The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1911-05-23
RAILROADS were
TOO POOR TO PAY
Duty on Creosote Annulled by
Secretary McVeagh For
Railroads y.

ment today j. E. B. Stuart, former
collector of customs at Newport
News, was declared the Secretary of
the Treasury MacVeagh had told him
that the department reversed rul-
ing calling for collection of a twen-
ty per cent duty on creosote importa-
tions 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, who instigated an in
vestigation into creOsote imports at
New Orleans last fall, charging that
the government was losing millions
in revenues because creosote, duti-
able at 20 per cent. ad valorem, was
being admitted as creosote oil free of
duty, was summoned before the COM
mittee as the result of testimony
given previously in executive session
by Allan L. Benson.
| Stuart related how he found that
no duty was being collected at New
Orleans from foreign ships whose
manifesto showed their oargoes to be
creosote, the cargoes being received
as creosote oil, which is on the free
list. He told how last September
Assistant Secretary of the Treasury
A. Piatt Andrew had dered that
duty be collected on such imports
and that subsequently Assistant Sec
retary of the Treasury Curtis had re-
yersed the order, claiming that the
goods were not subject to revenue be-
cause they did not contain as much
as two per cent chlorine gas, and
could not be classed as refined creo-
sote. He said that he, had called on
Mr. Curtis and was Informed of the
decision and then had visited Secre-
tiary MacVeagh, who explained the
decision.
Did Mr.. Macveagh give any rea-
son for the order?" Chairman Cox Of
the committee asked.
eyes," Stuart replied, che said that
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 l recall"
was the reply.
! Previously Allan l.. Benson had
told the committee, in executive ses-
sion, that Stuart had told the COM
mittee in executive session that
Stuart hsd told him of the remark
that Secretary MacVeagh is alleged
to have made. Benson also visited
the secretary of the treasury to in
quire about the creosote ruling. He
told the committee that Mr.. Mac
Veagh had Informed him that his in
stinct told me my assistant, MIR. Cur
tis, had done right in reversing the
department in favor of the rail-
roads," When the committee asked
if Mr.. MacVeagh gave any reason,
Mr.. Benson replied:
"Mr. MacVeagh said that timber
was becoming very scarce in this
countrr and that everybody should do
what he could to preserve and con-
serve what timber we have. He
stated that this creosote is pre-
servative and increases the length Of
life of ties and that the railroads
should be encouraged In every way to
use it. He said that it made very
serious difference with the railroads
whether they paid the duty or not.
l tried to get him to repeat the state
ment that Mr.. Stuart had made to
me. thst Secretary MacVeagh had
once told him that the railroads
could not afford to pay duty on creo-
sote. did not want to ask him out
right whether he made that state
ment 30 l asked questions that would
give him an opportunity to make the
statement If he desired. He did not
say 1t to me in so many words, but
hs did breach that question by saying
that the railroads ought to be en-
couraged to use that preservative.
"He also said that his brother
Wayne had called on him one day to
inquire what the department was 60
ing to do in the creosote matter and
he said he told him that they were
going to admit it free and his broth
er then said That was right.
Assistant Secretary of the Treas
ury Curtis was present at the hear
ing today and turned over to the
committee some correspondence re-
lating to the creosote controversy.
He will be called as witness be-
fore the committee later in the week
Chairman Cox said the inquiry into
the creosote import question would
be prolonged for some time.