Omaha daily bee., 1922-01-16
Approval Of
V Valuation
Plan Likely
Slightly Modified Form Of
American Scheme Favored
by Majority Of Tariff
Framcrs.
Some Opposition Voiced
BY ARTHUR SEARS HENNING.
n, Omaha B~s Leased Wire,


Washington. Jan. ls.--rhr Amer
lean valuation plan, in slightly modi-
fled form, which It's opponents al.
lcge will operate TO boost prices OF
imported and competitive dome s,tic
articles, appears TO be on the verge
Of approval by the senate finance
committee.
While not in the exac, iotm OF
American valuation provided by the
Fordney bill. under which the value
would be estimated on the basis OF
what il would cost 10 manufacture
the same article with American
labor and in American factories, the
scheme is an American valuation
plan in the sense that it con,emplatcs
the use OF the American selling price
OF the imported articles as the basis
for assessing ad valorcm duty.
The manufacturing interests arc
not so well pleased with the proposed
substitute as with the original plan.
Duties IN many cases will not be
boosted TO the same levels as II the
value of the comparable American;
lldoe article were tne OASIS.
Furnishes Protection.
However. the manufacturers figure
that the importers will sell Their
goods for almost as much as conls
petitiye American articles would
cost, thus furnishing basis OF
valuation providing much greatcr
protection TO the American manu-
iacturer with moderate rate of duty
than il somewhat higher duty were
imposed on the low foreign cost.
The importers find almost as many
objections 10 the proposed substitute
plan as to the original American
valuation plan. Approval OF the
proposed substitute will, in effect, be
a sweeping victory for the advocates
OF American valuation. ~.
Republican members OF the sen
ate finance committee hope TO reac',
a final decision OH the question o.
American valuation tomorrow, or in
any event, by the middle of the week.
Members OF the committee said ter
day that all indications point to the
approval Of the American selling
price plan as embodied in amend
ments offered by Senato1 Smoot OF
Utah and approved by Marion Dcv
rics, presiding judge Of the United
States court Of customs appeals, and
BY Thomas o. Marvin and William
Burgess. the two members OF The
tariff commission, appointed b.
President Harding.
Alternative Remains.
The alternative which remains IN
der consideration is the retention OF
the foreign invoice value with the
addition of the flexible tariff prov;-
sions contemplated under the otli-
er scheme, including authority to
the president to assess equalizing du-
ties to offset low valuations due TO
deprecated currencies of foreign
countries. Under this plan the pres
ident would beNgiven authority. iu
the case of merchandise, imported
from the country whose currency
has deprecated more than s per cent,
to levy duty of | per cent addi
tional for each point OF deprecia-
ton in the value of the foreign cur
rency. This deprecated currency
provision is slightly different from
that in the most recent amendment
offered by Senator Smoot, which
gives the president power to impose
equalizing duties up to 50 per cent
of the value of the imported article.
While the plan of retaining the
foreign invoice value with a flexible.
tariff and deprecated currency provi-
sions attachd has some support in
the committee. Senator McCumber
OF North Dakota, the acting chair
man; Senator Smoot, Senator Wat
OH of Indiana and other leading re-
publicans on the committee indicate
that the trend of opinion is toward
the approval OF the American SELL
ing price plan.