Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1905-01-05
BONDED WHEAT
QUESTION
SENATOR HANsBRoUGH's PAPER
GIVES SOME INFORMATION RE. Z
GARDING THE IMPORTANT 4 s
NATTER. E%

MILLERS WOULD MERELY ADD
LARGE AMOUNT OF CANA.
DIAN WHEAT TO OUR !,
OWN. -
. Devils Lake Inter.Ocean: As there
appears to be great deal of misinfor-
nation abroad in regard to the ques'
ton of the importation of wheat in
bond to be manufactured into floor for
export and the repayment of the wheat
duty to the importer, the Inter-Oceau
has been giving the matter careful
study and viii aim to state the case as
we understand it.
Under the Dingley law and existing
treasury department regulations,
wheat may be imported and ground in
to -four for export. BY the terms Of
Section Is of the mill grinding the
wheat must be devoted exclusively to
the import and export business, and
to be known as bonded manufactur-
ing warehouse, under the supervision
of government storekeeper whose
salary must be paid by the miller. A
complete system of checks is supposed
to be observed from the moment the
wheat goes into bond at the boundary
line until the -four is on board the
vessel for shipment abroad. The rec
orfs show that for the past four years
not bushel of wheat has been i'm
ported for this purpose, all our -four
exports having been manufactured
from domestic wheat, presumably for
the reason that, for several years prior
to the current year of 1904, the United
States had large surplus of wheat, in
consequence of which the price of the
entire product fell under the influence
Of the foreign demand for our surplus,
the millers being able to supply the
export trade from domestic wheat pur-
chased here at very nearly the prices
prevailing in Canada. The absence
of a domestic wheat surplus this year
Of 1904 has necessarily curtailed do
nestle flour exports, and our mfl1ers
complain that the mills are running on
short time. For some reason Of their
own, the millers prefer not to operate
under the bonded manufacturing ware
house law and the treasury department
regulations cited above, although this
law and these regulations are con-
coded to be most liberal, being drawn
at the same time upon linesswf1fch pro-
tect the government against fmposi-
ton. ~.
The millers are now seeking tosse-
cure a department regulation which
will enable them to import wheat and
export the flour under Section 80 Of
the Dingley law, which provides in
substance that where imported mater
ials on which duties have been paid
are used in articles manufactured or
produced in the United States the
duty shall be RENTED when the pro-
duct is exported, and that such articles
may be made from both domestic and
foreign materials, the drawback to be
allowed only on the imported material,
which material shall SO appear I'm the
completed article that the quantity
thereof may be ascertained. Just how
the amount of imported material in
the completed article" would be found
is matter which perhaps the mfilers
can explain. ~, .s..'...5 s$s;$
AS Illustrating the workings OF this
law In respect Of the numerous other
manufactures we will state that In
1903 the government refunded about
five millions Of dollars drawback to i'm.
porters: 'l2
Now, the effect of a regulation such
as the millers want would be simply
to add large share Of the Canadian
wheat crop to- our own, giving US q
surplus to deal with: for, practically.
the miller could then buy his wheat
as freely in Canada as he can in the
United States. This would in a great
measure remove the present disparity
In wheat prices in the two countries.
Canadian wheat prices would advance
and domestic wheat prices would fall,
and the foreign demand, which now
controls prices in Canada, would again
control in the United States. It seems
to us that no other conclusion can be
reached. Il. 5
1t is held by many good lawyers
that the courts must sustain the posi-
ton Of the millers. We do not accept
this as being conclusive. Indeed we
are strongly inclined to the contrary
opinion, II they are sustained the
benefits OF protective traiff against
foreign wheat would, In a great meas
ure disappear. It is a new question
which presents a situation that the
trainers Of the law could not have fore