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THE
WYttW
J1UJIC TIRADE
V O L . X L I V . No. 2 3 .
PabKshed Every Saturday by Edward Lyman BUI at 1 Madison Avc, New York, Jane 8, 1907
GERMAN TARIFF AGREEMENT.
The President Puts It Into Effect on July 1—Reductions of Duties on American Goods Placed at
$6,664,000 a Year, While Reductions in Favor of German Goods Amount to Only $208,168
Yearly—Some Items Bearing or Musical Instruments—Interesting Definition of "Market
Value" by the Secretary of the Treasury Will Interest Our "Small Goods" Friends.
(Special to The Review.)
Washington, D. C, June 1, 1907.
The president this afternoon issued his procla-
mation putting into effect on July 1 next the new
commercial agreement between the United States
and Germany. The agreement gives Germany the
advantages of section 3 of the Dingley tariff law,
in return for which the United States gets the
benefit of most of the present German conven-
tional rates.
In a statement issued by the State Department
concerning the agreement is a long list of articles
affected by the agreement. The statement then
continues:
"According to official German statistics, the
average annual value of imports of American
goods into Germany in the period 1903 to 1905,
inclusive, was $227,647,000, of which, it has been
computed, only 3.31 per cent, would be obliged,
under the new agreement, to pay the rates of the
general tariff where lower conventional rates ex-
ist. In other words, 96.7 per cent, of the total
importation of American products will continue
to enjoy in Germany the treatment of the most
favored nation, whether this be free entry or the
lowest rates accorded to the like products of any
other country.
"It is true that a considerable number of the
new conventional rates of the German tariff are
not included in the schedule annexed to the new
agreement, but fortunately the large majority of
these omitted items are products in which the
United States has no export trade to Germany,
or at least in which American exports are of rela-
tively slight importance.
"On the other hand, the total value of German
goods that would participate in the benefit of this
new agreement amounted in the fiscal year 1906
to only $1,861,285, or only 1.4 per cent, of our total
importation of German goods in that year.
"Considering the respective concessions from
the viewpoint of amount of duties to be remitted
by either government, the advantage is decidedly
in favor of the United States. According to
German statistics the reduction of duties on
American goods under the new agreement would
amount to $6,664,000 per annum, while, accord-
ing to our statistics, the remission of federal rev-
enue in consequence of the concessional reduc-
tions in favor of German goods would amount to
only $208,168 per annum, on the basis of the im-
portation for the fiscal year 1906.
"While it is regrettable that any articles of
American export to Germany should be subjected
after July 1 next to a higher duty than is im-
posed on like imports of any other origin, there
is every reason to believe that the concessions
obtained in the new agreement represent the ex-
treme limit to which the German government
would consent to go in return for the compensa-
tory concessions available to the president under
section 3. The alternative was therefore presented
to the Department of State either of safeguard-
ing the great bulk of American trade with Ger-
many by granting the full extent of the duty re-
ductions permitted in section 3 and making cer-
tain rational modifications in the customs regula-
tions of the United States in the interest of mu-
tual trade development or of permitting the ex-
isting modus Vivendi to lapse without renewal of
any of its features on July 1 next, thus exposing
American exports to Germany to the application
on and after that date of the entire general tariff
of that country in all its severity.
"In order to secure to American products the
entire German conventional tariff, as well as cer-
tain desirable reductions of duty not covered by
the present conventional tariff, it would seem to
be necessary for the United States to make sub-
stantial tariff concessions in return to Germany
beyond the scope of section 3 of our existing tariff
law. This can be done only by means of a treaty
of reciprocity, subject to ratification by the Sen-
ate and Congressional approval."
Among the forty classes of articles on which
Germany makes substantial reductions we find
talking machines, which were formerly listed at
60 marks are now reduced to 40 marks per 100
kilos; music boxes without cases, formerly 25
marks, now 20 marks per 100 kilos (parts of
music boxes also come under the former ruling);
apparatus for mechanical repetition of musical
pieces, 25 marks per 100 kilos; organs, with
pipes, formerly 25 marks, now 20 marks per 100
kilos.
