Imágenes de páginas
PDF
EPUB

PARAGRAPH 448-JEWELRY.

It should be noted that a straight ad valorem duty of 85 per cent was asked for. This language was found to be so comprehensive as to include articles not intended to be covered thereby. The author of Notes on Tariff Revision then suggested as an amendment to the paragraph as it appeared in the Dingley Act the following language:

Articles not specially provided for used to be worn upon the person or carried in the hand for purpose of adornment or utility made in part of metal, including chain purses and bags of gold or silver wire or imitation thereof, portemonnaies with watch charms and guards.

Careful consideration of this provision seemed to indicate that as drawn it was also so comprehensive as to include many articles not intended to be therein provided. For example, the provision "for articles used to be worn upon the person or carried in the hand for purpose of adornment or utility," was seen to be so broad as to include everything of metal used upon the person or carried in the hand even where its sole use was utilitarian unless it was somewhere specially provided for in another paragraph. It is obvious that under this provision as first drawn such an article even as a pair of roller skates would be included and the following articles might be mentioned as coming within the provision and dutiable thereunder unless more specially provided for, the only limitation being that they must be "in part of metal"-dress-suit cases, umbrellas, walking sticks, eyeglasses, keys, etc.

It should be noted that the provision did not relate only to those which were for ornamentation, nor was it limited to those which were designed for the purposes mentioned. It covered every article which was used upon the person or carried in the hand.

It thus came about that an effort was made to have this paragraph as passed by the House changed, and we find the domestic manufacturers and certain importers getting together in an effort to agree not only upon the form of the new paragraph but also the rate to be recommended. The result of their agreement appears in Volume 8 (Appendix) of the Tariff Hearings at page 8376, where we find Mr. Thresher submitting a letter dated February 23, 1909, to the Committee on Ways and Means, in which he uses the following language:

In presenting this schedule for your consideration, we desire to state that George R. Howe, representing the manufacturers of gold jewelry; H. G. Thresher, representing the makers of cheap jewelry; and Alfred Krower, of Albert Lorsch & Co., representative importers of precious and imitation stones, chains and jewelers' findings, have labored diligently to harmonize their differences and so successfully that they all unite in supporting the paragraph we now propose.

On pages 8378 and 8379 the proposed paragraph is set out at length and is couched in the exact language of the present law with 85 per cent, the rate asked originally by the association.

It should be noted that the House bill was not introduced until March 18, 1909, and the agreement and the paragraph had already been printed in the report of the Ways and Means Committee, but it is probably the fact that the presentation of this paragraph came too late to be considered by the House.

A brief reference to two or three of the most important decisions under this act will show you how these articles have been cut out of paragraph 448, and the paragraph as it stands shorn of perhaps 90 per cent of its force.

PARAGRAPH 448-JEWELRY.

I would like to call your particular attention to the provision in this paragraph for "all other articles of every description, finished or partly finished, if set with imitation precious stones composed of glass or paste, except imitation jet, or composed wholly or in chief value of silver, German silver, white metal, brass, or gun metal, whether or not enameled, washed, covered, plated, or alloyed with gold, silver, or nickel and designed to be worn on apparel or carried on or about or attached to the person valued at 20 cents per dozen pieces.'

[ocr errors]

Then it goes on to give the rates and concludes with "all the foregoing, whether known as jewelry or otherwise, and whether denominatively or otherwise provided for in any other paragraph

of this act."

This was undoubtedly intended to cover these articles [indicating articles].

As construed by the classifying officers, the silver and base metal novelties and jewelry were assessed under this provision, but in a decision by the Board of General Appraisers dated April 14, 1910, T. D. 30545, it was held that only articles ejusdem generis with those enumerated by name in the first line of the paragraph, to wit, chains, collar and cuff buttons, etc., were covered by this provision. The Treasury Department refused to appeal from this decision and later issued instructions in T. D. 30785 that only such articles as were not utilitarian, even though ornamental in character, should be classified for duty under this paragraph; and by "utilitarian" the department made it plain that such articles as powder cases, carrying a miniature powder puff, were utilitarian. Following these instructions nothing which is not entirely ornamental, or, in other words, jewelry, has since been assessed under this provision.

But in May of last year the Customs Court ruled that nothing could come within the provision for "All other articles of every description whether known as jewelry or otherwise," if it fell within the class of jewelry, holding all jewelry to come within the last clause of the paragraph, providing for gold and platinum jewelry. The result of this last decision, coupled with the unappealed decision of the Board of General Appraisers, holding that nothing could come within this term which is utilitarian, has been to deprive the provision of every particle of its force, for the department holds that nothing can come within it unless it is purely ornamental and hence jewelry, while the court has held that only such articles as are not jewelry are dutiable thereunder.

I will say that we have been trying for some time to get the Treasury Department to appeal from the decision of the board holding that nothing that was in any degree utilitarian should come within this provision, but up to this time we have not been successful.

