The morning call., 1893-12-03
FAILED To KEEP THE LAW.
A Requirement That Works a
Z. - Hardship.
AT THE MERCY OF PATRONS.
How the Negligence of Foreign Con-
=. :, signees Makes Trouble for Cali
-. = fornia Shippers.

Eighteen civil actions to recover upon
export bonds were brought by United
States District Attorney Garter in the
United States District Court yesterday
against exporters OF grape brandy and
their suTetles.
The basis for the complaints against the
defendants is that they have failed to pro-
:dnce certain certificates required by the
law known as landing certificates" Such
certificates are required to be taken to the
Internal Revenue Collector here to show
that the conslgnments had properly
reached their destinations.
-; In some cases the failure to produce
these certificates dates several years back,
and an omission of this kind has been
more or less frequent in occurrence. 1t
was only recently that Commissioner Mil
Ter of the Internal Revenue Office at Wash
ington decided to move in the matter. He
ordered the suits begun.
:. From the United States Attorneys
office a reporter OF THE CALL learned that
the men against whom the proceedings
bad been brought are all straight mer-
chants engaged in a legitimate business,
and kind of business that would not be
mixed up in any petty schemes of defraud-
ing the Government.
One of the suits is for $1,000, another for
$500, others for $3.50. some for $500, and
he.remainder for Insignificant amounts.
To explain: Whenever a shipment of
grape brandy Is made 10 a foreign port an
ex port bond must be filed by The consignor
with the: Internal Revenue Collector for
ian amount double what the revenue tax
upon the article would have been had it
: been consumed here. The internal reye-
nue. tax is 80 cents per gallon. The con-
aitions of the bond are that the
brandy must be exported bona tide 10
"a: foreign port, and that the consgnee
must report its arrival. The statements
of the foreign consignee, the master of the
vessel upon which the brandy had been
shipped, and the foreign Collector of Gus
toms must be obtained through the Ameri-
can Consul at the port of destination. and
sent to the Collector of Customs here. A
landing certificate is made out upon these
statements and sent 10 the Internal
Revenue Office. Then the export bond is
cancelled. A failure, therefore, to pro-
: duce the landing certificate works a for
feitaTe of the bond.
Chief Deputy John E. Youngberg of the
Internal Revenue Office here gave the fol-
lowing explanation yesterday afternoon:
"Thelaw which governs the shipment of
brandy works great hardship upon our
merchants. None of these men ever in
nded to violate it and it's not their fault
:, that 1t has not been complied with. 1t all
lies with the consignee as to whether the
proper reports oEthe arrival of the goods
shall be reade. and as he has nc particular
1nterefst In the matter. and 1t costs fee of
/. z: fherne Consul. it is frequently left un-
j won ed to. Then the exporter is made
e.atberIor what has not been any omis-
:. b ily els part.
-. I'm expectation of brandy is much
:alacl Fgyr from that of tobacco and cigars.
;Witl ves latter the export bond is can
celed Us soon as the clearance papers are
issued. The merchants justly want the
. same rules THAI govern cigar and tobacco
exports in this respect to apply to ship
! ments abroad of gI ipe brandy.
= ''One result of the obnoxious law has
:.been to reduce very much-to almost
stop-the exports of California distilled
grape brandy. Merchants cannot compete
In the market il they have 10 spend twice
their profits for the privilege of introduce
ing it. and if they are to be constantly at
the mercy of their consignees to the ex-
tent of the obligations OF their export
bonds, the business does not offer much
encouragement. In my opinion the Cali
fornia delegation should urge Congress to
change the law at the coming session in
the interest of the wine-growers and ex-
sp0rters of this State"
Another reason for the failure to produce
the landing certificate is that at many of
the ports of destination there is no Ameri-
can Consul to attend to the matter. In
some Mexican ports this is the case.
- AT the Custom-house 1t was ascertained
from Deputy Collector jerome that il is
possible to escape the payment of the in
ternal revenue tax and still have the spirits
supposed to have been exported consumed
in this country.
A great deal of the grape brandy is ex-
ported TO France for the purpose of torti-
flying French wines which are to be i'm
ported into this country. The French
Government does not allow the wines for
home consumption TO be fortified. but that
restriction does not apply to exports. Be-
sides it is necessary to fortify such wines
as have to go through the tropics. If,
therefore. grape brandy that is shipped
from here comes back mixed with French
wines, the United States Government
loses the internal revenue tax.
Imported wines cannot be too highly
fortified. however. for limit is fixed by
paragraph 1856 of tho Mckinley tariff-a
limit of "a per cent All wines exceeding
that limit are prob bted.
Grape brandy that has been exported
can be reimported legitimately under sec.
tion 21 by the payment of duty equal to
what the internal reVanue taY wouId ha