The record-union., 1897-08-12

WASHINGTON, Aug. 1.-THE Attor-
ney-G General, in an opinion to the Sec
retary Of the Treasury, rendered to-day.
decided that goods and productions of
a foreign country not contiguous to the
United States which are regularly inn
ported into Canada and afterwards ex-
ported to the United States are subject
to the discrimination of 10 per cent.
q provided for in Section D Of the new
Tariff Act and also that the method Of
conveyance, whether by water, mail
or otherwise, is not material.
The question whether goods trans
ported through Canada to the United
States under Consular seal are subject
to the duty has not yet been deter
mined. The case in point was that of
$50, 0,0e0 worth of diamonds, which were
delayed at the frontier custom-houses
until this question was decided. The
diamonds are subject to the 10 per cent.
duty.
CANADIAN PACIFIC THREATENED
CHICAGO, Aug. 1.-THE first appi-
cation of the section of the new tariff
law, which, if it is interpreted TO mean
as it reads, may bring disaster to Can
ada's great overland line, the Canadian
Pacific Railway, and restrict other
Canadian railroads which have termi-
nails in the United States, in their ab1i-
ity to compete with domestic corpora
tions in delivering Asiatic and Euro
pean imports, has been made by the
Collector Of this port. A consignment
of a trainload of Japan tea recently
reached here in Canadian Pacific cars
from Vancouver. Tea is not dutiabte
article. and under the Wilson law the
Japan-Vancouver consignment would
have been permitted to go rlgnt
through for distribution, the consular
seals on the cars serving to protect II
from interference by customs ofhcers.
Collector Russell, however, was of the
opinion that the new phases in section
% REQUIRED the collection of discr1m-
mating duty of 10 per cent, because
the tea, while en- route from Japan had
been landed in Vancouver, B. c., ana
he took possession of the property
pending a decision from the Treasury
Department upon the exact application
of the measure.
The section requires the collection
and payment of a discriminating duty
of 10 per cent. ION all goods, wares or
merchandise which shall be imported
in vessels not of the United States, or
which, being the production or manu-
facture of any country not contiguous
to the United States, shall come into
the United States from such contiguous
country"
The Secretary of the Treasury al
vised the Collector to permit the i'm
porters. of the tea to take it away after
exacting from them a promise to pay
the discriminating duty in the event of
the Attorney General. to whom the
whole matter has been referred for an
opinion. determining that the law re-
quired such payment.
Mr.. McKenna deemed the matter i'm
portant enough to give it his personal
attention. instead of referring 1T to one
of his numerous subordinates, as is the
custom of the Federal Law Department,
and when he returns to Washington
from his vacation, about two weeks
hence, 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 tempo
rarily to enforce the collection of the
discriminating duty, and decides that
section % requires that all imports
consigned to the United States, wheth-
er from Asia or Europe, that are orig
inally landed in Canada, shall pay a
discriminating duty of 10 per cent, he
will strike a blow at the Canadian Pa
cific Railroad on the one hand, and
the Grand Trunk Railroad on the other
that will seriously cripple these corpor-
ations.
American railroad officials are keenly
interested in the forthcoming opinion,
for they realize that it viii determine
whether or not the Canadian Pacific
Will continue to be the great rival of
American railroads. especially of the
Great Northern and Northern Pacific.
in. the European and Asiatic trade.
The Canadian Pacific has made a spe-
cialtv Of Asfatic business ever since II
established its own line, of steamers,
consisting of the Empress of India, the
Empress Of Japan and the Empress of
China. between Vancouver. b. c., and
Japan and China ports. It forced the
Great Northern road to establish SIM
liar line. whose terminal is at Seattle,
and make deep inroads into the bust
ness of the Occidental and Oriental
Steamship Company, which is con-
trolled by the Southern Pacific and
Union Pacific roads. and the Pacific
Mail Steamship Company. which is the
personal property Of c. 2. Huntington
The Canadian Pacific steamers have
controlled such a percentage of the Pa
Pacific has been enabled to secure a
cific carrying trade that the Canadian
large percentage of Asiatic importa-
tions. consisting of tea, silk and other
products destined for the United States.
The roads chief success has been in
China. and 1t is claimed that it brings
10 this side of the Pacific a greater
amount Of Chinese food products which
are imported expressly for resident
Chinese than all Of the other lines COM
bined. Railroad men who are familiar
with the extent of the volume of this
business say that it is sufficient TO
make it a desirable addition to the bus
mess of any line, steamship or rail-
road. So long as the tariff law did not
interfere with its operation, the Cana
dian Pacific maintained a supremacy in
the Pacific and Asiatic business that
was more or less distressing to its ri
walls
The Great Northern and Northern Pa
cific. with terminals at Seattle and Ia
coma. and also at Portland, naturally
suffered most by the Canadian road, al
though the Southern Pacific, with its
terminal at San Francisco, and the
Atchison, Topeka and Santa Fe, To-