Evening star., 1926-03-24
BUSINESS MENACED
BY PRESENT TARIFF
ACT, PROBERS HEAR
Page Tells Senate Inquirers
Flexible Provisions Should
Be Repealed.
NECESSITY FOR CLAUSES
DECLARED EXAGGERATED
Tells of Conference of Officials to
Find Substitute for American
Valuation.
BY G. GOULD LINCOLN.

BY G. GOULD LINCOLN.
The flexible provisions of the Ford
rey-McCumber tariff act came in for
another drubbing today at the Senate
investigation into the administration
~ the Tariff Commission. Former
chairman Thomas w. Page of the
Tariff Commission, a Democrat, told
The Senate committee that in his opin-
ION the flexible provisions of the tariff
l,W should be repealed
Mr. Page insisted that the existence
-. these provisions was a constant
Threat to business, which did not
know when a change in the tariff du-
ties might be initiated.
The tariff rates. he said, should be
liked by Congress. SO that business
would know what to expect.
Mr.. Page became a member of the
Tariff Commission in 1918, he told the
committee. In 1922 he left the COM
mission, he said, although his resigna-
ton had never really been accepted
lie said that several times he had
postponed submitting his resignation
at the request of President Harding
lie wished to leave, he said, because it
was financial sacrifice to remain,
pathy with the new tariff law.
Mr.. Page told the committee that
while he was member of the commits
sion on two occasions President Har.
ding eXerted his influence to have per.
sons appointed to the commissions
staff. President Harding. he said, at
one time became very angry because
q commissioner refused to indorse a.
man whom President Harding wanted
to have named secretary of the com.
mission.
Urges Report Publicity.
Mr.. Pages testimony regarding the
efforts of President Harding to use his
influence in having appointments
made to the commissions staff was
brought out by questions of Senator
La Toilette Of Wisconsin.
Senator La Toilette also asked Mr..
Page if he did not believe the reports
made to the President by the Tariff
Commission should all be made public,
including the sugar report. Mr.. Page
replied that he thought they should
be made public.
Senator Reed suggested that the
president had made public his own rea-
sons for not changing the duty on si-
gar and that therefore 1t was not
necessary to make public the views Of
ine 1arlH Commission.
MIR. Page pointed out, however, that
the entire membership of the commits
sion had favored a reduction, although
one group of commissioners favored a
greater reduction than the other.
The committe adjourned until Mon
day morning, when 1t will resume it's
hearings, probably with Chairman
Marvin as the next witness.
Senator Reed of Pennsylvania, Re.
publican, questioned Mr. Page at
length, seeking to draw from him an
admission that with the deprecated
currency abroad and the low costs Of
production there. it was necessary to
adopt flexible provision as IL kind Of
safety device to protect American in
fustry against the dumping Of for
eign goods in this country.
Mr.. Page stuck to his guns, how.
ever, insisting that the danger OF
dumping Of foreign goods here had
been exaggerated"
In reply to questions by Senator
Robinson of Arkansas, chairman Of,
the Senate committee, Mr.. Page de.
scribed the origin of the flexible tariff
provisions as he understood it. He
said that when the Fordney- -McCum-
ber tariff bill passed the House it car
ried a provision that American valu-
attonS of imported goods should be the
DdSlS Ol tne ldTlII uuIleS.
Explains Critics View.
This aroused great criticism, Mr..
Page explained, because, with the low
costs of production abroad and the
high valuations in this country, a
80 per cent duty on foreign goods be-
came in reality a far higher rate
than it would have been under Ordi
nary conditions.
He described conference at the
White House attended by President
Harding, all the members Of the
tariff commission at the time, Senator
Smoot of the Senate finance commit
tee, and Secretary Hoover of the De-
partment of Commerce. Some sub
sttute for the American valuation
was sought. The bill was still before
The Senate finance committee.
Mr. Page said he favored a plan
whereby the President would be en-
powered to proclaim an emergency, If
it became apparent foreign goods were
being dumped in this country to the
detriment of American industry and
after an investigation by the Tariff
Commission to increase the rates, pro-
claiming the reasons for the change.
He said he suggested also that in max.
ing it's Investigations the commission
should attempt to "equalize conditions
Of competition" rather than adopt the
plan of ascertaining the costs of por-
duction abroad and in this country
for the purpose of making the neces-
sary compa parison. 1t was practically
impossible to ascertain foreign costs,
he said.
Says Proposal Differed.
"Your plan did not differ materially
from that finally written into the
law" suggested Senator Reed.
at differed very materially" re.
piled Mr.. Page. He explained that
originally it had been planned that
the period in which the President
might proclaim an emergency. was
10 be only two years. He pointed
put that under the flexible provisions
now In the law any rate can be
changed. and that the provisions are
permanent. The Senate finance COM
mittee, he said, adopted the original
plan, but 1t was asSailed on the floor
as unconstitutional, and on the mo.
ton of Senator Lenroot of Wisconsin
the present flexible provisions We're
written into the bill.
Senator Reed said that if Congress
were left to fix the rates of duties,
there would be the same uncertainty.
MIR. Page denied this.
Senator Robinson wanted to know
in how many important cases the
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