Sealed Cars. ury. The regulation of the Secretary of the Interior providing for the designation by the town site board of a bank for the deposit of moneys in the hands of their secretary and disbursing agent, must be construed in the light of the foregoing sections. The power of designation by the board is limited, therefore, to banks which are lawful depositories of public moneys within the statute. It is not claimed that either the Norman bank or the Guthrie bank was such a depository. The result is that Hay is not exonerated from liability on his bond for the loss arising from the failure of these banks. The Supreme Court of the United States has frequently decided that the contract in an official bond for the accounting of moneys is not a contract of bailment in which liability depends on the question of reasonable and ordinary care, but that it is an absolute contract to pay the money in any event. The conceded fact that these deposits were made in good faith and in the belief that they were lawful and proper has, therefore, no bearing upon the question of Hay's liability or that of his bondsmen. The opinion of Assistant Attorney-General Shields, in which he reaches the same conclusion after a more extended examination, is fully concurred in. Very respectfully, WM. H. TAFT, Solicitor-General. The SECRETARY OF THE INTERIOR. Approved: W. H. H. MILLER. SEALED CARS. An act to prevent smuggling construed. Section 2 of the act of June 27, 1864, chapter 164, applies as well to merchandise imported into a contiguous country and then imported into the United States as to merchandise produced in that foreign country and then imported into the United States. While the Secretary of the Treasury can not require a formal entry of goods sealed in a foreign county at a frontier port, he is not concluded by the seals from requiring an examination of the contents of the cars so secured on arrival at the frontier ports, and he may direct such an examination notwithstanding the seals as may seem to him best adapted to prevent fraud. Sealed Cars. The authority of the Secretary of the Treasury to make regulations which should have the obligation of a treaty between Great Britain and this country, given by articles 29 and 30 of the Treaty of Washington, was limited by the terms thereof. Those articles related only to the examination, inspection, and exemption from duty of goods, wares, and merchandise in one country through which they were to be carried continuously in unbroken cars and envelopes for distribution in the other country. The treaty had no reference whatever to the manner of the inspection and examination in the country of the distribution of the goods and merchandise; that matter was wholly within the control of the country where the goods were to be consumed and used, and there is no obligation by force of the Treaty of Washington which prevents a modification of the regulations referred to in so far as they affect goods and merchandise imported into this country for our consumption. Sections 2 and 3 of the act of 1864 probably contemplated that the sealing of cars should be performed by consular officers. The Secretary of the Treasury has no authority by law and therefore is not required to appoint new officers especially charged with the duty. DEPARTMENT OF JUSTICE, February 13, 1891. SIR: By letter of the 24th ultimo the Secretary of the Treasury requested the opinion of the Atterney-General upon certain questions therein stated. The questions relate to the construction of section 2 of the act approved June 27, 1864, entitled "An act to prevent smuggling, and for other purposes" (13 Stat., 197), which is now embodied in the Revised Statutes as section 3102. The Secretary stated that from "the date of the passage of the act referred to it has been the practice to permit cars laden in Canada, and secured in the manner described in the section, to pass the frontier of the United States if the seals found thereon have been intact;" that "since the completion of the Canadian Transcontinental a practice has grown up by which consular officers in British Columbia seal cars into which merchandise imported direct from Asiatic countries has been placed, and such cars upon arrival at the frontier of the United States have been and are now permitted to pass without inspection of their contents;" that "a similar practice obtains as to goods imported at Montreal, and consigned to points in the United States;" and that "recent investigations by the officers of the Treasury Department have shown that European and Asiatic merchandise, as well as goods, the products of the Sealed Cars. Dominion of Canada, and dutiable under our laws, have been imported in cars secured by consular officers without being accounted for to customs officers at ports of destination.” The Secretary requested that he be advised, "First, whether or not the law referred to is applicable to goods imported from beyond the sea into contiguous foreign countries, or only to goods, wares, or merchandise the products of such contiguous countries; second, whether under the provision for the prevention of fraud upon the revenue, the Secretary has authority, in view of the results of recent investigation, to ignore the seals placed upon the cars by consular officers, and to require the entry and examination of the contents of cars so secured upon arrival at frontier ports; third, whether or not the law in question, or any other law, requires that officers of the United States shall be stationed on contiguous foreign territory for the purpose of sealing cars into which may be placed merchandise destined for ports within our territory." The proper construction of section 2 of the act to prevent smuggling, of June 27, 1864, required in answering the foregoing questions, will be aided by a consideration of the other provisions of that act. The first section