The Birmingham age-herald., 1921-07-26
EXPERTS DISAGREE ON PROVISIONS OF
 FORDNEY TARIFF
Different Effects on Basis of Levying Import Duties Would Have on Con-
 Sumer and Merchant
By Associated Press

Washington, July 25.-Disagree- ment of experts as to the practical bility of American valuation provl- sions, proposed in the Fordney tariff bill, marked the first considerable given the measure today by the Sem ate finance committee The commit tee heard statements by Thomas Walker Page, chairman, and Will liam Burgess, a member of the tariff commission, but their views differed widely as to what effect the sug- gested basis of levying import duties would have on the consumer on the one hand and on the manufacture and merchant on the other.
 MT. Page contended the new plan meant higher prices on American commodities which compete with im- ports subjected to the import tax while his colleague on the commits sion held 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 valuation plan is to de- feat under valuation of imports and therefore gather more revenue, but the object, MT. Page said, was phan- tomlike in character for the reason that little fraudulent valuation had taken place. MT. Burgess submitted figures which he declared showed under valuation of imports in 1920 to have been discovered in 25 per cent of all shipments subject to ad valo- rem rates.
 No Other Method
 MT. Burgess told the committee there was no other method by which the government justly could levy assessments on imports in view of the fluctuating exchange rates He said it presented the only possibility of custom offices obtaining accurate valuation figures on imports and that such were vitally important, because of their effect on the ultimate amount of revenue collected. It also would avoid discrimination in the tariff rates against countries whose money has not depreciated and in favor of those which currency is at a low ebb 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 uncertainty which would enter into business transactions for the next few years warranted that the change be deferred until conditions are more favorable. The international economic situation, Mir. Page explained should be given an opportunity to right it. self before this government should attempt what he called radical de- parture from proven methods at the customs house.
 American Valuation Provision
 "There is no otheres~ay of meeting the exchange situation except by this American valuation provision. MT. Page added, but I do .iot believe it will accomplish what is claimed for it. I think it will fall far short of what it is supposed to do and at the same time will keep business nov ing in the dark for no one knows what it's effect is going to be, and no one can tell what effect it will have on different commodities"
 Mir. Page said. however, that the plan could be developed and he be- iieved that if given time it could be made practicable but his principle objection was to putting it in effect at this time He mentioned as another danger the extension of "too much responsibility and power" to cus- toms appraisers.
 The power opposed by Mir. Page would be turned to the account or the government itself, according to MT. Burgess, who declared that, under the American valuation, control of the imports for the first time rested fully with the American government. He added that, for the same req sons, diplomatic ehtanglements would be avoided and questions of enforce ment of the law would be disposed of without delay or difficulty.