The republic. [volume] (Washington [D.C.]) 1849-1853, 1852-03-26

Of an universal ad palorm system, and from
the numerous frauds that must constantly be
arising, and the constant conflicts the Irea-
sury must always be in with merchants
American and foreign. Their leading on]eo,
ton was, that it based the American tariff upon
European al palorens -that is, Made our Amerl-
can tariff in Europe and that when II thus surren-
dered American to European Interests, mere was
no fixed system, no proper rule, no real law pre-
scribed for estimating these values even In Europe
1t IL obvious that an American tarlff, winch sur
renders the whole American system OF home valua'
tions to foreign valuations. is foreign tariff levi
cd at American ports. II the value OF cottons, or
woollens or iron wrought articles, 10 fixed in Eu-
rope, and upon that value, thus fixed there, duty
IL levied and collected in New York. two things
arc Obvious-frst, that such tarih 10 q ioreign
levied tariff even though collected under American
law; and, second, that the value, the ad ratorem,
depends upon foreign estimation, foreign caprice.
or. it may be, foreign fraud or perjury The tarih
law Of July l646, was open to all these objections;
and shall show, on Democratic, anti-tarin au-
thority, too, has been admitted so to be-
The force of these objections struck Mr. Secreta-
ry Walker and the Committee Of Waysand Means
in 1885, and they did not believe that as the tariff
stood then, under the act of July. with the whole
I'D raIovem system then subject to foreign caprice,
that they could collect duty enough under il 10
carry on the Government. make these remarks,
and draw these differences, because in that very
extraordinary place for making tariffs. the Civil
and Diplomatic bill, approved August 10, lS46,
there was inserted-may ! not say, smuggled; for
who then probably foresaw its full efiect!-this
very significant and pregnant item:
THAT in appraising all goods at any port in the
United States, heretofore subjected to specific du
ties, but upon which ad palorsm duties imposed
by the act OF July 30, 1916, entitled 'An act reduc
ing the duty on imports, and for other purposes,
reference shall he had to values and invoices Of sim
liar goods imported during that fiscal year, under
such general and uniform regulations, for the pre-
rention Of fraud or uJldr raluatiOn, shall be pre-
scribed by the Secretary of the Treasury"
i n n
significant and pregnant item, for it not only re-
fers TO, and to some extent reviyes, the tariff OF
1912, Certainly as to values and invoices,) but
what s more, it vested in MIR. Walker. then Sec
rotary Of the Treasury, the power of prescription
Of such general and uniform regulations Gas to dd
valoresns) as he might think proper. Mr.. Walker
instantly availed himself Of this Penipotent power;
and in order to levy as high duties possible on
high ad vaorens, he not only revived what he
could of the tariff of 1912, but he went great deal
further, even into what the Supreme Court of the
United States subsequently decided TO be contrary
to law. He meantt to baulk the prediction of Wing
prophets, law or no law; and he did do it in def
ance of law.
ILLEGAL TREASURY CIRCULARS.
There are, MIR. Chairman-you as lawyer
know-two kinds of law, written and unwrtten,
the statute law, such that of July 80, and August
10, 1876, and the common law, the law of pre-
scription." The common Law of the Treasury De-
partment 10 Treasury code, called Treasury cir
culars and as the tariff Of 1876 was going into op
GRAFTON, Mr.. Walker began to scatter them "a thick
as the leaves of Vallambrosa. The Treasury code,
which Issues its rescripts in Treasury circulars,
has power more penipotent for the time being than
any statute law. The appraisers. Who inspect and
examine imports, and judge of their values, hold
their offices from the Treasury, and whatever the
Treasury prescribes. with them il law. Hence
when Mr. Walker had. in the Civil and Diplomatic
bill, or thought he had, the power Of "prescrip-
tom as TO the ad ralorens. and exercised that
power without restraint, he became the law
This power, i shall show you. was exercised with
a high hand from December, ls46, up to January.
1851.
Mr.. Walker himself began the first exercise of
the power Of prescription in somewhat famous
Treasury circular, November 25, 1876 He quotes
if with exulta ton, the hitherto hidden item in
the civil and diplomatic bill. He dictates, also,
the modes and manner of appraisements, thus:
1.-THE principle upon which the appraise ment is
based is this: That the actual value of articles
shpboard at the last place Of shipment to the United
States, including all preceding expenses, duties,
coets, charges and transportation, il the foreign
value upon which the duty is TO be assessed. The
cost and charges that are to be embraced in fixing
the valuation and above the value Of the article
at the place Of growth, production, manufacture,
are:
"lst. The transportation, shipment, and TERMS
shipment, with all the expenses included from the
place OF growth, production, or manufacture.
whether by land or water carriage, to the vessel
in which a shipment 10 made, TO the United States
Included in these estimates 10 the value of the
package, box, crate, hogshead, barrel, bale, cask
can, and covering Of all kinds, bottles Jars, yes
sells, and demjohns.
'2d. Commiss ion, at the usual rate, but in no
case less than two and half per cent, and when
there IL a distinct brokerage, that to be added.
I'D. Export duties, including such duties at all
places from the place Of growth. production. or
manufacture, to the last place Of shipment to the
United States.
18th Cost Of placing oareoes on board chip, in
GLIDING drayage, labor, bill Of lading, Bghterage
town duties, and shipping charges, dock and
wharf dues, and all charges 10 place the article up
on chi picard.
"Discounts are never to be allowed in any case
except on articles where il has been the uniform
and established usage heretofore, and never more
than the actual discount, positively known to the
appraiser.
the United States ia not 10 be included in the valu
ton; and insurance is also excluded by law"
Here the Treasury circular assumed that the
the actual value board ship at the place Of ship
ment, including all preceding expenses, duties,
costs, charges, and transportation. The difference
was essential to the revenue Of the United States
you will see whether the duty was levied on the
actual value at the place OF purchase procure
ment, or ut the place Of shipment. Silks, or vel
vets. purchased at Lyons. in France, or watches
or je~elry purchased at Geneva, had one value
but when transported for shipment TO Havre, sub
ject IL may be, to city duties. or duties interna-
tona, to costa and charges siso Of transportat
that original value was essentially enhanced
Goods purchased Of the manufacture in the int
rior Of Germany. or at forced auction sales, had
one invoicc-one value at the time Of purch
bot at the time and place Of shipment, from a
great rise in value, from some other cause, the
invoice ad poiorsm would be altogether differ
en one from what IL was at the start. Here, then,
in one Treasury rescripi, Mr. Walker made
tariff Of his own, and bis appraisers in New York,
Boston, and in every custom house, Of courfe
obeyed.
This Treasury rescrpt was followed by another,
July o. ls4l, more imperial by far than its prede
cessor. This circular starts with stating that the
twenty third and twenty fourth sections OF the
tariff act Of ls42 are in force, and gives the Trea
sorry construction Of them:
This construction q quote his circular) Of the
Department must be binding upon all who per
form any duties under tbesc laws, from whatever
source their appointment authority may be de-
rived; and from such decision there be appeal
except 10 the judicial powers. (.dercbant sp.
Appraisers selected by the collector-wcre
claiming their right. to construe the la w for them.
selves, independent Of the circular) The Depart
ment, notwithstanding the broad language and
comprehensive authority conferred upon il by Con
gress feels bound to adopt the construction of the
revenue laws. pronounced in solemn sdjudicatioDs
by the Supreme Court OF the United States "
Che merchant appraisers were hushcd at a blow,
Mr.. Walker goes on 20 say, treating Of the right
claimed TO estimate the market value Of goods at