The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1909-12-20
SAKE CASES
AGAIN HEARD
Tom Fitch on Hand to Argue for
the Local Japanese
Importers.

New York Commercial. November 81
The United States Supreme Court
will hear final arguments on Monday
in the case of KOmada & Co. regarding
the classification of sake under tn,
| Dingley tariff. Sake is the nationa
beverage of Japan, and, with tbs
growth of immigration of the japanese
to the Hawaiian Islands, and to the
Pacific Coast, has become an important
factor in transpacific commerce, as the
beverage is in heavy demand in tbs
island possessions of the United States
as well as in California, Oregon, Wash
ington and other western States. The
case to come before the Supreme Court
stands in the name of Komada & Co.
as principals, but the entries of i'm
porters generally make it of exceptional
Importance.
The sake litigation started in 1902
and has dragged along in one phase
ever since. Should the court decide In
favor of Komada & Co. the treasury
will have to refund to importers excess
duties ranging from 100000 to $1,000,
COO. Several years ago the treasury
department acquiesced in a finding in
favor of Mishimiya g. Co., of this city
but when it was ascertained that re
funds aggregating half million dol.
lars were involved, the government di-
Tected that a new case be framed.
The action is pending on writ OF
certiorari to the United States circuit
court of appeals of the ninth circuit
which reversed the judgment of the cir
cult court for the northern district OF
California in favor of Komada & Co.
Is It Wine or Beer?
Sake is fermented from rice and
water by a process similar to brewing
and contains no added alcohol. The
question at issue is whether it was
properly classified as still wine by
similitude and dutiable at fifty cents
gallon, or whether it should have
been classified either as a beer by
similitude, dutible at twenty cents a
gallon, or as a nonenumerated manufae-
tured article at twenty per cent. ad
valorem. Prior to 1894 sake was elias
sifed as a distilled liquor. In that
year a japanese importer named Wooz-
ems protested against this classification,
and alleged sake should be classified
as still wine by similitude. The
board of general appraisers decided
that sake is not spirits manufactured or
distilled from grain or other materials,
and is not distilled or compounded with
distilled spirits. The treasury depart
ment accepted this decision, and the
classification of sake was changed from
that of distilled liquor to that of
still wine by similitude.
Importers began, however, IN l902
fling protests against the classification
of sake as a still wine, alleging that
it was either a beer by similitude, or
a nonenumerated manufactured article.
One of the protests was lodged by Nj
shimiya & Co. of New York. It was
decided by the board of appraisers
against the government and later was
decided by the circuit court in favor
of the importers. The government then
70 nj
which affirmed the ruling of the lower
tribunal. When the secretary of the
treasury was advised of the decision
of the appellate court in the Nishlmlya
case, he acquiesced and ordered the &C
cruing refunds to be paid. Ten days
later, however, the secretary withdrew
his acquieseence on the ground that
sake is an alcoholic beverage and that
an acceptance of the decision would
neeessitate payment of 100000 II
refunds to importers.
Tax Internally as Beer.
Finally, however, the refunds were
paid by the government, and new
case ordered made up, which is the
Komada protest. This issue has had
run before the board of appraisers
and the courts, with the result that
the decision of the court of appeals
was against the contention of Komada
& Co. that sake is nonenumerated
manufactured article and therefore en-
titled to enter at twenty per cent.
At the argument of the case in Wash
ington before the Supreme Court,
Thomas Fitch, W. Wickham Smith Of
the law firm of Curle, Smith & Max
well. and John NJ Thurston, former
United States senator from Nebraska,
will appear for the importers; James
McReynolds, assistant to the attorney.
general Of the United States. viii rep
resent the government Speaking for
the importers, Mr. Smith said yester-
day:
s'The court of appeals in New York
decided that while sake had some of
the characteristics of wine and some
of the characteristics Of beer, it did not
resemble either article sufficiently to
have the resemblance determine its
As a matter Of fact there
have been established on the Pacific
Coast a few breweries where sake is
The government taxes
this as beer and makes the manufactur
er take out a beer license