The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-09-02
Secretary McCuIIoch aud the Importers.

secretary McCuiioch aud the Importers.
Our recent article upon the unjust and lille
gal administration of the revenue laws BY
the Secretary of the Treasury has had the effec
OF eliciting from Washington an attempted vim
dication of the course of Mr.. McCulloch towards
our merchants who are engaged in importing
merchandise from foreign ports. II only con.
firms all we have said concerning the incon-
sistent and oppressive action Of McCulloch in
regard to our importers, who have paid duties
to the government which have been decided
by the courts to have been illegally exacted
Ii is admitted that an immense sum of money
has been paid back to some particular persons
who had not complied with the law, by pro-
testing or bringing suit. Now, we ask where
does Mr.. McCulloch find his authority to make
an arbitrary rule for one importer and diff
ferent rule for another-paying to him who has
waived all his rights by neglecting to protect
himself by conforming to the laws the full
amount of his claims, and refusing to pay to
the other, who has taken all the Necessary
steps to protect his legal rights, and has
secured a decision of the courts in his favor
The fact is that Mr.. MoCulloch permits his SUBJ
ordinates to make decisions that receive
authority under the sanction Of his signature
which are daily embarrassing the government
by their antagonism to the spirit of our revenue
laws and the decisions of judicial tribunals, at
the same time doing immense mischief to our
great importing interests. When we compare
the days Of Corwin, Robert J. Walker, Guthrie
and others, who adm Mustered the revenue laws
in the spirit they were enacted by Congress,
with the present time, when they are turned
into an engine of oppression and favoritism-
the will of Congress and the decisions Of the
courts being set at defance--we may well view
with alarm the damaging effect upon our
national credit of the Inauguration of system
which encourages corrupt Treasury officials to
Gil the pockets of themselves and their friends
out Of the Treasury, and to drive importers
who have paid duties illegally away from the
courts, and compel them either TO abandon
the prosecution of their claims or to corrupt
Treasury subordinates to obtain their just
dues.
The facts in regard to the recent decision of
Mr.. McCulloch, whereby several hundred
thousand dollars in gold has been taken out of
the Treasury, are that in the fall Of the year
1866 person holding an official position in
the Custom House at this port discovered that,
by an error or omission in the law of June go
1864, the Collector had been charging too
much duty upon certain importations of mer-
chandise. This official resigned his position
in the Custom House and entered
into an arrangement with the parties interested
to get back from the government such duties
as had been paid in excess. he receiving q fee
Of fifty per cent Of the amount recovered for
his services. As no one knew OF the error or
omission In the law until it was discovered in
the fall of 1866, no protests were fled against
the payment Of the duties that had been paid
from the time of the passage Of the act, in
1864, down to the time of the discovery of the
crror in the law in 1866.
Our revenue laws require, in oil cases, that
the importer shall file written protest with
the Collector within ten days from the payment
Of the duties otherwise it is deemed volun-
tary and legal payment, and cannot be re-
covered. No recovery could, therefore, have
been had In the courts in these cases, as il is
absolutely necessary, in order to obtain q
Judgment Of the courts, to prove that all the
requirements of the statute have been COM
piled with. As before stated, however, . de-
clsion was obtained from the Secretary Of the
Treasury, directing the Collector to pay back
to the parties the excess Of duties paid by
them, although it is admitted that the law re-
quiring the protest had not been complied
with.
It il stated that these were exceptional
cases, manifestly just and equitable In their
character, and meriting the special treatment
extended to them" We should like to know
wherein, and in what particular, these cases
are exceptional cases, and wherein they mer-
tied the special favor extended to them by Mr..
McCulloch. II would seem that they come
clearly within the category Of speculstions
upon the Treasury, which the Secretary 80
much condemns, and still he authorizes them
to be paid, Notwithstanding the fact that the
claimants had not complied with the law and
could not have sustained their claims in the
law courts.
This especial treatment" by Mr.. McCulloch
of certain claims has aroused storm Of indig
nation among our mercantile community, and
determination is manifested 10 sin this whole
matter TO the bottom. Ever since the forma-
ton Of our government Congress has deemed
the judicial tribunals TO be the proper ones 10
settle and determine the many delicate and
important questions arising under the revenue
laws, and no previous Secretary has arrogated
to himself the power of setting at defiance the
will Of Congress. as expressed by the decisions
OF the courts and il Mr.. McCulloch persists in
his present course the community will be
edited by the knowledge that our Judiciary,
which is supposed TO be the guardian Of the
rights Of the people is under the control Of
Mr.. NcCulloch.