, 1873-05-01

cavalry and rcglmonts Of artillery. II tho Indian
mont could bo induced to go to tho Lnva DodB
and hold "big talk - with tho Modocs, aud
thon havo tho troops surround tho whole party
aud slaughter thom indiecriminato1y, thoro arc
not lozon mon III nll Amorica who would uttor
protest against tho project.
=s%..-@--[=e.:--
THE CASE OF PHELPS, DODGE & CO.
Wo publish this morning tho official atntamont
Of tue much-talked-of case Of pholps, Dodge h
Co. Tho fraud consisted in nllogod undorvalua-
tlons Phelps, Dodge 4 Co. aro doalors and I'M
portora III metals, aud especially LII tin plates.
Tho partners havo auoIhor house In Liverpool,
whero tho firm namo is Phelps, James l. Go.
hloBars. Dodge and James are brothors-in-1aw,
and tho Junior momboras OF both firms aro tho
sons, aons-in-law, nephows, and other relatives
Of the family. The firm purchases their goods
IN Wales. From Waloa tho motala aro trans
ported to Liverpool. and tlenco exported to
pho]ps Dodge g. Co., Now York. Tho
other. Thus tito Liverpool firm, though
composed Of the aau1o persona aa tho Now York
firm, III forwarding goods include in their bill
tho cost Of tho metals in Wales, tho cost OF
transportation to Liverpool, and all othor
charges incidental to tho oxportation. Accord
examined thoir books, the Liverpool house has
boon accustomed to forward thoao invoices, ill.,
cluliug thoso various itoma to tho Now York
firm, and at tho sumo ti1no sending a separate
invoice giving only the coHt of tho goods in
Wales. In tho cases III which fraud ia charged,
tAoBo lattor invoices hnvo boon sworn to in
Liverpool, and hayo been presented nt tho
Custom-Houso in Now York; attostod by an
oatl, as showing the truo yaluo Of tho
goods. Tho frnud, therefore, consisted in
tho omission from tho invoices presented at
tho CuBtom-Houao Of tho cost Of transpor-
tation from Wnlos, tho cartago, porhnps Homo
boxing, and other Incidental oxpeuses. This WIS
not always tho oaso; but 1t did happen occasion-
ally iu tho transactions OF house importing
goods to tho yaluo Of 80, 000, 900 year. Tho
actual oxtont of tho uudoryaluatiou was not very
grcat and tho amount of duties lost was worry
Bmall. Under tho law, M undoryaluatton is Il
forfeiture OF the article l1ndorvaluea, and,
though tho duties lost did not amount to moro
thnn s1,600, tho value Of tho goods forfeited
WIN S1,000,000. Phelps, Dodge l. Go. havot
therefore, boon punished by q fine Of S271 900
for tho comparatively small amount Of rovonuo
| withhold from tue Government.
I'm nt1fr
tho Laws which, collected, constitute tho Thrift
codo OF tho United stntoB. In ordcr to "pro-
| toct" some favored pcraonH or corporations In
the United statos, Congress- has imposed heavy
duty OH these metals, manufactured in Walos,
| aud which beyond all question aro tho bcBt tint
ca, DO Ind. Tho object ia not 60 much to col
loct reyonuo NJ 1t Ia to enhance tho cost Of tle
imported article TINT inferior goods may be sold
| In addition to tho al valore, duty, tho taril
includes in tho foreign value Of tho article tle
cost OF transportation from tho place OF pur
chase, tho cost Of tho boxes tho barrels, or othol
caao In which tho goods mny bo packed, tht
coat Of cartago, and all otlor incidenta
expenses attending expectation. All this COB
must DO addod to tho foreign cost Of tho good,
themselves, and then tho duty is collected upo1
tho wholo--tho importer paying duty upon tht
| barrel, crate, straw, and box, and upon tho cos
Of cartngo in Liverpool aud elsewhere, just th'
eamo as OH the goods tAomHe1yeB. ALI this il
done, as NO hayo said, not to produce royeuue
imported articles TINT larger margin may.b
given to tho home production. This is tn
principle Of protection. To administer: /tli
principle, tho laws Of CongroaB over ainco l86
havc provided Horios of oatlB, and penalties
aud forfoturoH, and conlacations, that excoe,
even thoHo provided for tho rehabilitation
Of tho rebols. An army Of appraisers and in
formers, spies and blackmailors, pimps, and OIL
Gers of all the other various designations know
TO tho Aerv1co, hnyc boon provided to t.;atcl an
200 If some importer, III malstup out lis invoice
LAS included in tho oost p.., pr,co ct tho packing
boz tho crate, u !; spo atraw in which tho artcl
4uls ~ Pa'}. I'd. II thoy Gun find such caa'
~" 'p' importer will not settle with thom private
:, aud liborally, thon tho goods aro confiacats
i md tho importer subjected to civil md crlmln
, prosecutions, and Is horaldod from one or
OF tho country to tue other. Az
iuducement and encouragement to those men
. NV thoir vocation iudustrioualy, tho law giv
thom one-half tho proceeds Of oil the forfeiture
!. nona,tios and oxtorttoua. OF tho monoy pa
u by plolps, Dodge l. Co.. $1,000 nro
!, costs, and 918o,ooo GO to tho informerH
,a other officers Of tho ro1onuo. To further c a
~ them to do this businuss, thoy are author liz
RI ecizo tho booha md papors OF my perf on
II, may uccuso, pry into thoir domestic a fairs,
ta generally turn mans business inside out tt
m public gaze
r.. Upon q reviow Of all tho facts, It in not p
m bio to conclude that thoro waa any intout
,ro crime committed by this 1lrm. The amou
In duties they avoided by tho o. iornous vout
in does not amount altogether I D sum Aunl
ho to induce any sonsible man ito commit suc]
Of olronao. Upon tho whole amount Of their
inv portationa In yoar, tho .@nmount thus aay
at- absolutely insgniacant TT would not pa
ID cost Of tho machinery }nooossary to carry
fHrntI