Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-07-11
President Discusses Measure
With Watson and Reed at
White House Farley.
AUTO LEADERS O. K.
DUTY CUT TO 10 PCT.
Macauley, Packard President, Asks
That Countervailing Provision
Be Retained.
BY the Associated Press.

By the Associated Press.
President Hoover today advised Sen
ate Republican leaders to apply the
yardstick Of adequate protection" to
the pending tariff bill.
The tariff was discussed at a White
House conference today attended by
Senators Watson Of Indiana, the party
leader, and Reed of Pennsylvania, Sec
ond ranking Republican on the finance
committee, and two outstanding pro-
tectionists.
The Republican chieftains would not
commit themselves afterward on what
the effect would be on the House tariff
measure by the application of the rule
laid down by the President.
The House bill received almost unani-
nous Republican support.
Wants Sane Measure.
Senator Watson said that the Presi-
dent wants a sane and sensible" tariff
measure. Whether the President con-
siders the House bill sane and sensi-
ble" was not disclosed. The Senator
would not say either that Mr.. Hoover
was diSpleased with the House bill.
However, the view was held at the
Capitol that the Republicans, who con-
troll the Senate finance committee,
would work for a readjustment. more
or less extensive of the House measure.
Auto Manufacturers Views.
Alvan Macauley, president of the Ma
tional Automobile Chamber of Com
merce and the Packard Motor Co., told
a Senate finance subcommittee today
that most Of the automobile manufac-
turers were willing for the tariff on
passenger cars to be reduced from
Is to 10 per cent on condition that
existing countervailing provisions are
retained.
Macauley was one of a group of
automobile magnates called by Chair
man Reed OF the subcommittee to give
their views on the feasibility of lower
ing the motor vehicle tariff,
Against Truck Duty Cut.
He said the manufacturers were un-
willing to accept a reduction IN the
duty on trucks and busSes, now dutia-
BILE the same as passenger cars. be-
cause this was not mass production
industry to the same extent, and con-
sequently they have not the same ad-
vantage in competition"
The countervatling clause which he
would have retained provides that the
United States may levy a duty to
equal any rate levied against American
cars and trucks exceeding the Ameri-
can tariff, but not exceeding so per
cent.
Opening the hearing, Chairman Reed
read Tariff Commission figures show
ing exports OF motor vehicles in 1927
totaled $685., 1928. .422 and SCOTIA ,43l in
1928.
Imports were placed at $50 cars, val
ued at $954 4,376, in 1927, and 512 cars,
worth 1918, TAI, in 1928. In addition,
bodies, chassis and parts worth 81, 1885,
339 were brought in two years ago and
sl,755,l0S worth last year.
100000 u. S. Cars to Go Abroad.
McCauley said at the present rate Of
export it was expected more than
100000 American cars would be sold
abroad this year.
He said the passenger car duties i'm
posed by other countries ranged from
712 per cent in Mexico to 81 per cent
In Italy and SO per cent in Uruguay,
while the average was 80 per cent. The
average foreign duty on trucks was
slightly lower.
In answer to a question by Senator
King of Utah, Macauley said there was
a very serious" potential danger OF a
foreign invasion of the automobile
market because the foreign manufac-
turers could obtain the same talent as
those in the United States.
THE only thing they haven't got Is
a home market like we have, and they
can substitute world market for
that" he said.
Sloan Backs Macauley.
Alfred P. Sloan, jr., president OF
General Motors, indorsed Macauley's
testimony as to the 10 per cent duty.
He told Chairman Reed that his cor
poration had no intention OF manufac-
turing cars in its foreign plants for I'M
portation here. He added it was i'm
possible for American manufacturers
to produce in Germany and sell in
South America in competition with cars
made here and the only reason General
Motors opened plant in the European
country was to sell in the home market
there.
The witness agreed with Reed that
foreign manufacturers would have
relatively restricted home market as
long as the standard - living do not
improve.
Testimony that Edsel Ford favored
free trade in automobiles, light trucks
and tractors as far as his products were
concerned was given by R: I. Roberge,
assistant sales manager of the Ford Co.
He said he did not know what Henry
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