The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1911-05-24
CRE0SOTE TARIFF uFTfD.l
STUART HOLDS SECRETARY OF
TREASURY RESPONSIBLE.
House Inquiry Brings Out Allegations
That Cabinet Omccr Was Kind 10
Railroads.

Washington, May 22.-Testifying
! before the house committee on eX-
penditures in the treasury department.
today. j. T.. B. Stuart, FORMER col
lector Of customs at Newport News
said Franklin MacVeagh. secretary Of
the treasury. had told him the de-
! partment reversed a ruling, calling
for collection of 20 per cent. duty
on creosote importations because the
railroads could not afford to pay duty
on that commodity.
Another witness testified that Sec
retary MacVeagh's brother had inter-
ested himself in the matter.
Mr.. Stuart,w no instigated an in
vestigation into creosote imports at
New orleans last fall, charging that
the government was losing millions in
revenue because creosote, dutiable at
20 per cent ad valorem. was being
admitted as creosote oil free Of duty,
was summoned before the committee
as the result of testimony given pre-
viously in executive session by Allan
l.. Benson.
Mr.. Stuart related how he found
that no duty was being collected at
New Orleans from foreign ships
whose manifesto showed their cargoes
TO be creosote, the cargoes being re-
ceived as creosote oil, which is on
the, free list. He told how last Sep
tember A. Piatt Andrew, assistant
secretary of the treasury. had ordered
that duty be collected on such i'm
ports, and that subsequently Mr.. Cur
tis, assistant secretary, had reversed
the order. claiming the goods were
not subject to revenue. because they
did not contain as much as per cent
Of chlorine gas and could not be
classed refined creosote. He said
he had called on Mr. Curtis and was
informed Of the decision and that he
visited Mr.. MacVeagh. who explained
the decision.
did Mr.. MacVeagh give any rea-
son for the order?" Mr.. Cox, chair
man of the committee asked.
Yes" Mr.. Stuart replied. "He
said the railroads could not afford to
pay duty on It,"
Was that the only reason he
gave?" asked the chairman.
THAT is the only one I recall"
was the reply.
Previously Allan l.. Benson had
told the committee in executive ses-
sion that Stuart had told him of the
remarks Secretary MacVeagh is al
| legged to have made.
Benson also visited the secretary
OF the treasury to inquire about the
creosote ruling. He told the commit
tee Mr.. MacVeagh had informed him
that my instinct told me my assist
ant. Mr.. Curtis, has done right in
reversing the ruling in favor Of the
railroads"
When the committee asked if Mr..
WacVeagh gave any reason, Mr.. Ben
son replied:
Mr.. MacYeagh said timber was
becoming very scarce in this country
and that everybody should do what
he could to preserve and conserve
what timber we have. He said It
made very serious difference with
the railroads whether they paid the
duty or not. He did not say to me
in so many words. but he did say the
railroads. ought to be encouraged to
use that preservative.
'He also said his brother, WAYNE.
had called on him to inquire what
the department was going to do in
the creosote matter, and he said he
told him they were going to admit
ii free and that his brother then
said. That was right
Mr.. Curtis. assistant secretary Of
the treasury, was present at the hear
ing today. He will be called as wit
ness before the committee later in
the week.
Mr.. Cox said the inquiry would be
prolonged.