The Canton advocate. [volume] (Canton, D.T. [S.D.]) 1877-1897, 1881-02-24

Ork ChamDer OF commerce Lne IOl-
lowing reply to the report of the COM
mittee Of the chamber Of commerce
appointed to investigate the alleged IL
legal collection of duties on sugar.
TREASURY DEPARTMENT, !
WAsHINGTON, Feb 10.
To George Wilson, ESP. Secretary of the Cham
York:
SIR:-I have considered your note Of Feb 9, in
which you enclose a copy of the report adopted
by the chamber of commerce on the 3lst inst,
on the subject Of collection of duties on sugar,
and in which you state that Mt the same meeting
it was resolved that the secre ary of the treasury
be respectfully requested to rescind his order of
Sept 2, 1879, and to refund the excess of duties
collected under it above lawful duties US pre-
scrlbed by existing statutes. have the honor to
inform the chamber of commerce that prior to
the order referred to the department had became
fully satisfied that large quantities of sugar had
been imported which had been artifcially colored
Tor the sole purpose of introducing them into
this country as of color and grade below that
which fairly belonged to them, thus defrauding
the government of a large amount of its customs
revenue. running honest importers, and depriving
the sugar-planters of the country of the protec-
tion which congress intended to afford them. Two
cases had been tried in the courts, one in San
fraudulent artificial coloration was established by
court and jury. In both cases the court ruled, as
matter of law, that it is the right and duty of
officers Of customs to look through the fraudulent
artificial color and to assess duty upon sugar ac-
cordlng to its true color, stripped of all dsguises.
sense of every honest man. To
hold that an importer may import sugar
the true color of which is above No.
70, Dutch standard, manifestly coored so as to
reduce it apparently below No. I, would be to hold
out premium for dishonesty and fraud. The de-
partmcnt, therefore, under the order Of Sept. 2,
1879, has undertaken to look through fraudulent
color, and assess the duty upon sugar at its true
color. In exec uting this order it is stated in your
report that thousand suits have arisen, aggre-
gatidg nearly 81 900 900. The order was prompt
ed by the highest sense Of official duty, with no
other object than to prevent frauds upon the rev.
enue and to protect honest importers and sugar
producers. Nothing has occurred to shake the
confidence of the department as to the correctness
of the course pursued. The government will be
prepared for trial of pending cases in the
courts as soon they can be reached. 1t
will be seen, therefore, that the request to
abandon the suits and refund the duties in
may, perhaps, be proper to suggest, in conclusion
that none at least of the gentlemen upon the spe
cial committee who made the report to your
chamber is party to one or more of the suits re-
ferred to, and has therefore, pecuniarv interest
IN this question. My sincere respect for the
chamber of commerce of New York and its i'm
portunt functions and influence in commercial
matters leads me to state more fully, in answer to
your resolution, the position Of the department
then perhaps your formal communication would
demand. 1t is the design of the department not
only to enforce the laws in the collection of rcve
nues but to secure kindly aid and good will of
merchants with whom the customs business is
n1,i nQ, nd kS,,n,
JOHN SHERMAN, Secretary.
A largely attended meeting of the
New York sugar trade was held in
on the 10th inst, to consider what
action should be taken in re-
gard to the letter of Secretary Sherman,
dated the 10th inst, to the chamber Of
commerce. A committee was appoint
ed to draft resolutions, which reported
the following, and they were unani-
mously adopted
Resdrea That this meeting endorse the report
adopted by the chamber on the subject of the
collection of the duties on sugar, as true and
fair statement of the controversy between the
merchants engaged in the importation of the arti-
cle and the secretary of the treasury.
Resolred, That the question ut issue is not one
phatic protest against the manner in which the
secretary of the treasury has treated the subject
clothing 1t with the appearance of q fraudulent
purpose on the part of the importers. The gov
ernment has reason to believe that fraud has been
attempted on the revenue. 1t is the bounden duty
of its officers to act accordingly, and to seize the
merchandise and institute proceedings for its
demnntion; and in pursuing that course they will
receive the hearty support of the importers, but
the department has assumed, without evidence, to
place upon every importer coming under the oP-
GRAFTON of the obnoxious regulation the stigma Of
attempt at fraud.
Resolced That the offensive order made in de-
fance of the rulings of the courts in the very
cases to which reference is made, which rulings
are plainly to the effect that the manufacturer
has right to color his sugars as he pleases, in
ordering the process of manufacture, the treasury
regulation says that any means used to degrade
the colors of sugar during and after the process
OF manufacture is fraud upon the revenue, while
the official records of the court say a foreign
manufacturer has the right to make sugar of what
color he pleases.
Resolved. That the merits of the question are
in no wise affected by tho fact that member of
the special chamber of commerce is, as the secre-
tary states, pecuniarly interested in one or more
pending suits, and the insnuation conveyed there
by is unworthy so high an official, and every i'm
porter must unavoidably be party to the innu-
merabe suits of the treasury regulation so main
tanned.
Resolced, That the secretary's scommuni-
cation does not, in anyway, meet or countervene
the statements of the report. The real question
is has the department the right and power to fix
the test of import duties, other than that estab-
lished by congress. In this point the testimony
of the secretary of the treasury himself cited in
the report is q conclusive answer. He says: "The
courts have decided that the duties on standard
color is a well known commercial phrase that
tarc .,>fn hn%y &l,o
government, and we have no right by regulation,
to substitute anything which affects the duties on
standard.
Resolred That a copy of these resolutions,
signed by the chairman and secretary of this
meeting, be sent to the president of the United
States, secretary of the treasury, and the mem
bers of the senate and house of representatives
and be published in the public prints.