The VICE PRESIDENT. The clerk will read the substitute amendment proposed by the Senator from Utah.

The CHIEF CLERK. Commencing on page 319, line 10, strike out down through page 326, line 12, and insert in lieu thereof the following:

SEC. 336. Equalization of costs of production: (a) In order to regulate the foreign commerce of the United States and to put into force and effect the policy of the Congress by this act intended, whenever the President, upon investigation by the United States Tariff Commission of the differences in costs of production of articles wholly or in part the growth or product of the United States and of like or similar articles wholly or in part the growth or product of competing foreign countries shall find it thereby shown that the duties fixed in this act do not equalize the said differences in costs of production in the United States and the principal competing country he shall, by such investigation. ascertain said differences and determine and proclaim the changes in classifications of increases or decreases in any rate of duty provided in this act shown by said ascertained differences in such costs of production necessary to equalize the same. Thirty days after the date of such proclamation or proclamations such changes in classification shall take effect, and such increased or decreased duties shall be levied, collected, and paid on such articles when imported from any foreign country into the United States or into any of its possessions (except the Philippine Islands, the Virgin Islands, American Samoa, and the island of Guam): Provided, That the total increase or decrease of such rates of duty shall not exceed 50 per cent of the rates specified in Title I of this act, or in any amendatory act.

(b) That in order to regulate the foreign commerce of the United States and to put into force and effect the policy of the Congress by this act intended, whenever the President, upon investigation by the United States Tariff Commission of the differences in costs of production of articles provided for in Title I of this act, wholly or in part the growth or product of the United States and of like or similar articles wholly or in part the growth or product of competing foreign countries, shall find it thereby shown that the duties prescribed in this act do not equalize said differences, and shall further find it thereby shown that the said differences in costs of production in the United States and the principal competing country can not be equalized by proceeding under the provisions of subdivision (a) of this section, he shall make such findings public, together with a description of the articles to which they apply, in such detail as may be necessary for the guidance of appraising officers. In such cases and upon the proclamation by the President becoming effective the ad valorem duty or duty based in whole or in part upon the value of the imported article in the country of exportation shall thereafter be based upon the American selling price, as defined in subdivision (f) of section 402 of this act, of any similar competitive article manufactured or produced in the United States embraced within the class or kind of imported articles upon which the President has made a proclamation under subdivision (b) of this section.

The ad valorem rate or rates of duty based upon such American selling price shall be the rate found, upon said investigation by the President, to be shown by the said differences in costs of production necessary to equalize such differences, but no such rate shall be decreased more than 50 per cent of the rate specified in Title I of this act upon such articles, nor shall any such rate be increased. Such rate or rates of duty shall become effective 15 days after the date of the said proclamation of the President, whereupon the duties so estimated and provided shall be levied, collected, and paid on such articles when imported from any foreign country into the United States or into any of its possessions (except the Philippine Islands, the Virgin Islands, American Samoa, and the island of Guam). If there is any imported article within the class or kind of articles, upon which the President has made public a finding, for which there is no similar competitive article manufactured or produced in the United States, the value of such imported article shall be determined under the provisions of paragraphs (1), (2), and (3) of subdivision (a) of section 402 of this act.

(c) That in ascertaining the differences in costs of production, under the provisions of subdivisions (a) and (b) of this section, the President, in so far as he finds it practicable, shall take into consideration (1) the differences in conditions in production, including wages, costs of material, and other items in costs of production of such or similar articles in the United States and in competing foreign countries; (2) the differences in the wholesale selling prices of domestic and foreign articles in the principal markets of the United States; (3) advantages granted to a foreign producer by a foreign government, or by a person, partnership, corporation, or association in a foreign country; and (4) transportation costs and any other advantages or disadvantages in competition. Investigations to assist the President in ascertaining differences in costs of production under this section shall be made by the United States Tariff Commission, and no proclamation shall be issued under this section until such investigation shall have been made. The commission shall give reasonable public notice of its hearings and shall give reasonable opportunity to parties interested to be present, to produce evidence, and to be heard. The commission is authorized to adopt such reasonable procedure, rules, and regulations as it may deem necessary.

The President, proceeding as hereinbefore provided for in proclaiming rates of duty, shall, when he determines that it is shown that the differences in costs of production have changed or no longer exist which led to such proclamation, accordingly as so shown, modify or terminate the same. Nothing in this section shall be construed to authorize a transfer of an article from the dutiable list to the free list or from the free list to the dutiable list, nor a change in form of duty. Whenever it is provided in any paragraph of Title I of this act that the duty or duties shall not exceed a specified ad valorem rate upon the articles provided for in such paragraph, no rate determined under the provision of this section upon such articles shall exceed the maximum ad valorem rate so specified.

