The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1872-01-09
THE SORROWS OF AN IMPORTING FIRM.
Outrageous Abuses Of Liberty by the
Special Agents Of The Treasury.
ION THE Lay" FOR FIVE WEEKS.
AT LAsT-NAMEs AND DATES!

more interest Is beginning to be manifested the
proceedings Of the committee as 1t becomes plain
that the abuses OF the Custom House are to be
thoroughly exposed, In spite the enors OF one OF
two OF the investigating Senators to cover them up
and excuse them. Yesterdays proceedings were for
the first four hours, however, insunerably dull that
portion OF the limited time Of the committee being
devoted to the examination OF 'purely hearsay"
witness This was Mr.. Whitelaw Reid, who, having
been recalled. proceeded, In accordance with the
previous instruction OF the committee to detail the
various sources Of the Tribune general articles on
the Custom House vampires. lie reiterated the for
mer statements OF Mr. Greeley, and, in regard TO
recent political matters said -
was AT the Convention at syracuse; Mr. Thomas
Murphy, Collector; General r. II. Jones, Postmaster;
A. b. Cornell, Surveyor; A. II. Lafn Naval Offcer;
G. IL. Sharpe, United States Marshal, and James
Terwiliger were there aud took active part in the
Convention; Mr. Murphy was. perhaps. more quiet
than the rest in the Convenuon y. L. butcher, E.
u. Mellish, J. J. 0'Brien W. Byrnes, II. Freedsom,
J. Dillon, J. Duval L. Jones, W. c. Cole ana
n1near OF other custom House employees were also
there: We always suppose mat the leading officers
al Tie government pay the expenses OF delegates,
re1mSlrsing themselves by assessments, perhaps;
Nh Murphy once told me, however, that the assess
ments were purely voluntary; laughed at him, and
we 10th langned together over the voluntary char.
acter OF the contribution; about the general order
business l know hut little; Mr.. Lindsay told me
once that Colonel Leet had informed him that. in
stead OF spending 5000 Que OF his general order
business, he spent three times as much ana laid up
$4,000 or $4,000 year; In regard TO blackmall.
ing by the special agents, l believe the
smaller houses are much more liable TO
extortion than the large houses such for instance
as A. T. Stewards; IN cases OF compromise it is
very hard for the papers to get the news Of settle
the records refused to the reporters; It
cepted fact that inspectors on steamships take
money from passengers for passing baggage; the
assessments for political purposes in the leading
State campaign nave heard stated at two per cent;
for the character OF the service required doubt
whether the salaries Of many ofllcers are now high
enough; thlnx, however, that BY legal fees 1t ts
very large incomes an applicant Tor an Inspectors
ONCE ofered me $500 II could get three line let
ter from Mir. Greeley recommending him for the
places the pay inspector is 81 day; It Is gen.
orally understood that the salary by no means rep
the patronage OF the custom House for political pur.
poses, ! may say that Mr.. Murphy himself tolu me,
use the Custom House patronage TO harmonize the
party IN the city and States suppose Ito harmon
Thomas J. Hoyt sworn-Am an importer OF irons,
steels and metals; the firm or which l am men,
live years-forty years in this city; we have sufierea
nom the action OF the special agents OF the Ireasurv
8s 10 mo ANNUALLY WEE nsve neSsr haa
more than couple OF disputes In regard to customs;
on the 7th of september our counting house was
entered by deputy marshal, who fOrthwl threat
ened to remove our books and papers and all they
could lay their hands on--telegrams, private papers
was done under warrant Of the United States
own fsasy spee agen to the sscs
that we had undervaSaed the steel rails and
least ten per cent; we claim inat George Brown
dld not take any pains to find out the truth In this
spIcuously ignorant Of the nature OF the steel ra
| trade; think this because q comparison or
81 see % o.
as high or even higher; the finding out OF the duty
on steel rails and ash plates woud have been very
tuted; the usual mode OF procedure is when any,
thing OF this kind occurs, that informal charges are
to The District ATTORNEY, asking for warrant;
his deputy assure us was never made;
by thus avoiding the customary channels Of action
the surest available means were taken TO get mat
ters into such q position as to result in cOmpro-
mise rather than permit our books and papers 10
anime into the matter in once giving them the
assistance VI our clerks and one OF our partners;
alter three weeks. examination we onered to take
the burden OF proof upon ourselves If they would
state their charges; we endured their presence for
Two weeks more, making IN an nve weeks during
be impossible TO estimate the loss TO us; Independent
OF the coss for counsel fees our pecunary losses By
ths practical suspension OF business i've weeks
amounted to very great sum, and that we were
subjecte. to very much greater loss than the gov
eminent could have sustained even II Mr.. Browns
view or our business should prevail; IL would have
been o mucn moro polIlic course for us to have
injuries resulting from this proceeding; during ihis
examination the examiners were far rom combining
warrant; they extended their inquiries all parts
oil our business 1854 to the date Of the exam-
ainiHat,on with the view as we Claim, OF
forcing y COMPROMISES; after report had been
sury the report was postponed, and when a
| positive time Tor 1t had been nxed, and
once and read the report instead OF coming himself
he sem note, lnstfuctng tue examiners to exam
| on the ground that they might contain evidence
| against us; While this was going on one Of the ex
amlners WHISPERED us tat we nad better see Colonel
| In his opinion there mad been some irregularities
on the part OF our firm lNaylor Co.. In the matter
that Nay Tor Co. owed the government ss4 OOO but
that there was way TO Tx the matter and save the
firm anu himself all further trouble, and that this
| was by a compromise; Colonel Howe said that he
was prepared to settle the matter Tor 100000, which
! we could send to him 10 the District Attorney,
| and that If THIS was paid he would guarantee us
from all similar seizures from the government ON.
Gals, which offer we regard as further evidence or
| an attempt to threaten into a COMPROMISE;
such q proposition we never contemplated for
moment; we tnen maae Application 70 tne Distrct
why the examiners should not cease their opera
tons, and all order to that erect was issued; on
the following Saturday the District Attorney APP
piled for a postponement, which was granted on
the condition tnat the examination should cease;
afterwards the secretary OF the Treasury took
charge OF the matter aud the complaint was dis
missed.
The witness then submitted papers, letters and
afiidavlts IN substantiation OF his statements.
On cross-examlnation by the committee the wilt
ness further said-Last year our business amounted
TO 312, 000, 000 personally represented this to
the Secretary OF the Treasury three times; the first
time he said there must be o mistake about 1t In
some way, and that he hau been told by Colonel
Howe that houses In New YORK were i'm.
porting steei rails as iron; he said that
there must be something else than a question
OF undervaluatlon lnvolved ne gave me tine I'M
preston that II IT were simply q case OF under
valuation he thohyht II ought at once to he dis.
missed: steel rails are SO well known an article OF