New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1870-01-18
CUSTOMS REVENUE FRAUDS.

HOW MONoPoLIEs ARE SECURED ABROAD
FALSE INvoICEs-wHO ARE IMPLICATED
wINDEmULLER, LOUIS & ROELKER, FISCHER
RITTERHAUs, AND AUGUST EGGERS.
The many complaints made by American
manufacturers regarding the differentiation OF certain
articles OF merchandise imported into this country have
for time past received the special attention Of the
Secretary OF the Treasury, and the commercial commu
nifty will doubt be agreeably surprised 10 hear that
movement has been begun which is developing frauds
by which a number of foreign commission houses have
been enabled to cheat the United States out Of large sums
OF revenue. Agents of the Government who have just
returned from Europe state that the undertaking or
foreign goods consigned their New-York agents by
European manufacturers has become science and so
successful have they been for many years that In
some instances they have fairly parayzed the home
trade. Hundreds of American companies have been
financially ruined by the competition OF foreign capital
welding the products cheapy wrung from tho
hands OF needy population A searching and wide
spread investigation gave unmlstakable evidence that
there was fraud somewhere and the Government has
spared neither time IN detecting ITS locality
The first step taken the preparation OF various sta
tscs showing the price OF the material Of certain
articles at their places Of growth after which the various
charges added such the cost OF packing commits
sons inland transportation shipment and transshipment
During this term many American manufacturers had
stopped their looms unable to sell their goods at remun
eratye price, and honorable importing firms who
driven out Of the market for the that they could
purchase their goods from certain foreign commission
agents in NowY cheaper than they could be obtained
abroad. The latest investigation which has just been
concluded confined to the importation Of upholstery
goods the almost exclusive monopoly OF which is con-
trolled by several wealthy commission firms the mem
beers of which are Germans helr business places Deng
in handsome stores on Beekman Reade and other streets
intersecting Broadway. near the City Han.
THE ESTABLISHMENTS UNDER SEIZURE.
Mr. willard Farwell late NaSal Officer OF san Fran
CISCO ana now Special Agent of the Treasury Depart
merit acting under instructions received from Secretary
Boutwell, has given this particular trade his undivided
attention for the past two months and the results OF his
investigations have exceeded expectation. Attention
was first directed to the Appraisers Department, where
he thoroughly scrunizcd the mode OF apprasement.
The result Of his investigations there we are unable To
cent believing he says, that he has no authority to
dvulgo the details, particularly as ne mas not ye re-
ported to the Department at Washington He however.
volunteered the statement that investigation regard
ing the appraisement OF goods indicated that untl
recent date the had been favor the importer at
the cost OF the revenue.
The continued absence Of several Custom House IN
spectOrs from Headquarters since the beginning OF he
year suggested inquiries in another quarter ana thcy
Lass found III charge of various foreign comms
houses which were seized by the Governments oces
the 81 inst The firms are "a LOUIS lhdelnuller *
Rocker No 20 Reades; Fischer ktershnnsi nos 70
Strange to say, notwithstanding those officers exercise
constant surveillance the business OF each hri,
taking charge every bill Of goods that is Sold and not
permitting the departure OF the goods nt the D are
checked by Collector GTlnncll they knew aDtolnleB
nothing regarding the cause of such situation OF affairs
The entire books ana papers OF each hin. embracing
private letters from their houses III EUROPE Invoices
bills and receipts. were taken IN charge by the Custom
WARRANTS AND APPIDAvTs.
The warrants for the issued by L. s. Com.
missioner Belts They all similar in purpOrt. and we
give but one:
District Court orh> for the Southern Dt'rit Of Tso
To the Hon SAMUEL EL,rcHoRo u s. District Jgs Jor TIE South
The complainant willard b. Parwel residing oe
Tweutht and Brosiway in the CITY Of respect
Roetef doing business sad City aud County Of
PoI,aSa aI1 tS, b ED io"s WiIdnuer and Rocker have
depoaeH is Informed believes, iato bringing ino said
port foreign merchandise ard have entered toe same 81 me
at said port and BY Of 9y s1" Sh SSd. ne
valued iO.v st least teea Per es, ar ,tsa H. W
3hsndlse was CONTAINED Two n n ~ Nv yo-S on the
l5th DAY October 1869 the s~E AfnAH ,1G 90 the ls.n
cloth That The values Of entered Aforesaid
s sd %. IN ss S ' sS. aaG 'SI he . place
~ ,oGa o. Se eos s and correspondents Of said Louis
and which laid mPoaons or any OF
s g% are ar % to- vii show ssd fraudulent this
dsDoN'' and complainant Is '''
Southern Dr, Of Y,g York Cfy County u hoo York
" B. fsTe beSg da says The foregoing dee.I.ion
bis information aud belief and a. to ths matters
be Se t 20 s s hi. 29 day of December 1863 ions
United States Commissioned
CUsroMHoUsE RErcESCE.
The information on which the above affidavit ia based
is withheld by the CustomHouse authorities, but the
various systems by which the defendants and Others
who have not yet been proceeded against enabled
defraud the rs daily discussed Dy the agents
Treasury duty III this city In the present case
the defendants agents for number Of foreign hair
cloth manufacturers arrange WIN theni LOT te
nr of double invoices The false invoices being written
i'm German taken to the United states COnsuI Az 'ne
place where the goods are manuiaetureu anu smorH ~
Nv the shipper The Consul rises the invoices III trlp
cate one OF which he retains. another Is sent 10 tne
Collector Of the porto which the goods are shipped ahd
tla ali In
sgnee which he sends by mail Accompanying inc iae
invoice, to before The Consul Is amSinsr h Which
contains market price OF the goods IN wic lhcte 10
a difference OF from IS to 20 per cena suinceht agn
iDanmfacturer Unless the Assistant Appraiser under
stood writing the chances OF the GOODS passhg
through the Appraisers department Appraised as per IN
voice were very sureat least such was the state Oh
affairs until recent date
ANOTHER SPECIES OF FRAUD.
Another plan has and beng carried out by
number OF importers which is still more Ingenious FIRMS
,renueny sneak OF our house i'll Europe, which some
times means small Paris. Hayre or some oil the
British ports where their packages are made UP Oh goods
they enabled by false swearing before the Consul 10
various sums which the tariff laws require section 2t
OF the act of Congress passed July 2S 1866; says:
there .Sai be- sid the actual wholesale price ., gen
market value at the tine Of IpSIoa ~ ss ,d m,o the
% S,st,. The co.i Of transportation shipment and snsshPmen
with al the I Ts,i: S d or water The vessel shipment
made 70 the United states the value o. ioe p At he usual
Ti. but half eenium brokerage u
% ny ali putting epsng
md paniD shipment And all charges Of gen
purchase Of general invoice SHAH be d
tbusd ro Of such invoice aud every laf hert
Of charged with duties based on value shall be advanced ACCORDING "
proportion" -
These fraudulent practices are speedily coming
10 light. but the offenders hardly ever
receive the full penalty of the law The perperaor of
the champagne frauds in Boston compelled TO pay
tne of Sl25OOO and vOlumnous report OF the frauds
nractced NV The Sheffield steel manufacturers In the
characterization of the steel which is consigned 10 their