Vilas County news. [volume] (Eagle River, Vilas County, Wis.) 1896-1927, 1922-04-19
FORDNEY TARIFF
BILL REWRITTEN
Senate Finance Committee Re-
ports After Nine Months.
INCREASED RATES GENERAL
Measure Passed by House in July,
1921, Completely ReVamped-
Highest Tariff Ever Proposed
by u. S. Law-Making Body.


committee ON finance reported to the
senate tariff bill containing the high
est rates of duty ever imposed IN the
United States in permanent legisla-
ton of that kind.
Taking the agricultural rates as an
illustration and the item of wheat I'M
der that heading as specific example,
a fair crUss-cut view of the whole bill
is afforded. Wheat under the Payne
Aldrich tariff law and under the Ford
ney bin passed by the house was made
dutiable at the rate Of = cents
bushel Under the emergency tariff
law passed by congress year ago the
duty was fixed at 30 cents a buShel.
In the senate bill now offered the duty
is fixed at 30 cents. This principle Is
generally followed in the proposed
senate bill throughout.
Increases All Along the Line.
Aside from the fact that the senate
bill assesses duties ON the basis of for
eign instead Of American valuation, as
proposed by the house, thereby neces-
stating in many instances a consider
able increase in ad valOrem and spe-
cific rates over the house rates, never
theless IL has also generally increased
the rates I'm all schedules. The uni
formity with which this step has been
taken, beginning with agricultural
products and ending with finished
manufactured products based on raw
materials, many of which are now
taxed for the first time, indicates a
consistent application of the highest
possible duties all along the line.
Compensatory duties on practically
all forms of manufactured products
are another strong feature of the SEN
ate measure. When based on the ini-
tial fact that many raw materials are
now taxed by the senate bin which
have not borne a duty heretofore and
that the manufactured products based
on such materials as have been taxed
are increased, in many instances. to
the Payne-Aldrich rates or higher. it
follows logically that the average al
valorem and specific rates of the SEN
ate bill are higher than ever before In
a permanent tariff law.
Policy of Duty on Raw Material.
In entering upon the general policy
of taxing the import of raw materials
or partly prepared materials the sem
ate committee, under the guise of pro-
lection to American industry. has, in
fact, laid the American consumer open
to an increase in the price of many
basic Industrial necessaries.
The effect of this tax is not only to
impose a high rate Of duty ON a prod
uct which must be imported to supply
the American market but To raise the
price of IL TO the consumer. Forty
five per cent of the total amount of
chemical wood pulp used in this coun-
try is used by mills which are forced
TO buy half of their supply abroad.
Furthermore. the imposition of an ex-
port tax by the exporting country and
of a retaliatOry tax by the United
States has the further effect of
doubling another impOst on the Amer
lean consumer, thereby increasing his
cost without cOmpensating recourse.
Fordney Firm on Valuation Plan.
Representative Fordney, chairman
of the house committee on ways and
means, has again served notice on the
senate that the house will not accept
the senate proposal of foreign valua-
ton in lieu of American valuation as
a basis for rate making. The senate
has also rejected the proposed COM
promise of basing rates on American
wholesale prices.
The farm bloc in the senate, backed
by the farming organizations general
ly. has finally swung into line against
the American valuation plan. This
opposition 10 American valuation was
not made manifest in the house az
the time of the passage Of the tariff
bin through that body. While il is vet
too early To presage the outcome OF
the contest between the two houses.
il can be said that if the opposition to
American valuation makes y case in
the senate such as TO satisfy public
opinion of the correctness of its posi-
tion. Mr.. Fordney win lose the support
of the farm bloc In the house on the
issue and may also lose his whole fight
for American valuation In cOnse-
Quence.
1t Is expected. however. that it will
take the senate from two TO three
months to pass the tariff bin. all of
the Democrats except the Louisiana
senator's and some of the Republicans
being disposed to fight the high rates
In the senate bill.