Evening star., 1943-01-31
Interstate Trade Burriers
Menace Free Trade
BIZ Frederic J. HaSkin.

legislatures are now III SESSION. III n
number of States and one of the major
reforms expected to be made by many OF
these law-making bodies is the elimina-
ton or partial elimination of interstate
trade barriers. Such a movement is
being forwarded under pressure of the
emergency, but a concerted effort to
check the growing evil of one State i'm
posing financial burdens on the residents
and business firms of another had its
inception in 1898 at the Governors Con-
ference. That body deplored what was
gradually taking place and definitely op-
posed further restraints on interstate
commerce. The sentiment of the confer
ence was heralded by the press, por-
trayed by cartoonists and became the
subject of widespread comment. Con-
sequently, when the public became fully
informed, there was rising tide Of pub
lie opinion against a trend that would
cause the United States to cease to be
a free trade area.
Interstate trade barriers are numerous.
Each State exacts tax from owners OF
commercial vehicles doing business
NAtiiul VI SiOoSAllS lto UOIuci. All oOOI~
ton, a number of States have established
what they call ports Of entry. All COM
mercial vehicles are required to enter the
State confines through these ports. At
these places taxes are imposed just as
they are imposed on foreign importations
at seacoast ports. Kansas started the
system in 1888
tat no tofi
and sale of eggs produced outside their
boundaries, even if farmers hennery
is only so feet over the line. Georgia
goes to the extreme by decreeing that
only eggs produced within that State
can be sold on its markets as fresh.
Thus farmers living in South Carolina
and Alabama, but along Georgia's bor-
ders, cannot take their one -day-o eggs
into Georgia and sell them as fresh. But
Georgia farmers can label their eggs as
fresh and sell them on Georgia markets
regardless Of age. Many other States
have decreed that eggs and other farm
products coming into their confines must
show place Of origin.
Then there are taxes on chain stores
d - Ii
cipally food products, hampering their
efficient distribution and consequently
against the interest of consumers.
The subject of interstate trade bar.
riers is embedded in the Constitution,
but it is interesting to note how the
States have circumvented the will OF the
trainers of this country's charter. The
Constitution states that mo State shall,
without the consent of Congress, lay any
impost or duties on imports or exports,
except what may be absolutely neces-
sary for executing its inspection laws.
and the net produce of all duties =
shall be for the use of the Treasury Of
| the United States" This provision was
made because New York and New Jer-
Revolution and before the Constitution
| had been ratified, erected trade barriers
! against each other.
Many Of the signers Of the Constitu-
ton had travelled in Europe and observed
| the handicap Of customs barriers which
countries there had erected against each
| other. So they were determined that
nothing of the sort would be tolerated
| in the new confederation. Although tho
States rights feeling ran high and jeal-
ousies between States existed, the Con-
stitutions trainers were able to rrevent
definite local enactments from becoming
burdens upon commerce.
Only recently, in historical terms, has
there been an alteration. OF course, at
the time of the Civil War there was q
clear-cut severance as though between
two separate countries. but that lasted
only during the war. Thereafter State
borders were opened and remained so
until comparatively recent times. Today,
however, the problem of encumbrances
upon interstate trade has reached men,
acing proportions.
Technically, the States continue to OBJ
serve the constitutional prohibition and
no outright tariffs have been enacted,
but, nevertheless there have been built
up interferences which serve the same
purpose. This has been accomplished
largely through the power of local taxa
ton.
The springs are economic, and because
Of this, the recent depression causing de-
pleted State treasures gave rise to hun.
dreds of restrictions. These restrictions
are designed to protect local industry
and trade in the same manner that the
protective tariff of the entire Nation is
designed to protect the domestic market
from foreign competition.
These local laws have preambles which
say that they are intended for the pro-
lection of health and the regulation of
sanitation. Thus Louisiana has strict
laws against outside drugs, foods. and
even cosmetics. But these preambles
fool no one. The reason for each re-
striction is purely economic, the pro-
lection of the home market for the bene-
fit of home producer. Were tariffs i'm
posed, the Supreme Court of the United
States would invalidate them as being
contrary to the prohibition contained
in the Constitution, but the trainers of
that instrument did not foresee this new
type of trade barrier.
There are Federal taxes, indicated by
stamp, on many items of commerce,
but in number of Jurisdictions the
bearing the imprint of the State Then
some States have use tax, the State
of Washington being the pioneer in it's
imposition. Washington even then had
sales tax, and the idea was to cause
purveyorS of articles from out of the
State tn nav a tay also The Issue copoo