Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1922-04-12
GIVEN TO SENATE
Continued from Page One)


While they have not completed all
calculations. treasury experts say
that the Senate measure probably
would raise between 500, 0O0. 900 and
$3.50. O00, 600 in revenue as compared
with the estimate of S300O00.O0O in
revenue as compared with the esti
mate of $500. 000. 600 for the Fordney
bin and the sos. 900 900 Of revenue
returned in the calendar year 1921
from the joint operation of the Tn
derwood law and the emergency tar
if act.
In returning to the foreign valua
ton principle, the Senate committee
! majority carried out suggestions of
President Harding to Congress last
December for a flexible tariff. In
der special provisions in the meas
ure. the President. in the language
of the majority report which accom-
panied the bill, would be authorized.
ITO modify tariff rates either up
ward or downward within prescribed
limits go per cent? and in accord
ance with definite rules laid down by
Congress so that rates may at all
times conform to existing conditions.
ITO change the basis for the
assessment of ad valorem duties on
selected items. from the foreign val
ne to the value of the domestic ar
ticle in the American market, when
the foreign value is not certain
basis for the assessment of duties on
such items.
ITO impose penalty duties or pro-
hibit the importation of particular
goods from purpose OF preventing I'M
fair methods of competition in the i'm
portation of goods.
ITO impose additional duties on the
whole or any part of the imports into
the United States from any country
which dscriminatcs against our over
seas commerce. These additional du-
ties are limited to the amount of the
discrimination but if the discrimina-
ton is maintained, the Importation Of
merchandise may be prohibited"
Asserting that these elastic tariff
provisions were regarded by the COM
mittec as undoubtedly constitution
al" the report declared that they
would contribute to tariff stability
by preventing the accumulation of
cases which ultimately force the up
heaval of a general tariff revision" It
was added that Investigations of pos
sible tariff changes would be carried
out under judicial procedure and that
the parties interested would be Civ
en- an opportunity to he heard.
Nf l.
report said the committee had en-
dcavored to recommend rates that
would afford protection to American
industries and permit them to pay
wages sufficient to enable the work
men to maintain an American stand
ard of living and also rates sufficient
TO maintain essential industries Gre
ated as result of the war and con-
sidered vital to the future industrial
independence of the American peo-
pie"
In attempting to fix rates of duty
IN inns DILL the report continued.
your committee was faced with A
condition never before experienced
in tariff legislation. In certain for
elen countries high costs Of produc-
ton existed to such an extent that
duty which would afford protection
upon imports from such countries
would be entirely insufficient TO af-
ford protection from countries having
low production costs. On the other
hand the imposition of rate suffi-
Gent to afford protection from coun
tries with low production costs would
be absolute embargo On the products
iof countries having production costs
inearer our own.
The rates imposed by this bill are.
Sufiiclont to protect the American
market and preserve domestic com
petition and at the same time will
permit fair competition from other
! ourtries."
Taking Up what was described as
the need Of tariff revision" the
committee majority said in the linn
tied time before the war that the
low rates" of the Underwood law
were in effect those rates chad
caused rctrenchment in production
of American products and had de-
creased the purchasing power of the
American workman because Of re-
duction in wages" 1t added that the
outbreak of the war was the "salya
ton of the American industries"
Discussing present day conditions.
the report said "the quotations made
by foreign producers for export sale
of late have been SO extremely low
that they threaten the destruction of
American industries and have conse-
quently demoralized American trade"
1t added that this condition exists
at the present time and it is be-
lieved will continue to exist until
rates are established that will afford
fair protection to American indus
tries
Before its presentation in the SEN
ate the bill was formally approved at
the first meeting of the entire COM
mittee since the work Of drafting the
measure was started three months
ago. Democratic members of the
committee present voted against it
and We're given 10 days in which to
prepare their minority report and
also for the fight which they plan
to launch against it Immediately aft
er it is called up.
The charge of secrecy in the nrnp-
aration of the bill. was raised promptly
in the Senate from the Democratic
side. Senator Harrison Of Mississippi
called attention that the bill was in
troduced today during an executive
session of the Senate and added:
1T was perfectly natural that II