Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-02-16
LoOphOles in the Tariff Wall
BY FREDERIC J. HASKIN.

olive growers from California and the
Southwest have urged a tarih on olive
oil. Great quantities Of this oil are
imported and every cent of tariff would
mean large sums added to the cost in
this country. Yet this small group
wanted this done to foster a very minor
and localized industry.
Congress rarely grants such special
subsidIes, although there are few in
stances. These instances are more than
likely to arise from cleverneSs on the
part Of an interested legislator. Senator
Aldrich of Rhode Island was Joint
sponsor of the Payne Aldrich tariff bill.
At Providence, r. J., there was a strug-
Cling cheap and imitation jewelry indus
try: Rates of duty on jewelry-that is,
real gems, real gold and silver orna-
ments. and the like--were fairly high, but
limitations would not come under this
protection. Mr.. Aldrich had incorpo-
rated in the measure a very innocent
looking provision. which called for ap-
plication of certain other rates on ar
ticles similar to iewelry." The result
was that, in following the formula laid
down, the Treasury was required to levy
an IS per cent customs duty on imita-
ton jewelry, higher in fact than the
rates on real gems. 1t was the making
Of the now fiourishing Rhode Island
industry.
How Tariffs Can Be Regulated.
Large quantities of various kinds Of
oils are imported into the United States,
and importers have found way TO
beat the tariff In that classification.
Take ltrlseed oil, many cargoes of which
are imported. 1t, like most other pure
oils, carries Q high protective rate. But
the tariff law imposes q much lower
rate on mixed oils. LinSeed oil i'm
porters discovered this loophole, and
| now are shipping a mixed oil contain
| ing % per cent linseed oil and per
| cent soy bean OIL The amount Of soy
bean oil Is SO small and its composition
| so similar that the Customs Division
says the presence of the per cent can
not be detected even by chemical anal
| ysis. Yet the mixture comes in under
the low mixed oil rate. The same
| thing can be done with olive oil, with
which peanut oil, another edible oil,
can be mixed Any two or more high
duty oils, If mixed, can come In at the
lower mixed oil rate. There Is q proVi-
| sion in the new tariff bill designed 10
close this 1oophole.
The highest duty assessed under the
tarin is that on lace-90 per cent. This,
like other high rates of duty, results In
q good deal of smuggling. But even
CnlS nlgn DUTY is susceptible OF being
raised. Under the flexible provisions of
the tariff act the President by procla-
nation may raise or lower a rate Of
duty on any item so per cent. But the
| President cannot declare In effect a
duty on any article which is not al
ready subjected to tariff irnpost.
Some legislators and economists re-
| gard this as an anomaly, pointing out
that while the President may increase
the protection If an industry already
enjoys the benefit Of tariff, he Is help
which has no protection at all. The
Constitution Is responsible for this, a.
It provides that all measures for the
raising Of revenue must originate In the
House of Representatives. AS any tariff
| measure is q revenue as well as pro.
tective measure. 1t cannot legally origi-
| nate in the White House