Moreover, there are now pending before the Board of General Appraisers cases involving even the question as to whether those articles enumerated in the first part-for instance, pins, collar and cuff buttons, etc., conceded to be jewelry-are dutiable under this paragraph.

From the above it is apparent that, irrespective of the rate which the present Congress will decide, should be assessed upon articles

78959°-VOL 5—13- 47

PARAGRAPH 448-JEWELRY.

intended to be covered by paragraph 448 of the present act, assuming only that it will be the intention to assess them at a higher rate than will be provided for manufactures of metal not specially provided for, this paragraph must be carefully redrawn. If it be the intention to have it cover only such articles as by construction now come within it, that purpose can be accomplished by eliminating from the paragraph the following clauses as surplusage:

1.

* together with all articles of every description, finished or partly finished' if set with imitation precious stones, composed of glass or paste, except imitation jet, or composed wholly or in chief value of silver, German silver, white metal, brass, or gun metal, whether or not enameled, washed, covered, plated, or alloyed with gold, silver, or nickel, and designed to be worn on apparel, or carried on or about or attached to the person.

That can be cut out to-day. It is not effective. It has no effect whatever. I do not think there is a single article that comes within it.

2. Rope, curb, cable, and other fancy patterns of chain, without bar, swivel, snap, or ring, composed of rolled gold plate or of silver, German silver, white metal, or brass, not exceeding one-half inch in diameter, breadth, or thickness, valued at 30 cents per yard.

I wish the committee to note these words, "without bar, swivel, or ring," etc. The importers have taken a chain which would otherwise come in here, a long chain intended to be cut up and made into vest chains, and observing the provision where it says, "without bar, swivel, snap, or ring," they have inserted a ring at stated intervals in the chain. When the chain comes over here they cut it where that ring is, and they have a finished chain. Of course the chain as imported does not come within this provision, because it provides for chains without rings. It does not come in the first part which provides for chains, because the article as imported is not a chain in the sense in which that is used, but chain. So that provision may be cut right out.

A third provision may also be cut out.

All the foregoing, whether known as jewelry or otherwise, and whether or not denominatively or otherwise provided for in any other paragraph of this act.

The court said that did not mean anything, and all the jewelry nevertheless went into another provision.

The CHAIRMAN. In which provision did the court put the jewelry? Mr. LEVETT. In the last part.

The CHAIRMAN. "Articles commercially known as jewelry"?

Mr. LEVETT. "Composed of gold or platinum," I think are the following words.

The CHAIRMAN. In other words, they drop them into the 60 per

cent rate?

Mr. LEVETT. Yes; into the 60 per cent rate.

In addition to the quoted clauses which might be entirely eliminated without changing the effect of the paragraph as at present construed, the clause "All stampings and materials of metal, except iron or steel, or of metal set with glass or paste, finished or partly finished, suitable for use in the manufacture of any of the foregoing articles" is shorn of the main part of its force, since under the present construction it can apply only to the specifically enumerated articles, and stampings suitable for use in the manufacture of silver novelties

PARAGRAPH 448-JEWELRY.

are relegated to paragraph 199, because under the constructions novelties and jewelry, except those specifically named, are not "any of the foregoing articles.'

Furthermore, even as to some of the articles which are named, the question is now raised as to whether they fall within this provision, and pending before the Board of General Appraisers to-day are protests claiming that neck chains, known as lavalieres, are not chains, and therefore out of the eo nomine provision for chains. Other protests claim that brooches and chatelaine pins are not pins, and therefore out of the provision. Lockets are claimed not to be charms and therefore out of the provision.

The only other clause in this paragraph, aside from the last one, covering gold and platinum jewelry, is that for "finished or unfinished bags, purses, and other articles or parts thereof, made in chief value of metal mesh composed of silver, German silver, or white metal," and this has been evaded by the importation of metal mesh in strips, which, not being parts of bags in the condition imported, is allowed to come in as manufactures of metal.

In brief, every clause in this paragraph with the exception of the last one, which was intended to relate only to gold and platinum jewelry, has been torn to pieces and either wholly or in part rendered nugatory.

Unless, therefore, it be the wish of Congress to permit novelties and other luxuries intended to be covered by this paragraph to come in at the low rate provided for manufactures of steel, iron, lead, and other base metals, and unless it be its intent also to permit evasion of the provision for chains in lengths used as articles of jewelry, and unless it be further the intent to permit mesh practically ready to be made into bags to escape this duty, then it is manifest that words must be used which will express the intent to tax these articles in such language that it can not be misconstrued.

To do this is no easy task, and it is obvious that in the reconstruction the last clause providing for gold and platinum jewelry must also be recast, since it is so interwoven with the first clause levying the higher duty. Naturally the task is rendered more difficult owing to the prodigality of words in the present paragraph, for under the well-known rules of construction the omission in a new paragraph of words which have been used in a corresponding paragraph may be taken to imply an intent to cut out the unnamed article from the new paragraph.

