RAUM, Commissioner to William T. Sherman, October 20, 1879

Mr. Raum to Mr. Sherman.

Sir: I have received and duly considered a letter of Hon. Wm. M. Evarts, Secretary of State, of the 17th instant, inclosing a communication from his excellency Yung Wing, of the 10th instant, with inclosures from L. H. Van Shaick, dated San Francisco, June 19, 1879, complaining that William Higby, collector of internal revenue, declined to accept as sureties on the bonds of cigar manufacturers, persons who could not qualify to the ownership of unencumbered real estate, thereby forcing the Chinese cigar manufacturers to pay a bonus to owners of real estate to sign as their sureties.

In reply, I have to state that an examination of the collector’s office at San Francisco, instituted several months ago, disclosed the fact of the irregularity and insufficiency of a number of manufacturer’s bonds of various character, whereupon the collector was directed by this office to carefully examine all the bonds in his office, and to require good and sufficient security to such as were insufficient.

Acting upon these instructions, the collector adopted the rule which, however, is not required by law, that the sureties must show themselves to be the owners of real estate. I am satisfied that Collector Higby acted in entire good faith in this matter, but, believing that the rule was harsh, and would lead to oppression, I addressed him a letter on the 15th September upon this subject, a copy of which is herewith inclosed, under the instructions of which letter he is now accepting as surety any good and solvent person whether he is the owner of real or personal property.

It is proper for me to say I am satisfied that the hardships growing out of Collector Higby’s order have been greatly exaggerated. I observe, in the inclosures of Mr. Van Schaik, strong letters from two ex-deputy collectors, recently removed by Collector Higby, whose statements are, no doubt, biased by that fact.

Assurances can be given to his excellency Yung Wing that the internal-revenue service in California will be so administered as to give Chinese residents the equal protection of the laws.

Very respectfully, your obedient servant,