(d) For the purposes of this section any coal-tar product provided for in paragraphs 27 or 28 of Title I of this act shall be considered similar to or competitive with any imported coal-tar product which accomplishes results substantially equal to those accomplished by the domestic product when used in substantially the same manner.

(e) The President is authorized to make all needful rules and regulations for carrying out the provisions of this section.

(f) The Secretary of the Treasury is authorized to make such rules and regulations as he may deem necessary for the entry and declaration of imported articles of the class or

kind of articles upon which the President has made a proclamation under the provisions of subdivision (b) of this section and for the form of invoice required at time of entry. (g) The term transportation costs" means (1) in the case of an article wholly or in. part the growth or product of competing foreign countries, the cost of transporting such article from the areas of substantial production in the principal competing country to the principal port of importation of such article into the United States; and (2) in the case of an article wholly or in part the growth or product of the United States, the cost of transporting such article from the areas of substantial production that can reasonably be expected to ship the article to the principal port of importation in the United States of the like or similar article wholly or in part the growth or product of competing foreign countries.

*

Mr. SIMMONS. Mr. President, the clerk has not read the first provision, which is a repeal of the present section of the tariff.

The VICE PRESIDENT. The Chair will announce that if the amendment is agreed to it repeals the provision referred to by the Senator from North. Carolina.

Mr. SIMMONS. Very well. I want to have that understood.

The legislative clerk resumed and concluded reading Mr. SIMMONS's amendment, which is entire as follows:

In lieu of the matter proposed to be inserted by the amendment of Mr. SMOOT as a substitute for section 336 (p. 319, line 10, to and including line 12 on p. 326) insert the following:

SEC. 336. Recommendations for adjustment of duties: (a) Upon its own motion or upon application of any interested party showing good and sufficient reason therefor, the commission shall investigate and ascertain the differences in the cost of production of any domestic article and of any like or similar foreign article. If the commission. finds it shown by the investigation that the duty imposed by law upon the foreign article does not equalize the differences in the cost of production of the domestic aritcle and of the foreign article when produced in the principal competing country or countries, then the commission shall report to the President and to the Congress such increases or decreases in the duty upon the foreign article as the commission finds to be necessary in order to equalize such differences in the cost of production. Any such increased or decreased duty may include the transfer of the article from the dutiable list to the free list or from the free list to the dutiable list, a change in the form of duy, or a change in classification. The report shall be accompanied by a statement of the commission setting forth the findings of the commission with respect to the differences in costs of production, the elements of cost included in the cost of production of the respective articles as ascertained by the commission, and any other matter deemed pertinent by the commission.

The President, upon receipt of any such report of the commission, shall promptly transmit the report to the Congress with his recommendations, if any, with respect to the increase or decrease in duty proposed by the commission.

Any bill having for its object the carrying out, in whole or in part, of the recommendations made by the commission in any such report shall not include any item not included in such report; and in the consideration of such bill, either in the House of Representatives or in the Senate, no amendment thereto shall be considered which is not germane to the items included in such report.

(b) No report shall be made by the commission under this section unless the determination of the commission with respect thereto is reached after an investigation by the commission during the course of which the commission shall have held hearings and given reasonable public notice of such hearings, and reasonable opportunity for the parties interested to be present, produce evidence, and to be heard. The commission is authorized to adopt such reasonable rules of procedure as may be necessary to execute its functions under this section.

(c) In ascertaining the differences in costs of production under this section the commission shall take into consideration, in so far as it finds it practicable

(1) The differences in conditions of production, including wages, costs of materials, and other items in cost of production of like or similar articles in the United States and in competing foreign countries;

(2) Costs of transportation;

(3) Other costs including the cost of containers and coverings of whatever nature, and other charges and expenses incident to placing the article in condition, packed ready for delivery, storage costs in the principal market or markets of the United States and of the principal competing country or countries, and costs of reconditioning or repacking wherever incurred;

(4) Differences between the domestic and foreign article in packing and containers, and in condition in which received in the principal markets of the United States;

(5) Differences in wholesale selling prices of domestic and foreign articles in the principal markets of the United States in so far as such prices are indicative of costs of production, provided such costs can not be satisfactorily obtained.

