TARIFF INCOME HARD HIT fi¥ THE CUSTOMS COURI

"Five Per Cent." Clause Held to Extend to Goods Imported to "Favored Nation" Ships. HUGE REFUND IS INVOLVED Rebate Gan Be Claimed by 5500 Foreign Vessels Is the New Interpretation. \Va.s1i'i!*Mn. r> Mav 20.— The per cent." ela> se «f the tariff law, graining n red idi..n of ddies to that stipK, was sustaiiie i today by I lie Cnst o;i.(5 i'o-.o!. v. :-«• h :i!s:o held that the 5 hit s of the world, the effe t of the docis oil is practically to redi.ee tlie customs rereri.ie by per < out. It' the Court, to which it will he appealed approximately $ l5,!i(jO.:Jbl) in duties already collected must he refunded. In a dissenting opinion .Indue de Yries pointed out that the majority decision means that goods imported in about 5500 foreign vessels of "favored nation" countries shall receive this rediction in Customs duties. Five per for the present fiscal year would exceed Moreover, it was pointed out that the decision, if it stands the test in the extent that it applies to importations into the United States since approval of the Liuuerwood-Siinmons law more than two years ago, including goods entered in bond and subsequently withdrawn without payment of this rebate. Government officials realize that the decision may have a profound effect upon the fiscal policy of the United States. May Have to Issue Canal Bends. At present the actual working balance in the Treasury is $15,000,000. though possibly $40,000,000 is available to be added to this, if necessary. With en announced deficit in the postal revenue, and no increases in internal revenue or customs receipts uow in sight, talk of the necessity for an issue of Panama Canal bonds was revived in •view of the prospect of reduced customs revenues and the necessity of refunding millions already collected. The payment of some $80,000,000 into the Treasury due from the income tax, however, is counted on to delay any such emergency for several months. Today '6 decision of the Customs Court i'-> part sustained the ruling of the Board of General Appraisers and in part reversed that body. In addition to its findings regarding goods from abroad, the Court held that merchandise from Cuba is entitled to a reduction of 20 per cent, ad valorem, as provided hy the Cuban preferential treaty with the United States, ami to the further discount of 5 per cent, from that The Government, importers and American and foreign ship owners, were parties to the suit. The Government held that the clause applied to goods imported in ships of "favored nations" as well as those Hying the American Hag, therefore that the section must be held entirely inoperative unless the "favored nation" treaties were abrogated. The importers were interested particularly in the granting of the rebate. Rebate Never Has Been Paid. Former Attorney General Mciteynolds held the clause inoperative hecause of the conflict ^ with existing treaties, and, in conformity with this opinion, the rebate never has been paid in any case, although importers accepted the assessed duties in many instances under protest. The main plea before the Court on the part of the American ship owners was that the "favored nation" treaties were in fact inoperative. In this connection the majority decision said: By no department of the Government nave these provisions ever been repudiated or denounced as unconstitutional or denied force and effect as executory merely, so far as we can ascertain. On the contrary, they have, during all the time since their negotiation, been recognized, respected and enforced. To now hold them invalid, for any reason, in view of these circumstances, would, in any event, he to assume a grave responsibility and to defeat them in the face of the contention of the Department of State, the Treasury and Department of Justice would lie little less thau usurpation. Fortunately the duty of repudiating them can hy no stretch of authority rest with us, for the very statutes which we are now construing in turn recognizes their existence and binding force and declares In effect that they shall not thereby lie abrogated nor in any manner affected or impaired. It is a matter of some gratification to know that the. executive departments of our Government uncompromisingly insist that our treaties shall lie observed by us. In his dissenting opinion, Judge de Vries said the majority opinion of the Ways and Means Committee of the House, which frnmed the UndenvoodSimmoiis law, indicated that there are at least 5500 treaty-nation vessels in the American foreign trade, and added:

PRETTY FETE_F0R WAR AID Society Gathered in Force for Novel Stunt in Harrison Gardens. A delightful informality rested upon tiie garden party given yesterday in the Harrison Gardens under the auspices oi' the Allied War Relief Division of die Emergency Aid Committee. Tlie plan was for an al fresco affair that | slioidd attract by its simplicity and beauty. The committee succeeded so well that even tlie rain that came up and tried to drench out tlie enthusiasm of those concerned failed ignominionsly. Instead of giving up the garden party . when the showers started, promptly on the scheduled time for the entertainment to begin, tlie empty Harrison mansion, recently acquired by Mr. Stotesbury, was opened for tlie performance of folk-songs and dances given by the three Fuller sisters. "Aren't they just fascinating," whispered more than one fair spectator, as she craned her neck to get a better glimpse of the gowns that the sisters were wearing. Sometimes tlie "stunt" part song, sometimes they played games in the old fashion, and by so doing prettily reflected the war spirit that is now popular in England. Society came out in full feather to be amused and was graciously amused to such an extent that it is safe to venture a guess that tlie vogue of the mid-Vic-torian will have a large following in this city. Tlie skirts of the new gowns are getting wider all the time, so it won't be hard to get the dressmakers to make tlieui a iitfie wider, while everybody knows Unit the flcliu is back again. Tlie Fuller sisters are likely to be responsible tor tbe revival of jewelry fashions, also for Uie women who got together in the audience and swapped confidences as to whether tiicy had brooches as big as iliose and whether llieir bracelets could be furbished up to look tbe same. The tea tallies were neglected until along toward tlie fashionable hour for tea, and then parties began to gather at them and demand the refreshments which tiie young waitresses, buds" of society with Belgian and Polish lieadTlic vendors of tlie little flags had been tlie only ones to make anything out of the fete up until then. The flag sellers had an ingenious method. The little (lags are stickpins and they are the most inexpensive tilings. The vendors begged one to purchase them and set one's own price, "5 cents up, anything will he accepted." Most of the visitors accepted the challenge and made contributions to the cause through this means. Programs, too, were sold, and these fetched a fair sum.

