Daily Kennebec journal., 1926-07-03
CERTAIN OF cANADA'S PROB
LENS

Canadian business in certain lines
has profited from the attempt of the
United States to exclude the i'm
portation Of booze. Unscrupulous
persons found the smuggling OF
liquor across the line to be very
profitable; the visitors to Canada
from the United States increased.
their money went into Canadian
tills and helped to pay Canadian
taxes. Why should Canada worry?
She is worrying; she is undergo
ing a political rumpus because OF
customs scandal; she finds that
smugglers who take out booze bring
back free of duty American merch-
andise; also denatured alcohol which
is redistilled and sold in Canada;
that bootleggers are poisoning
Canadians as well as Americans, that
defilement recognizes no border be-
tween neighboring countries, that
smugglers seek a two-way traffic;
that chickens are coming home to
roost.
The customs scandal has re-
suited In the resignation Of the
Liberal prime minister. Mackenzie
King, and the recall to the premier
ship OF Arthur Meighan, leader OF
the Conservatives. The Liberals
displaced had 100 votes in the House
out of a membership of 245. The
Liberals, favoring a low tariff die
tated chiefly with view to revenue,
found support from the Progressives,
also disposed to the low tariff. The
Conservatives with but 116 votes IN
the House of Commons must also
look to the Progressives~fo support
Notwithstanding the difference In
tariff views, the Conservatives
favoring protective tariff.
The resignation of the leader Of
the Progressives Is announced and
there is a possibility of the Pro-
gressives splitting up and returning
to their respective parties. Con-
servatives and Liberals, and afford
an opportunity at the next election
of having a two party struggle. The
passing Of the Progressives would
deprive a comparatively few of the
Western agriculturists of a balance
Of power.
Right now attention Is centered on
the customs problem. Whereas the
United States has 270 ports of entry
Canada has 6S1 places where
customs are collected, and where
doubtless are those who wish to re-
tain a political job. 1t is proposed
to reduce the number to compare
with the number in the U. S. The
new government evidently has a
smelly mess to clean up without the
assurance Of power over a period re-
quired for a thorough cleaning. For
one thing it has begun proceedings
against rs Canadian firms.
A committee has been appointed
and it's recommendations touch
American affairs at several points.
Among these are the following:
1.-THE Committee find that it is the
common practice Of the Department
to grant clearances to vessels wholly
or partly laden with liquor for the
United States, or allegedly bound for
a foreign port but admittedly sail
! ing to rum rows and that false
landing certificates have been pro-
| duced to obtain cancellation of
bonds for foreign export of cargoes
| so cleared.
1.-THE committee further finds that
a strong presumption is raised that
some proportion of the liquor so
shipped and cleared finds its way
| back into Canada for consumption
/ The committee, therefore, recon-
mend that excise and sales tax be
| levied on all Canadian made intoXi-
| eating liquors released from bond, NO
| matter where they are carried and
consumed, and that duty and sales
| tax be levied on all alcoholic liquors
entering Canada, whether in bond OF
! otherwise, irrespective of their ulti-
mate destination.
Doubts have been cast upon the
sufficiency of existing legislation to
| prohibit or authorize regulations
prohibiting the Illegal export of in
| toxicating liquors to the United
States. To the extent to which such
| legislation may be insufficient the
committee recommends that it be
| amended.
"The committee recommends that
as soon as possible, regulations be
made to prohibit clearances being
granted to vessels carrying liquor
as cargo, sailing from a Canadian
port to a United States port, such
| regulations to make an exception in
favor of liquor being imported into
| the United States in accordance with
the laws of that country.
"The committee recommends that
In future the provisions of Sections
213 and 213a OF the customs act
| which provide for the removal of
| buildings within a hundred yards of
the boundary which are made use of
in smuggling operations. be strictly
enforced"