The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1909-08-27
MANILA CIGARS.
ENTERED FREE.
ARE DUTIAbLE
Importers Take Advantage of
New Tariff Law and Collector
Discovers Serious Mistake
Goods Were Transferred at
Hongkong and Therefore Are
Liable to Big Penalty

Will the United cigar stores company
be compelled to pay the United States
government $4,000 in duties on ESQ, 900
Manila cigars, imported through this
port and released from the bonded
warehouse August 5, the day the Payne
tariff bill went into effect? That is the
question disturbing the treasury and
customs officials from Assistant Sec
retary of the Treasury James B. Rey-
Enolds at Washington, d. c.. to Collector
of the Port Fred Stratton. At any
rate the government is making a
strenuous effort through the local Gus
toms house to collect the money
That such an issue has arisen be-
tween the government and the cigar
company is due to a telegram received
here from Assistant Secretary Reynolds
August 5. stating that Manila cigars
should be allowed to enter free of duty
He failed to say that the goods must
have come from the Philippines in one
bottom. It was later learned, after the
cigars had been removed from the
warehouse, that the goods had been
transferred at Hongkong, China, and
were subject to seizure and fine
amounting to the duty,
Duty Free Goods Smoked
On receipt of the telegram. Col
lector Stratton signed the withdrawal.
y
cigar company, had the 250,o0O cigars
removed from the government ware
house. These cigars had been brought
from the Philippines weeks before and
were being held awaiting the tariff
legislation. AS soon as the bill was
signed, agents of the United cigar
stores company asked Assistant Secre-
tarv REYNOLDS to- tele1 pts Colieator
stratton that Manila cigars were to
enter duty free. Acting on these in.
structions Collector Stratton released
the merchandise.
For the next few days San Francisco
was cloud of smoke from Manila ci-
gars. Duty free cigars They were
displayed in all the stores of the COM
pany at price never before heard of
for cheapness The public was fairly
black in the face from the quantity of
Manila cigars consumed. -
Cigars Liable to Seizure
| About this time copies of the new
tariff bill, with all its revision, came
to San Francisco. On careful reading
of the bill, Collector Stratton discov-
cred that only merchandise shipped in
one bottom from the Philippines was to
enter free If shipped to Canada or
Mexico it could then be reshipped in
| bond into the United States. Under no.
circumstance could merchandise be
| transferred at a foreign port and then
be entered free of duty All such mer-
chandise was to be seized and fines i'm
posed amounting to the duty.
1t was then the cold truth dawned
on the federal officials. This invoice Of
250,0 should have been seized. hav-
ing been transferred in transit at
Hongkong, and fines amounting to a
should have been imposed and collected.
1t was too late. The cigars were gone
from the sacred warehouse of the gov
ernment and many thousands. had dis
appeared in smoke.
Duty to Be Collected
When the error was discovered the
| matter was brought to the attention
of Assistant Secretary Reynolds. He
ordered that the duty be collected, it
being held by. the department at WASH
| ington that retroactive proceedings for
the recovery of duty can be instituted
within year.
| The cigar people contend that they
acted in good faith and the govern
ment should stand the loss caused by
the laundering of an official of AS
sistant Secretary Reynolds Importance
and standing. While the local customs
officials have been occupied in figuring
out the amount of duty the govern
ment did not get, the cigar people and
| Uncle Sam have been trying to adjust
matters at the New York office of the
company. 1t is understood that If the
amount of the duty is not paid by the
company, suit will be Instituted
here by the government against the
warehouse bond posted by the cigar
company. Meantime, Collector STRAIT
ton declines to discuss the merits of
the case.
j. A. Burns, general superintendent
in this city for the cigar company, and
A. c. Allen, purchasing agent, said that
they did not know anything about the
transaction.
BASEBALL PLAYER is
KILLED BY LIGHTNING