Arizona republican., 1907-12-04

perts in the operation and administra- tion of the customs tariff. from the Department of the feTasury and Com merce and Labor. This commission was engaged for several months in with similar commission appointed by the German Government. under restrictions. so far as practica- ble. to reach a common understanding as to all the facts regarding the tariffs of the United States and Germany material and relevant to the trade re- lations between the two countries. The commission reported, and upon the basis of that report, further tempor- ary commercial agreement was entered into by the two countries. pursuant to which. in the exercise of the authority conferred upon the President by the third section of the tariff act July "A. 1897, extended reduced tariff rates provided for in that section to cham pagne and all other sparkling wines, and pursuant to which the German conventional or minimum tariff rates were extended to about 96k per cent of all the exports from the United States to Germany This agreement is to remain in force until the 30th of June. 1908, and until six months after notice by either party to terminate 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 certain vicious and unjustifiable practices had grown up in our customs administration, mo- tably the practice of determining val ues of imports upon detective reports never disclosed to the persons whose interests were affected. The use of detectives, though often necessary. tends toward abuse, and should be carefully guarded. Under our practice as I found it to exist in this case. the abuse had become gross and indiscred- itable. Under it. instead of seeking in formation as to the market value of merchandise from the well-known and respected members of the commercial community in the country of its pro- duction. secret statements were ob tained from informers and discharged employees and business rivals. and up- on this kind of secret evidence the values of imported goods were fre- quently raised and heavy penalties were frequently imposed upon import CTS who were never permitted to know -ls.+ fl,s I ...l, had an opportunity to meet it. IL is quite probable that this system tended towards an increase of the duties col lected upon imported goods. but I con- ceive it to be a violation of law to exact more duties than the law pro- vides, just as it is a violation to admit goods upon the payment of less than the legal rate of duty. This practice was repugnant to the spirit of Ameri can law and to American sense of justice. In the judgment of the most competent experts of the Treasury De- partment and the Department of Com merce and Labor it was wholly un- necessary for the due collection of the customs revenues. and the attempt to defend it merely illustrates the demor- slization which naturally follows from E long continued course of reliance upon such methods. I accordingly caused the regulations governing this branch of the customs service to be modified so that values are determined upon a hearing in which all the parties interested have an opportunity to be heard and to know the evidence against them. Moreover our Treasury agents are accredited to the govern ment of the country in which they seek information. and in Germany re- ceive the assistance of the quasi-offi- cial chambers of commerce in determ- mig the actual market value of goods. in accordance with what I am advised
 to be true construction of the law.
 These changes of regulations were adopted to the removal of such mani fest abuses that l have not felt that they ought to be confined to our re- llations with Germany: and I have ex-
 tended their operation to all other countries which have expressed a de- sire to enter into similar administrative
 relations.
 China.
 'I ask for authority to reform the agreement With Cnlna under ~hlcn
 the indemnity of 1900 was fixed. by remitting and cancelling the obliga-
 tion of China for the payment of all
 that part of the stipulated indemnity
 which is in excess of the sum of eleven
 million, six hundred and fifty-five
 thousand four hundred and ninety-twO 1 dollars and sixty-nine cents, and inter-
 est at four per cent. After the rescue
 of the foreign legations in Peking dur
 ing the Boxer troubles in 1900 the
 Powers required from China the pay
 ment of equitable indemnities to the several nations, and the final protocol
 under which the troops were with drawn. signed at Peking. September ', 1901, fixed the amount of this in-
 demnity allotted to the United States
 at over s20,000,000, and China paid, UT
 to and including the 1st day of June last, a little over $6.000,000. It was
 the first intention of this Government
 at the proper time. when all claims had been presented and all expenses as-
 certained as fully as possible. to re- lvise the estimates and account, and
 as a proof of sincere friendship fol
 China voluntarily to release that coun- try from it's legal liability for all pay lments in excess of the sum whicf
 would prove to be necessary for actua
 indemnity to the United States and its
 citizens.