The Washington times., 1929-07-25
AUTHORITY TO Halt BUILDING OF CRUISERS DOUBTED
refund JOKER
MAY DELAY
TARIFF

After rejecting the export
debenture plan Of farm relief
for agriculture, the House Of
r. E presenta tives wrote q
joker, into the new tariff
bill, it was learned today, pro-
.viding a "debenture" of tariff
rebates to the sugar and nom
ferrous metal industries that
could cost the Government
$3.50, 100000 a year.
The ''5oker" has been discovered
by members Of the Senate Finance
Committee and undoubtedly WIN b
eliminated before the bill is 70.
ported to the Senate. Veteran leg.
islators felt the provision had been
slipped into the bin by the House
Ways and Means. Committee under
a misrepresentation and enacted By
the House without its import being
realized.
The "1oker" was found in Section
313 under . title called: 'substitu.
ton for Drawback Purposes
Refund Immense
It would affect the copper, tin.
silver and other non-ferrous metal
industries as well as sugar manu-.
factnrers.
Under it's application, 90 per cent
of all duties received by the Gov
eminent through the tariff on sugar
and non-ferrous metals would have
to be refunded IL the importers sub.
sequently exported manufactured
articles-such as candy or plumbing
fixtures-whic contained q volume
Of the raw materials equal to that
| imported.
The "joker' specifically provided
that the raw materials used in the
exported manufactured articles need
not be that which had been i'm
ported and yet the refunds would
be paid just the same. In all, IL
was said, the provision could force
a total Of $3.50, ,000.000 in such re-
funds.
A Little Different
The farm relief debenture plan,
which the House twice rejected after
the Senate approved it. would have
worked little differently, but the
effect would have been the same
Under the Senate's plan, the farm
er's debenture or refund of tariff
duties would have been paid on al
exported farm crop surpluses--but
the refund could have been used by
farmers only to pay duties on i'm
ported articles.
The sugar debenture would have
a similar effect upon tariff reve-
nues.
II an importer brought 100000
country, paying $1,000 in duties
l(under the House rateO, and then
exported . volume Of candy con-
tanning 100000 pounds Of American
sugar, he would be refunded
$2,S76. This would leave tho Cow
ernment $24 on the transaction
instead Of the $2s40O It would re.
ceive Il tbs ''joker" is eliminated.
The same process would apply to
an importer Of gold, silver, brass.
copper, tin or other non-HeErous
metal If he exported manufactured
articles containing similar raw ma
terial.
Over In . Weeks
The Joker was overlooked ap-
parently because previous tariff
acts contained . provision allow
ing drawbacks or refunds Il an
importer used the raw material in
manufacturing articles for irnmedi.
ate expectation. This was per.
mitted because some manufacturers
produced their own raw materials
in foreign countries and operated
only their factories in America-but
the refund only applied IF the i'm.
ported material were used In the
exported article.
The Republican members Of the
Senate Finance COMMITTEES mean.
while continued their fixing Of
new rates. Having completed the
chemicals, oils and paints sched-
ule, they began consideration OF
the earths, earthenware and glass
ware schedule. They hoped to
complete their task Of rewriting
House rates within two weeks.
4 y ~