Evening star., 1922-02-19
American Valuation Plan in
Permanent Measure Stirs
Up Lively Opposition.
LONG DELAY IN PASSAGE
HELD POSSIBLE RESULT
Ad Valorem Rates Being Scaled
Upward-Fordrey Sums Up
Puzzling Situation.
BY the Associs,ed praxs

by the Associated Press.
A row between the House and Sen
ate over American valuation was fore
cast yesterday after it became known
that republican members of the Sen
ate finance committee, in rewriting
the so-called permanent tariff bill,
had agreed tentatively on continuing
the present principle of basing duties
on foreign market value.
Chairman Fordney of the House
ways and means committee declared
that il this kind of a tariff measure
was passed by the Senate the House
would write new bill, with an Amer
| lean valuation clause, and let the
| Senate try again." If this should
! happen. it was said. there would be
little prospect of tariff bill at this
session unless Congress remained on
the job throughout most of the con-
gressional election campaign.
| Fordney Explains Views.
| Declaring that the House ways and
| means committee had written a bill
on the American valuation plan only
after full agreement with all OF the
IHSUlDeIS VI lHe seIbdle
committee. except Senator La Toilette
of Wisconsin. Representative Fordney
said the aba andonment of this principle
| by the Senate committee majority
| was "a thing the gentlemen of the
ways and means committee would not
| have done without consulting the
finance committee"
IF they send bill over here based
on foreign valuations" he added.
they may expect that it will be sent
to the ways and means committee,
which will send back to the Senate a
bill also based on American valua-
| tion.
I'll never agree to any foreign
valuation and / do not know of any
republican member of the House who
will or who wants foreign valuation"
The valuation plan as framed in the
House bill was abandoned some time
ago by majority members of the SEN
| ate committee, who have been con-
sidering two plans, based largely on
! the recommendations of President
| Harding in his annual message to
Congress last December. The execu-
tive said then, regarding American
valuation, that there could not be ig-
! nored 1.-The danger of such valuation
making American tariffs prohibitive.
In the light of the Presidents po-
| sition il was suggested that in the
event of a disagreement between the
| House and Senate on the valuation
question the matter might be referred
to the executive in an effort to bring
about an agreement before such an
| impasse as that suggested by Mr..
Fordney would be brought about.
The Senate committee majority be-
gan yesterday the rewriting of the
ad valorem rates in the Fordney bill
on the basis of foreign valuation.
Senators said that many of the rates
were being scaled upward, since the
original figures were predicated upon
an assessment of duties on the basis
of the value of articles produced in
this country comparable to those i'm
ported.
SmOOt's Valuation scheme.
The valuation plan as tentatively
agreed upon, known as the Smoot
rlan, carries provisions designed to
meet unusual conditions now exist
ing in world trade. These provisions
include proclaimed American valua-
! ton: flexible rates within a radius
of so per cent of the figures fixed
in the bill and a deprecated cur
rency provision. There also are Sec
tions designed to prevent unfair COM
petition IN importation and discrim-
ination against American foreign
commerce.
1t was said that a final vote on the
Smoot plan was being delayed pend
ing further information from the
State Department as to whether the
deprecated currency provisions would
be in violation of the favored ma
ton" clauses of existing commercial
| treaties. There is some doubt in the
committee now on that score and this
provision may have to be modified.
Under the other valuation plan
| which the committee members have
been considering for some weeks
duties would have been based upon
the wholesale selling price in the
American markets of the imported ar
ticle. This plan also contemplates the
bolstering provisions in the Smoot
amendments. 1t was urged by mem
bers of the Tariff Commission and the
Court of Customs Appeals, but was op-
posed by officials of the customs di-
vision of the Treasury, who held out
for the Smoot plan.
u Some proponents of the proposal
tentatively agreed upon have argued
that the present bill WAS designed as
q "nermanent" ufIe and that it would
not be wise to adopt a principle
framed to meet existing conditions
!, which might be removed within a
few years. Many other ARGUMENTS; IN
were urged against the American