, 1873-05-10
THE PHELPS, DODGE & co. CASE.

10 HE E11LoF a. 1fk tN1td9C 1T1bMHEs
SIR: Your influential journal has been the
most consistent, the most uncompromisng, aud
severest commenter on the celebrated Phelps
Dodge case. Now that explanations in this af-
/ fair have been made, and somo time has elapsed
for public opinion to give verdict, you must Roe
that that verdict plainly points to the innocence
in moral point Of Wow, Of the firm of Phelps,
Dodge 1: Co. And your journal is too we'll
known for tho Anglo-Sa1on virtue Of fair play
for me to doubt that TEE CHICAGO TRIBUNE will
any longer withhold g. Just verdict, which am
quite cure WAS only Suspended because the full
facts Of the case were unknown to you.
As it is no secret to you that I am eingulary
well-situatsd to be. able to give you. in n very
short space, the fnl merits of this cause cele-
bro, will merely point out, first, the significant
fact that the most powerful mercantile body in
the 1and-the New York Chamber Of Commerce.
pronounced tho unqualified innocence OF tho
great house in question, by ro-electing Ar. Will
lam E. Dodge President Of the Chamber, On the1st
inst, without disscntient voice. and by enthusi-
nstically assuring their President that they are
convinced Of the integrity Of his firm thereby
throwing down the strongest protest against tho
official proceedings to which the house was cub
. jected- And now lot me, in few words, give
+ Phelps, Dodge d Co. hare. undoubtedly not
only once, but number Of times, been guilty of
violating both tho spirit and the letter Of the law
regulating importat.ons. They have been in the
habit Of receiving certain memorandumg, re-
ferring to small portion Of their genuine in
roicos, which did not, in all respects, agreo with
the invoices passed through the Custom House
and, as nothing will show this palmer than au
actual example, I give you pro-forma fac
eimile Of these unlucky memorandums
q: Pno-FonM1 INVOICE. =
ue.srs Phelps, Dodge ctsra'00', cp' June l. 'sa'
To Phelps, Janes Co., Dr.
2,7oo to1ea !: q p1ates 2as. cs.1ao
-. 20 boxea XXX, ss....-..................... IS
~ rs bosss /. c., ass. ACKNOWLEDGEMENTS. LIS
Total. ..Ei.1:o
This was the invoice passing through tho Gus
ton-Houso. Now, there came by the same or
subsequent mail = clip, or memorandum in tho
following manner:
Per City Of Paris, June j, 1911: -
~ la1es AAAA.....- 4os s1
Now, The explanation Of this Hlip is simply
this, viz.: That the 40 boxes XXXX. and
the 1875 boxes /. G. we're the balance of for
mer contract which had been adjusted at 40s. Cd.
and market value at the timo OF shipment, had
the goods been bought on that date, would be
28e. and 40s. respectively, as actually invoiccd
and as, in fact, the 1argerlot Of 21oo boxes did
cost
You Will distinctly understand that no ques-,
ton was raised by the Custom-House, at the
time, of the actual, true value Of the goods snd
what iB still more Important, no, possible fault
could by found BY the Treasury Agents and ex-
gerts who seized and searched Phelps, Dodge l.
It was aud is admitted that both the
cost and n1arket-value OF the 1900
boxes are correct but it. Was maintained
inasmuch as there was point blank evidence that
tie market-valuo 1t tho time Of shipment was
correct, the firm did riolate tho law by invoicing
these 125 boxes ut their truo cost, viz. 29s. 3D.
which is imperatiyely demanded by the law. And
house, for conccaling invoices which it was their
duty to furnish to the Custom-Eouse, as these
mernorandums we're naturally construed to be
invoices.
allow me to say, in extenuations, that
Farst-The English house must have been
truly ignorant Of this technical tigor Of the law;
and they fully imagined that inasmuch as duties t
are actually levied on market-Value, and not the
cost Of the goods, tho full, fair way was to give
however, was for them tho wrong side.
Second As to concealment Of invoices : No |
sane merchant would look upon such q memo |
1an6um Us an invoice, and, far from concealing |
them in their iron safe or any secret place, they
we're invariably pinned on the invoices and |
in the invoice~book where they were moat easily |
stolen by the hah-breed inforner who had been
in their employ.
But there is another point: You may perhaps |
doubt the correctness OF the figures give you !;
get such is truly aud really the fact. The un-
in "a 600 was as state it, "a 12s.
Cd. In a total Of invoices amounting to over |
81 200, 600, the alleged under-valuations we're
little over $4,000, and the supposed loss to the !
Treasury, as stated by Mr.. Bliss himself, about |
81, 800. .'.- -:
" Yet this great firm technically violated the |
law, which might and could easily. hare been |
brought home to them, as fully state it. But !
to charge them with wilfull intent to cheat |
and defraud the revenue of 81, 600 during five |
years. Is surely not only an insult to ones senBe
Of honor, but to ones common sense. And, as |
such, I have no doubt you will in future look,
, But the difficult thing to- explain is. after all
Why did this house, knowing their Own inno- |
cence, gorge the hungry blood-hounds OF in- |
{eFtncT? fern 9 @ agents. sts, etc., with their money!
; Now, strange to say, the house itself has not !
even now learned enough practical wisdom to |
tell the full reason:
-FirsIy-They were frightened LITERALLY fright +