In submitting the following as a substitute paragraph for 448 of the present law I deem it proper to say that I have carefully studied. the various decisions under the present act and also those under former acts and not only the words but the punctuations have been carefully considered.

The suggested paragraph is as follows:

Jewelry, commonly or commercially so known, valued above 20 cents per dozen pieces, rope, curb, cable and fancy patterns of chain not exceeding one-half inch in diameter, width or thickness, valued above 30 cents per yard, and articles valued above 20 cents per dozen pieces designed to be worn on apparel or carried on or about or attached to the person, such as and including buckles, card cases, chains, cigar cases, cigar cutters, cigar holders, cigarette cases, cigarette holders, coin holders, collar, cuff and dress buttons, combs, match boxes, mesh bags and purses, millinery,

PARAGRAPH 448-JEWELRY.

military and hair ornaments, pins, powder cases, stamp cases, vanity cases and like articles; all the foregoing and parts thereof, finished or partly finished, composed of metal other than gold or platinum, whether or not enameled, washed, covered or plated, including rolled gold plate, and whether or not set with precious or semiprecious stones, pearls, cameos, coral or amber, or with imitation precious stones, 85 per cent ad valorem. Stampings, mesh and other materials of metal, whether or not set with glass or paste, finished or partly finished, separate or in strips or sheets, suitable for use in the manufacture of any of the foregoing articles in this paragraph, 75 per cent ad valorem. Articles not specially provided for in this paragraph valued above 20 cents per dozen pieces and commonly or commercially known as jewelry (including mesh bags and purses, mesh and chain) and parts thereof, finished or unfinished, 60 per cent ad valorem.

In asking the committee to retain the present rates I desire to call attention first to the following language from the letter of Mr. Thresher to the Ways and Means Committee of the Sixtieth Congress, which appears on pages 8376 et seq. of volume 8 of the hearings:

We have been unavoidably delayed in presenting our proposed schedule by reason of conferences between manufacturers of jewelry of all descriptions doing business in Newark, Providence, Attleboro, and, indeed, in all of the principal cities throughout the United States on the one hand and leading importers on the other. In order to overcome, as far as possible, friction between such antagonistic forces, and also having in mind the intention of Congress to reduce tariff rates wherever a reduction will not destructive of American industries, we have surrendered to our foreign competitiors large lines of goods which, though made in small quantities in this country, now require from 150 to 300 per cent duty to afford adequate protection; a high rate we do not ask for nor would your committee allow. It will be observed that in the first bracket all articles costing less than 20 cents per dozen are permitted to come in at the rate applicable to the manufacturers of metal or glass. This concession is made notwithstanding the fact that under decisions of the Board of General Appraisers and the courts, brooches, bracelets, pins, and many other articles of personal adornment, valued at not more than 5 to 8 marks per gross, the equivalent of 10 to 15 cents per dozen, are at present assessed for duty at 60 per cent ad valorem.

Inasmuch as the great bulk of such goods cost between 10 and 20 cents per dozen, the reduction will, in our opinion, more than offset the increased duty we are asking for similar articles costing 20 cents and over per dozen. Indisputably the result will be a reduction in duty on all goods where the advance is not more than warranted by the difference between the home and foreign labor cost. The same argument applies equally to the goods included in the other brackets; for instance, stampings and materials used in the fabrication of cheap jewelry are imported solely to evade the present duty on jewelry. Fully 90 per cent of the labor necessary to make jewelry has been expended on these materials abroad; nevertheless, they are legally entitled to entry as manufactures of metal, to the serious detriment of domestic producers. This defect in existing law has been cured while at the same time materials not intended to be made into jewelry can still be imported as manufactures of metal.

Regarding chains suitable for jewelry purposes, domestic manufacturers have conceded everything but rope and fancy chains of high cost to their foreign competitors. In our opinion fully 85 per cent of all chains will be subject to duty as manufactures of metal, a classification which precludes them from being made in this country; nevertheless, if the high-grade chain can be produced here with even a trifling profit, we will be content.

Gold jewelry retains the present duty of 60 per cent, a rate that can not be lessened without serious detriment to the business, wages paid abroad being less than half the amount paid in this country. A reduction of even 5 per cent would in many cases rob domestic manufacturers of the little profit they are now making.

It will thus be seen that certain importers themselves recognized the justice and approved of the apparently high rate of 85 per cent. I have used the word "apparently" because as a matter of fact the term "high" is relative and in truth is far less protective than many rates seemingly lower. The hearings before this committee have made it manifest that a rate even as low as 10 per cent can be prohibitive and productive of no revenue to the Government. When

« AnteriorContinuar »