Evening star., 1922-04-09
SHARP VARIANCE
IN TARIFF VIEWS
THREATENS BILL
Senate Committee Republic
ans Vote, I to 3, for Foreign
Valuation Principle.
HOUSE FIRM FOR BASIS
IN MEASURE AS PASSED
Report Early This Week Will
Favor Bolstering Provisions Giving
President Power Over Rates.

Sharp and fundamental differences
between the House and Senate threa-
en- to make exceedingly difficult the
enactment of any tariff bill at this
session of Congress.
Foreign valuation as the underly-
ing principle Of the so-called perma-
nent tariff bill was finally agreed
upon last night by the republican
members Of tho Senate finance COM
mittee. by q to vote, with the in
tention of reporting the bill to the
Senate on Tuesday or Wednesday.
American valuation was the basis
Of the so-called permanent tariff bill
as passed by the House many months
ago. and Chairman Fordney of the
ways and means committee more re-
Gently served notice on the Senate
committee that the House conferees
would stand firm for the American
valuation basis.
May Wait TIL Elections.
It has been forecast for weeks in
Congress that the Senate would prob
ably take a stand for the foreign
valuation, and the prediction has re-
peatedly been made that II this is
sue is raised the tariff bill will not be
passed until after the November cleo
tions.
How the republicans on the Senate
finance committee stood individually
on the valuation issue was not dis
closed last night.
The decision on this point practi-
cally completes the many months of
work on the tariff bill in the finance
committee. The majority report is yet
to be drafted and the democratic
members will be given an opportunity
to vote on reporting out this measure.
~ Presidenf's yisus Fssasred
. The valuation plan as adopted in
cludes bolstering provisions designed
70 take caro- OF the unusual situation
growing out of present world condi-
tions and. more particularly. the
marked depreciation Of currencies in
a number Of foreign countries. These
provisions are in line with recommen-
dations made to Congress by Presi-
dent Harding in his first annual mes
sage last December. ......
Where Investigation established
that conditions in foreign countries
enabled them to produce goods and
sell them in the United States at
prices, after payment of duty. below
the cost Of producing and marketing
similar goods in this country. the
President would be given authority to
increase any rate Of duty by 80 per
cent of the figue fixed in the bill.
Power to Transfer Items.
Should investigation develop that
such procedure Of increase on the for
eien valuation principle was too small
to protect American industry, the
President would have authority to
transfer foreign valuation to the
American wholesale selling price of
the imported goods and then to in
crease or decrease by SO per cent the
rates fixed in the bill.
The President also would have the
right to change the classifications as
ixed in the bill. that is, to remove
items from the free list to the duti-
able list. Senator Smoot of Utah
ranking Republican on the committee,
who drew the original bolstering pro-
visions Of the bill, said he did not
think it ever would be necessary
for that power to be exercised by
the President. Under another pro-
vision of the bill, Senator Smoot said.
where it was established that foreign
countries had cartels or associations
formed to control the prices of COM
modities in the United States. the
President should have authority to
prevent the taking Of imports from
such countries until the discrimina-
ton against American products prac-
tfced by such cartels or associations
was removed
Depreciation Plan Out.
The deprecated currency provision
of the original foreign valuation
amendments was stricken out by the
majority. as 1t was thought that the
authority given the President to
change rates, valuation and classifi-
cation would meet the situation that
might arise growing out Of deprecia-
ton in currencies abroad.
Tne original American valuation Of the
House was discarded by the Senate COM
mittee early in its consideration OF the
House bill, but long consideration was
given to compromise proposal that the
ad valorem duties be based on the
American wholesale selling price Of the
imported articles 1t was stated at the
time that the leading majority members
of the House committee were called in
by the Senate committee to discuss tho
valuation plan and that they had agreed
to this as q compromise.
Long Fight Expected.
Senate committee republicans look for
a long figat in the Senate over the
tariff measure. but they arc hopeful
that It can be put through within sixty
daya Indications now are that the
principal fights will be over wool. cot
ton, sugar, dyes, lumber and hides and
feathers The majority has fixed the
basic wool rate at 50 cents pound on
the secured content, or cents higher
than in the Fordney bill. and about at
the level dxed in. the famous schedule
x, of the Payne-Aldrioh tariff law.
Tho House rates Of . cents a pound
on full duty sugars and LEO cents q
pound on Cuban sugar were accepted BY
the majority after prolonged fights and
two separate votes, the last yesterday. =
-.-7ss ~