The law making the decision of the Commissioner of Navigation
“final” on “all questions” relating to the collection of
tonnage tax, and to the refund of such tax, when collected
erroneously or illegally, the matter has been submitted to
that officer, and I transmit herewith a report in which he
expresses the opinion that, under the existing legislation,
there is no authority for reducing the rate to 3–15 cents
per ton, as requested by the Government of Sweden and
Norway.
The inclosures of your letter are returned herewith.
Mr. Morton to Mr. Fairchild.
Treasury Department, Bureau of
Navigation,
Washington,
D. C., June 20,
1887.
Confidential.]
Sir: I have the honor to
acknowledge the receipt of the letter from the Secretary
of State, dated the 2d instant, marked “Confidential,”
in which he refers to previous correspondence with the
Treasury Department touching the claim of certain
foreign governments under treaty provisions to the
benefit of the reduced tonnage tax specified in the acts
of June 26, 1884, and June 19, 1886.
This communication relates especially to a claim by
Sweden and Norway that vessels proceeding from that
country to the. United States should be admitted to
entry in this country on the same terms as vessels
proceeding to the United States from the West Indies,
etc.
My opinion upon the matter is sought for the reason that
“on all questions relating to the collection of tonnage
tax and to the refund of such tax when collected
erroneously or illegally” the act of July 5, 1884, makes
the decision of the Commissioner of Navigation
“final.”
It appears that the merits of the claim, so far as it is
founded on a just and strict construction of the laws
and of the treaty bearing upon the matter, are not
acknowledged by the Secretary of State, but that in view
of the action taken by the Government of Sweden and
Norway on a similar claim made by Mr. Clay in behalf of
the United States, he feels that the Government of the
United States is in honor bound to take favorable
action. He therefore requests specific information
whether the Treasury Department is prepared to put into
operation at once the 3–15 cent rate in respect to the
vessels of Sweden and Norway coming from those
countries.
In imposing the tax which said Government now seeks to
have reduced it seems obvious that Congress either was
not aware of the provisions of article 8 of the treaty
of 1827 or did not construe them in accordance with the
claim now made by the Government of Sweden. The tax
complained of was imposed, therefore, upon all vessels
which should be entered in the United States from any
foreign ports, with certain exceptions, not pertinent in
the consideration of this case. The language of the
statutes shows it to have been the intention of Congress
that no exception should be made to said provisions by
reason of any previous law or treaty, except as
mentioned below. Under the provisions of the law, if it
shall be shown that action in regard to the matter can
be taken in accordance with the proviso of section 14 of
the act of June 26, 1884, as amended by section 11 of
the act of June 19, 1886, and in accordance with the
offer to the Government of Sweden, made in the proposed
draught which the Secretary of State inclosed for your
information, Swedish and Norwegian vessels, as well as
others, could be relieved of the tax. Should the foreign
government accede to that proposal, immediate action
could be taken in the manner prescribed by law to
relieve its” vessels from tonnage dues when arriving in
the United States from those countries, without awaiting
further action by Congress as to cases arising
thenceforth.
I have to state, however, that in the absence of further
action by Sweden and Norway of the character alluded to
above, I am satisfied that there is no legal authority
to prescribe the collection of the 3–15 cent rate in the
case of vessels from those countries, and that the
specific inquiry of the Secretary of State upon, that
point must be
[Page 1907]
answered in the negative, the legislation fixing a
higher rate of dues being absolute, later than the
treaty, and therefore paramount.
It would undoubtedly be proper for this department to
cooperate with the Department of State, if necessary, in
any effort that may be made to secure legislation
authorizing compliance with the treaty as now construed
or providing for a refund of the moneys claimed to have
been already erroneously collected, although it is
presumed that the tax was paid from freights increased
to meet the exaction of the dues.
The inclosures of the letter from the Secretary of State
are returned herewith.
Respectfully, yours,
C. B.
Morton,
Commissioner.
