The Montgomery advertiser., 1901-06-19
A RETALIATORY MEASURE
Outcome of Friction Growing
 out Of Sugar Differentials.
Secretary Gage Intimatss That the Latest Move is Incompatibls
 with the Existing com-
 mercial Agreement Y

Ambassador, Count CasSiflt, has c0r1~ municated to the State Departmenk that in conseuuence of the action of the American Government through ' treasury order of March 9, last, apply ing the tariff restrictions against Hi1s- sian petroleum imported into this coun- try. the Russian Minister of Finance. M. dewitt, has isgued an order. dated June 7th instant, iusposfng the high k4r~ if rate of the Russian schedule on American white resin, under Article LxxxII of the Russian tariff law. ana increasing the rate on American hicy- cles under Article CLxxIII of the Russian laws. a
 This action is entirely apart from. but grows out of, that taken in con- riection with Russian sugar. and Is tory duties imposed by this Govern- ment ami the retaliatory duties innppa- cd by Russia.
 The order of the Russian Miniater im to take effect next Friday. or two weeks from the date of its issuance.
 At the Treasury Department. 1t iB stated that the imposition of 8 duty on petroleum was not matter within the discretion of the Secretary of the Treasury. but was made mandatory by the Dingiey tariff act, which directs
 
 try Imposes q duty on petroleum irl- ported from the United States. to levy a like duty on petroleum imported from that country. If Russia did not colv iect duty on petroleum imported from the United States, her petroleum would have been admitted to ttin country free of duty under the terms of the tariff act
 In his reply to Count CaAeinssM which was transEnltkea Ao the. THAAA. ury Department. Secretary uaae prpe that tisie Government's action was q .discripination against Russia and adds
 If bek leave to submlt Tor your con. alteration the question whether che measure now adopted by the imperial government is not Incompatible with the rights of the United States under the existing treaty of commerce and navigation with Russian
 According to the Russian view the duty laid against Russian petroleum is lnexpiicable from the fact that no Rus- sian petroleum comes to this country. The only article is paraffin.
 It ia said that the American trade in bicycles and the rosins specified is quite large in Russia, so that the in- creased duties will bear heavily upon these branches of the American trade. As q result. representations are being made in behalf of these manufacturers to induce the State Department to inc tercede with Russia for an abatement of the high rates.
 The text of the Russian Ambassa- dor's letter as delivered to the Treas ury Department is as follows:
 "WashinKton. May 26. 1901. Secretary of State:
 'tThe Federal government. having by circular, dated March 9, 1901, applied article 626 of the American tariff to Russian petroleum, the Imperial gov- ernment has just informed me that the Minister of Finance of Russia has ta- ken the requisite steps for the appii- cation of the advanced rates of duty to the following American products en- tered into Russia.
 ''1-White rosiu or colophon, -galipol, brewers pitch article S2 and @ oicy- cles. article 175, paragraph :.
 This measure will go into effect two weeks from the date of its prnmulga- tior:.."
 The present duty on articles under the first head of the rosin family is sos cents ger pood or 36.112 pounds. Bicycles are now taxable at the rate or S9.26 each. The imposition of the max imum rate will advance these figures by just tklrty percentum, presuming that the effect of the Rujssian decree Is an application of article e2s or the Russian customhouse regulations. which was the paragraph applied by the Russlsn government to American agricultural machinery and hardware in return for the application of the dif- ferential sugar duties upon Russian su- gar.
 Ttkn tata.t ,.ats1ta tto, or tha mart 0a Russia emphasized the issue whicn had arisen previously over Russian sugar. Owing to the tariff war growing out Of the sugar decisions, pressure has oeen brought to bear upon the GOvernmene through commercial and ipdustsi4 channels to secure an adjustment with Russia.
 In some cases special interests. ma. cf inery in particular, have addressed themselves to the administration by pc. ,titlon and letters and strong influential Senators and Representatives in Con- gress with view to some action on tne part of the Government which will af- ford the Russian Government a basis for removal of the restriction ppo1 American imports The Board of Ap- praisers has affirmed the correctness of the sugar decision of the Collector If customs, and only one possible cham mel of relief remains open, namely: The Supreme Court. and in view of this contingency the executive branch does not see its way clear to take any steps now that might prejudice the case m advance.
 The danger in this situation is to ne found in the probable growth of nl- feeling between commercial interests In Russia and the United States which in the end may affect political relations