The New York herald. [volume] (New York, N.Y.) 1920-1924, 1921-07-19
House PUTS ALL OIL
| ON FREE ENTRY LIST
| BY VOTE OF 1865
President Scores Another
Victory by Securing Re-
mOval of Duties.
ASKS BARGAIN POWER
Wants to Be Able to Impose
Levies as Means to Fight
Discrimination.
LETTER BRINGS RESULTS
Is P. c. AID ValOrem on Staple
Cotton Is Approved, 105 to
74-Aimed at Egyptian.
ASKS BARGAIN POWER
LETTER BRINGS RESULTS
Special Despatch to THE New York HERALD.
New York Herald Bureau,
Washington. ID. c.. July 1S.

Special Despatch to THE New YORK HERALD.
New York Herald Bureau
Washington. ID. c., July 1S.
President Harding won another VIC
tory in his relations with Congress to-
day when the House voted by ma
jority of more than two to one to place
all oils in the free list of the Fordney
tariff bill.
BY a vote of 1876 to SO the House
removed the duties of 35 cents bar
rel on crude oil and 25 cents on fuel
after hearing read letter Of the Pres
ident opposing the duties on the
ground that the charges would inter-
fere with the Administrations policy
Of encouraging American capital to
develop oil resources IN foreign lands
as means of conserving the supply
in the United States.
The President also suggested that he
receive power to bargain" with other
nations as a means of removing export
duties and other determinations which
he said hamper "the facilitation OF
trade" This, he indicated. would AFFORD
protection for American producers.
Under the proposed bargaining provision
he would have power to impose duties
which he saw fit as a means OF forcing
another nation to remove its discrimi-
nations on exports to this country.
The bargaining provision was not In
serted in the bill to-day but will be
considered by the Ways and Means
Committee during the next few days
and probably will be approved later.
~ Protection for Cotton.
Following the vote on oil the House
by a vote Of los to IA approved a duty
of Is per cent. ad valorem on long
staple cotton, with the provision that 1t
shall apply to any cotton with a staple
of IA inches or more. The amendment
Is aimed at imports of Egyptian cotton.
A higher compensatory duty on cotton
manufactures now will be proposed,
Chairman Fordney said.
The Presidents letter admittedly was
influential In the result on oil. It was
expected the result would be much
and nearly all the Democrats except
the Texas and Oklahoma members voted
for free OIL Mr.. Fordney and Repre-
sentative Garner (Tex.), however. voted
for the oil duties. During a stormy de-
bate the duties were justified mainly
on the ground that the Standard OIL
Company desired free oil In order to
freeze out American independent pro-
ducers by large importations OF Mexi-
can OIL
The Presidents Letter.
The text of the Presidents letter fol-
lows:
1T understand that your committee is
very soon to decide whether to include
protective duty on crude oil in the
tariff bill to be reported to the House
! cannot refrain from expressing the
hope that your committee win take note
Of the foreign policy to which we are
already committed. under which the
Government is doing every consistent
thing to encourage the participation of
American citizens In the development of
the oil resources in many foreign lands.
This course has been inspired by the
growing concern of our country over the
supply OF crude oil to which we may
turn for our future needs. not alone for
our domestic commerce. but in meeting
the demands of our navy and our mer-
chant marine.
ITO levy a protective tariff on crude
petroleum now would be at variance with
all that has been done to safeguard our
future interests.
IT am not unmindful of the oil in
dustry within our own borders and most
cordially believe in its proper considera-
ton.
would II not be practical TO provide
for such protection in some bargaining
provision which may be placed in the
hands OF the executive so that we may
guard against the levy of duties against
US. or the imposition by other nations OF
export tariffs which are designed to
hinder the facilitation of trade which is
essential to our welfare?
'In the matter of crude oil, as In the
case of lumber. concerning which we
talked. our position will be the stronger
II the tariff levy is omitted and au-
thority IL given the executive to impose
q duty in appropriately stated circum-
stances. / hope your committee will
find II consistent TO give consideration TO
these suggestions"