The Sentinel=record. (Hot Springs, Ark.) 1900-current, 1911-05-23
inquiry AS
TO CREOSO7E
INVESTIGATION PROMISES TO
BRING oU1 SOME INTEREST
ING TESTIMONY.
One Collector Says Former Secretary
Tcld Him Not to Collect Duty as
Railways Could Not
Pay.


ditures in the treasury department to-
day, j. e. B. Stuart, former collector
of customs at Newpart News. sai,i
Secretary of Treasury Mac Veagh
had told him the department reversed
20 per cent duty on creosote impor-
tations because the railroads could
not afford to pay duty on that com.
modify.
Another witness testified that Sec.
retary McVeagh's brother had inter
ested himself in the matter.
Mr.. Stuart, who instigated an !nves-
tigation into creosote imports at New
Orleans last fall, charging the gov
ernment, was losing millions in rev.
enues because creosote. dutiable at
20 per cent ad valorem, was being al
mitted as creosote oil free OF duty
was summoned before the committee
as the result of testimony given pre-
viously in executive session by Allan
T. Benson.
Stuart related how he found thai
no duty was being collected at New
Orleans from foreign ships whose
manifest showed their cargoes to be
creosote, the cargoes being received
as creosote oil, which is on the free
list. He told how last September AS.
sistant Secretary of the Treasury A
Piatt Andrew had ordered that duty
be collected on such imports and
that subsequently Assistant Secre-
tary of the Treasury Curtis had re
versed the order claiming the goods
were not SUBJECT to revenues because
they did not contain as much as two
per cent Chlorine gas, and could not
be classed refined creosote. He
said he had called on Mr.. Curtis and
was informed on the decision and
then had visited Secretary Mac
Veagh, who explained the decision
did Mr.. Mac veagh give any rea.
son for the order? Chairman Cox OF
the committee. asked
Yes replied Stuart. s.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 | recaIl,' was
the reply
Previously Allan T. Benson had
tod the committe in executive ses
sion that Stuart had tod him of the
remark Secretry Mac veagh is aIleg-
ed to have made. Benson also visited
The secretary of the treasury to In
quire about the creosote ruling He
told the committee Mr.. Mac Veagh
had informed him that his instinct
told me my assistant. Mr. Curtis
had done right reversing the depart
ment in favor Of the railroads ?
When the committee asked if Mr.,
Mac Veagh gave any reason, MI
Benson replied:
"Mr. Mac Veagh 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
a very serious difference with the
railroads whether they paid the duty
or not | tried to get him to repeat
the statement Mr.. Stuart had made
to me, that Secretary Mac veagh hae
once told him the railroads could no
afford to pay duty on creosote.
did not want to ask him outrigh
whether he made that statement, 81
| asked questions that would CIV
him an opportunity to make the state
ment If he desired. He did not say |
to me in so many words. but he di'
broach that question by saying tn
railroads ought to be encouraged t,
use that preservative
He also said his brother Mayn
had called on him to inquire what tn
department was going TO do in th
creosote matter, and he said he toll
him they We're going to admit it free
and that his brother then said tina
/ | was ~ssss RI i;sii. III. = =
| Assictant Treasurer Curtis wa
At the hearing today and turned owe
Ito tho committee some correspond