requires that from and after the passage of the act all goods, wares, and merchandise, and all baggage and effects of passengers, and all other articles imported into the United States from any contiguous foreign country or countries, except as thereafter provided, as well as the vessels, cars, and other vehicles and envelopes in which the same were imported, should be unladen in the presence of and be inspected by an inspector or other officer of the customs at the first port of entry or custom-house in the United States where the same should arrive. The rest of the section enforces this provision by forfeiture and otherwise. Section 2 provides "That to avoid the inspection at the first port of arrival, required by the first section of this act, the owner, agent, master, or conductor of any such vessel, car, or other vehicle, or owner, agent, or other person having charge of any such goods, wares, merchandise, baggage, effects, or other articles, may apply to any officer of the United States duly authorized to act in the premises, to seal or close the same, Sealed Cars. under and according to the regulations hereinafter authorized, previous to their importation into the United States; which officer shall seal or close the same accordingly; whereupon the same may proceed to their port of destination without further inspection: Provided, That nothing contained in this section shall be construed to exempt such vessel, car, or vehicle, or its contents, from such examination as may be necessary and proper to prevent frauds upon the revenue and violations of this act: And provided further, That every such vessel, car, or other vehicle shall proceed, without unnecessary delay, to the port or place of its destination, as named in the manifest of its cargo, freight, or contents, and be there inspected, as provided in section one." Section 3 provides "That the Secretary of the Treasury be, and he is hereby, authorized and required to make such regulations, and from time to time so to change the same as to him shall seem necessary and proper, for sealing such vessels, cars, and other vehicles, when practicable, and for sealing, marking, and identifying such goods, wares, merchandise, baggage, effects, trunks, traveling-bags or sacks, valises, and other envelopes and articles; and also in regard to invoices, manifests, and other pertinent papers, and their authentication." The other sections are not material to the discussion. 1. The first question is whether section 2 of the foregoing act applies as well to merchandise imported into Canada and thence imported into the United States, as to merchandise produced in Canada and thence imported into the United States. No distinction is made in the first section of the act as to the origin of the merchandise. The second section is as wide in its application as the first. The first question must be, therefore, answered in the affirmative. 2. The second question is whether the Secretary has authority to ignore the seals placed upon imported cars by consular officers, and to require the entry and examination of the contents of cars so secured upon arrival at frontier ports. In connection with this question, the attention of the AttorneyGeneral is called to the regulations governing the transportation of merchandise to and from the British possessions in North America under the laws and treaty of Washington promulgated March 30, 1875. (Synopsis of Decisions of Treasury Sealed Cars. Department, No. 2171.) Articles 4, 5, 6, and 7 of the regu lations provide for the sealing of cars by consular officers of the United States in Canada, and the transportation of these cars through frontier ports of the United States when the seals are unbroken without any examination until the port of destination is reached. It is evident from the language used in these regulations that they apply not only to goods carried through this country to and from Canada for exportation out of the United States, but also to goods which are imported into the United States and are subject to duty here. The authority of the Secretary of the Treasury to make regulations which should have the obligation of a treaty or a convention between Great Britain and this country was given by articles 29 and 30 of the treaty of Washington, and was therefore limited by the terms thereof. (Revised Statutes of 1873-1875, p. 365.) Those articles related only to the examination, inspection, and exemption from duty of goods, wares, and merchandise in one country, through which they were to be carried continuously in unbroken cars or envelopes, for destination in the other. The treaty had no reference whatever to the manner of inspection and examination in the country of the destination of the goods and merchandise. That was a matter in its nature wholly within the control of the country wherein the goods were to be consumed and used. There is no obligation, by force of the treaty of Washington, which prevents a modification of the regulations referred to, in so far as they affect goods and merchandise imported into this country for our consumption here. The second question to be answered, therefore, is not embarrassed by the provision of the treaty of Washington or the regulations in accordance therewith, and depends only on the construction of the second section of the smuggling act of 1864 quoted above, now embodied in section 3102 of the Revised Statutes. This renders it unnecessary to discuss the question whether article 29 of the treaty of Washington has been abrogated. The purpose of the second section of the smuggling act was to enable importers into the United States to save the trouble and expense of an examination at the frontier ports. The necessity for a formal entry at the first port of arrival of goods in sealed cars is dispensed with by the section, and can not be required by the Secretary of the Treasury in view |