The sun. [volume] (New York [N.Y.]) 1833-1916, 1902-12-09
In MIDDLE OYER TEA DUTIES.
SEC RETiRI SHAW GOES TO con-
GRESS TO GET HELP.
by Ills Advice Tea Was Distributed by
carload 10 Wait ian. I When Tax
Win ne Removed COURTS Decision
as 10 pa n,rnt Of Duties l'psetS Things.

Carload 10 Wait ian. I When Tax
VIII he Removed Courts Decision
as To Pa, men, Of Duties l'psets Things.
W,sHISGIov. Dec. s-There is a muddle
in the Treasury Department in regard TO he
importation Of tea. On the LIST of Novcm-
Der there were in the bonded Warehouses;
az ports Of entry in the United States nearly
5000. 900 pounds Of tea. ard the re,a all tea
merchants havo been complaining that there
il a tea famine in the country. The amount
Of this commodity in warehouses; has in
creased steadily, however. until il is fully
twice il great az II was four or five mont hs
ago.
The reason for the accumulation Of tea
in bonded warehouses Ia that the tax OF 10
cents a pound will he removed on the lst
Of next January. and the importers were
hoping that they could hold the tea there
until that date and then withdraw il with
out paying any tax.
A short time ago a delegation Of tea
merchants came TO Washington for a con-
ferenc, with Secretary of the Treasury
Shaw. They told him that they understood
that they could withdraw their tea from
the bonded warehouses on Jan. 1, tax Free
but that in the meantime the trade was
suffering for a supply to furnish to the re-
tail dealers. The demand by Jan. |. they
said, would he very pressing. They had
sold large quantities for delivery imme-
diately after jan /. and they wished to
facilitate delivery to their customers.
Mr. Shaw told them he could help them
and suggested plan. He proposed that
the importers take from the warehouses
A. much OF the tea az they needed for their
January deliveries. place it in box cars
under Official seal and ship it to various
parts Of the country. This plan was H.
tended 10 save the time that would be
consumed In moving the tea from the ports
OF entry to the places of delivery and this
time was regarded as an important factor
in the problem. because a largo amount
Of the tea il imported al San Franci.co.
This suggestion Of the Secretary was act ed
upon. 1t was discovered al the Treasury on
Saturday. however. that the United States
Court Of the Southern District of New York
decided in case involving the importation
Of sugar from Porto Rico that the importers
must pay the full duty on sugar that had
becn kept in bonded warehouses, notwit H.
standing the fact that the mercha ndise was
not withdrawn until after the modification
of the tariff on Porto Ricsn products
Secretary Shaw then decided 10 appeal
TO Congress TO relieve the tea importers from
paving the tax on such tea as now remains
in bonded warehouses, his reason being that
the tea merchants have contracted for
deliveries OF this tea al low prices under he
impression that they would not have to pay
the ten-cent tex on il after Jan. /.
Accordingly he addressed a letter 10
Chairman Payne of the House Committee
on WAYS and Means. recommending n
modification Of the law, either by amend
ment or by special act. allowing the free
withdrawal OF tea now in warehouse.
1t is uncertain what effect the fact that
a quantity of the tea in question has been
shipped to several parts Of the country
in sealed box cars will have on the WAYS
and Means Committee
The decision of the court in the sugar
case formed sound precedent for the
guidance Of the tea importers, however,
for the questions involved are precisely
parallel.