Evening star., 1930-12-11
PAPER IMPORTERS
OPPOSE NEW TAX
Consular Invoice Resumption
Held Burden and Cause
of Irritation.

Arguments for and against the re-
sumption, of consular invoices on two
classes of merchandise were begun to-
day at a hearing at the Bureau of Gus
toms before Capt. F. x. A. Eble, COM
missioner of customs, and other officials
Of the bureau.
Opponents of the proposal to place the
consular invoice again on free mer-
chandiSe and merchandise subject to q
specific rate of duty first registered Wig
orous objection to what they considered
not only a tax, but cause of "irrita-
tion," especially between the United
States and Canada.
Capt. Eble explained, however, that
the Bureau Of Customs was sympathetic
cally disposed TO leave Canada and Mex
! leo in their present status, exempt from
consular invoices on free and SPECIFIC
duty merchandise. But he emphasized
| that determination had not yet been
made on the matter, and before a deci-
sion was reached he would submit the
question to the Attorney General of the
United States.
Following a series Of objections to
the proposed resumption of the in
voice, the proponents, including repre-
! sentatives of the Treasury Department,
began their arguments.
Opposition came strongly from lum-
Der, pulp, neweprint and newspaper
interests and at least three members of
Congress, who represented their con-
stituents ON objection, filing letters and
kilograms.
Commissioner Eble explained that
the complete elimination of consular
invoices on these two classes of
merchandise since last August, under
the new tariff act, had resulted in
rat aT11 S5oVxa
ments of Government. The State De-
partment, he said, was neutral" but
submitted a list Of figures to show
the loss in consular fees. He explained
that the Department of Agriculture pro-
tested that it needed the consular in
voice in its program to protect the
country from inportations Of impure
foods. The Bureau Of Narcotics, he
said, had use for the consular In
voice, and the Department of Com
merce had made representations con-
cerning the value Of the consular
invoice.
Claims United States Pays.
Concerning Canada, Commissioner
Eble said, he was not sure yet whether
the Attorney General would permit the
of putting back the invoice, but, he
added. I'VE are in favor of our friendly
neighbor Canada" he said, explaining
that there was also disposition to leave
the present regulation in force concern
ing Mexico, If possible.
James L. Gerry, attorney, of New
York, representing lumber companies,
and also the Canadian Lumber AsSo-
citation was the first witness. He stren-
uousiy objected to resembling the regu-
lattons of last August. which exempted
free and specific duty merchandise from
| the consular invoice To put it back.
he declared, would be "purposeless, vain
and useless" He insisted that the fee
| OF $3.50 an invoice was not burden
on the Canadian shipper TITS a bur-
den on the American consumer" he de-
clared. The consular fee If imposed, as
Is proposed, he said, would increase the
burden from about $400, 900 at present,
to nearly a million dollars.
Irritation Said Caused.
A. c. Dutton Of Springfield, Mass,
! differed with Gerry, declaring that the
tax was paid by the Canadian producer,
the man who wants the trade the
worst" But he said it was considered
by the Canadians as an arbitrary tax
and was the cause of very considerable
irritation" between the two countries.
He said the tariff law was "a great ir-
rttation to the Canadian people, espe-
cially on lumber" but the August regu-
lation exempting the two classes of
merchandise from the consular invoice
had been interpreted as a more liberal
Interpretation of the tariff act. A step
backward, he said, would increase the
irritation" between the United States
| and Canada.
Wilbur La Roe, jr., of the International
Paper Co. protested against the resump-
tion Of the invoice, speaking for the
newsprint industry. He emphasized
that newsprint and paper was the lead
ing industry in Canada, and that the
American market took large percent
age of the product. Out of the total
Canadian production of about 2.OOO.-
900 tons. he said, the American news
papers were taking 1,775,572 tons, or
close to $4,000 cars a year.
The speaker said he could not believe
that the Government would impose
upon newspapers of this country this
annoyance" With industry generally
at a low ebb he declared, Including
newsprint business, 1t would be mighty
serious to impose the slightest impedi-
ment to the recovery of prosperity in
the United States" The Treasury, he
said, should avoid adding this burden
on industry. and this added "irril atom
TO the Good relations between the United
States and Canada.
Fleming NewDold, business manager