The New York herald., 1922-05-09
Recovery of Excess Duty
Paid and Proclamation
Declared Impossible.
PROTECTION OF PROFITS
Sm0ot and McCumber Insist
President Would Not Raise
Duties Without Cause.

WASHINGTON, May S.-An attack on
the flexible tariff plan. proposed by
the Senate Finance Committee on the
Recommendation OF President Harding,
was launched to-day in tie Senate,
and in the course of the four hours
debate Chairman McCumber, in charge
of the tariff bill, announced that some
of the objections raised to the plan
would be considered by the committee
before final Senate action.
Senator Walsh (Dem., MONTY opened
tie discussion with the delivery of a
prepared address in which he cited
many authorities and court decisions
TO support his argument that the pro-
visions were unconstitutional. Sena-
tors Underwood (Ala.) and Simmons
IN. CO. the Democratic leaders, joined
him, arguing that for the first time in
the History of the country it was pro-
posed to protect the profits Of Ameri-
can manufacturers.
No Judicial Review.
the provisions Of the bill were attacked
by. Senator Walsh on other grounds.
Pointing out that no provision was made
for judicial review OF the Presidents
findings, Senator Walsh called atten-
tion that where Congress had delegated
authority to the Interstate Commerce
Commission, the Federal Trade Com
mission and other like agencies their
findings had been made subject to re-
view by the courts.
"The President" he continued. 'is
not amenable to correction by the
In his official capacity. If action should
be brought against a collector OF Gus
toms to recover an alleged excess duty
paid under a proclamation issued by the
President. he could not be called to
testify touching the evidence or infor-
might be determined whether he ex-
ceeded the authority conferred upon him
or had any just basis for his order.
And since the presumption would be in
dulged that he acted within the scope
OF his authority and upon sufficient evil
dence. the taxpayer would be remedi-
less
''It is not even required that the in
vestigation to be conducted by the
President shall be public, though it is
provided that reasonable opportunity to
be heard shall be afforded to all persons
directly interested in the production and
distribution OF any merchandise made
the subject of such investigation.
Though those directly interested may be
heard. the public generally are not
necessarily afforded an opportunity to
attend.
Chance for Abuse.
"A taxing system more certainly lead
ing 10 scandalous abuse could scarcely
be contrived or even conceived. The
pernicious activities of the lobbyists are
comparatively innocuous. when his facts
are open to refutation and his argument
10 attack BY any one or more Of 435
members of the House or one or more of
as members Of this body. How could
the President, burdened as he is almost
20 the limit of human endurance by the
duties now devolving upon him. give to
the arguments of selfish, avaricious and
irnportunate interests the study requisite
TO test their strength
Chairman McCumber and Senator
smoot CCtah), ranking Republican on
the Finance Committee. defended the
plan. the former insisting that II the
American producer raised his price to
an exorbitant figure II was not con-
templated that the President would in
crease tariff duties to protect him.
Senator Smoot expressed doubt that
the President would have to act in more
than one case out of n thousand, and
added that the rule laid down under
which he could act was so plain that
there was no doubt about It's constitu-
tlonality.
would Consider Every Factor.
Replying 10 Senator Walsh, Senator
McCumber said the President would be
authorized 10 take into consideration
every factor bearing upon the question
OF competition in trade and that these
factors might include the matter OF
exchange. labor costs. freight rates. ex-
port duties and laws and regulations in
the country OF origin and any other
matters affecting equality In the
markets OF the United States.
American manufacturers" he de-
clared. ARE not much interested in
what an article costs abroad. but In
what II is being laid down for in the
american market"
Senator Underwood told the Senate
that not only was he convinced the
flexible tariff plan was unconstitutional.
hut that It was wrong in principle and
would lead TO the Oppression of the
American people" and In the end TO
the ruin OF business and prosperity
The Alabama Senator argued that IL
Congress could delegate to the Presi-
dent authority to levy taxes at the Gus.
tenn houses to the extent OF 90 per cent
on the value OF imports IL could dele
gate power to levy it en- home consump.
tion.
Senators OF the Republican agriculture
tariff bloc stood pat to-day on the Senate
Finance Committee. amendment 10 the
tariff bill to transfer arsenic acid (paris
green) from the free list to the dutlable
list at rate OF 3 cents a pound.
When this item was taken up Senator
underwood. the Democratic leader
asked the bloc whether IL intended IN
join with the minority In restoring ia
The free list commodities used by farm
ers which the committee had recon-
mended be made dutiable Senator Ia
Toilette Of Wisconsin was the only
Republican to vote against the commit
tec amendment. which was approved 40
20 -. Senator'S Broussard (La) and
i<endrick (Wyo). Democrats reported
he amendment.