The national Republican., 1867-02-12
Examination of Alleged Frauds
Report Of a Congressional Committee.
DIAMOND CUT DIAMOND.
RADICALS AGAINST RADICALS.

record Of the investigations Of the conduct Of
the Boston Custom-house, under Ex- Collector |
GooDRIoH:
penditurs Instructed by House resolution Of April |
30th, 1865. to investigate frauds alleged to have
been committed upon tho revenues Of the United |
States, and In the enforcement Of the laws made |
and provided for such cases, at the Custom Houses
in Boston and New York, herewith submit 50 much
Of their report as pertains to the Boston Custom
House, as follows:
The so-called civilians case" necessarily occu.
pied very much Of the time that could be spared In
Boston.
The report Of United States District Attorney R.
II. Dana to the Secretary Of the Treasury so sue.
oincy sets forth the facts and the course pursued
In that eass as almost supersedes the necessity Of
any introductory summary BY the committee. 1t
will also appear from the accompanying documents
and testimony that the committee have allowed all
the parties in that case, who could be reached by
letters and sworn testimony, TO give their own YER
sion Of the diversified parts enacted by themselves
respectively, and far as within their knowledge
by their associates.
The vino house Of Messrs. Williams was estab.
lshed in Boston, in Of the last years Of the last
century. Prior to lS4l, In eonnsction with the
house Of Edward Goldman 4 Co., the hrm known as
J. D. 4 NJ. Williams imported through New York
house the Schneider brand Of champagnes, at an
invoice valuation Of 80 per basket for whole bottles
and $40 per half bottles. In l84l q correspondence
with L. Roederer, the manufacturer of the wine,
at Reims, in Frapoe, resulted In an agreement to
receive direct from him these wines, and pay the
lndn L.. r.
importation, breakags, &c, provided on eIamina.
tiOn the wines should be approved as satisfactory.
Up to December, 1854, there was q specific duty
on champagne wines Of forty cents per gallon. Tho
wines received by the two houses Of Williams and
Goldman 4 Co. continued to be valued in the custom.
house entries at the prices before specified.
In July, 1s46, the act imposing an ad valorem
duty Of forty per cent. on champagnes and thirty
per cent bottles, baskets, 40, went into opera
tion.
1t would seem these firms themselves paid this
increase duty without charging It over or deduct
ing 1t upon remitting to Roederer net proceeds Of
sales
In 1854, IN addition Of hfty cents on each basket
was allowed and paid to Roedsrer. In 1856, this
additional was raised to one dollar per basket In
October, 1859, the additional was reduced seventy
Ave cents per basket, and, as thus modified tho
1916 prices continued to the time OF the seizure
Of the books, papers, &c, Of Msssrs. Williams and
Goldman 4 Co., the 24th of March, 1885.
As it appeared By the testimony of the different
members Of the Williams firm, and by the evidence
of ex. Deputy Collector Andross, and was not con-
trovsrted, the customs officers at Boston had had
at all times, on request, free access to the books
letters and invoices Of these importing houses that
the quality Of the wines and their proper valuation
for entry ut the custom.house had from time to
time been repeatedly examined and considered and
mutually determined upon the committee de.
sired to aud know what new light or eonsidsra.
ton the original papers would reveal-inducing and
requiring such an abrupt and harsh proceeding as
this Wholesale seizure To this end they requested
ex. Collector Goodrich, when before them last
November, to furnish them with the original In.
formation, or complaint and affidavit, or copies Of
the same, upon which the seizure had been made,
but up to this time, while supplying copies Of pa.
pers used in the second stage Of the proceeding he
has neglected or failed to produce either originals
or copies, inauguratng the first steps in the case.
Immediately upon the seizure a claim in behalf
Of Government made upon the Messrs. Will
liams, for underyaluations Of sundry sherry wine
importations, to the amount of S25, 224 The cir.
cumstanoos which led to its prompt payment with.
out consultation with counsel, arc particularly
stated in tho testimony Of different members Of the
Williams firm
Half of that sum went into the Treasury of the
United States, and there being no information in
the case, the remaining half was equally divided,
according to law, between Collector Goodrich,
Naval Officer Tuck, and Surveyor Phelps, the Gus.
IN .hnuaa nfhcaFa of tha nf
In the adjustment Of the Sherry case, Samuel A.
Way, Of the banking house of Way, Warren Co,
Boston, appeared and acted as agent of the Messrs
Williams. Francis o. French, sOn.in.law Of the
naval officer and at that time deputy collector, was
actively engaged in and about the Sherry case. On
the last day of March, 1865, French resigned, and
on the following day became the "Co." of the
Way, Warren 4 Co. banking house. But this was
mere form, as his services In the Williams invest.
CATION were not intermitted and very shortly after
he was appointed special deputy for the express
purpose Of aiding in the made up or inyesti.
gated by Mr.. Farwell.
VIM. B. Farwell, former naval officer at San Fran.
CISCO and subsequently in the employ of the Treas
ury Department in Europe, was present in Boston
when the seizure was made, and with Mr.. French
participated In the examination of the Messrs
Williams' books and papers. The examination ex.
tended back series Of years, Messrs. Williams af
fOrdng every facility asked, in some instances sup
plying important books, letters, and papers not
originally taken by the seiIing officers
These examiners and the Custom House officials
calculated, by undervaluations, the Government
had since 1916 lost $3.50 900 of duties that the in
tersst added would make the amount near 5000, 0O0
that the value of the wines since 1916 liable to for
feture, without interest, reach about 50, 900, OOO
ThereupOn, Mr.. Goodrich demanded of the
Mossrs. Williams $500, 900, or double the duties
and interest. Mr.. Way ultimately, in their behalf
offered 500, 900.
On the 5th Of April, 1865, Mr.. Farwsn, at BOs.
ton, wrote out In detail 4 statement of the case
and sent it to the Secretary of the Treasury, who
alone could authorize any compromise or settle.
ment. In that communication Mr.. FarWell e1.
pressed his belief that MesSrs Williams, since lS4G
had entered their wines 33i per cent less than the
net amount actually rsmittsd to ROsderer for the
wines, DC, and had thereby "dsfrauded the Gov.
srnmont out Of more than $500, 900 in duties upon
champagne alone"
This letter, so Introductory to what follows, and
In its conclusions and recommendations is in such
rLad Ill Iait h..