New-York tribune., 1893-12-23
HEAVY CLAIMS TO BE PAIn,
THE GOVERNMENT MUST REFUND MILryo.s,
TO IMPORTERS
SECRETARY CARLISLE ANXIOUS TO Eyow nov
MUCH HE WILL HAVE TO REFUyD-gE.


MUCH HE WILL HAVE TO gEFUyD-gE,
SUITS OF C. S. FAIRCHILD's DEcIsToy.
An Interpretation OF the tariff law by Charlea
q Fa.rchild while he was Secretary Of the Treas
ury will probably compel the Government to
refund TO tobacco importers Of this country an
amount of money variously estimated between
81 900 900 and s2,0o0,0OO. The decision made BY
the Secretary affected most OF the tobacco Inn
ported into this country between March, 1884,
and october G. 1890. when the Mckinley law
wont into effect Under the old tariff law, which
was supplan,cd by the Mckinley law, filler to-
bacco paid duty of % cents pound and to-
bacco to be used for wrappers duty Of rs cents
pound. TIE law provided that where tobacco
In bales showed that there S5 per cent
Of It fit for use as wrappers 1t should pay the
higher rate Of duty, and that where an examina-
ton showed that there was less than 80 per
cent of wrapper tobccco in each bale 1t should
nav the lower rate Of duty, or 35 cents pound
for the entire bale.
The Secretary Of the Treasury who was called
upon for an Interpretation OF the Law. decided
that the duty collected on each bale OF tobacco
should be in accordance with the quantity Of
each kind of tobacco in It; that is to say, y
case a bale OF tobacco contained 60 per cent OF
filler tobacco and 40 per cent Of wrapper to-
bacco duties should be collected In accordance
with the percentage Of each kind OF tobacco
found The importers would not accept Secre-
tary Fairchd's Interpretation Of the law. and
they took The case into the United States
courts.
AGAINST THE SECRETARY.
Both Judge Wheeler. Of this city, and Judss
Shipman. OF Connecticut. heard extensive argu-
rnent3 in these cases by lawyers representing
both the importers and the Government ana
both judges decided that the secretary's In
terpretation Of the law was Incorrect Ihey heid
that the original meaning of the statute was
that II there vas s. per cent OF tobacco In
bale fit for wrappers me "hoie bals
should pay duty 1T the rate Of % cents pound
hut IN case the percentage was less than that
arnount ~ cents n pound for each bale could be
collected The Government appealed the case
IN tho United States Circuit Court Of Appeals
Judge Iacombe, the presiding justice OF this
court handed down decision supporting the de-
cisions Of Judges Wheeler and Shipman. This
decision required the Government tc pay back
to the importers the excess OF duties collected
under Secretary Fairchild's Interpretation OF the
law.
large force OF CLERKS has been at work at the
Custom House since the decision was handed
70
money that the Government would be compelled
20 pay 70 the importers. Collector Kilbreth an
nounced recently that the total amount would be
about 81 100000 Only two or three OF the inn
porters were Wiling to accept the Collectors
determination OF the amount due 70 them. and so
far only S7.lOo IN refunds hos been paid. The
o,her importers declare that the Collectors fig
urcs are over 81 900 0G0 short of what they ought
70 be and they demand u be paid the higher
amount This demand is what has caused tns
anxiety IN the Treasury Department recently
and IL is what brought Charles S. Hamlin. tne
Assistant Secretary Of the Treasury, to this city
from Washington yesterday. ard was the cause
OF n long and serious consultation whicn TOOK
Mace IN the Collectors office There were present
Secretary Hamlin, Collector K.lbreth. Dudley +.
Phelps the deputy collector in charge OF the Ia"
division. and Appraiser Walter II. Bum Mr
Hamln told the Collector that Secretary Carhss
was contemplating asking for authority to issue
bonds 20 secure the funds with which 10 pay
these refunds TIE Secretary, consequently Is
anxious to know how much he IS likely to DO
called upon b pay.
MANY MILLIONS INVOLVED.
Secretary Hamn also discussed the nat ,fi'h-
mlngs refund decision with the Collector ana
other officials II is said that in the end 'he
Government may have to pay back from s'VVV'
O0o - s25OOO0Oo to importers who were over
assessed on importations Of these articles In al
the Secretary of the Treasury may be cornpe'eu
to issue bonds to the sum Of s2JcOVVlo alone
10 pay cfY all of the claims against the GoVerh-
ment held by importers who have paid an ex-
ccss OF duties Secretary Hamn also had
consultation with the members OF the FRAUD
Roll Quartet who are working on their report
of what they did not fni and did nnd III their
INQUIRIES regarding the custom House mere
There was a lively time in the Collectors
Office soon after the conference had Deen ehced.
Charles T. McCelland and Charles A. neSs Ok
the law firm Of Hess. Townsend McClellahu'
rlshed 10 the Collector and complained that
great outrage had been committed against enc
of their clients They declared that James NC
Gov 4 special agent, had seized seven Dales OK
tobacco without warrant Of law or justice. me
tobacco was seized from the warehouse OF Stach-
elbcrg & Co. at Nos. lj9 and l6l South fntn-
ave on the ground that II had been fraudulenuy
entered Mccoy presented evidence 10 snow that
rho tobacco had paid duty as filler tobacco at
the rate OF 80 cents n pound when In reality IL
was wrapper tobacco dutiable at 81 pound
Mccoy said further that on THURSDAY night thete
were eleven bales If this tobacco In the ware
house but when he went thcr" yesterday morn
inc four bales Of II had disappeared some
pretty strong language was used. ana MCCOY
was charged with being trespasser who ought
10 have been shot Collector kibreth SAID mat
the evidence was strong enough for hin 10
wa rrant holding the tobacco on the ground mat
II had been fraudulently nvoiced as filler. He
determined TO hold the tobacco IN spite OF inc
protests II the two lawyers.