The sun. [volume] (New York [N.Y.]) 1833-1916, 1897-08-10
CANADA ROADS AFFECTED.
a HITHERTo UNNoTICED PRoTIsIoN
IN THE TARIFF LAW.

~N ~OA NV
Tt was 1ntended 20 nmpees . no FER Cent.
discriminating Duty On Bonded Freight,
which wouia More Than OGset the Bouaea
Privilege Enioyea BY Capadian Reads.
WARRINGTON. Aug. 9.-Secretary Gage has
asked the Attorney General for an Interpretation
Of the clause in the new Tariff law relating to the
assessment Of discriminating duties. The con-
forces who made the final draft Of tho act added
q hitherto unnoticed provision to section %,
which promises to open up q field that will keep
the courts busy for some time, and upon tho
final construction Of which will depend the set
Element Of the question which has long agitatod
tho Treasury Department with regard to the
bonded privileges enjoyed by tho Canadian
railroads The section In question is the one
imposing an additional discriminating duty Of
10 per cent. upon all goods imported in vehicles
not Of the United States, except such as are
Of countries having special treaty relations with
this Government, by which products carried in
them are entitled to admission under the same
rate OF duties as those imposed upon cargoes
carried in American vehicles.
This provision has been carried in tho tariff
laws for many years, and was inserted by the
Committee on Ways and Means in its bill just
as the section stood in the Wilson law. Tho
Finance Committee struck II out of the draft re-
ported to the Senate. but 1t was afterward In
serted by vote Of the Senate. When the bill got
into conference the section was amended by tho
insertion Of these words after the description Of
the goods subject to the imposition of additional
duties:
"Or which, being the production or manufac-
ture of any foreign country not contiguous to
the United States, shall come into tho United
states from such contiguous country
And at the end Of the section, after the exclu-
sion in favor of goods carried in vehicles of those
countries having special treaty relations with
the United States:
MOI to such foreign products or manufac-
lures as shall be imported from such contiguous
trade"
1t is said that those additions to the section
were made at the instance of Representative
were intended to reach the Canadian railroads,
which have been favored greatly at the expense
Of their competitors in the United States in the
foreign trade. American railroad managers
have long sought to secure Congressional action
to deprive their Canadian competitors of the ad.
the enactment Of the Interstate Commerce law.
The Canadian railroads refused to be bound by
their tracks lay within the territory Of the
United States. They could give such rates
as they desired, and under the privileges Of the
transshipment. were enabled to offer equal ad.
y%antages to American shippers in the matter OF
il TIE opinion OF Attorney.Generai McKenno
as TO the construction to be placed upon this
new provision in the Tariff law shall give the
effect to them that was intended by the con.
ferees. the American railroads, in the opinion OF
the Treasury. officials. will have won their
fight. The imposition Of an additional 10
per cent. duty upon all goods coming into the
country over Canadian lines will far more than
Offset any advantage in rates that they can pos
sibly offer; and IL the courts sustain this view
Of the law the Canadian roads must necessarily
The question was frat called to the attention
Of the Treasury Department on Saturday last
by the Collector at the port of Detroit, who re
ceiyed an invoice Of diamonds through the mail
and he asked whether or not the additional IL
per cent. duty wat to be levied on it. The ques
by Secretary Gage for his opinion. To-day an
other case was referred to the department by
the Collector at Chicago. that of several car
loads OF japanese goods coming under consular
seal from Vancouver over the Canadian Pacific
Railroad.
ut may be" said Assistant Secretary Howell
this afternoon, that we shall get our 10 pei
cent. duty on tea after ALL"
Pending the decision OF the Acknowledgement
the Collectors have been advised to delay fina,
the Northwest are interested in this question tc
almost as great an extent as are the Canadian
railroad managers. and the opposition to the
efforts to do away with advantages the Cana
dim roads possessed have come largely frou
Senators representing these States. What II
through lines in New England participate IL
this traffic with their Canadian connection,
and will suffer with them from the effects of ar
adverse ruling by the Department OF Justice
Some idea Of the extent of this carrying trade
may be had from the statistics. which show thai
numbers, eight million tons of bonded freight
in:o and through the United States.