The committee in charge Is under the leadership of Mrs. E. Bind Grubb, with Mrs. Barclay Warburton as chairman of the Belgian committee in tlie place left vacant recently by the resignation from the work of Mrs. C. C. Harrison and Mrs. Maurice Hecksher, who organized the division. Mrs. Warburton is also chairman of the Allied War Committee. Mrs. Charles S. Wurts, > Mrs. Grubb, Mrs. I. Webster Fox and . Miss Josephine Page made the arrange- , ments for the affair, which was given this delightful setting in the heart of ' the city, at Seventeenth and Locust ' streets, through the courtesy of Mr. anil Mrs. Edward T. Stotesbury. It is certain that there are not over ! no American vessels. Did Congress, in 1 order to benefit these 50 vessels and such as might in the course of years, neces- ' snrily few under this interpretation, reg- ' later under onr flag Immediately, give an equal bounty to 5500 other vessels? If so, where was the "favor" to "our ships?" I

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TOLL REFUND CANAL LOSS Big Waterway Now Not Expected to Pay First Year. Panama, May 27.— Preparations are tinder way here to refund many thousands of dollars on claims made by tlie masters of ships using the Panama Canal. The refund will be made under a decision of Attorney General Tliomas W. Gregory, at Washington, early in the year, which involved the method of computing tolls. The refund will mean a heavy loss to the waterway and probably prevent it from paying expenses during tlie first year of its operation. Tlie claims arise out of the fact that the canal has been collecting what are regarded as illegal overcharges. The Attorney General's ruling is in accordance with the provisions of the Panama Canal act, which declares specifically that tolls shall not exceed $1.25 net registered ton.

STEEL TRADE TIDE TURNS ! Leaders of Industry, on Eve of Ses- -1 sions, Optimistic as to Outlook. <. New York, May 27.— A meeting of the ' American and Steel Institute, in tlie ' Waldorf-Astoria tomorrow, will bring together the principal steel manufac- r turers of the country, whose views ' should afford a valuable index to the [ immediate future of the country's great <. industries. I Members now in the city are almost 1 without exception optimistic. They he- ' lieve that the tide has finally turned. ' and that one of the most hopeful ele- ' ments in the situation is the more friendly attitude of tlie public, Government and Courts toward great enterprises. Chairman Gary, of the United States < Steel Corporation, will deliver the prin- j 1 cipal address as president of the in- :l stitute. (

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ENGINE TAKES BOY'S FEET Victim Begs Surgeons Not to Amputate Mangled Members. With his right foot and left leg terribly mangled. 12-year-old William Weeves. of No. 2024 South Ohadwiek street, hogged the surgeons not to amputate the leg and foot or tell Ids parents of his injury, as he was placed on the operating table last evening in the Methodist Hospital. As soon as the surgeons made an examination of his injuries they decided that it would he necessary to amputate both tlie mangled leg and foot to save the boy's life. With a group of companions Weeves was playing on a vacant lot last even-

nvonne. A Baltimore & Ohio shifting engine was drilling some ears in the railroad yard and Weaves attempted to jump on the locomotive for a ride. As lie did so he missed his foothold and slipped under tlie wheels. His left leg was caught near the knee, and as he struggled to free himself his right foot was shoved under the wheels. A lirakeman who saw the accident quickly signaled the engineer to stop. injured boy was lifted from under the engine anil placed in the automobile of .Tames Soiners. of Twentieth street and Snyder avenue, who hurried him to the hospital. . Although the left was hanging by a slender shred of flesh. Weeves remained conscious up to the time that an anaesthetic was administered. Signs Teachers' Pension Bill. Springfield, 111., May 27. — The I, undue Teachers' Pension hill, providing pensions of $400 a year to teachers after 25 years' service, was signed by Governor Dunne today.

