New-York tribune., 1897-08-16
THAT DISSEMINATING DUTY.
MR.. NIMMOs ARGUMENT BEFORE THE
ATTORNEY GENERAL.
lBY TELEGRAPH TO THE TRIBUNE.


WASHINGTON Aug lj-The Hon. Joseph N'mmo
,r furnishes the following synopsis of his argu-
mont before the Attorney General In support OF
the contention that the 10 per cent discrihia.'"s
duty is applicable 10 Asiatic goods coming '"'o
the United States through Canada. lie openeu
with n brief historical sketch Of the inception ana
growth of the United States and Canadian transit
trade which he showed had It's origin In admin
is,rative discretion. In lsS an invoice OF goods
destined for Canada arrived at New-York The
question arose. Could such goods be Transported
TO Canada through the United States without
ma vment Of duty? The Collector reasoned tha'
as the bonded warehouse laws permitted imported
goods TO be taken from the warehouse ana trans
portod through the streets of New YORK 20 snip
al the wharf which would take them to Foreign
country without payment OF duty III the '"i'e"
States. so such goods might. under proper rcgua-
tions. be delivered TO canaiboat or RAJ lroa" CHI
to be transported TO Canada free Of duty.
The Secretary of the Treasury concurrcd III thl-
view and the practice soon sprung up. not only o.
passing foreign goods through the United state
at New-York Boston and Portland, Ne, TO 'ah-
ada without payment of duty but also OF allowing
goods TO be shipped from Canada through ports oi
the United States without payment of duty. Re-
ciprocally. Canada allowed the people OF the
United States TO impor, and export goods through
Canada by the St. Lawrence route without th'
payment of duty. This Mr. Nimmo denominaie"
the foreign transit trade lie then described th"
domestic transit trade as follows:
About April J. lsjj, the completion of the Suspen-
sion Bridge at Niagara Falls opened up the hiSt
all-rail line between New-York and Chicago The
question TO allow ing goods 10 pass through Cah-
Without payment OF duty was also determined a.
one OF administrative discretion 1t was h0t uhti
the foreign transit trade ana the domestic transi,
far as the United States concerned IL left The
whole matter OF establishing and regulating routes
to the Secretary Of the Treasury.
mari Of a. ~lg
tcct il Article XXlN OF the Treaty OF Washing
to the United States the reciprocal privilege o;
importing goods through Canadian ports, hut. MI
Nimmo stated, this is "a privilege which the United
| he explained with considerable emphasis maj me
the incident of the freezing up of the ST Lawrence
River for six months IN the year ana the intcrJec
tons of territory of the two countries on the cas-
side of the continent. while 1t does not apply Of
right the western side Of the continent where
there IS no Ice TO impede navigation and no inter
tecting territory.
Mr. Nmmo then gave brief historical review
to prove the assertion made by him that the
Canadian Government is both great railroad and
canal corporation and political corporation The
Canadian Government completed its system Of
canals from Lake Erie Montreal IN lSio. since
which time it has sharply competed with the
State Of New-York, the owner and operator Of the
Erie Canal. Canada has also constructed a Gov
ernment railroad from Montreal to HafaX-thc
Intercolonial Railroad-and has likewise
reaches from Port Arthur on the Pacific to Mon
trcal and 20 various points along northern
and northeastern boundary line The contrbu-
tions of the Canadian Government 10 the Canadian
Pacific company in stock subscriptions subsidies
exemptions and guarantees of credit amount to
$50 go. Ii Is essentially Canadian Govern
ment road designed promote the commercial
and political interests of Canada. and 20 defec,
American commerce from American ships Ameri-
can seaports and American transportation lines
Here he alluded to the fact that the Province Of
British Columbia. with population of only about
10000 IL drawing away the commerce OF popu-
lation IN our Pacific Coast States Of over 2co,ooD
adding. And this IS being accomplished through
the financial and political power Of the Dominion
Government"
Mr. Nmmo alluded TO various other Canadian
aggrossions upon American commercial interests
dwelling particularly upon the fact that the Domin-
ion Government imposes iscrminat!ng duty of j.
per cent on tea and coffee when imported into
Canada through the United States, and contcndinc
that the evident design Of the 10 per Asiati
goods provided in Section p Of the Tariff act Of
July "a is to offset this ana other aggressiors upon
American commerce.
Mir Nimmo went into exposition o: the terms
OF the statute, pointing TO the fact that the main
proposition preceding The excnptng clause consists
of two parts one te reiTrrlnE m to goGds wares or
Of the United States" and the second TO goods
% or 1sn 1d9 9c whch sh or n; M
United States from such contiguous country"
Of the first clause of the doclaratory portion of th
section. but does not allude to the second clause
which imposes the 10 per cent duty foreign goods
entered through Canada. Mr. NimmO then shOwcG
that the terms imported ara cone into are not
Synonymous under the usage of the Governments
for the last fifty years, and that under our navga-
tion laws foreign vessels are not entitled to The
privileges railroad In the transit
trade. all going 10 prove. as he cOntendcd that tn
eXcmpting clause does not apply 10 the transi;
trade. lie also explained the retail border trade
which. officer % the Government he had IN
vcstlgatcG throughout It's entire extent.