New-York tribune., 1922-06-05
Retailers Fight
AmericanValue
Plan i'm Tariff
Means Increased Prices, Dry
Goods Association As
seris i'm Argument With
Representative Fordney
Propaganda, He Reioris
Big Stores Declare Foreign
Made Articles Form Only
) Per Cent Of Their Sales

lean valuation feature OF the fordnel-
McCumber tariff bill on the part Of
the majority OF the department stores
Of New York and Brooklyn was re-
vealed yesterday when correspondence
during the last two months between
the Retail Dry Goods Association OF
New York and Representative Joseph
". Fordney. chairman Of tho House
WAYS and Means Committee, was re-
leased Tor publication.
The association. which includes IN
its membership Abraham 4 straus'
Inc. q. Altman Coz Best Co.
Bloom.nrdnlc Brothers, iner Gimbel
Bro,hers. James A. Hearn & Son. Inc.
n a. =. Koch g. Co. Inc Frederick
Ioeser & Co. Inc. Lord & Taylor
James MeCreery 4 Co, Y. N. Macy q
Co. Inc. A. Namm & Son, Oliver
A Olson Company. Inc. Oppenhei m.
Collins & Co. Saks & Co. Franklin
simon & Co. Inc. and Stern Brothefs'
placed itself on record a. unquaiinedly
disapproving American valuation ~ .
meeting held April n, 1922
While We fully recognize the WIS
dom Of a careful revision of the eHis'-
ing tariff law in order 10 insure TOT
American Industries a basis which wi'l
foster domestic manufacture ana TO
insure 20 factory and mill operators an
ample wage and proper living conoi j.
tions." declared the retailers A. ihai
time IN resolution. which was iof-
warded 10 Chairman Fordncy. I'VE are
opnosed 10 the American valuation plan
berause We believe % would nave
destructive effect on industrial pros
perity AZ home and on American i"r-
eirn commerce. because we beheNe it
would lead 10 an increase IN wholesale
and retail prices rather than aid m the
cenntrvwide desire and effort 20 attain
lowef price levels: because We believe
I, would IN effect raise tariff duties ~.
cessivelv OF many commodities, ana
that its proposed conditions are aoso-
lutelv unworkablc from the standpoint
of accurate customs adminittration.
Fordney Defends Plan
R.presentAtive Fordney replied on
Anil "a with latter analyzing the
affections set forth by the Ne" YORK
department stores.
II, is easy 10 trace the propaganda
in opposition 60 American valuation 70
those who are interested IN seNing the
product OF foreign iabor IN the Ameri'
can market rather than IN the sehink
Of American made goods. he deciAiea
II note that you believe that Amer
csr valuation would in effect raise
.srtf du.ie, excessively No one can
nossiblv construe q basis ~ value on
vbich 10 establish tariff rates INTO
the rates themselves. The bass OF
yslpe has nothing whatever 20 do with
the rates levied or the amount o. duty
nsid This is absolute and there can
scarcelv be any honest difference OF
osinion about II. An importer may
psrdonabiv object that the tsrin rates
levied are 100 high. but no honest I'M
porter should object 20 the American
basis Of valuation.
Under existing laws many import
ers for years have greatly under
valued goods on which an I'D vAlorem
duty was based IN order 10 escape the
lust amount due. and over 5000 IN
stauees OF this practice were brought
= 10 the notice % the New York Gus
toms officials alone during the past
year
Under tho present system Of for
.iVn valqation a tarif law cannot be-
written that will afford protection
against the countries where protection
ia most needed" stated Mr.. Fordney,
adding that IL would be much easier
Tor customs officials 10 obtain the
American valuation Of goods imported
than 90 md out the correct fore On
value. and. under the present condi-
,ions Of exchange. the existing tariff
law is actually imperative. because u
vas enacted a. time when foreign
money WAS normal, and that. conse-
quently. labor and industry are now
not protected.
Quotes Customs officials
In regard 10 the administration OF
American vAluation. Mr. Fordney cited
the opinion Of many customs officials
who had declared 90 him that there
would he absolutely no difficulty in
collecting duties on this basis Fur
thermore. he said. during this time
Of depression. which Is mainly due 20
the free-trade Underwood tariff Law.
there are a number of people az home
who might be considered even before
the people OF Europe The new tariif bill
on an American valuation basis will
/ take care OF our own and that. In
turn. will enable US 20 buy more from
Furope. We bug more foreign goods
under a high protective tariff than un-
der free trade tariff. and q study of
; the economic history OF this country
since 1889 will clearly show this to be
fact
The Fordney letter was discussed az
[ A. aF Ha
sociation. on May %. and a reply was
drafted and sent May 81, embodying
general denial OF Representative
Fordney's contentious and quoting
against il At length the points raised
+ by Senator MeCumber, OF the Senate
Finance Committee. when he reported
/ the plan adversely on April 10.
Nothing could be further from the
facts. declared tho department store
merchants. than the imputation that
more interested In selling foreign
made goods than goods made IN Amer
/ ica. since none OF them has interests
in foreign factories while some mem
bers have interests in domestic fac
/ tories.
Reliable figures snow that in our
line Of trade, both By direct importa
tion and by purchases made in this
country Of imported goods. less than 8
per cent OF the total net sales Of the
retail stores OF America is OF goods Of
/ foreign origin. A considerable part Of
that per cent is o. merchandise which
cannot, through climate or other
equally good reason. be manufactured
in this country, such as linens, china
silks. models Of apparel which are I'm
/ ported 10 copy. art objects. certain
kinds Of glass, earthen and china ware.
etc. What American industry are you
aiming to protect BY doubling and more