyramiding Of prices was no more
likely to result under the home value
basis than under the present system
OF assessing duties on the foreign
value. Designedly, the American val
uation plan is TO defeat under Nalua-
ton of imports, and therefore gather
more revenue, but the object. Mr.. Page
said, was phantom-like in character
for the reason that little fraudulent
valuation had taken place. Mr.. Bur
CESS submitted figures which he de-
clared showed differentiation of i'm
ports in 1920 to, have been discovered
IN 20 per cent. of all shipments sub
Ject to ad valorem rates
Mr. Burgess told the committee
there was no ether method by which
the government justly could levy as
sessments on imports in view of the
huctuation of exchange rates He
said it prcsen ted the only possibility
OF customs officers obtaining accurate
valuation figures on imports and that
such were vitality important because
CT their effect on the ultimate amount
OF revenue collected. 1t also would
avoid discrimination in the tariff
rates against countries whose money
mas not deprecated and in favor of
! those whose currency is at a 10 webb
compared with American money.
Objection to the proposed change
was voiced by Mr.. Page because. he
said. it meant disturbing further an
already chaotic commerce. He felt
that the element of doubt and UNI
certainty which would enter into
business transactions for the next
few years warranted that the change
be de ferred until conditions are more
favorable, The international econ
omic situation Mr.. Page explained.
should be given an opportunity to
right itself before this government
should attempt what he called rad
ical departure from proven methods
at the customs house.
There is no other way of meet
in gthe exchange situation except by
this American valuation provision, =
Mr.. Page added. But l do not be
lieve it will accomplish whit is
claimed for it. ] think it will fall
far short of what it is supposed to do,
and at the same time will keep bust
ness moving in the dark, FOR no one
knows what its effect is going to be
and no one can tell what effect it will
have on different commodities.
Mr.. Page said however, that the
plan could be developed and he be
lieved that if given time it could be
made practicable. but his principal
objection was to putting it into effect
at this time. He mentioned as ano
Their danger" the extension of so
much responsibility and power" to
customs appraisers
The power opposed by Mr.. Page
would be turned to the account of
the government itself according to
Mr.. Burgess, who declared that. un-
Ger the American valuation, control
of the imports for the first time rest
ed fully with the American govern
ment He added that for the same
reasons. diplomatic arrangements
would be avoided and. questions of
enforcement of the law would be
disposed of without delay or diff
Guilty.