Answer. The cost of armor plate contracted for last is as follows: Class A, $454 per ton; class A (turret), $518 per ton; class B, $496 per ton. In regard to the cost per ton of manufacturing armor plate, the Secretary is unable to furnish this information at the present time, but he is making an investigation with a view to securing this information. Fourth. Do steel-manufacturing companies having contracts to furnish gun castings for the United States Government make contracts with foreign countries, the guns being finished wholly or in part by the United States navy yards? If so, what number of guns have been so finished and for what countries, and what compensation has the United States received? Answer. Steel manufacturing companies having contracts to furnish gun castings (forgings) for the United States Government do make contracts with foreign countries for furnishing the batteries of vessels, but no work in connection with the finishing of these guns, wholly or in part, is done by the United States navy yards. The guns, however, are tested by the Government when requested, the company having the contract paying all charges for same. Fifth. What would be the cost of erecting and equipping a Government plant for the manufacture of armor plate? Answer. The Secretary is unable to answer this question, as recent reliable data is not at hand; but the Secretary is making an investigation, with a view to securing the information. Sixth. A large portion of the expense of making guns being already provided for by the Government in its own plant, what would be the additional expense of enlarging the plant so that all the guns could be made entirely by the Government? Answer. The Secretary is unable to answer this question, but will take steps to secure an estimate at a very early day, and will furnish your committee with the information when it comes to hand. Seventh. What is the cost per ton of powder now manufactured by Government plants? What is the cost of powder per ton purchased for the use of the Government? What would be the expense of enlarging the Government plant or erecting additional plants, to the end that the United States manufacture all its powder, instead of only a portion, as at the present time? Answer. The cost per ton of powder now manufactured by the Navy is (long ton) $918.40. The cost per ton of powder purchased for the use of the Navy is (long ton) $1,187.20. In answer to the last part of this question, the Secretary would state that the amount of powder used is regulated by circumstances. In time of peace it is comparatively small, and in time of war it would be greatly increased. To double the plant now in operation at the naval powder factory, Indianhead, Md., would cost approximately $650,000; to treble the plant, $1,000,000. In the first case, two equal appropriations of $325,000 would be necessary, one after another. In the second case, an appropriation of $325.000 would be necessary for the first two years (each) and the balance the third year. Sincerely, yours, Hon. L. P. Padgett, Chairman Committee on Naval Affairs, JOSEPHUS DANIELS. House of Representatives, Washington, D. C. O CUSTOMS CHARGES ON UNCLAIMED GOODS. LETTER FROM THE SECRETARY OF THE TREASURY. TRANSMITTING A DRAFT FOR A BILL FOR THE AMENDMENT OF SECTION 2965, REVISED STATUTES OF THE UNITED STATES, RELATIVE TO CHARGES TO BE PAID ON UNCLAIMED GOODS IN THE HANDS OF COLLECTORS OF CUSTOMS. JULY 14, 1913.-Referred to the Committee on Commerce and ordered to be printed. TREASURY DEPARTMENT, The PRESIDENT OF THE UNITED STATES SENATE. SIR: I have the honor to inclose herewith a draft of a bill for the amendment of section 2965, Revised Statutes of the United States, relative to charges to be paid on unclaimed goods in the hands of collectors of customs. The said section 2965 provides that unclaimed merchandise * * may be stored in any public warehouse, *** and all charges for storage, labor, and other expenses accruing on any such merchandise, not to exceed in any case the regular rates for such objects at the port in question, must be paid before delivery of the goods on due entry thereof by the claimant or owner * Section 25 of the act of June 22, 1874 (18 Stat., 186, 191), provides that public cartage of merchandise in the custody of the Government shall be let after not less than thirty days' notice of such letting to the lowest responsible bidder giving sufficient security, and shall be subject to regulations approved by the Secretary of the Treasury. In a case arising at Baltimore, Md., the United States Court of Customs Appeals held, by a divided court, that in view of section 2965 of the Revised Statutes the Government was precluded from charging more than the commercial rate, 6 cents per package, for the drayage of certain matches taken possession of by the collector as unclaimed and caused by him to be transported to the Government warehouse, although the Government was obligated to pay for the services a flat rate of 18 cents per package under a contract made under article 833 of the Customs Regulations of 1908, in accordance with the provisions of section 25 of the act of June 22, 1874. The rate of 6 cents per package was found to be the commercial or business rate for the transportation of merchandise similar to that in question for the distance transported in the case under consideration, while the rate of 18 cents per package was a flat or average rate without regard to the size of the package or the distance covered. This decision was rendered on May 31, 1913, and published as T. D. 33534, of which I inclose a copy herewith for your information. Your special attention is invited to the dissenting opinion in the case, in which it is pointed out that it would be impracticable, if not impossible, to let a contract that