The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1856-07-25


to it, the foreign manufacturer or producer is not
subject to an additional duty for differentiation.
The importer who purchases In the foreign market,
and imports into the United States, Is. The foreign
manufacturer or producer, in any estimates he may
choose to try upon the public revenue by under
valued invoices runs risk Of additional duty, TO
which his competitor (the American merchant)
who purchases his imports abroad, is exposed This
discrimination against the domestic importer, in
favor of the foreign is as impoiitic it is unjust
Foreign manufa etnTers or producers by establish
ing partners or agents in this country, importing
/ and entering merchandise on their own account, and
then making sales in pursuance OF orders, previous
subsequent TO the entry can thus supply our mar
kets with their products, without being subject
| ed to any adequate check against differentiation.
For while they are not subject to the additional duty
in such to which the domestic importer liable,
nor indeed to any additional duty, upon the constuc-
ton OF the law which seems to be favored by the
courts, they could be reached only by forfeiture OF
their goods in cases in which the badge OF fraud is
so clear that the United States would have no difficult
ty in showing that fact. Whether even in such
cases, the courts would sustain proceedings for a
forfeiture of the imports OF manufacturer or pro-
Queer, under the Seth section Of the general coec-
ton law of the I'd March, l799-the only provision
which seems at all applicable to the case-may be
questioned.
This Department has no doubt that the s6th Sec
ton of the act of 1899 is applicable to all imports,
and it has SO repeatedly decided. whenever case
has been presented for its action involving tina.
ton.
1t is proper, however, to remark, that in case
tried in the Circuit Court Of the United States
for the first circuit, the learned Judge Jus
tice Story)-although he point was not made
nevertheless, very strong doubt whether
the snysi section Of the act of March 2, 1899,
could be held to apply to other than purchased
goods: the term actual cost being, in his opinion,
applicable only to case OF purchase (see case of
Alfonso VS.. United States, I'd Story, p. 42l). am
not to what extent this dictum would be sus-
tanned by the courts, should the department be
thrown exclusively upon the provisions OF the sixty
sixth section OF the act of i793 to prevent under
valuations of merchandise imported by and belong
ing to the manufacturer thereof, on imports pro-
cured otherwise than by purchase. | refer to the
doubt thus expressed to the construction Of that
section, only as still further showing the expediency
OF additional legislation, to put all imports on the
footing, in case OF undervaluation, and to en-
able this department and the courts, by some clear
and adequate provision OF law to punish all attempts
to enter at undervalued invoices, whether made by
the purchaser. manufacturer producer
! deem it necessary only further to suggest that
state Of the law that subjects to the burden OF adj
ditionai duties for differentiation q citizen OF the
United States who purchases merchandise in the
foreign market, for sale and consumption in the
United States, and eXempts from such duties the
foreign manufacturer and producer who sends the
description OF articles for the same purpose to
our markets, and who reside beyond our jurisdc-
ton and can be brought only to limited ex-
tent within The control Of laws for the punishment
oil fraudulent importations ought to be corrected;
and with that view ! respectfully recommend an
amendment of he sth section Of the tariff act of
July 80, ls46. The only changes proposed in the
section it now stands are-lst, to add in the Sc
cond line, after the words actually purchased the
words "or procured otherwise than by purchase;
and I'd, to strike ont in the fifth line the words, or
in which the goods shall have been originally manu-.
featured or produced as the case may be-
The first amendment will bring the manufacturer
and producer under the operation of the law as well
the purchaser, and put them all under the same
penalty for differentiation. The second amendment
IL rendered necessary by the fact that the aprase
mcnt act Of the Sd Of March, 1851, providing that
imposts shall be appraised at their value in the prn
cipal markets Of the country whence imported has
leen held by this department., and decided by the
supreme Court IN recent case OF VIM. Stairs ct al.
VI. c. II. Peaslee, TO repeal the provision proposed
to be stricken out from the eight section Of the act
ef 1916, by the second amendment.
enclose the section it nov stands and the
draft OF the section as proposed 10 be amended; and
for the reasons stated in this communication, earn
esty recommend the enactment II the latter as ne
tessary in my judgment, both for the protection of
he honest merchant and the interest OF the public
revenue. am, sir, respectfully your obedient SER
van, JAMES GUTHRIE,
Secretary of the Treasury.
Hon. ~ p. BANKS, Jr Speaker House Of Represen-
iatiyes, Washington, u. Z.
Be il enacted, by the Senate and House OF Repre-
sentatives OF the United States OF America In Con-
cress assembled that the eighth section Of the act
cing the duty on imports, and for other purposes,
lie amended as follows
Sec s. And be il further enacted, That Il shall be
awful for the owner consignee or agent OF imports
which have been actually purchased, or procured
Otherwise than by purchase, on entry OF the same
70 make such addition in the entry TO the cost or
value given in the invoice Us in his opinion may
aise the same to the market value OF such imports
IN the principal markets OF the country whence the
importation shall have been made, and to add there
to 81 costs and charges which under existing laws
would form part OF the true value at the port
where the same may be entered, upon which the du.
ties should be essed. And IL shall be the duty Of
the Collector within whose district the may h
imported or entered, 70 cause the dutiable value
sLth imports 10 be appraised, estimated and ascer
tanned in accordance with the provisions OF exist
ng laws; and If the appraised value there d shall
exceed by ten per ceninm or more the value SO dc
carod On the entry, then, In addition to the duties
uposcd by law on the sane, there shall be levied
collected and paid duty OF twenty per certnm nd
yalorem on such appraised value; Provided never
heess, that under no circumstances shall the duty
lie assessed upon an amount less than the Invoice
ralte; any law OF Congress to the contrary notsith
standing.
WAsHYsTos, July %. 1856.
approaching Adjournment Of Coagrtes-Spnptons
of Brcakiug Up-7h Rirr and Hir5or In.
prorement BRs--7he Pacific Rgirord-T IT,
Tyood,roJh Patcnt-BM for tho Reipf Of IA
TodfcHfes.
Congress having fixed the day Of adjournment,
genera rush is made upon members by those who
have bills to pass and avors TO ask. The door keep
ers declare this to be the busiest day Of the session.
where this host Of claimants, spectators and pro
!cssonalr men have come from just now, is some
thing OF a mystery; but they are to be met with at
every step, having some one by the button hole
" hose services are required.
A very general wish Is manifested, by members Of