New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-12-15
WHEAT DRAWBACK DELAY
Secretary Sha5c Wants Legal Opn-
ion-Defends His Proposed Action.
TrRoM THE TRIBUNE BUREAU

washington. Dec. 14-Secretary Shaw's pro-
osed liberia lization of the drawback regulations
9ertinc hard Canadian wheat is delayed, pend
,,,o consideration by Attorney General Moody OH
40 legal questions involved Secretary SHAW
,~a5ted long hearing to-day TO a delegaudl Oh
,.islars and -four experts, including j. >. Ken
IA If KENNEDY & Noon customs brokers, of
vew-York: b Sheffield. president of the shef-
f,ld-King Milling Company, Of Minneapolis;
,.ec-ge w Sparks. secretary and treasurer OF
tho lea Milling Company. Of Wilmington, DEL
md Pbiiadclphia: James I. Perkins. secretary or
.hs PfIlsburv- W ashburn Milling Company, OF
minneapolis: Herbert bradley, traffic manager
~ The Federation of Millers, and Joseph H. Al
len Of Allen * Graham. of New-York' employed
by the manufacturers as an expert
Al the close of the conference Secretary Shaw
,sued the following statement:
There are three distinct propositions covering
The manufacture Of -four for the export trade
ron imported wheat
-'J FT-srIFor many years mills have been per-
United TO manufacture flour III bond. Onder me
rlg7iica bic to such cases duty is paid, but
toc imported wheat is taken 10 the bonded mlIi
there converted into -four and by-producls uioer
government supervision, and the entire pToouct
of the imported wheat is exported. nothing
goes into consumption and no duty is pdia
Bran Will not stand expectation, SO THIS pam rs
not desirable. .--o,,,,.oo+
ure Of dour from imported wheat IN Ordinary
mills and a drawback equal TO the duty on lle
wheat, less ] per cent, is allowed Whe' tHe en-
tire product OF the wheat is exported. Under
this proposition. which has been III operation
for number Of years, and against winch there
has been no complaint the mus linpoIL ti,e
wheat, pay the duty, convert H. anu eAPoIC tlIe
-four and the by-product passes into consump-
ton The drawback is then computed on the
relative value Of the exported IouF anu lhe
home consumed by-products.
7aird-The only proposition over which any
controversy has arisen relates to the manufact-
uaR IN art Of n
IN mart of home grown wheat. The Secretary
of the Treasury has not yet passed on this
proposition The legal phase has been submit
ted 20 the Attorney General. 1t involves the
same question. however, as has been passed on
in q number Of other manufactures. For In
stance. drawback has been allowed on steel
rails manufactured of American and i'm
rCrted manganese, iron ore Of exceeding
hardness used in the manufacture Of Bessemer
Fteel. Drawback has also been allowed on lard
compound composed in part OF cottonseed oil
and in part Of imported oleostearine. Drawback
also has been allowed on paper manufactured
81 part from Canadian pulp and in part from
American pulp; also on book paper in which
imported China clay Is used Drawback also
has been allowed on very many similar manu-
features composed in part Of imported and in
part Of domestic material, where the relative
has 10 be shown from the books at the manu-
featuring esta blishment.
II the application for drawback on -four from
mixed wheat is allowed, regulations will be so
drawn TO insure the payment OF duty on
every bushel Of Canadian wheat that comes in.
and drawback viii be allowed only on flour
actually exported
The Importance OF the subject will be appre-
ciated when ii is known that during October,
1903 100000 barrels Of American made -four
were exported, and in October. 1904 less than
10000 barrels. In other words, the eXporta-
ton OF American made -four has fallen off dur
Ing the present season more than one-half. If
the European bakers that have been using
American made -four change it will be next to
impossible 10 get the trade back, and It never
can be got back until the American farmer sells
his wheat cheap enough to permit the Ameri-
miller TO undersell. When the expert of the
Treasury Department at Minneap polls in
November the Sheffield-King Milling Company
sent thirty-nine cable dispatches to Europe Of
fering four at five cents a barrel below the cost
Of production shown by the books. Only two
replies were obtained. One of them reads, att
is absolutely useless for you to cable such
basis" and the other, Your prices out of
sight
TWO mills are now in process Of construction
IN London, each with a capacity OF four thou
sand barrels q day. Similar mills are being
built at Belfast and other places Canadian
mills regularly sell flour for export on the New
York City market, and 1t IS then sent through
The United States in bond and exported from
New-York. 1t might well be ground at Min
nespolis elsewhere in this country thereby
holding the trade until conditions change. If
the trade passes from the American mill to the
European mill, the injury TO the farmer of the
Northwest viii be past calculation To-day the
price Of American wheat is about Is cents above
that Of Canada. Secretary Shaw being from the
q holding the export trade in -four If It can be
done under the law it now exists. The mill
ers are only asking what the law permits. and
the law question has been submitted to the At
tcIney General.