The morning call., 1892-09-30
A FLAW IN THE TARIFF.
Important Decision Filed by
Judge Ross.
STEAMER MEN INTERESTED.
Imported Bituminous Coal Used for Fuel on
American Steamers Entitled to Draw
back Of the Duties Levied.

A decision affecting the construction OF
the Mckinley tariff law and Of vast I'M
portance to American steamship owners on
this coast was filed yesterday In the District
Court of the United States for the Northern
District of California.
The Mckinley law was interpreted by the
United States Attorney General to repeal
the provision of the old law allowing
dra wDeck of seventy five cents a ton on all
bitumnous coal imported into the United
States which is afterward used for fuel on
board of vessels propelled by steam engaged
in the coasting trade with foreign countries.
Erskine M. Ross. Judge Of the District
Court for the Southern District of Califor-
MIA, holds to the contrary and in overruling
demurrer filed by the attorneys for the
Government in the ease Of Charles r. Allen
VS.. United States, decides that that portion
OF the tariff act of March 3, 1883, allowing
drawback on coal is of full force and effect.
Mr.. Allen in February, 1892, supplied the
steamer Hum boldt with 1173 tons Of i'm
ported btumnous coal for fuel.
he had already paid the duty.
Believing he WAS entitled to the drawback,
amounting to sos 81, he asked Collector
Phelps to send weigher to make an official
note of the quantity Of foreign coal put on
board the Humboldt.
Collector Phelps refused TO take any
action in the matter.
Mr. Allen, therefore, brought suit against
the United States, asking judgment for
S93 81, the amount of the drawback. His
attorneys were Page & Ellis.
The United States Attorney interpOsed
demurrer to the bill to the effect that the
complaint had not set forth facts sufficient
to constitute course Of action, and that the
plaintiff had tailed TO aver that the coal in
question had been imported.
The argument fer the Government was
made by Assistant United States Attorney
Shurtleff and was finally submitted Oh elab-
crate briefs to Judge Ross.
In his decision Overruling the demurrer
interposed by the Government and allowing
ten days time to file an answer Judge Ross
says:
lit is urged on the part of the Govern
ment that section % deals exclusively with
drawbacks upon exports, and that the word
article in the second proviso means and
refers to an exported article and to no
other
IAN analysis of the section does not sus-
tain the contention.
''The section provides in distinct terms
for drawback, first, on all articles wholly
manufactured from imported materials and
thereafter exported; second. for draw
back on all articles made partly from i'm
ported materials and thereafter exported
This language, as said by plaintiffs
counsel, covers every possible manufacture
made i'll this country, whether wholly or
partially only of foreign materials, and
thereafter exported.
'These provisions are followed by the
proviso that the drawback allowed under
existing law on any article shall be con-
tinued at the rate herein provided; that is
to say, the amount returned shall be that of
the duty paid, less per cent.
There could be no clearer recognition
than is here expressed of the fact that there
were at the time of the passage of the act of
October l. 1890, existing laws providing for
drawbacks.
''AmoDg them. as has been seen, was the
act of March 3, 1888, as amended by that of
June 10, 1856. giving a drawback ON
bituminous coal imported into this country
and used on steam vessels OF the United
States.
This drawback was, therefore. by the
express language of the second proviso of
section 25 of the act of October /, 1890. con-
tinued, but at the rate provided in that Sec
ton. to w.t. the amount OF duty paid, less
per cent.
This, it seems to me, is the natural and
ordinary meaning of plain language"
As Judge R0Ss's decision is directly op-
posed to the ruling Of the Attorney General,
the issue raised will doubtless be pressed to
conclusion and an appeal taken by the
Government to tie United States Supreme
Court.
If the decision of Judge Ross be sustained.
the owners of steamships on this coast will
profit TO the extent of about 735 cents on
every ton of coal used for fuel.
The Pacific Mail Steamship Company and
Spreckels Brothers would save thousands of
dollars, as they use only bituminouS coal.
The decision gives much satisfaction to
the importers of Australian coal, a large
portion Of whose trade was lost by the con-
strueti9n placed ON the Mckinley law by
the authorities.
=
owing to the fact that they had large con-
tracts for supplying steamers with coal at
the time Of the passage of the Mckinley
law.
Several thousand dollars will have to be
returned TO them in drawbacks if the de-
pjsinn of Tu6oA Rnss ia mt rovorcad