E-l! AT CONSTANTINOPLE British Submarine Torpedoes Ship After Wrecking Three More. London. May 27.— The Admiralty issi os ti e following report from the Vice Admiral in the Eastern Mediterranean: "The submarine E-l 1. Lieutenant Commander Martin E. Naswmith, has sunk in the sea of Marmora a vessel containing a great quantity of ammunition, ^comprising charges for heavy ply ship with a heavy cargo of stores and torpedoed her alongside a pier „t Hodosfo. A small stnroship was also elmsed and run ashore. i he submarine E-11 entered C<n>- .... 'ii.ii in,. 1 i entered Con-

stantinople and discharged a torpedo at a transport alongside the arsenal. The torpedo was heard to explode." BIG PROFIT IN LUNCH CAR Owner Wants $3000 for Lease on Lot City Desires. That a little lunch wagon stationed at the Y-shaped junction of Arch and Federal streets, Camden, brings a profit of $50 weekly to its owner was the information yesterday given to the Camden Council. The city seeks to acquire tlie triangular plot for beautifying and widening the street. City Counsel Bleakly was unable to reach an agreement to take over tlie lease held hy Arthur Morin, the lunch wagon man, an offer of $50 having been rejected. Representing the owner, Lawyer Walter Keown said the average profits are $50 weekly and that liis client thought $3000 a fair settlement for his rights in the lease, which has three years to run. The question will be disposed of at a meeting on June 10.

(SUSPECT MIDDIES OF THEFT MARINES TOO CROWDED

Some Eslieved to Have Obt..ir,ed anc. Used Examination Papers. Annapolis.- Mil.. May 27.— The enlire membership of the first and second i lasses at the Naval Academy niiderveiii a re-examinniio!! in Spanish today I oc.ni se of ti e suspicions of the acad- - ciny at U.oritius that the questions pre- : iiri-d for the lest had beeu snrreptitioi sly obtained and made use of by some of the midshipmen. Tic suspicions of tbe officials were a rot sod through indications fluff the offer of the head of the Department of Languages, where the questions were > opt. had been rohlied. This idea was Lengthened after the examination pa- - ex- were gone over by the professors and showed that many backward Spanish students had developed an nnexplainalile familiarity with a subject which in pasV months had been a stum- ! ling liloek to them.

Navy Yard Needs More Buildings, Says Major General Barnett. As the main marine statioh of the country the Philadelphia Nav.v Yard I .should lie much better equipped with . quarters and other accommodations, , which would cost nearly $300,000, ncco filing lo Major General George Barnett. head of the United States Marine Corps, who was here yesterday tni a irip of inspection. After an nil-day tour around the yard lie'declared that the needs include another new building costing $200,000, to he used as barracks or as an administration building exclusively; new officers' quarters, to cost $5(1,000, and a new post exchange, to cost about $10,000, At present the administration offices are in Barracks No. 1, and Major General Harnett declared that this building should lie turned into an administration building, or be given over entirely to barracks. The new building he favors should be erected back of tlie present old barracks, lie stated. Everything is too much cramped at tlie island so far as the marines go, was liis opinion. The post exchange, which is a regular general store for the sea soldiers when in port, is too small as at present conducted in the old barracks, and Major General Barnett favors a separate post exchange. Tlie providing of the improvements suggested is up to Congress, and it is likely that the needs, will be pointed out as a result: of the inspection yesterday. "I will tell what I think is needed to improve the station as a marine base," said the Major General. Accompanying Major General Barnett on the trip from Washington were Colonel Charles H. Lauchheimer, adjutant and inspector; Major David D. Porter, assistant adjutant and inspector; Captain Breekenriilge and Colonel Rayhand, military attache of the Argentine Legation at Washington. Colonel Rayboud is making a visit of inspection of Government establishments. The Major General arrived at the yard in the morning and kept on the go until 5 o'clock in the afternoon, when a salute of 13 guns announced liis official departure. lie remained at the yard over night, however, as the guest of Lieutenant Colonel Long. The nearly 2<KJ0 marines were drawn up on (lie great parade grounds for a general inspection and an exhibition of the, work of the Advance Base School, which was established at the yard when the Major General was in command of the marines there. Colonel Waller, the present commander, was in charge of ninnoeiivors that represented meeting the attack of an enemy. Guns were mounted and placed, a wireless station was erected, telephone wires were laid and mines were laid. Then marines leaped into trenches ready for action. The commandant of the Marine Corps was shown the method of using tiie new indirect gunsiglit, now extensively used hy the French, in the afternoon the marines paraded and were reviewed by the Major General, who will leave the city this morning. The members of liis staff who accompanied him will remain several days to make a detailed inspection. COP'S EXCUSE TOO OLD Got Day Off for Funeral When Ball Game Was On. Policeman John W. Young, of the Third district, was yesterday ordered before the Police Board of Inquiry to answer charges of springing one of the oldest jokes 111 the calendar on his superior officer and getting away with it. Yotmg is accused of having made the excuse that he had to attend the funeral of a relative oil May 24, in order to get a day off. There was a hall game scheduled for last Monday, but Lieutenant Koester, of the Third district, did not think of that when Young approached him and said that his wife's sister had died and lie would like to get off so that lie could make arrangements for the funeral. He was permitted to go, but Lieutenant Koester learned later that the sister-in-law was not dead.