The herald., 1897-08-12
NO TARIFF
UPON TEA
Unless 1t Comes by Way
of Canada
A CARGO IS HELD AT CHICAGO
AND THE TEN PER CENT TAX
DEMANDED
A CARGO IS HELD AT CHICAGO
The Enforcement of the Section
Strikes a Hard Blow at the
Canadian Railroads
Associated Press Special Wire.

Associated Press Special Wire.
WASHINGTON, August 1.-THE At
retary of the Treasury rendered today,
decides that goods and productions of
foreign country not contiguous to the
United States, which are regularly i'm
ported into Canada and afterward ex-
ported to the United States, are subject
to the discrimination of 10 per cent, pro-
vided for in Section % of the new tariff
act, and also that the method of convey
ance, whether by water, mail or other
wise, is not material.
The question whether goods trans
ported through Canada to the United
States under Consular seal are subject
to duty has not yet been determined. A
case in point is that of $50, 900 worth of
diamonds, which are delayed at one of
the frontier custom houses until this
question is decided, whether or not the
diamonds are subject to the 10 per cent
duty.
THE FIRST CASE
CHICAGO, August 1.-THE first ap-
plication of a section of the new tariff
bill which if it is interpreted to mean a
it reads, may bring disaster to Canada's
great overland line, the Canadian Pac-
| ifc Railway, and restrict other Can
adian roads which have terminals In
the United States, in their ability to
compete with domestic corporal tiOns in
delivering Asiatic and European i'm
ports has been made by the collector
of this port. A consignment Of train
load of Japan tea recently reached here
in Canadian Pacific cars from Vancou-
ver Tea is not a dutiable article and
under the Wilson law the Japan-Van-
couver consignment would have been
permitted to go right through for distri-
button, the consular seals on the cars
serving to protect it from interference
by custom officials. Collector Russell
however, was of the opinion that the
new phrases in section 322 required the
collection of discriminatin duty of ten
per cent, because the tea while en- routs
from Japan had been landed in Vancou-
ver B. c., and he took possession Of the
property pending a decision from the
Treasury Department upon the exact
applica ton of the measure.
The section requires the collection and
payment of discriminating duty of ten
per cent on "all goods, wares or merch-
andise which shall be imported in YES
sells not of the United States or which
being the production or manufacture of
any country not contiguous to the United
States shall come into the United
States from such contiguous country"
The Secretary of the Treasury advised
| IN q
of the tea to take it away after exacting
from them promise to pay the discrim-
mating duty in the event the Attorney
General, to whom the whole subject has
been referred for an opinion, determines
that the law required such payment
Mr.. McKenna deemed the matter i'm
portant enough to give it his persona.
attention instead of referring it to one of
his numerous subordinates as it is the
custom of the Federal law department,
and when he returns to Washington
from his vacation about two weeks
thence, he will write the opinion that has
been asked for.
| If he sustains the position taken by
the Chicago collector of customs in
seizing the tea and holding it temporari-
ly to enforce the collection of the dis
eliminating duty and decides that Sec
ton % requires that all imports con-
signed to the United States, whether
from Asia or Europe, that are originally
landed in Canada, shall pay discrim-
mating duty of ten per cent he will strike
blow at the Canadian Pacific Railroad
on the one hand and the Grand Trunk on
the other that will seriously cripple
these corporations.
American railway officials are keenly
interested in the forthcoming opinioE
for they realize that it will determine
whether or not the Canadian Pacific viii
continue to be the great rival of Amer.
lean railroads, especially the Great
Northern and the Northern Pacific. in
the European and Asiatic fields.
The Canadian Pacific has made a
speciality of Asiatic business ever since
it established its own line of steam
ere, consisting of the Empress of In
dia, the Empress of Japan and the EN-
press Of China, between Vancouver, B.
c., and Japan and China ports 1t
forced the Great Northern road to es-
ablish a similar line whose terminal
is at Seattle, and make deep inroads into
| the business of the Occidental and Ori-
entail Company, which is controlled by
| lHe southern dClllC anu - HIOu dClllC
roads and the Pacific Mail Steamship
Company. The Canadian Pacific steam
ers have controlled such a percentage
Of the Pacific carrying business that the
Canadian Pacific has been able to Sc
cure a large percentage of Asiatic i'm
portations, consisting of tea, silk and
other products destined for the United
States.
The roads chief success has been in
China and it is claimed it brings to this
side of the Pacific a greater amount of
Chinese food products which are i'm
ported expressly for resident Cinnamon
than all of the other lines combined.
Railroad men who are familiar with the
extent Of the volume Of this business
say that it is sufficient ito make it a
desira BILE addition to the business of any
| line or steamship or railroad. So long
Ioc q xho "a did mt fnferfora U,iff1