The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1901-05-14
COLLECTOR IS OVERRULED
DECISION OF BOARD OF GENERAL
APPRAISERS.
Holds That Stackable was in Error in
Collecting Duty on Certain Yellow
Sheathing Metal on the Edward May.

The Board of General Appraisers late
ly rendered a decision on the protest of
Alexander & Baldwin against decision
of Collector Stackable. The report of
the decision has just reached here. The
Board sustains the protest and over
rules the collector.
The decision is as follows:
The material facts in this case are as
follows; On April 20, 1896, the owner
of the American bark Edward MAY
withdrew from bonded warehouse at
New York certain yellow sheathing me-
tai, which was placed upon the hull of
the said vessel. The merchandise was
accorded the privileges of section of
the tariff act of 1894, which reads, so
far as applicable as follows
section Z. That all materials of for
eign production which may be neces-
sary for the construction of vessels
built in the United States for foreign
account and ownership or for the pur-
pose of being employed in the foreign
trade including the trade between the
Atlantic and Pacific ports of the United
States, and all such materials necessary
for the building of their machinery, and
all articles necessary for their outfit
and equipment, after the passage of
this act, may be imported in bond under
such regulations as the Secretary of the
treasury may prescribe; and upon
proof that such materials have been
used for such purposes no duties shall
De PAID thereon. But vessels receiving
the beneht of this section shall not be
allowed to engage in the coastwise
trade of the United States more than
TWO months in any one year eXcept
upon the payment to the United States
or the duties of which rebate is herein
allowed.
Thereafter the vessel was engaged in
the foreign trade for more than four
hofr
the port of Honolulu, Hawaii, she exl
changer her foreign register for coast
wise enrolment, clearing from Homo
lulu and continuing in the coasting
trade for more than two months in the
year 1900. During all this time the
sheathing remained upon the bark's
null On her return to Honolulu the
full duties on the yellow metal in cues
uon, amounting to $2S420, were exacted
by the collector at that port, under Sec
ton II of the act of 1897, which was
then in force, said section II corresI
ponding exactly to section of the act
OF 1894. The protest claims that the
collectors action was unauthorized.
In the case in re Spreckels & Bros. Co.
lO4 Fed. Rep, S79), reversing Board
decision in re Spreckels q Bros. Co, &c.
A. S694), the circuit court for the north
ern district of California found, upon
the testimony of expert witnesses, that
VIZ az anu 6neCllNeneSS OIL metal
sheathing of this character does not
continue longer than from two and one
nan to three years. That evidence, as
set forth in the opinion of the court be-
ing applicable to the merchandise be-
tore us, rs made part of the record in.
this case. 1t is strongly corroborated
by the proofs which We're filed with this
protest.
We find accordingly that, at the time
the Edward May undertook her coast
wise voyage, the yellow metal on her
hull was worn out and unfit for further
use than to be ACKNOWLEDGEMENT
The Spreckels case cited supra. which
arose under section of the tariff act of
1850, of which sections of the act of
1879 ana II of the present act were re-
euactments in more liberal terms in
VOWED precisely the question now be-
to!e the Board. We quote the following
remarks from the opinion:
1t could hardly have been intended by
Congress to Prominently exclude from
the coastWise trade for ten months in
the year a vessel built in the United
States because it had used in its con-
struction or equipment, free of duty,
some foreign materials, the use or life
OF which was of short duration The
statute specially provides that "up-
on proof that such materials have been
used for such purpose CONSTRUCTION or
equipmenD no duties shall be paid
thereon In what way in this exemp-
ton qualified by the provision that
vessels receiving the benefit of this
section shall not be allowed to engage
in the coastwise trade of the United
States more than two months in any
one year except upon payment of the
duties"
Following the authority cited, tho
| protest is sustained and the collectors
declslon reversed, with instructions to
reliquidate the entry accordingly.