New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-12-11
GOVERNMENT LOSES SUIT.
Must Refund Over 100000 Pad
in Duties ON Steel Blooms.
rrpou THE TRIBUNE BUaEAUl

Washington Dec. 10.-Decision against the
United States. involving the refund OF duties
in excess of $1.Oo0.O0O. paid for the importa-
ton of steel I'm the form of blooms has been
handed down by the Court Of Claims. The de-
cison was in the Of the Cambria Iron
Company against the United States, which was
brought to test the validity OF the ruling of the
Secretary of the Treasury that under the law
OF 1867 steel blooms partially ranufact-
ured rails. and should. therefore be assessed az
the rate of 40 per cent ad valorem. instead of
30 per cent. under the classification OF "other
forms of steel not enumerated"
The case is one OF large number OF the
same class filed in the court under the provi-
sions OF an act passed at the last session OF
the 9th Congress, comforting on the court
Jurisdiction to hear and determine certain
claims for refund Of duties paid more than
twenty years ago In excess of what was alleged
to be the legal rate. Under the act Of 1857 IL
was provided that manufactures of steel should
pay a duty at the rate of 40 per cent ad va
loren. The schedule enumerated a number or
forms OF steel and specified the duty which
each should pay. and then recIted that other
forms of steel not enumerated should pay duty
at the rate Of 80 per cent ad valorem. The
act further provided that an article partially
manufactured should pay duty at the same
40 per cent ad valorem.
Following the patlic of 1873. when the country
began to revive from the Industrial depression
which had prevailed. there remarkable
increase in railroad construction Railroads, too,
because of the cheaper processes developed for
the manufacture OF steel. began to replace the
old iron rails with those Of steel The iron mills
OF the country were unable to meet the demands
on them. and 1t became necessary to import
large quantities Of steel, which came In the
form of blooms. The Treasury officials decided
that the steel blooms partially manufaCt-
ured rails, and assessed duty them at the
rate OF 40 per cent ad valorem. The importers
however, commended that the blooms should be
classed other forms Of steel not enumer-
ated' In the schedules and pay duty at the
rate Of 30 per cent. large number OF protests
were filed, and something like S1.OOO.OOO was
thus paid and larger sum was paid without
protest.
A test case was brought IN the United States
Circuit Court at New-YOrk, and the jury de-
cded that the steel blooms not partially
OF so per cent. An appeal was noted to the Su-
prerne Court OF the United States. but was after
ward dismissed on the motion Of the Attorney
General and the Treasury Department there
upon refunded the excess OF duty In all cases
where II had been paid under protest The
cases pending in the Court Of Claims cover the
claims for duty paid in excess Of the 80 per cent
rate where no protests were filed
The act comforting Jurisdiction on the court
provided that the Secretary OF the Treasury
should paw the judgments so that 1t would not
be necessary to report them to Congress Tor an
annropriation The case Just decided Will In all
probability serve as test for all that are pend
ing It Is possible that the Department OF JUS
tIca NAV take an appeal to the Supreme Court,
although II has not yet been determined to take
that course.