The daily union. [volume] (Washington [D.C.]) 1845-1857, 1846-08-25

is memorable; and by this summary Judgment ofthe
eusom-h house, without the Formally OF trial. or the
intervention of jury, the importer incnrs the penal
ty Of forfeiture la case like this It 10 easy to see
that all the promptngs Of interest would induce an
oyer-statement rather than under-staemen Of the
foreign cost.
I hold in my hand statement, from reliable
source illustrative of what have said, and which
| will read for the satisfaction Of the Senate;
"In 1871. Mr. IohH A Newbold, fNew York contracted
with an iromonger of Birmingham for certain kinds OF
goods be delivered in equal quantities for I'VE eoneeu
tive yesTs In the meantime iron In price much
all his other customers % per cent he still continued to
send them Mr. Newbod according contract The APP
between the invoice Of Mr. New6old and his neghbofs rt
themselves bound by the law only TO impose the same
for uadeTyauston required by Of sI2. The law
allowed no discretion Nobody doubted the character Of
high a. any importer in New York Mr. Newbold
compelled TO give up his good contract a. was loaing
business"
Mr.. WEssrER. hope the honorable senator will
hand his documents TO the Chair, or put them IN
such a foam We can have To them.
Mr.. LAWS l shall have them pHbshed, sir.
Now, Mr. President with this fact before them,
will genllemen contend further that there is a ten.
dency in ad valorem duties 10 induce importers TO
underyalue their goodsl Here was a case where
the importer would most gladly have returned his
goods Adore their invoice cost, and al their true
value; but the Law Of 1912 would not allow him that
privilege IL compelled him to enter them at their
cost although II was known to be below their value;
and after thus compelling him, extorted forfeiture
for so doing.
This bill amends the act Of 1872 and gives to the
importer the privilege he has long desired, OF enter
ing his goods above their invoice cost. As strange
as it may appear, this will be found To DO most
important privilege, and one which will save more
10 the importer than all the underyaluations which
were put into requsiton to defraud the custom
house. ask the clerk to read the 9Th section Of Me
bill, to prove that while gentlemen contend there il
such tendency TO undsTsias the invoice price Of i'm
ported goods, 1t Is considered important to the rights
and interests of importers that they should be al
lowed to evade the rigid penalties OF the law by
Orsrstahag the cost Of such goods in the foreign
market.
The clerk read the section, which is as follows
sEe. find BE- JVhsT enacted, That 1t shall be lawful
for the owner eonssnee or agent Of imports which have
been actually purchased on entry Of the same TO make
such addition "a the entry to the value given In the
invoice IA his opinion may raise the the
AeI value OF such imports in the principal markets Of the
country whence the Importation shall have been made Or
lin which the goods imported shall have been originally
manufactured produced the may be- and TO add
thereto all costs and charges which, under existing laws
would for" part Of the true value at the port where the
may be entered, upon which the duties should be
assessed shall be the duty OF the collector with.
in whose district the may be imported entered
the dutsbe value OF such imports to be app ased
estimated and asCeTtainsd accordance with the pro.
visions of existing laws and the appraised value thereof
shall exceed by ten per centum the value de.
clTed the entry then addition the duties imposed
by Law the same, there shall be levied collected and
paid duty OF twenty centnm ad yslorem such ap.
praised ysue Provided Hsrsrthss That under no cir.
shall the duty upon an amount les
than the invoice value any law Of Congress the contrary
| no withstandng7
Mr., President, further bjection to ad valorem
duties Is that the true value of certain kinds OF
goods cannot be ascertained by the appraisers,
and hence there will be no uniformity in the
operation or execution of the law. Wines are often
cited IN illustration of this objection, and is said
there is no such thing Judging Of the quality Of
wine by the inspection even the taste of APP
pralsers Now, say, as wines have always paid
specific duties, the possibility Of appraising their
value has never been tried. | have no doub,
that this Is the strongest which be put and
yet | think it will be found on trial that much Of
thus difficulty is imaginary. lf individuals can
judge the quality Of wines well enough to purchase
them, ] see no reason why other individuals can
not appraise them But il so happens in point OF
fact that instead of the difficulty of ascertainng the
value of an article being reason why such article
should pay specific duty, by the act of 1912 those
articles whose value least determnate pay ad
valorem duties, while specific duties have been i'm.
posed on such most determnate in value
This observation is the result of an extensive ex.
animation into the character Of those articles pay
ing duty. | will give instance:
Coarse cottons pay minimum duties, which
| refinement on specifics. These minimum duties
operate OH the principle of assuming the value of the
article In the foreign Market If such value could
Hol NC accurately dSCUuHeo, Wnen, IN point OF fact
nothing Is moro determnate IN price and value than
these coarse cottons. BY an instrument applied to
the eye, you judge of their fneness most accurately
by counting the number of threads in square inch.
But fine cottons, the quality of which cannot be so
estimated and described, and the value of which ii
is difficult to fix, pay an ad valorem duty. Sewing
silk pays specific duty; silk mixed with cotton OF
wool pays an ad valorem duty; chains, chain cables
ca stngs, anchors, and anvils-artices at which no
one wishes to look to ascertain their value Judging
entirely by their weight-pay specific duties; while
cloths, kersey meres-the quantity and quality OF
which can be determined with difficulty even on i'll
specton-pay ad valorem duties. Those articles
which, from the deeIminateness of their value, are
| to be found In every "prce current" would, upon
this reasoning, appear TO be the articles which
should pay an ad valorem duty; and with the price
current before them the appraisers could never be
deceved but with scarcely an exception, these are
the articles which pay specific duties; while those
articles which, from their indeterminae value, are
never admitted into price current, with few ex-
captions, pay ad valorem duties. The objection
then, of difficulty in the appraisers ascertaining
the true value OF certain goods far from being o
reason for aboishing ad valorems and substituting
specifics, turns out TO be an afterthought which has
had no influence in introducing the one excud
ing the other. 1t is not only a clear afterthough
but an afterthough founded on the gross absurdity
| that although individuals can by inspection, Judge
the value of these articles with sufficient accuracy
to buy them, appraisers, upon like inspection, can
not know enough of their value to appralse them
My life on it, sir, the whole batch of specifics in,
Guiding even wines, can be valued by the govern.
ment appraisers with much accuracy as to price
as they can be purchased by individuals.
But, sir, If frauds arethe necessary concomtant
of ad valorems, why have not such frauds been de-
tected, prosecuted, and punished1 We hear much
complaint from the manufacturers, but from no othe
source. If there were such frauds, the honest i'm
porters themselves would be the first to complain
Do the fair-dealing merchants complain Who has
heard such a complaint, except from the manuac
turers, who, with all their talent, wealth, industry
and zeal in this cause, have wholly failed to max,
out their proof Of fraud | will prove by docu
ment mold in my hand, that after a most patien
: and thorough investigation by executive commit
tee, appointed to investigate this very subject o
frauds on the revenue, and particularly on ad vaIo
rem dutles-a committee at the head Of which wa
a leading member of the wing party--a COMMITTEES
which called on the manufacturers both far and nea
to come forward and produce their proofs--tha
u committee reported that such frauds had bee
| nroyed and that Hnone such existed ~