While thanking you in advance, I pray you, dear Mr. Kasson, to accept,
etc.
[Memorandum.]
The French ambassador received yesterday from Mr. Henry Gourd,
president of the French Chamber of Commerce, the following telegram:
I hear that Mr. Kasson and Mr. Howell interpret the recent
reciprocity agreement as not including liqueurs, absinth,
etc. Please have this decision reversed.
Again, this morning the French ambassador received from Mr. H. Gourd
a letter confirming his message of yesterday and sending copies of
the following telegrams:
To MM. Luyties Bros., New York: Your telegram is referred to
Secretary of Treasury for decision. This office is of
opinion articles named not covered by new agreement. Signed,
Kasson, Washington, May 31, 1898.
To MM. Luyties Bros., New York: Cordials, liqueurs, arrack,
absinthe, kirschwasser, and ratafia are not included in
commercial agreement with France, being separately
classified in tariff bill. Washington, June 2, 1898. Signed,
W. B. Howell, Assistant Secretary.
From the latter message it seems that a confusion has been made
between section 3 and paragraph 289 of the tariff.
Section 3 is worded as follows:
Brandies, or other spirits manufactured or distilled from
grains or other materials, $1.75 per proof gallon.
Paragraph 289 is thus worded, viz:
289. Brandy or other spirits manufactured or distilled from
grains or other materials, and not specially provided for in
this act, $2.25 per proof gallon.
As can be seen the expression “and not specially provided for” is not
reproduced in section 3, which therefore has the widest possible
meaning. From the records kept at the embassy it appears that such
was the interpretation given of the text of section 3 by Hon. Mr.
Dingley at the time of the framing of the tariff bill.
But without discussing the arguments heretofore presented in this
respect by Mr. Kasson and by Mr. Bruwaert, the ambassador believes
that the opinion given in Mr. Kasson’s telegram to Luyties Bros.,
viz, “that the articles named are not covered by the new agreement”
must have been the result of an involuntary error, as will be seen
hereafter.
In his memorandum of May 4,1898, to the French ambassador, Mr. Kasson
states:
II.
* * * These reductions (on the part of the United States) are
as follows, estimated on the basis of imports from France
for the fiscal year 1897 (ending June 30, 1897):
* * * * * * *
[Page 296]
Brandies and spirits, $195,729. The above amount was
evidently obtained through the following calculation:
| Rate of duty on brandy and spirits, tariff
bill, per proof gallon |
$2.25 |
| Rate of duty on brandy and spirits, section 3,
per proof gallon |
1.75 |
|
.50 |
| Imports from France (year ending June 30,
1897): |
|
| Spirits, brandy (dutiable), 301,098 proof
gallons, at 50 cents |
150,548.00 |
| Spirits, all other (dutiable), 90,362 proof
gallons, at 50 cents |
45,181.00 |
| Total |
195,729.00 |
This shows beyond all doubt and discussion that it was Mr. Kasson’s
intention to include in the agreement with France not only brandies,
but all other distilled spirits, such as are enumerated in paragraph
289 of the tariff bill, viz, cordials, liqueurs, arrack, absinthe,
kirschwasser, ratafia; otherwise the concession made by the United
States on spirits would not be $195,729, as stated in the memorandum
of May 4, 1898, but would only amount to $150,548.
The French ambassador feels confident that it will suffice to call
Mr. Kasson’s attention to the matter to have the decision of the
Treasury Department reversed.
Washington, June 4,
1898.
