New-York tribune., 1878-04-16
DRATB4cKS on EXPoRTED cIGAES.

A NEW QUESTION N The TRADE WHICH is ENCIT-
ISG INTEREST.
IFRoM THE REGULAR CORRESPONDENT OF TnE TRInrNE.l
WAsHINGTON, April 14.-Somo time ago an appli-
caton for drawback on exported cigars asserted to
have been made from imported tobacco came mp
from Key West and has raised question which IL
very interesting both TO the trade and the Govern
ment The application for drawback was made
under misapprchenson OF the facts. The appli
cants supposed ii was customary to grant the draw
back under Section 3,010 Of the Revised Statutes,
which reads as follows:
There shall be allowed all articles wholly manuiac-
turad of materials imported, which duties have bcen
uad when ptpoTted drawback equal IN amount Ia the
duty paid ON such materials, ana more, TO be ascer-
tanc nndcr such regulations shah De prescribed by
the Secretary OF the Treasury. Ten pr cent on tbe
retained for the the United states by the collect
Ors paying such drawbacks respectively
To the aStonishmcnt of the applicants who had
engaged in a new business, that of exporting ci-
gars the Collector would not allow them draw
back. The matter was referred 20 the New-lork
Custom House for a report rs to the usual mode
of procedure in such eases there but nobody could
give any information on the subject, because no
such question had ever before been presented.
Mr.. Blake, Collector of Internal Revenue, was ap-
Piled TO- and referred the officers to StraitOn 4
Storms of Pearl-s; who have since last August
ported to England three-quartcrs of n mil
lion of cigars made in New-Iork. These
gentlemen when applied 20, were surprised,
and said that if such applications were granted
there could be no possible means Of determining
whether the cigars were made Of imported or do
mestic material unless they were cut open and
thereby destroyed. They added that the granting
of such drawback would tempt ordinarily honest
manufacturer, to swIndle the Government out of
revenue, aud that tins would ruin the legitimate
trade for manufacturing cigars for export.
So important was tins matter, that Mr.. Straiton
came TO Washington to what was to be done
about it, He saw the Treasury officials and Com
mlttee on Ways and Means. He told them he used
large quantities of imported tobacco in the manu-
facture of the goods hc is exporting bat he has
never asked for drawback. He advocated the es-
tablishment of bonded cigar factories, where i'm
ported tobacco can be made into cigars exclusively
for export without payment of duty on the material
but he protested i'm The strongest manner against
allowing a drawback upon any cigars oi ordinary
home manufacture that are exported To foreign
countries, on the ground that II would lead TO
frands which would destroy honest business.
The Treasury officials and members Oi the Ways
| and Means Committee seemed To he strongly I'M
pressed with the ustrc of Mr. Stra toms reasoning
and will give the matter early attention. The lD-
terna Revenue Bill soon To be reported from the
| committee contains a section establishing bonded
cigar factories for manufacturing cigars from mn
/ ported tobacco without payment "t duty upon me
material Mr. StTaIton says that tO pass that and 70
/ prohibit the application Of the general drawback
clause to homemade cigars w5ll set matters right,
/ and do justice to the trade and the GOYcrnment.
Some time ago q strong movement was made 10 ts-
fablish bonded warehouses at seaports exclusively
/ for the storage of manufactured tobacco intended
| for export The matter was referred bY tho Com
! mttce on Ways and Means To the commissioner oil
/ Internal Revenue 20 draw bill. This was sent 10
the committee but some of the prominent Virginia
manufacturers made so much opposition 10 IL that
the committee decided not to entertain the PROPOSE
| tiDu at all,