The Massachusetts spy. [volume] (Worcester [Mass.]) 1831-1858, 1831-11-30
sBATE IN THE TARIFF CONVENTION
ON FRAUDS IN THE REVENUE.

the Committee ask for further time, and that they
may be allowed to make the residue o. theh ne
port to the Central Committee.
Mr. Core in reference to some claims of the
Report which speak of certain interpretations of
the revenue laws by the Secretary OF the Treasu-
~, observed that he had lately received a letter
from MIR. lngham, in which It was stated that the
estimation OF pound sterling At 81 a, operated to
deprive the Treasury Of a large amount Of money |
which il would receive were the same quantity of
goods imported iron France or other countries, in
CONSEQUENCES of the rule Of Exchange. The fetter |
also snovested that the mnnu4n rule of duties
might in great measure be prevented by valuing
the goods at the place of Importation, at home in-
stead of their manufacture or expectation in the
foreign country.
Mr.. Ellsworth of New York moved to recommit
the Report which had just been read, as the Com
mittee who made it were promised commsnica-
ton of very Important results from the Custom
House. The manufacturers. he observed, ought to
know that they we're suffering under the effects Of
great evil OF which they were little aware. He
had retained his seat until now hopinr that some
other member of the Convention would introduce
the subject, but as no had done SO, he felt it
his duty to speak. He had been a merchant in this
city for these last sxteen years. and chiefly engag-
ed in the sale of cloths, and his experience had
taught him, that the manufacturers Of cloths here
actually enjoyed protection of no more than from
forty to forty:fre per cents fact which arose
from the constant and fragrant violation Of the
enue laws.
foreigner arriving our shores needed no
other introduction than an invoice of goods to the
amount of two or three thousand pounds sterling
TO obtain for him at once the aid OF powerful
combination existing here, all of whom would give
him every possible facility to get his money and
go off with it after having grossly defrauded the
government Of the country. This difficulty arose
from the immense quantities of cloths invoiced, as
. having cost from six shilinqs to six and eight
pence OF SIX and nine pence sterling yard. when
in fact they had cost from nine to ten shillngs.-
All the merchants were perfectly of this.
Mr.. E. said he had been lately called upon by the
collector to examine an invoice Of twenty bales Of
goods all entered at the rate of six shillings and
eight pence, or six and ten pence and before he
had examined ten pieces he came to cloths worth
eight and nine and ten shllings. What the
effect of such false entries The Tariff Law de-
clared that goods costing six and eight pence
abroad, should pay duty of 81 IL cents yard
while these costing nine shillings, must pay 81 20
cents. This difference caused the GoverRme Mt to
lose no less than ,S500 every one ofthose bales
1t was thus that our manufacturers were deceived
and betrayed. They would have a sample of Eng
lish cloth put into their hand and be todd the price
which it cost. He would say, make this
ticle at profit, and he would thereuPon go and
invest capital in producing the goods He would
then bring them into market and what did he
meeti market overlooking with goods worth
IS. sterling selling at the price at which such
goods can be afforded when paying duty on six and
eight pence and the reason was thatone piece in
law.
If gentlemen asked how could such a state of
things exist and no remedy be applied? The an
swer was, that the state Of public feeling was SO
highly wrought up against the American Manufac-
turer and in favor of the foreign agents. and their
importations, that the Collector, though wise
wanting in honesty, diligence, zeal. was defeated
in every atteufpt to stay tho evil He had been so
goaded and harrassed by public and private at
tacks, that he had been actually disabled from put
thal 1ft
! wrong, and the state of public feeling an er.
| roneons one. The laws were suffered to be daily
disobeyed-and the foreign agent, whose interests
were at home, and who regarded neither God nor
/ man, provided he could only get his goods through
! the Custom House, laughed at the idea Of any ob-
legation to restrain him. lie did not speak of re-
spectacle and upright English and French mer-
chants; far from it they groaned with own
citizens under the oppression Of this system of
fraud and wickedness and had been actually driv-
en- from the ground of competition, and obliged to
| abandon the importation of this species of goods
! He addressed himself to manufacturers who were
/ suffering under the cravings of a secret canker
worm that was eating out the vitas of their prof
/ it's. They were told that the English could afford
| to sell cloths Of the same value as cheap they
I could-and the selling price was compared with
the quality to prove it. Very true but not if the
lawful duties were paid on The goods. The auction
system was the great engine Of destruction t.
| American industry, by which these fraudulent pro
ceedings were effected. Until very lately it wa
the practice to send one bale in every twenty 10 ths
Custom House 10 be examined, and the remaining
nineteen. on the same day, to the auction store
to be scattered, before the next morning to all the
winds, and without any marks by which they coult
be recognized and traced In the mean whIe the
other bale lay in some cases three six month.
before it was examined. The goods were then
found to have been uneercharged, and what wa.
the consequence The only remedy was that that
! one bale was forfeited, while the Government hac
| lost S4C0 OF revenue on each bale, and the ma
! ufacturers SO much Of protection.
Mr.. +. went into a further statement in relation
to The pernicious effects of the auction system. Il
was the same means OF pressing in upon this mar
ket all the overstock OF Europe. When the for
eign manufacturer had sold SO per cent of hi.
goods and had the rest laying his hands, he SEM
the balance here-this refuse and surplus was re-
celved by the great auction engine and isposed Of
at any price it might bring. In addition to this
the surplus of what had been into foreign mar
kets by specuators, after lying there unseld came
here and was crammed through the auctions into
our market Bales of goods that had lam long in
Mexico, were re-shippcd and sold here for any
thing. no matter how little.
IL was true that for some months back, the Col
lector had been more rigid in his enforcement oil
the law; the public sentiment was relaxing Ii
had been ascertained that the frauds were gross
that ne had been induced to have all the bales e.
amined, instead of one in twenty; aud the conse.
quence was, that in six months, 2400 pieces oil
broad-coth had been found undercharged by false
invoices. Let then the newspapers, which have
so long teemed with abuse. cease to cry " there
are no lrasds-tbere are no frauds" To one indi-
yidua IN tins city, who had faithfully exposed this
iniquity, until he had been publicly denounced the
manufacturers of this country owed deep debt OF
thanks lAPPlause.1 Let those gentlemen cacu-
late the difference of duty received on these 24OO
pieces, aad they would find that within six months
1t amounted to tine sum of $4,000. Manufactur.
err, listen cried Mr.. E. in SIX months you would
have leen defrauded of your protection, TO the
amount Of forty-eight Thousand dollars Applause
With such state of facts openly proved, it was
idle TO sit and spend time in talking about raising
or lowering the Tariff. The Tariff was almost !
nnlity. 10 the face Of all its provisions the man.
ufacturer did not in reality enjoy a protection OF
mora than fsrfy-hve per cent The ownsrs oil
more than half OF these twenty -four hundred piec.
es sad not word about the matter, but quietly
paid The duty. But had they not, few hours be.
Iofe sworn that the valuation of their invoices
was Just and true And what could gentlemen
make OF this, but perjury A few hours after tai
ing the solemn oath required by law, they walked
up TO the Custom House and paid an additional du-
~ OF dollar yard. Did any gentleman inquire
why THIS thing was act prosecuted to conviction.
and the goods forfeited? The answer was the
same. The same mistaken current Of public opin-
ION entered and influenced the jury box, which ore
vailed upon Change, men though the law rigorous
and severe-they considered It hard that MA
should forfeit large amount Of property for mere
attempt to evade an enormous duty. In two years.
there was but single case pursued into court Of
justice, although 300 packages had been fraudu-
lently entered within six months If the merchant
prove by the oath Of single witness, that TIE