The Washington times., 1929-08-21
FIGHT
IS LOSING
GROUND
b InssrnatlonaI New. ssrvlOe

Although eastern indus
trialists long have advocated
a "United States valuation" /"
plan for the collection Of tariff
duties, the Republican mem
bership Of the Senate Finance
Committee today seemed
likely to reject it in favor of
the time-honored existing sys-
tenn, by which rates are levied
primarily on the foreign valua-
tion Of imports.
The 100000 rates in the new
tariff bill, under the old plan, would
be levied first against the foreign
valuation or price at which i'm
ported articles are sold abroad. If
this information cannot be obtained,
then the duties would be levied
first, against the foreign valuation
or price at which imported articles
are sold abroad. II this information
cannot be obtained. then the duties
would be levied against the price at
which the imported article is offered
abroad for export to the United
States. These two alternatives have
been the basis for collection OF duties
for a half century or more.
Other Alternatives
The valuation provision, already
approved by the House, would offer
two more alternatives in event in.
formation about selling prices abroad
could not be obtained. The first OF
these alternatives would be the
United States value" plan or the
price at which the imported article
is offered for sale In this country.
The other would be a finding by the
Tariff Commission as to the. actual
''cost of production Of the imported
article.
A fifth plan of valuation would be
invoked only If all other plans failed.
The final alternative would be sevy'
ing duties on imported articles on
the basis of the American selling
price of comparative American ar
ticles. This plan could be used only
after the President had issued proc
lamation, declaring the true value
of the imported article not ascer-
tainable.
Senator Reed R.) of Pennsylvania,
however. has proposed that the
t'United States value" be used at ali
times. This has been the plea of
Joseph C. Grundy. president OF the
Pennsylvania Manufacturers Asso-
citation, for many years. Grundy
argued that other valuations were
unfair to American manufacturers
Reed Plan To Fail
The Reed plan was doomed ap'
parently because it would neces-
state a rewriting Of every rate
in the new tariff bill. Reed pre-
posed that If his plan were adopted.
the Tariff Commission be author
lied to revise the rates, "transldt-
ingv them from a foreign valua-
ton" basis to application under the
''United States value" plan. he
would give the commission two
years to make all the changes.
Strong opposition to the change
developed within the committee.
Some members argued that adoption
of the Reed plan would create tre-
mendous confusion in the business
world and unfair Determinations
against different groups of i'm
porters during the period in which
the rates were being changed. As
a result, it seemed entirely proba.
BILE the committee would reject
Reeds plan.
The question of continuing the
Presidents rate-changing powers
under the flexible tariff provi-
sion will be decided after the valu
alton question is settled.
The Republican committee mem.
bers hoped to complete all these
administrative features by Friday.
They already have approved new
section, allowing the President to
set aside all tariff duties in event
of war. He also was authorized to
repeal tariff duties on supplies
necessary to meet any great ma
tional emergency.