TARIFF NEXT
ISSUF BEFORE
THE HOUSE
WASHINGTON, June 20—The ways
and means committee of the house of
representatives will not begin hear
ings on the question of a general tariff
revision until after July 4.
Reports that the hearings would be
gin June 20 were premature. Although
the sixty-sixth congress has only had
a few weeks of session, Washington's
warm weather is beginning to induce
vacation feelings, and if the congress
can fish up its appropriation labors
during this month, there is every like
lihood that there will be a bit of sum
mer recessing about Independence day,
ostensibly to permit congressmen to
regale their constituencies with Fourth
of July speeches. Until the members
get that out of their systems, the ways
and means committee does not intend
to try putting on any hearings.
In the meantime, however, the com
mittee has ordered a comprehensive
compilation of all the data relating to
the subject of tariff revision, particu
larly the statistics of our exports and
imports since the Underwood-Simmons
law replaced the protective measures
of the Payne-Aldrich act. This alone
will take a month of hard work.
Chairman Fordney of the ways and
means committee has also announced
that a special effort will be made to
hasten legislation to protect the chem
icals, dyestuffs, potash and laboratory
glass industries, in order to preserve
the plants which the pressure of war
gave to us. The committee itself has
taken no action on this problem, al
though President Wilson included a
plea for these war industries in his
message convening the new congress.
Representative Longworth of Ohio, a
member of the committee, has present
ed a bill to protect the dyestuffs and
chemical industries, and measures to
cover other special industries are
promised soon.
Mr. Fordney's declarations concern
ing the special protection for war in
dustries came in connection with the
proposal of his committee to repeal
section 904 of the internal revenue
law, which levies the luxury taxes.
The treasury department estimated
that this repeal would cost the treas
ury about $85,000,000 annually. Mr.
Fordney’s estimate was $100,00(1,000.
"To recompense the government for
the taxes lost by this repeal,” said
Chairman Fordney, “we must find
other sources of revenue. Several great
industries have sprung up in this
country since the war that could not
survive against the strong and unfair
competition that we had prior to war
conditions. One of these is potash,
The alien property custodian, in his
annual report, described at length the
unfair and ruinous competition in the
chemical industry in this country
which the Germans carried on prior
to thq war. He explains it there more
fully than I have time to explain it
now. He showed in one particular in
stance where there were five indus
tries established in this country in the
chemical industry; they ran along, but
afterwards competition became so
keen that the price of the article pro
duced was cut down so low that three
out of the five were obliged to suspend
operations. When the war came on the
two that survived were branches of a
parent company in Germany. Since
that time, the government has taken
them over under the alien property
act.
Oliiue UltJ wax ux unc uui, i/cupic »u
this country have invested some $50,
000,000 in the production of potash.
The geological survey reports that in
a certain lake in California there is
raw material in sight to supply our
wants at the present consumption for
the next eighty years and another lake
in Nebraska quite equal to that of
California. Potash is produced in
twelve states in the Union from var
ious sources. That industry will be
put out of business unless we give
them some protection, and the ways
and means committee will in a few
days report that we might call a sep
arate or shotgun bill for the purpose
of protecting that industry.
“The genetleman from Ohio, Mr.
Longworth, has introduced a bill. to
protect the dyestuffs industry, one of
the most important in the land. We
have all the raw material necessary
to majce all of the dyestuffs for the
whole world. All that is necessary is
for our government to protect that in
dustry in this country against the
cheaper made article and the ruinous
competition from Germany that exist
ed before the war and will exist again
the minute the war is over.
“Another is laboratory glass, and I
could go on and detail several more of
them. We will present to the house
separate bills for the protection and
relief of those industries, and we are
going to ask our good democratic
friends to help us prbtect them from
ruination, from competition from Ger
many the minute the peace treaty is
signed, and I know you will do it.
"Where are you going to get the
$100,000,000 which you say the govern
ment will lose by the repeal of the
luxury tax?” asked Representative
Evans of Nebraska.
"By raising the import duties,” re
plied Chairman Fordney. “We are go
ing to bring in a general tariff re
vision bill as soon as we can. It will
take several months to prepare it, but
we are going to bring it in. We have
no bill prepared. We have not had
time. It took the ways and means
committee twenty weeks last year to
prepare the so-called revenue bill.”
“Will that cover the $6,000,000,000
treasury deficit which we are told we
are facing,” again asked Mr. Evans.
“No,” replied Chairman Fordney.
“But I will say this. If the rates of
duty had been in effect last year which
were provided in the Payne tariff law,
and which contained the lowest and
valorem rates we had in half a cen
tury down to 1913, on the amount of
goods we imported last year we would
have collected more than $1,000,000,
000. Instead, we collected $170,000,
000. Our import duties today are
lower than those of China, lower than
those of any country in the world
which has a tariff law.”
The ways and means committee
struck its first snag in its effort to
repeal the luxury taxes of the revenue
law. The measure introduced by
Chairman Forney was carefully limited
to Section 904, which contained the
luxury schedule, although much pres
sure had been brought to have it in
clude the taxes on soft drinks, jewel
ry, automobiles and a long list of other
items -which were claimed to comprise
the “obnoxious consumption taxes”
against which President Wilson had
inveighed. Section 904 hjid been made
the subject of a repeal bill in the
Sixty-fifth congress. The Fordney bill
was given the unanimous endosement
of the ways and means committee.
But when it got on the floor, the de
bate was far more vigorous than had
been expected. Even former Speaker
Cannon of Illinois, opposed the repeal,
lespite the bi-partisan support given
it by the committee.
Chairman Fordney, however, does
not look upon this opposition as
threatening the future course of the
committee. He believes that the com
mittee will be able to secure the full
Republican support, and considerable
Democratic support for the special and
general tariff measures that are com
ing. The committee itself is working
in complete harmony. The election of
Senator Penrose of Pennsylvania, as
the chairman of the senate finance
committee, promises that the tariff
building body will co-operate in all
things with its colleagues in the house.
The senate committee however has
not participated in any of the tariff
discussions, nor has it taken up the
proposal for a joint committee of the
two Republican conferences to col
laborate on a joint tariff bill that
would obviate the necessity of long
struggles in conference to work out
compromises between the two ends of
the capitol.
NOTICE TO CONTRACTORS
Sealed proposals will be received at
tbe office of the town clerk up to 6
p. m. Wednesday, June 25, 1919, for
the repair of the bulkhead and side
walk on the west side of First Street
between B and C strets, town of Cor
dova.
Plans and specifications may be seen
by applying to J. E. Currier, chairman
of the street commitee.
The city reserves the right to reject
any or all bids.
A. J. ADAMS, Mayor.
Attest: K. G. ROBINSON,
Town Clerk. 19-6t
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