Evening journal., 1905-08-31
UNCLE SAM IS
OUT MILLIONS
Seizure Of Tobacco at Tampa
Shows a Startling Con-
dition
INVESTIGATION is BEING MADE
lsy William WoIff smIlh.l

(By William Wolff Smith,
Washington, ID. c.. Aug. 31.-There
are so many ramincations I'm the to-
bacco business that are not under
stood by outsiders that it is small
wonder there was a disposition to
question recent startling statements
exclusively made in this correspond
ence by those unfamiliar with the
situation. The fact that thousands
Of pounds of tobacco could be slipped
through the Tampa customs house in
one shipment on the payment Of 2S
cents per pound duty instead of S14S
per pound. came as a revelation to
those who had not followed the mat
ter for years waiting for a favorable
opportunity TO demonstrate to the au-
thorities the truth Of the charge that
the government Is being defrauded
Intentionally or otherwise out of sew
eral million dollars yearly in the
classification of tobacco at the Gus
toms houses.
Consequently an effort was made
in some quarters to ridicule the
charges, which was ably supported
by violent protestations from the
Tampa officials. These we're backed
up by tobacco trade paper which
denounced the charges as false and
ridiculous" and the L. S. Tobacco
Journal IN which they were originally
made, as aotuated by malice. All this
was highly amusing to those in the
isecret for while the denunciations were
{ at their height expert examiners were
going over the tobacco IN New York
under direct orders from the Treasury
Department as detailed in this corre-
lspondence, and as the result Of their
examination the whole shipment was
seized by the United states authors
ties. Being in touch with the sltua-
ton both in Washington and New
York, l had no doubt from the begin
ming that such action would be taken
and dropped over to New York to see
the fun and TO follow the story.
Nothing has happened in years TO
lconvulse the tobacco trade as the
seizure of this shipment of tobacco
The steady stream of factories toi
Tampa. followed by the practice OIL
importing Havana tobacco through
this port for manufacturers i'm New
York and elsewhere, had veXed the
leaf tobacco dealers and the manufac-
turers importing through the port Of
New York to the limit Of endurance
one dealer. formerly distinguished inl
the trade. informed me that he had
been driven from the business because
of the conditions prevailing. Il could
not stand them any longer he said.
II the tobacco passed as filler the
manufacturers wanted il all at filler
prices; If Il was classified as wrapper
and full wrapper duty was levied, they
laughed at the idea of paying fun
wrapper duty on "A bale that might
contain only twenty per cent. wrapper
tobacco. and had to ship to Canada
to sell It, or send it back TO Cuba for
lrepacking" Other dealers frankly
STATED that they were IN this position:
If they did not do an they could to get
their tobacco in as filler they could
not compete with houses that did and
they were confronted with the alter
native Of doing so or going out Of bus
mess.
The magnitude Of the case may be
realized wien il is said that the
amount OF wrapper tobacco necessary
to wrap four hundred million clear
Havana" cigsrs made i'm this country
yearly, is approximately 100000
pounds, on which the duty as wrapper
ytobacco would amount to more than
two million dollars I'm addition to the
FILLER duty. and yet the Importation Of
wrapper tobacco for the fiscal year of
July 1904 amounted to only $4,000
pounds. In other words the duty
paid on wrapper tobacco from Ha-
vana in that fiscal year was less than
500 600 where Il should have been
50 600 900. The figures for 1905 are
not available
In the case Of los bales seized in
New York l found that the eNamina-
ton at Tampa showed six wrapper
bales. % percentage bales and the re-
mainder, 73 bales. strictly fillerbales.
A wrapper bale contains more than
fifteen per cent. wrapper leaf and
must pay the full wrapper duty OF,
1.s5 less twenty per cent. on account
Of the Cuban treaty. A percentage
bale contains some wrapper leaf but
less than fifteen per cent and pays
wrapper duty only on the amount oil
wrapper tobacco it contains. "hl-
Ter bale contains no wrapper leaf.
When the New York experts got
through with the examination they
found instead Of six wrapper bales
there were approximately fifty; in
stead of rs filler bales there we're not
more than eight or ten.
In order 10 make sure or the iacls
two representative leaf dealers. zen
high in the trade and recognized as
experts. were requested by the Treas
ury authorities TO assist Inspector
Norton in making the re-examination,
so there could be no doubt the new
classification will stand. AS soon as
their report was received by the New
York authorities the tobacco was
seized. What the outcome will be is
problematical. The owners may for
felt it to the government or may
fight the case in the courts