Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-07-11
|CzECHS MADE DL[.
BY U. S. EMBARGO.
Dispute Over 0-Cent Bead.
Strings Puts Officials
at Loggerheads.
ny HARDEN COLFAx..

IN hAEUKIN NVLr AZ.
Because OF dispute over the COM
position OF string Of beads sold by
la 10-cent store, 1900 workers have
been thrown out of employment In q
distant country, the price OF similar
beads and Of certain cigarette and
cigar holders threatens to advance,
and complications Of serious proper
tions have arisen.
The government OF EZechoslO yakia
this week flled protest with the state
Department against an embargo which
has been declared against the impQrfa-
ton OF various commodities, principal.
ly beads and smokers articles, OF
which 1t is an exporter to the United
States. The result appareHtly has
been to place that department az
loggerheads not only with the Treas
ury and the Tariff Commission, Out
also with the Presidents
In this situation. slowly unfolding:
there exists the possibility OF q tafin
war which would put TO shame the
family Quarrel over that general sud-
iect which has been renewed between
the Democratic and Republican parties.
with broad principle Of policy In.
volveH the case presents matters OF
dee, interest not only to American
consumers OF the articles Immediately
affected, but to American workmen IN
particular. For 1t is asserted tnat
labor in this country has been depriv.
al Of work because of importation OF
cheap and inferior foreign goods.
Flexible Tariff Provisions.
when Congress enacted the existing
tariff law. it included several admin
Fistratiye features new TO SUCH legisia
tion. Among these was section olo.
which Is one OF the so-called nexipie
,,rny,ia,ons. II Ia intended to protect
a uerican industries against unfair
wefhods Of competition on the part or
soreign competitors. BY its terms,
the President, after report py the
Tariff Commission showing thaL tnsEe
has been unfair competition Wtn the
use OF an imported COMMONLY y AZ
thorized to increase the duty on tnas
commodity by 80 per cent. or m an
extreme case to forbid its admission
last December the Bakelite Corpora.
tion fiIed complaint with the Tarin
C0nnniesion under this section, charg.
ing that the importation and sale Of
certain beads and cigar and cigarette
hoiders constituted unfair competition.
II was alleged that the process by
which these articles were produced
violated patents held by the American
corporation and that in certain cases
the imported articles We're offered Tor
sale AZ the domestic product, tnereDy
violating the companys trade.mark
rights.
In April. after preliminary report
from the commission. the President
issued an order placing an embargo
against the importation OF such ar
ticies pending final hearing. Tine
Treasury has been holding arriving
importations since.
Denies Right TO Act.
The government of hoslovakia.
In itg formal protests against the en-
largo. which 1t flied last week with
the state Department, challenges, in
dipioriatic language. the justice, Il
NOT the right, OF this Government to
stop the commercial exports Of q
friendly nation before even q hearing
has been granted to explain.
IT ID asserted that the stoppage OF
the, flow OF such articles to the
unitsd States has c ss s. LEGO g workers
one domestic bead company which
3cined the Bakelite Corporation In the
original complaint has since gone out
of business, and another protested the
lower prices at which the imported
commodities were sold. Many Amer
lean workmen are said to have been
thrown out of jobs and much capital
lost.
Importers, defending the case, denied
any unfair competition; attacked the
validity Of the Bakelite Corporations
patents: denied infringement. even IL
they are valid, and challenged the
jurisdiction OF the Tariff Commission
M Tho er,snt,yaH that the "a ao shoaaia
have gone to the Federal Courts as q
patent suit.
Diplomatic circles frankly are con-
cerned over this matter of declaring
embargoes without hearing, and
where the foreigner has no redress,
IL the charge subsequently is dis
proved. Retaliation may be attempted
In some cases, 1t is feared, az similar
orders regarding other commodities
have affected Spanish and English
firms.