would cover the infinite variety of circumstances such as size and weight of package, distance of transportation, character of merchandise, frangible, solid, or otherwise, etc., that might arise. Under the decision of the court the difficulties of administration will be practically endless, and the department will have almost impossible problems to face if the decision is to be carried out literally. In view of the difficulties involved the proper administration of the law is entirely impracticable, and, further, in many cases under the circumstances there will result a loss to the Government. I have, therefore, to recommend that a bill to amend section 2965 of the Revised Statutes in accordance with the inclosed draft be passed by Congress. Respectfully, W. G. MCADOO, Secretary. A BILL To amend section twenty-nine hundred and sixty-five of the Revised Statutes of the United States. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section twenty-nine hundred and sixtyfive of the Revised Statutes of the United States be, and the same is hereby, amended to read as follows: "Unclaimed merchandise required by existing laws to be taken possession of by collectors of customs may be stored in any public warehouse owned or leased by the United States or in any private warehouse authorized by this title, and all charges for storage, labor, and other expenses accruing on any such merchandise, not to exceed in any case the regular rates paid or to be paid by the collector at the port in question for the said charges under a contract made in accordance with any provision of law or, in the absence of such established rates, not to exceed in any case the regular commercial or business rates for like services at the port in question, must be paid before delivery of the goods on due entry thereof by the claimant or owner; or if sold as unclaimed goods, to realize the import duties, the charges shall be paid by the collector out of the proceeds of the sale thereof before paying such proceeds into the Treasury as required by existing laws." (T. D. 33534.) Drayage charges. UNITED STATES v. MASSON (No. 1083). 1. EVIDENCE OF A PARTY IN INTEREST.-It is presumed a collector in a given instance is acting within the law, but this is not a conclusive presumption, and there is no rule of law that deprives a party in interest of his right to have his testimony weighed and considered in opposition to that presumption of correct ness. 2. OVERCHARge for DrayAGE.-The importer here was compelled to pay drayage charges on his merchandise (matches) of 18 cents per case. The proof goes to show the regular rate for the haul was 6 cents per case. The law is that the rate shall not exceed in any case the regular rates for such objects at the port in question." United States Court of Customs Appeals, May 31, 1913. Appeal from Board of United States General Appraisers, Abstract 30903 (T. D. 33055). [Affirmed.] William L. Wemple, Assistant Attorney General (Charles E. McNabb, assistant attorney, of counsel), for the United States. Comstock & Washburn for appellee. Before Montgomery, Smith, Barber, De Vries, and Martin, Judges. Thirty-seven cases of matches were taken possession of by the collector at the port of Baltimore as unclaimed and, as required by law, were caused by him to be transported to the Government warehouse, there to be stored until claimed and entered or otherwise disposed of. The appellee thereafter duly claimed and entered the merchandise and was thereupon compelled to pay a drayage charge of 18 cents per case for the transportation of each of the 37 cases to the Government warehouse. Protest was filed against the payment of this charge, it being claimed that under Revised Statutes 2965, which is hereinafter referred to, the charge was excessive. At the hearing before the Board of General Appraisers the appellee testified that he was an importer of matches at Baltimore and had been so engaged for two or three years; that he had obtained the drayage of like matches during that time for practically the same distance that the Government transported these for.6 cents per case, and that he had received bids from various local concerns, among them the one under contract with the Government, as hereinafter set forth, to do this drayage at this price, although his work had been done by another company during all of the time. He was asked this question, "What information or knowledge have you of the rates charged by other concerns in Baltimore?" and his answer was, " For a similar haul they would be glad to get 6 cents per case," and in another connection he said that draymen in Baltimore figured their charges according to the distance the longer the haul the larger the price, the merchandise being the same in each case. All this testimony came in without objection and is not contradicted by the evidence offered on the part of the Government. Its witness, the public storekeeper at Baltimore, testified that the contract between the Government and the drayage company provided for a flat rate of 18 cents upon every package transported by the company for the Government at Baltimore, regardless of the distance and also regardless of the size or weight of the package. This contract was made by authority of the Secretary of the Treasury under the provisions of section 25 of the act of June 22, 1874 (18 Stat., 186, 191), hereinafter more specifically referred to, and as directed in the Customs Regulations of 1908, article 833, which is based upon the last-named statute, and provides for the annual letting of drayage contracts to the lowest responsible bidder after not less than 30 days' notice. The Board of General Appraisers found upon the evidence that 6 cents a package would be the commercial charge for transporting the packages in this S D-63-1-vol 21-16 |