(6) Advantages granted to a foreign producer by a foreign government or by a person. partnership, corporation, or association in a foreign country; and

(7) Any other advantages or disadvantages in competition which increase or decrease in a definitely determinable amount the total cost at which domestic or foreign articles may be delivered in the principal market or markets of the United States.

The VICE PRESIDENT. The yeas and nays have been ordered.

The VICE PRESIDENT. The question now is upon the amendment, in the nature of a substitute, offered by the Senator from North Carolina [Mr. SIMMONS], upon which the yeas and nays have already been ordered. The clerk will call the roll.

119206 S. Doc. 177, 71-2- -2

The legislative clerk proceeded to call the roll.

Mr. FESS (when Mr. BURTON's name was called). On this question my colleague [Mr. BURTON] is paired with the Senator from Minnesota [Mr. SHIPSTEAD]. If my colleague were present and at liberty to vote, he would vote "nay," and if the Senator from Minnesota were present and voting he would vote "yea."

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Mr. ODDIE (when his name was called). On this question I have a pair with the senior Senator from South Dakota [Mr. NORBECK]. If he were present, he would vote " yea," and if I were at liberty to vote I should vote " nay.”

Mr. FESS (when Mr. SACKETT'S name was called). Making the same announcement that I made a moment ago, the Senator from Kentucky [Mr. SACKETT is paired with the Senator from Missouri [Mr. HAWES]. If they were present, the Senator from Kentucky would vote "nay," and the Senator from Missouri would vote "yea."

Mr. SCHALL (when Mr. SHIPSTEAD's name was called). My colleague [Mr. SHIPSTEAD] is ill. If he were present and voting, he would vote "yea." The roll call having been concluded, the result was announced-yeas 47, nays 42, as follows:

YEAS-47
King

La Follette
McKellar

McMaster
Norris
Nye
Overman
Pine
Pittman

Robinson, Ark.

Simmons
Smith
Stephens
Swanson

Thomas, Okla.
Trammell
Tydings
Wagner
Walsh, Mass.
Walsh, Mont.
Wheeler

Caraway

Connally

Johnson

Schall
Sheppard

NAYS-42

So Mr. SIMMONS's amendment to Mr. SMOOT's amendment was agreed to. The VICE PRESIDENT. The question is upon the amendment of the Senator from Utah [Mr. SMOOт] as amended by the amendment of the Senator from North Carolina.

The amendment, as amended, was agreed to..

VALUE OF IMPORTED MERCHANDISE, UNITED STATES VALUE

MR. KING'S SUBSTITUTE (FOR SUBDIVISION D OF SECTION 402, DEFINING UNITED STATES VALUE) TO RESTORE THE DEFINITION CONTAINED IN THE TARIFF ACT OF 1922 (WHICH WAS BASED FOR ASSESSMENT OF DUTY ON THE FOREIGN VALUE OR THE EXPORT VALUE) IN LIEU OF THE HOUSE TEXT, WHICH WAS MODIFIED BY THE COMMITTEE AMENDMENT SO AS TO PROVIDE FOR AN ESTIMATED VALUE BASED ON MERCHANDISE COMPARABLE IN CONSTRUCTION OR USE, SHOULD IT NOT BE POSSIBLE TO APPLY THE FOREIGN VALUE OR THE EXPORT VALUE

(Cong. Record, October 7, 1929; page, Daily, 4501; Permanent, 4299) The VICE PRESIDENT. The next committee amendment passed over is on page 342. The amendment will be stated,

The LEGISLATIVE CLERK. The next amendment of the Committee on Finance is, on page 342, line 18, after the word "value," to strike out "having regard for differences in quality and other differences, based on the price at which merchandise, whether domestic or imported, comparable in construction or use to the imported merchandise, is so offered for sale," and insert "based on the price at which merchandise, whether imported or domestic, comparable in construction or use with the imported merchandise, is so offered for sale, with such adjustments as may be necessary owing to differences in size, material, construction, texture, and other differences," so as to read:

(d) United States value: The United States value of imported merchandise shall be (1) the price at which such or similar imported merchandise is freely offered for sale, at the time of importation of the imported merchandise, packed ready for delivery, in the principal market of the United States to all purchasers, in the usual wholesale quantities and in the ordinary course of trade, or (2) if such or similar imported merchandise is not so offered for sale in the United States, then an estimated value, based on the price at which merchandise, whether imported or domestic, comparable in construction or use with the imported merchandise, is so offered for sale, with such adjustments as may be necessary owing to differences in size, material, construction, texture, and other differences.

The PRESIDING OFFICER. The clerk will state the amendment for the information of the Senate.

