New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1867-03-04
THE CUSTOMHOUSE FRAUDS.

REPORT OF TIE HOUSE COMMITTEE on FRAUDS IN
THE NEw-YoRK CUSToN-HoUsE.
Mr.. Huburd from the Committee on Public
Expenditures, made the following Report:
The Committee on Public Expenditures, IN accordance
with the resolutions Of the House. specially directing an
investigation into frauds alleged in connection with the
NewYork Custom House. and in the exercise OF the gen
eral powers and prorOgatons Of sad Committee here
with submit this Report and the accompanying evidence
follows:
The Committee have taken large amount OF testimony
in exposition Of the alleged abuses, frauds ana "rone
which fast becoming iii NewYegk, and doubtless
quite generally elsewhere, the chronic ard adhesive
incidents Of the United States Revenue service Some
abuses doubt inseparable rsm the collection OF
customs under any system yet devised and however adj
nnistered consequently some, by reason Of mnemola
usage seem 20 have acquired Il tolerated recognition;
while others under the Ooseness and Generalization
attendant upon condition Of war, have sprung at once
into lusty maturity
The abuses Of the seizure system, formidable
AMI manifold any view, have cysalzed into legal1ed
extorton. Recently extensive foreign interests have be-
come enmeshed herewith that 1t Is not improbable,
Government through its diplomatic ear viii be con
strained TO take notice of the anhe wIles OF
Who under various gses and pretenses are enact
ing discedtable parts in the various marts Of West
Europe. But this feature Of the investigation
occupied considerable time, will the riefest consider
alton Of It demand much that IL may he well to INST
present and II possible expose IT, as to arrest an abuse
which only dates back to the induction OF Mr. Henry A.
smythe into the office OF Collector OF the Port 0i New
York carly in the Summer OF 1866.
From March, 1893, when system began 10
have definite FORM up 10 August, 1896 Government had
but one public store for the safekeepng of unclaimed
goods" Previous to ls40 all duties were required to be
paid in cash at the time OF importation, and the Gun
claimed goods" could not be taken out Of the one pnc
store" except on payment OF duties IN cash.
az NJ a naugulaLcd country
what is known rs the WarehOu-ing System From that
period Government furnished stores FOR unclaimed
and bonded goods.
disc In Government stores ulun bond Ter double the
amount Of the estimated duilrs winch duties were not
reuuirrd o be paid until the goods Withdrawn Tor
consumption The supplying Of these stores, ana the ex-
pescs incident thereto together with the iad enlarge
ent ~ innoTs caused lOrtiouatc rents to he demand
ed or assumed by Collectors Ia be- demanded, 10 be rid OF
all which, Government, 10y fhe Act OF MaIch % lo5l eN
teuld The warhousIng systrm 10 private warehouses
propretors of snch ware houses required 10 OBJ
a the approval Of the Secretary 0f the treasury ana 90
Give the Government bonds for the safe keeping oi the
goods Thereafter Government ceased 10 tease OF use
public stores FOR waIehOuHlnk purposes. ,
By regulation, all goods unclaimed ny me owner OF
consigee M the eN pirson Of the period allowed by law
for the discharge OF The vessel IA winch the ale inay
have been imported, are In virtue OF 1eltial O,He,
issued by the Collector, sent 10 store approved lOr t1
purpose, witch store IN consequence is &
cn Order store" No goods can he taken Ifpn se stOle
or bonded warehouse until al charges que tue
proprietor have beeu paid These charges CONSIST u ug
carriage OF goods rOl1 vessel 10 6eieTa Ou't otoc a
storage OF and labor upon said goods ana II Is seclay
prescribed that these charges shan not eAc.Su III any
cnse the ocular rates Ike merchandise at the port OF
importation" In the Port Of New-l the allowable
rates of storage and labor are Aed Dy he tanUer u
Commerce la ease any dispute arises a. Ia tine correct
pees OF the charges the decision of the President OF te
Chab of Commerce their he no such 0flcer, the
,erslou OF the Collector Chief Revenue Olcer OIL tue
port. l. binding ON all parties l., u
All merchandise arriving from foreign ports Is IN peril
OF being seut under General order This ARISES nom
variety the necessity OF dlsatc! ia dscng-
inx the vessel not allowing The merchant time 70 procure
hts permits discrepancies between marks hud NUMBERS
permits, and those on the cases or
packages containing the goods sometimes the non arr
Nal invoices and bills oi ading prevents the grant
ing 81 permits. II j. possible 10 approximate al
average proportion Of imports which, III the course OF
wear 90 under General Order. steamers now ENJOY th
bulk of the valuable carrying trade aud IL Is estimated
that fun third OF their are subjected 10 Genera
Order Sailing vessels which aTecheily employed IN tn
TRANSPORT OF heavy figE, do not send there so large
Perhaps accurate Idea ~ inc prODa
be extent Of this business may De arrived at by an ex
animation OF the following table prepared Tor the Com
| mlttee's by the Bureau Of Statistics:
Table exhibiting the value OF merchandise imported
into the District Of NewSOrk during the fiscal years 1862
1888 1884, Is6 and 1870, and the duty on merchandise col
lecied during the same periods:
IMTOhIs.