James B. Reynolds, acting Secretary of the
Treasury, issued a circular letter of instructions
to customs officers this week in regard to the new
German tariff. These instructions are general as
far as they affect the administrative features of
the new arrangement and are to be applied to
importations from all countries. The most im-
portant feature of- the circular letter relates to
the means of ascertaining market values upon
which duties are to be assessed. The circular
says:
"Market value, as defined by section 19 of the
customs administrative act, should be construed
to mean the export price whenever goods, wares
and merchandise are sold wholly for export or sold
in the home market only in limited quantities, by
reason of which fact there cannot be established
a market value based upon the sale of such
goods, wares and merchandise in usual wholesale
quantities packed ready for shipment to the
United States."
It was explained at the Treasury Department
that in cases where there is no wholesale mar-
ket in foreign countries for articles sent to the
United States, appraisers of customs in this coun-
try will take the export price as the basis of
valuation instead of trying to ascertain the whole-
sale market value. This export price is not the
purchase price. German export prices are from
10 to 20 per cent, less than the prices in that
country.
SINGLE COPIES, 10 CENTS.
$2.00 PER YEAR.
Evidence by German chambers of commerce
and exporters will be considered by American
customs agents as competent evidence, but not
as complete evidence of values. There is a wide-
spread impression that the evidence of the cham-
bers of commerce and exporters will be regarded
as conclusive by this government.
Another important change made by the new
German arrangement is that open hearings will
be given importers of foreign goods before the
Board of General Appraisers in New York in
cases of appeal, except when the government in-
terests might be injured by publicity. In such
exceptional cases the importers will be furnished
with resumes of the points brought out.
Still another important feature of the new ar-
rangement is that the confidential customs agents
of the Treasury Department abroad will have the
status of diplomatic officers and be attached to
embassies and legations. This will improve their
official standing.
CANNOT HIDE MORTGAGED PIANO.
Suit Brought by J. C. Martin & Co. Establishes
Important Point of Interest to Dealers Selling
on Instalments.
(Special to The Review.)
Dayton, O., June 3, 1907.
A case of interest to every piano dealer re-
cently came up in a local court. John Wuesten-
berg, the defendant, came into the possession of a
piano upon which J. C. Martin & Co., the local
piano dealers, held a mortgage. When Wuesten-
berg refused to divulge the location of the instru-
ment the piano company took the case to court,
where it was ruled that anyone secreting mort-
gaged goods was regarded as an accomplice in a
fraudulent act. The defendant thereupon paid
the costs of the action and the balance of the
mortgage. It is believed the above ruling will
do much to smooth the rugged path of the instal-
ment dealer in future cases.
ARTHUR E. WINTER ENTERTAINS
Entire Staff of Winter Music House at Dinner
—Chas. Jacob, of New York, Guest of
Honor—A Most Enjoyable Re : union.
(Special to The Review.)
Altoona, Pa., June 3, 1907.
Arthur E. Winter, of the firm of F. A. Winter
& Son, piano dealers, and one of Altoona's active
young business men, last week entertained the
entire staff of the music house at a dinner given
at his residence, 1428 Thirteenth avenue. A most
enjoyable evening was spent, the high esteem in
which the guests held their host being shown in
a number of ways. Impromptu speeches were
made by the majority of those present and made
an excellent finishing touch to the sumptuous re-
past. The special guest of the evening was
Charles Jacob, of Jacob Bros., piano manufac-
turers, of New York, with whom Arthur Winter
learned the business in all its branches.
Earl H. Hill, the piano dealer of Jamestown,
N. Y., has opened branch warerooms in Randolph,
N. Y. W. R. Johnston, formerly with the James-
town store, is in charge at Randolph.