Red Lodge picket., 1895-01-12
Tax on That Article Is PuzzIing
the Administration.
ITS REMOVAL MAY Be ASKED
Practical Exclusion of American Meat
Products From the Continent
Must Be Avoided.

is giving the administration great con-
Germ All evidence Of this was the con-
ference today, lasting about an hour,
between Secretary Gresham, Secretary
Carlisle and Attorney General Olney.
Secretary Gresham is concerned on
the subject from diplomatic point Of
view, Secretary Carlisle is interested IN
an effort Of possible retaliation upon
the revenues Of the other governments,
and upon the attorney general deVOlves
the duty of giving the opinion OF the
legality Of the proposed movement Of
the government,
The Austrian minister undertakes to
show in the first place that the imposi-
tiOn Of q difTerential duty Of lilo Of
cent per pound on ustrian sugar is in
violation of article , OF the treaty of
1892 between the United States and
Austria-H Hungary. 1t is asserted that
the exchange Of notes preceding the re-
ciprocity agreement under the Mckinley
act established a new basis OF COM
mercial relations and that Austria II un-
gary conceded to the United States the
same reduction of duties that it granted
to other countries. under what is known
as the most favored nation clause. The
Austrian minister also shows that tine
assessment OF a bounty upon sugar pro
ductd in Austria is not the act of the
imperial government, but an entirely
provincial affair and 50 corresponds to
independent action Of any Of our states.
Inasmuch as the bounty system Of
Austria differs from that OF Germany,
it wa. contended that the same con
struc1iun v hich put a differential tariff
OF German sugar, did not apply to Aus
trian sugar. But when this question
came formally before Carlisle upon an
inquiry from the collector Of customs
1T Baltimore. the secretary disposed Of
the contention III these words, i'll a letter
dated August 81 last:
The department is in receipt rf yotl
letter Of the 18th inst. in which YOU re-
quest to be Informed that the foreign
countries grant q direct or indirect
bounty on sugar. IN reply / have tc
state that Germany and Austria Hun
gary grant direct bounties on sugar
and under the operations of the laws Of
France. Belgium, Denmark and the
Netherlands, providing for the remis-
sion Of internal revenue taxes On heets
used in the production of exported
sugar. indirect bounties may be appar-
emily earned by exporters Respect
fully. j. q. CARLISLE.
This letter not only disposed Of Ger
many and Austria. but held subject te
additional taxes sugars coming from
four other European countries
1t may be more than a coincidence
that each of these four countries has
begun the applicat ton of restriction OF
the importation of American cattle OF
other food products. The whole situa-
ton is made more grave by the belief
which is entertained by the admins
tration, that it is we'll nigh hopeless tC
appeal to congress for aid If it is final
ly held by the administration that the
sugar duty is a discriminating duty
there viii be probably another appea
to congress to repeal it and fix a fail
tax not i'll contraNentiOn Of the favOreG
nation clause. / f congress refuses the
case Will probably be one requiring
simple executive action.
The figures collected by the treasury
department bearing upon this subject
show that during the past fiscal year
imports of beet sugar into the United
States from Europe amounted in value
to $l5, ,791, 900. Germany stands first ir
the list with $11 ,063,0 900, Belgium comes
second with $2,377 900, Austria third with
$1,412, 1875 France fourth with $422, 042
and the Netherlands fifth with 1898. 722
All Of this sugar came into the United
States last year duty free and it is con
tended that the effect of a differential
Of 1-10 Of one cent per pound in the
addition to duty Of 40 per cent. levied
on ali sugar will be to prohibit traffic.
OTHER OBJECTIONS.
There are, it is learned, other disturb
ing elements entering into our relations
with continental European powers
which undoubtedly have had an effect
to stimulate the retaliatory policy
adopted by them. One Of these dis
cusSed a t this mornings S conference was
the status of agents of this government
stationed in Europe to carry out quar-
antine laws when there seemed to be
great danger Of the introduction OF
cholera into the United States last sum
meT The French government protested
against the presence of our medical rep
resentatives. The Germans did not &C
SO far a that time, but resented opera
tions on their soil of the agents OF
foreign governments who We're not
clothed in diplomatic powers. In the
end they protested strongly and have
gone so far as to intimate that ii the
provisions Of the pending legislation
which contemplate still further eXten-
sion Of the inspection principle to i'm
migrants, is carried out, they will not
permit them to operate. AS the threat
was to absolutely nullify any effort that
make to exclude immigrants Of the most
dangerous class and also to expose the
people of the United States to infection
from cholera, the matter is regarded
as full Of gravity In fact the turn af-
fairs have taken makes it evident that
our relations with continental Europe
are likely to get beyond executive con-
troll if we once recognize the right Of
these countries to dictate in matters
Of legislation. The conference today did
not result in defining any line Of policy
and it Is believed the president will feel
Obliged to lay the ma atter before con
gress in special message to supple
ment the efforts OF the administration
in congress to pass the sugar repeal
bill now pending.
In the Senate.
Washington. Jan. 4.--Less than 20
senators We're in their seats today when
Vice President Stevenson called the
senate to order. Senator Lodge, Of
Massa chusetts. addressed the senate
upon a resolution nquirins as to why
the United States warships have been
Withdrawn from Honolulu. Sena tor
Lodge said: At the beginning of the
session. III the introduction Of a resolu-
ton asking for reports and correspond
ence from Admiral Walker in regard TO
Hawaii Admiral Walkers papers We're
as | had anticipated, valuable on these
points. They showed that to a disin-
observer, actuated by no mo-
tive but the interests OF the United
States that it was perfectly clear that
Olr policy was anneX3 tiOn of these