Monday, Feb. 13, 1933

Sneakers & Rubbers

President Hoover last week revealed himself as an undaunted top-notch tariff Republican to the end. To a world of depreciated currencies, he made object lessons of sneakers from Japan, rubbers from Czechoslovakia. Alarmed at growing imports of such footgear, the U. S. Tariff Commission found that they were being produced abroad in terms of cheap money at less than the cost of raw materials to U. S. manufacturers in gold dollars. In 1930 Japan exported to the U. S. 1,074,096 pairs of rubber-soled shoes, in 1932, 2,467,646 pairs. Ineffective appeared U. S. tariff rates of 25% and 35% on the foreign value of such goods, because the foreign value had slumped with the currency. U. S. producers claimed their markets were flooded with underpriced imports, that they were being driven out of business.

On the Tariff Commission's recommendation, President Hoover took the most drastic action within his power--a proclamation transferring the application of U. S. tariff rates from the low foreign valuation to the high U. S. selling prices. His order will take effect the day before he leaves the White House.

The President's tariff move against sneakers and rubbers was a reflection of the Republican tariff move at the Capitol against all imports from countries with depreciated currencies. Pending before the House Ways & Means Committee was a bill which would automatically up tariff rates as foreign currencies decline. As a witness on this measure last week Republican Chairman O'Brien of the Tariff Commission split with his President and his party when he said: "Our imports today are at a very low ebb. We're not being flooded by imports. Our relations abroad are already bad enough. If you want an embargo, go ahead and pass this bill." That no last-gasp Republican tariff bill should pass the House was the firm purpose of the Democratic majority.

P: During the Harding Administration Thomas Woodnut Miller, Alien Property Custodian, was on the fringe of the "Ohio Gang." As the liquidated assets of American Metals Co., seized during the War, he paid $6,453,979 to a German capitalist named Richard Merton representing a Swiss concern. As his "fee" Merton turned $441,000 in Liberty Bonds over to G. O. Politicians. Of this sum $50,000 was traced to Miller who claimed he received it as payment of a debt the party owed him. Other amounts went to Jesse Smith. Attorney General Harry Daugherty's henchman, and to Connecticut's late Boss John T. King. The Government put Miller and Daugherty on trial in Manhattan in 1927. A hung jury freed Daugherty but convicted Miller of defrauding the U. S. out of his fair and unbiased services as A. P. C. He served a year of an 18-month sentence at Atlanta. Last year the War Department awarded Miller, Delaware Commander of the American Legion, the Order of the Purple Heart for A. E. F. bravery. Last week President Hoover signed an order which restored Miller's citizenship.

P: President Hoover attended a memorial service for Calvin Coolidge in the House of Representatives.

P: From the White House the President drove two miles to the Shoreham Hotel, delivered an address on taxation to 100 State legislators, drove back to the White House--all in 17 minutes.

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