The semi-weekly messenger., 1907-12-06

mon understanding as to- all the
facts regarding the tariffs of the
United States and Germany mate
rial and relevant to the trade rela-
tions between the two countries. The
commission reported, and upon the
basis of the report, a further tenn
porary commercial agreement was
entered into by the two countries, ,pur-
suant to which, in the exercise Of the
authority conferred upon the presi-
dent by the third section of the tariff
act of July "a, 1897, [ extended the
reduced tariff rates provided for in
that section to champagne and all
other sparkling wines, and pursuant
to which the German conventional
or minimum tariff rates were eX-
tended to about SO II per cent. Of
all the exports from the United
States to Germany. This agreement
is to remain in force until the 3Oth
of June, 1908, and until six months
after notice by either party to ter
inmate it.
The agreement and the report Of
the commission on which it is based
will be laid before the congress for
it's information.
This careful examination into the
tariff relations between the United
States and Germany involved an in
quiry into certain of our methods
of administration which had been
the cause of much complaint on the
part of German exporters. In this
inquiry I became satisfied that GER
tain vicious and unjustifiable prac-
tices had grown up in our customs
administration, notably the practice
of determining values of imports
upon detective reports never dis
closed to the persons whose inter-
ests we're affected. The use of de-
tectives, though often necessary,
tends towards abuse, and should be
carefully guarded. Under our prac-
tice as | found it to exist in this
case, the abuse had become gross
and discreditable. Under it, instead
of seeking information as to the
market value of merchandise from
the well-known and respected mem
bers of the commercial community
in the country Of it's production, Sc
cret statements were obtained from
informers and discharged employees
and business rivals, and upon this
kind of secret evidence the values Of
imported goods were frequently rails
ed and heavy penalties were fire.
Quently imposed upon importers
who were never permitted to know
what the evidence was and who
never had an opportunity to meet it.
It is quite probable that this sys-
tenn tended towards an increase OF
the duties collected upon imported
goods, but | conceive it to be Vlo-
lation of law to exact more duties
than the law provides, just as it is
a violation to admit goods upon the
payment of less than the legal rate
of duty. This practice was re-
pugnant to the spirit OF American
law and to American sense of JUS
tice. In the judgment Of the most
competent experts of the Treasury
Department and the Department of
Commerce and Labor it was wholly
| unnecessary for the due collection
| OF the customs revenues, and the
attempt to defend it merely illus
| trates the decentralization which nat
urally follows from long continued
| course of reliance upon such meth
! DDS l accordingly caused the reg
ulations governing this branch of
| the customs service to be modified
so that values are determined upon
hearing in which all the parties
| interested have an opportunity to be
| heard and to know the evidence
against them. Moreover, our treas
ury agents are accredited to the gov
ernment of the country in which
! they seek information, and in Ger
many receive the assistance Of the
| quasi-officia1 chambers of commerce
| in determining the actual market
value of goods, in accordance with
| what l am advised to be the true
| construction of the law.
These changes of regulations were
adapted to the removal of such man
| ifest abuses that / have not felt that
they ought to be confined to our re-
| lations with Germany; and | have
! extended their operation to all other
countries which have expressed a
desire to enter into similar admin
istrative relations.