New-York tribune., 1922-08-28
" WatsonOpposes
Foreign Y Values
AS Tariff Basis
Senate Plan Would Rob Bill
of Protective Effect and
Permit Enormous Profifs
for Exporters, He Says
Flexibility Idea Wrong
q Questions Wisdom of Giving
President Power TO In
crease or Lower Duties


WASHINGTON, Aug. 81. - Repre-
sentative Henry w. Watson, Pennsyl-
vania's member on the House Ways and
Means Committee, to-day announced his
opposition to the foreign valuations
basis in the Senate tariff bill and the
provisionYgiving the President, through
the Tariff Commission, power to modify
the tariff rates. The enactment of the
foreign basis for levying duties, he said,
would make the bill imperative as q
protective measure and permit i'm
porters to reap enormous profits, reach
ing as high as 1000 per cent. Mr.. Wat
son believes permanent tariff law will
be enacted before the November cleo
ton.
THE Fordney tariff bill, with its
combined power to provide revenue and
to encourage INDUSTRIES" he said,
probably will be enacted into law pre-
vious to October. The crumblng of
foreign exchanges in Continental Eu-
rope has greatly reduced the cost of
foreign production, and under the pres
ent rates of duty as written in the
Underwood bill the importers have
filled the warehouses with goods, wares
and merchandise, to be placed upon the
American markets, in many instances
at 1000 per cent profit to the merchant
While these conditions exist, American
industries cannot prosper, nor national
prosperity be maintained.
One-Man Power Charged
II seriously question the wisdom of
enacting into law that section of the
special provisions of the bill extending
to the President the power to increase
or decrease any rate of duty not to ex-
ceed, however, so per centum of the
rate specified in the bill. This sig
nifies that the President has authority
to revise every rate of duty except
where it is provided that no duty shall
be increased to exceed the maximum
ad valorem rate so specified, thereby ex-
tending to one man the control of the
rates of certain commodities by de-
creasing them at his will.
Under the provisions of this bill
the United States Tariff Commission
at the instance of the President, may
hold public hearings and submit the
findings to him, who may take such ac-
tion in the premises as he may deem
expedient; in fact, the Tariff Commits
sion may rewrite in part the tariff
bill. This system will not stabilize the
wages of the workmen, nor place the
industries upon permanent basis.
81 am not in accord with this Senate
amendment, as it bestows upon the
President and the Tariff Commission
power that may ultimately lead to gov
ernment control and bureaucracy
policies not consistent with our form
of government and contrary to the
spirit of the American people and the
tradition of our Republic.
House Plan Stricken Out
"The bill passed the House with
American valuation in order to ascer-
tain the value of the imported articles
for the purpose of levying duty
when such articles are within the &C
valorem classification. The Senate has
stricken out American valuation anc
substituted in its place the foreign OF
export valuation, whichever is higher
The low cost of production of import
ed articles therefore forms basis oil
appraisement, and under the rates ol
duty as provided. will render the bill
imperative as protective measure
While the exchange of commodities is
oEiy :" DoiISl ny SiNiHB W thCH q CeI
tain money value, for convenience Of
trade in the international commerce
the difference in the measure of value
of comparable articles should directly
represent the appraisement for rev
enue purposes, indirectly protection
for American industries and encour
age the growth Of manufactures.
Protective tariff is as politically
and economically sound to-day as il
1889, when the first tariff bill was en-
acted, and as important as then fol
our prosperity. The records show tha
prices for essential commodities are
lower, taxes less burdensome ane
wages higher under q protective tariff
than under one for revenue only
Our..almost exhausted resources have
been developed under protective pol
icy, which has placed our Republic tn,
leading nation in wealth and power"