The republic. [volume] (Washington [D.C.]) 1849-1853, 1850-09-27
mitted, Mr.. Secretary Meredith issued n circular,
under date Of the 9th A ust 1919, as follows

partment of the unequal operation of the act Of
Congress Of 30th July, 1916, reducing the duty on
imports, and for other purposes,' and likewise Of
the increase OF frauds upon the revenue since this
| act went into effect
''In order that information Of definite and reli-
able character upon these and other points may be
in the possession OF the Department request that
you will state such facts as within your knowl-
edge of the practical operation OF the act referred
to, especially,
81. In regard to the equality Of its operation
throughout the Unon--the agreement or variance Of
| appraisements AT the different ports.
80. In regard to fraudulent invoices
SO. In regard to the undervaluation Of merchan-
"a. In regard to the effects of aboshing specific
duties.
"5. The practical operation of the third section
of this act, under which, on all merchandise not
| specially provided for, duty of twenty per cent
ad yalorem is levied. This rate of duty being less
| than the rates imposed upon the manufactures of
| WOOL worstcd. cotton, silk, leather wood, paper
glass, bone. ivory, iron, copper, TIN, eadi or 9th
metal, &c.
SO The effects of levying different rates of duty
upon the man uactures of the same material, viz:
wool, cotton, silk, hemp, glass, wood, paper, cop
per, &c.
81 The effect of levying different rates of duty
upon the manufactures OF wool and the manu-
factures of worsted.'
"S. The effect OF levying the same rates of duty
upon raw materials as are imposed upon the man
uactures thereof, as in the of wool, iron, xc
"And also the effect in those where the rates
of duty upon the manufactures are lees than the
rates imposed upon the raw material as in the
cases of wool, hemp, copper. &c.
'9 In regard to the effect upon the business OF
American merchants engaged in the Importation
OF foreign merchandise"
To ths circular numerous replies received,
portion of which were presented in the last an
nual report to Congress from the Department, and
to which the Senate Is respectfully referred as
showing the results OF the measures which had been
adopted to prevent frauds upon the revenue SO far
as they known to the parties.
In order that the Senate may appreciate some Of
the difficulties Of securing just faithful, and i'm
partial appraisal OF all goods, wares, and merchan
disc imported into the United States, and just and
proper entries of the actual market value or whole
sale price thereof, under our present system and
laws, single case of recent occurrence will be
given.
Three shipments of pimento made from the
Island of Jamaica at about the same period-two Of
them to New York by the same vessel, the invoices
Of which bear the same date; the other to Balti-
more, and all per account OF the shippers.
The New York invoices were both at 2sd. per
pound; but before making entry, of the parties
added Id. per pound to make the price conform to
out making any addition to the value; the ap-
praisers added ID. to the value; the parties de-
manded a rcappraisement by merchants, which
held and the appraisers valuation was sus-
tained-the additional duty was accordingly as-
sessed.
At Baltimore, entry was made without any ad-
dition the value; the appraisers added 3D. to the
value. A reappraiscment by merchants was de-
manded, and the appraisers valuation was not sus-
tanned. Upon report of all the facts to the Secre-
tary of the Treasury, he decided that las these
merchant appraisers had placed before them at the
time evidence furnished on appraisement at New
York of mportations of pimento from JAMAICA
shipped about the same time, going to show that
the market value of the article was higher than
that stated in the invoice under review, the Depart
ment is compelled TO infer that their estimate Of
value refers soely TO the price cost paid by the
owner shipper, and not the actual market ualue
or wholesale price at the time Of shipment in the
| al rlreteo off he
case their appraiscment is not in conformity with
| law, and cannot be treated or taken as vahd and
! effectual, and must consequently be dsregarded =
From this review of some of "the measures adopted
10 prevent frauds upon the revenue since the pas
sage Of the act of 30th July, 1916" il is believed
that all the authority conferred by law upon tbs
Department has been exerted, unless II should be
decided that the construction OF the 2d section Of
the Civil and Diplomatic Appropriation bill OF 10th
August 1916, conended for by those interested, Is
the true one.
Without extending this communication TO
reasonable length, the answer to the inquiry con
tained in the resolution Of the Senate, what has
been the result Of the measures adopted TO prevent
these fraudsY" may be briefly stated
All the frauds which can be perpetrated by double
invoices and false valuations continue without
abatement. Honest merchants and fair traders
have been driven from the business Of importing
foreign merchandise, being unable to compete with
the dishonest practices that prevail, and which our
present system fayors.
The business of importing merchandise has iallen
|
manufacturers and merchants, and our own clu-
zens are deprived Of lucrative employment in con-
sequence OF thcse systematic frauds.
In the last annual report from this Department
several tables were inserted 70 illustrate the effect
of the substitution Of duties the foreign value OF
merchandise in place Of specific duties Taxing
two examples Of the operation oil our present sys-
tenn the attention Of the Senate ia invited TO the
suit, viz
MADEIRA VINE.
For five months ending S0th November, 1916, under
specific dutics-ayeragc value per gallon , w
For seven months ending Both June, loiI,
under ad valorem dutics-average value
per gallon. ..s............. VI
For the year ending SOth June, ls4s, under
ad valorem duties-ayernge value per gal
For the year ending 3Oth June. lSI9, under
ad vslorcm duties-avcrage value per gal
lon. ACKNOWLEDGEMENTS. .................. %
For nine months ending 3lst March, 1850,
under ad valorcm dutes-syoragc value -,
per gallon. ..................s. -
| BRASDY.
| For five months ending 3Dth November, 1876,
ion...''ip...........................sl .. 81 on
For seven months ending 3Oth June, lS47,
under al valorom duties-ayerage cost per
gallon.. ...s'. .''..s - .'''' =. =. ''''
For the year ending 3Oth June, lsfS, under
ad valorcm duties-avcragc cost per gal
lon. n.........!........ ................' o<
For the year ending 3Oth June, ls49, under
ad valorem duties--ayeragc cost per gall
% % s
For nine months ending 3lst March, 1850,
under ad valorem duties-average cost per
gallon. ,.....'....... '....'''.'''. %
From iaquirie. instituted by this Department, 1t
was clearly shown that the value vi 0,ess srticles
did not decline in the countries from which they
were imported 10 the extent which the above tables
| would indicate; nor did the prices at which tbcy
we're sold TO consumers at all conform TO inc oe-
| clared values in the invoices and entries
| The particulars Of many cases OF the grossest
| fraud have been furnished 20 the Department, and
the evidence ia conclusive that 80 long as the pres
! cnt ad valorcm system is continued, they will pro-
| vail.
The appraisers in the seven principal ports, where
| alone any appraisers are employed, have been cr
cited 10 labor and vigilance in the highest degree
| commendable aud have been sustained by the de-
! partment in their cfiocts.
| There arc. however, ninety five ports OF entry
where there appraisers. From these, very
few instances have been reported OF the detectior
Of frauds or undervaluations, while there is every
reason TO believe that they frequent st these
ports at others. The increase, annually, OF new
collection Districts without appraisers, opens new
avenues for the introduction OF foreign merchahuiso
without sufficient protecton TO the revenue.
Many frauds have been detected. and the penal