The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1850-09-29
FRLUps on TEE REvEIuH.
Importass Letter frss the Secretary 90
the TreasuFy

the Treasury.
THHAsJBY IRFAsIsKsr, S~pi ~, 100.
SIr,--ln comIllsace With the resolution Of the
Senate, that the Secretary OF the Treasury b. re-
quested TO report what have been the measures
adopted Ia prevent fIasds upon the revenue, ssacc
the passage Of he act Of 1896. and Whist has bees
the result" have the honor TO state, that the
measures which have been adopted BY this D~psr-
nent 10 prevent frauds upon the revenue, under
the present tamil act, may be foand n the circular
Instructions that issued 10 collectors and other
officers of the customs before the act ~-nt into ope
ration, viz: November IL, rs and D. lSt6. sad those
issued since the Let December, lste. Upon refer
ence TO these circulars, II Will be perceived that
unusual appre henson was felt, that under the
change from specific duties 10 duties levied upon
the foreign value Of imported merchandise, there
would be great temptation for the com MISSION Of
frauds by differentiation in the invoices and ENTREES
and in the circular Of the 18th November lst6, the
officers of the customs were advised that u was
the determination of the Department 10 exercise
it's whole power, under the law, TO guard the re-
venue of the government against frand and I'M
dervaluation in invoices and entries, and to main
tain the business of importing in the hands OF the
honest merchant and fair trader" The officers
were instructed 10 take the duties in the goods inn
ported, when there was reason TO believe there was
fraud differentiation, TO exact penalties, and TO
make seizures in cases authorized by law; and in
the circulars OF the llth and 2Ih November, lS<6,
their special attention was called TO the provsions
contained in the "a section Of the civil and dplo-
matte appropriation act of the 10th August, 1876,
requiring that in appraisng all goods al any port
of the United States, heretofore subjected 10 speci-
fc duties, but upon which cd paloren duties are
imposed by the act of goth July, 1876, reference
ehsll be had to invoices and values of similar goods
imported in the last fiscal year, under such general
and uniform regulations tor the prevention OF fraut
or underva uation, as shall be prescribed by the
Secretary Of the Treasury"
Notwithstanding the Instructions contained In
these circulars, issued in advance OF the operation
OF the act which commenced LIST December, ls4o,
II became necessary TO issue another ITO collec-
tors, appraisers and other officers of the customs,
on the 9Th July, lS47, with rules and regulations
in regard to appraisements, in which Mr.. Secretary
Walker stated that " this course was rendered
necessary by recent attempts upon the part OF mer-
chant appraisers, in few OF the ports OF the Uni
ted States, to establish for themselves certain
regulations in regard to appraisements wholly in
consistent with law and Instructions" II is stated
that Gin come of the ports these appraisers es-
innate the value of the goods as at the date OF
the purchase, however remote or distant, and in
other ports they take the value at the date OF ship
ment TO the United States The last is the true
construction Of the law, long since declared by
this department, and adopted generally throughout
the Union. The proviso OF the 10th section OF
the act of the Goth August, 1872, Is clear and
date in reference to which the value is 10 be est
mated, as 'the period Of expectation TO the United
States and all words preceding IN that section,
under the settled rule of interpreting statutes,
must be made TO conform 10 the succeeding Ian
guage Of the proviso. This would be the rule,
even if there was absolute conflict between the
words Of the provso, and Of any preceding part OF
the section-for the language Of the proviso being
the last expressed will of the Legislature, must
prevail. Were il otherwise, the law would pre-
scribe two kinds of market values; the one in the
first part Of the 10th section, being the date OF the
purchase, and the other, in the proviso, being the
date of shipment The most enormous frauds,
also, would be the consequence of such construc-
ton. Simulated, fictitious, and aate-da.ed pur-
chases TO suit the period Of lowest price, would
prevail extensively, to the great injury Of the fair
trader and of the revenue In truth, under such
system the whole importing business would soon
be thrown into the hands OF the dishonest and
fraudulent, who would be willing to pr3dnce ante.
dated or fictitious foreign sales, and that most
useful and mertorious citizen, the honest and fair
trader, would be thrown entirely out OF the mar
ket IL Is knswn al preeent-that the commence
the purchases are not deemed by the parties fraud
ulent, the designing to import into the United
States goes 10 some prior purchaser, who has pur-
chased not for importation into the United States
at some prior date when the goods were much low
er in value, and imports the goods in the name Of
the first purchaser, conserving TO give q certain
profit or price on the delivery here, and thus de.
prives the revenue OF the difference in value, and
obtains most unjust advantage over the fair trader,
who will resort to such arihcee. IL Ia the duty
of this department to declare that such practice y
fraud upon the revenue, and subjects the goods to
| seizure and conn sca,ion, and the parties commit
ting the fraud to all the penalties prescribed by law
and the utmost vigilance u epjoned upon collec
tors, appraisers, and all other officers Of the customs
IN taking all proper measures to detect and pun
i.h oil who are engaged In such fraudulent prac-
uces."
Notwithstanding this emphatic and just eondem-
nation OF the fraudulent practices here described,
refult has shown that they had not been effectual
The temptation proved too great, and fraudulent
invoices continued to multiply.
On the 9TH ofAugust, lsts, Mr.. Secretary Walk.
instructed thejofcers Of the customs, that force
sales Of goods in the foreign markets at reduced
prices, under extraordinary sad peculiar cir :um-
stances, cannot be taken as the true market value
Of such goods"
And on the 26lh December, ls4s, he found il ne
cessay to repeat much that he had previously said
and extend his instructions, in consequence OF df-
erences Of practice existing in the several ports re-
lstng to the spprnisement Of merchandise" In
this CIRCULAR Mr.. Walker says tina, "the interests
Of the country, and Of fair and hon ,rablc mcr-
chants require that this department should, by eve.
ny means In Its power, secure not only the revenue
against loss, but should MAINTAIN such merchants,
in their business sgainst sales Of imported srucles
valuation"
Whenever 1t is found necessary by the regular
APPRAISERS or merchant spPrsisers to guard Against
fraud undervsluation, they will carry into effect
the provisions Of the I'd section of the act OF the
10Th August 1886, as enforced by circular instruc
tons Of the llth and 10Th November, 1876. The
last hscal year designated in this section was the
last fiscal year preceding the enactment OF that Ia
which was the fiscal year ending the 30th June,
ls46, TO which refer nee IL required by the Law TO
values and invoices Of similar goods, when necee-
cary TO prevent fraud or undervaluaiioa"
In presenting TO the Senate what have been
the measures adopted 10 prevent frauds upon the
revenue since the passage Of the tariff act OF the
3oth July, 1896" IL has been considered due TO Mr..
Secretary Walker, that the measures which origi.
mated with himself should be made pr sminent; all
the instructions issued by him continue in full
force at the present time, and govern the officers
Of the customs IN the execution Of the revenue
laws
In this connection the special notice Of the Sc
nate IL invited 10 an important question which Is
likely 10 call for the early interposition OF Con-
gress, as well TO guard the revenue as To protect
the honest importer. Upon reference to the Urea.
sury circular dated the 9th July, 1871, IL will APP
pear, that by the I'D section Of the act Of 3oth
August, 1874 which makes IL "the duty OF the
Secretary Of the Treasury from time 10 time TO es-
tablsh such rules and regulations not inconsistent
with the laws Of the United States TO just,
faithful, and mpartisl appraisal Of all goods inn