The CHIEF CLERK. On page 342, beginning with line 10, strike out all of subdivision (d), relating to United States value, and insert in lieu thereof the following:

(d) United States value: The United States value of imported merchandise shall be the price at which such or similar imported merchandise is freely offered for sale, packed ready for delivery, in the principal market of the United States to all purchasers, at the time of exportation of the imported merchandise, in the usual wholesale quantities and in the ordinary course of trade, with allowance made for duty, cost of transportation and insurance, and other necessary expenses from the place of shipment to the place of delivery, a commission not exceeding 6 per cent, if any has been paid or contracted to be paid on goods secured otherwise than by purchase, or profits not to exceed 8 per cent and a reasonable allowance for general expenses, not to exceed 8 per cent on purchased goods.

Mr. WALSH of Massachusetts. Mr. President, I desire to ask the Senator from Utah [Mr. KING] a question in order that his answer may appear in the RECORD at this point following the reading of his amendment. As I understand his amendment it provides for the restoration of the language of the present law in place of the provision inserted in the bill by the House and the amendment offered by the Senate Finance Committee?

Mr. KING. The Senator states the situation correctly.

The VICE PRESIDENT. The question is on agreeing to the amendment of the junior Senator from Utah.

Mr. HARRISON. I demand the yeas and nays.

The yeas and nays were ordered, and the Chief Clerk called the roll.

Mr. McMASTER. I desire to announce that my colleague, the senior Senator from South Dakota [Mr. NORBECK], is unavoidably absent on account of illness. I understand, if present, he would vote " yea."

Mr. SIMMONS. I have a general pair with the junior Senator from Ohio [Mr. BURTON], who is absent. I transfer that pair to the junior Senator from New York [Mr. WAGNER] and vote yea.'

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Mr. BLEASE. I have a pair with the Senator from Maine. [Mr. GOULD], who is absent. I presume, if present, he would vote "nay." If permitted to vote, I should vote "yea," but because of my pair with the Senator from Maine I shall withhold my vote.

Mr. KING. I am paired for the day with the Senator from Illinois [Mr. DENEEN], who is unavoidably absent, but on this question I find that I can transfer the pair to the Senator from Arizona [Mr. ASHURST], which I do, and vote " yea."

Mr. CARAWAY. I have a pair with the junior Senator from California [Mr. SHORTRIDGE]. Being unable to obtain a transfer, I withhold my vote. If permitted to vote I should vote "yea."

Mr. MOSES (after having voted in the negative). I inquire if the junior Senator from Louisiana [Mr. BROUSSARD] is recorded as having voted? The VICE PRESIDENT. The Chair is informed he is not.

Mr. MOSES. I have a general pair with that Senator, but I transfer the pair to the Senator from Vermont [Mr. DALE] and will permit my vote to stand.

The result was announced-yeas 44, nays 37, as follows:

COMMITTEE AMENDMENT, AS MODIFIED, TO PERMIT THE INTERVENTION AS PARTIES IN INTEREST IN APPRAISEMENT PROCEEDINGS OF AMERICAN MANUFACTURERS, PRODUCERS, WHOLESALERS, AND REPRESENTATIVES OF LABOR ORGANIZATIONS UNDER UNITED STATES CUSTOMS COURT RULES

(Cong. Record, October 8, 1929, page, Daily 4528; Permanent, 4321)

The Senate, as in Committee of the Whole, resumed the consideration of the bill (H. R. 2667) to provide revenue, to regulate commerce with foreign coun tries, to encourage the industries of the United States, to protect American labor, and for other purposes, the pending question being on the amendment of the Committee on Finance, in section 501, page 398, after line 9, to insert:

In all proceedings instituted under this section an American manufacturer or producer or wholesaler, or a representative of an American labor organization or labor association shall, with the permission of the court, granted in its discretion, have the right to appear, to offer evidence, to cross-examine witnesses and to be heard, as a party in interest, under such rules as the United States Customs Court may prescribe.

The PRESIDING OFFICER. The amendment will be restated.

The LEGISLATIVE CLERK. On page 398, line 11, after the word "producer," it is proposed to insert:

Engaged in the production or sale of like or similar articles to those which are the subject of the inquiry.

So that the amendment will read:

In all proceedings instituted under this section an American manufacturer or producer engaged in the production or sale of like or similar articles to those which are the subject of the inquiry.

Also in line 13

Mr. REED. Oh, no, Mr. President; the Senator means, I think, that that language should be inserted after the word "wholesaler," in line 11.