New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-04-16
PHELPS, DODGE SyCo.'s CASE.
AN EXPLANATION OF TH%cHARGEs AGAINST
THAR

NIFIED INTO FIR <UD--A PLEA PoR JUST JUDO
MENT-IMPoKT.ST EXCULPsTORY LETTERS
Messrs. PHELPS, Dodge g. Co. have issued
an address oxpla Aag recent controversy between
that firm and ~ United States Government, arising
from tho alReS undervaluton OF tin plates The por
tioas this document OF general interest 10 the
eantne community rs follows;
WHAT TIE TARIFF REQUIRES
The fundamental tariff law provides that duties cn
merchandise shall be assessed on the actual market
value or wholesale price thereof the period Of export
alton In the principal markets Of the country from
whSeh the shall have been mported" but another
provision Of another act further requires that athough
tbe duties assessed must he on market value the ~
s the scqnai cosia sate1sSt Which in some cases
above explained is often matter very difficult OF
exact determination at the precise date OF shlpnen
ouiTe~ent the ruling OF the United States Treasury,
according 10 which the law is administered IL 70 tnis
eject That all purchased goods must he entered at e
actual when that Is higher than the
market value at the time Of shipment; Dut az n%lA'
nssS 1Srcclv lone as ours s on contracts future
delivery, IL therefore often happens that on an ~
considerably less than market value at the time OF
shipment In which case II We INVOICE az The
price paid. the authorities In NewYork may sv
value. or under certain circumstances denau PviS
complete forfeiture on the GROUND oI unG1I ts
On the other hand on falling MARKET aH oss ~
representing actual cost, may be greatly ia eAveSs Va
market value at the une OF shipment pu III SUI" "a
no allowance whatever is made 10 tue importer, Anu
actually happened that during tine past year
and violent fluctuations IN the prices Oh mgtas YIN pie
selling box in January, As In July, ana Sos'
in DecembeI)we have paid, on aggregate OVerValua-
tons a very large increase of duties over and above
what would have been required had the goods Deeh
again the very consular oath, TO which as cit
the United States Interested in house IN LIVER
pool we required 10 subscribe, Is not necessarily
equivalent the declaration which the Consul himself
required 20 make ana attach TO the invoice lnasmuch
the first declares the actual cost while the second
which immediately follows and IL upon the same pagt
Is 10 effect that Consul believes the merchants
market valuations which last the invoice cannot unless
"actual cost" and market value are held To be equiv
alent - g.
With this brief explanation of the letter OF the law
upder winch our goods are required nvOced. and
it. method of administration we VIII endeavor TO
make clear wherein through its supposed niractOh VIC
have offended and been made subject TO penalties.
HOW ERRORS MIGHT NNoCENTLY OCCUR.
As has been already stated the articles before men
toned, imported by our firm, are purchased In large
quantities OF many different makers sometimes outright
sometimes under conditional and longtontinued con-
tracts They arrive at Liverpool in many different lots
every day and are directly to the steamer which
often sails the day. Triplcate invoices, one OF
which 90 BY the steamer with the goods; arc re-
CURED be made out, and taken 20 the COnss onlco
fUr certhcation before O'Clock.
UnGer such circumstances small errors IN the invoices
received from the many different makers. or disagree
ents between the Liverpool house and the makers IN
lar Goods are almost HnSv6la6e but al the same time
t not charged by the Government that any OF our
goods had been passed through the CuomhOuse except
AZ tier fair market value. IL has, however happened
the receipt, from time TO time, OF suasTy small
sLes-due old orders contracted months an al
vance OF delivery our Liverpool correspondents have
bcen at loss ~ know how 10 invoice them'
After explaining that for and against the fts
20 far as regards CustOmhouse valuation in invoicing
tho small quantities of SPECIAL goods referred0 occurred
the result of the Government investigation is thus
summauzed
Having come to this final conclusion "a pro tormd suit
Of FIVE years, and from the whole number,
representing an importation OF at leaS: $i'0VOOO
nd whit nil
OF S8,JO0,OO0 had been paid, selected about 90
nmeh Dy reason Oh te i u, siiPS , t Nv
Guided under this number of invoices was estimated at
about 100000, and as it was claimed that the
Government had the right, after establishing ilegalty
Ia the smallest particular, 10 conhscate every item OF
Euch invoices pro lorna suit for the above sum was
instituted against The aggregate value tho other
hauO OF the several items in the 80 invoices alleged to he
vdted, amounted, when taken separately to Sl07 %;
aud by the payment OF this sum- tue suit ana al claims
OF the Government wereisuDsequenuy settled. ...,
But IL should not at the time, escape attention
that the amount OF alleged errors OF these several items
whose aggregate value was SZ1O00, was in Itself com
pardtYcy snall SUM- not eXceedng fIOV,J 10 sIoIVC u
estimated at the maXlnum; and that OF TINS sum the
duties which could have possibly accrued TO the Govern
Iuemt constituted but fraction In short If they had
been assessed at the maximum rate imposed since 1868
fact, We are gwen to understand that the whole
amount OF loss, which aiter a careful exsmlna,
has sustained by reason OF the above lrregulallnes
whereof have been accused mot taking INTO cOnsldef
ton the cases had paid OVeTyaluauons is
not IN OF $1,000 or TO put the matter su differ
entity II the case had been between two merchants,
period of 1--WE years, and Involving transae-
the OF S4OO00OO (and considering onls
the invoices question: the supposed discrepancies OF
account could nave been satisfactorily settled by the
payment part OF from 700 to S4OO out IN tine
ease u the Government and the merchant the former
eau only satisfied under existing laws by the pay
Of s2l ooO; and can further clam TO nave acted
generously, iuasmuch as 1t dld not take from lie d
million.
The reasons which induced Messrs. Phelps, Dodge d
Co to compromise the Government claim thus
explained:
And first and foremost regarded it question FOR
She Government TO determine, whether the enormous
1orfeitures incurred by without design motive OF
fraud, misstatement or coDcealment were 10 DE eA-
acted written in the law were TO be
adjusted rather TO the actual quality OF the transaction
But when the OF forfeiture finally eXacted
Insisted upon, ana its legality was treated as equivalent
10 s justice, our own sense OF It's Injustice anu Oppre
siOu relieve from the necessity in winch
he'd before placed ourselves, OF accepting the Govern
ment measure Oi its rights ana our obligations may DE
Justice OF the Government we had not given due atte
lion tue disturbing element introduced into tine deal
ings Oi the government win US cllZeI ny tue lhhese
private interests OF revenue omoers aud lnformers which
system has created and tOierates.
A PLEA PAIR JUDGMENT.
second and subordinate consideration, but one of
much weight especially with the senior nembOrs OF The
hFIn confirmed in disposng Of the by settlement
rather than by In the whole long
OF our business IL has been at fortune and
pride have had serious ltigaons and that this
envable record should be interrupted by long and
bitter controversy with the Government. seemed but
Justly within choice, provided the sacrifice made
TO secure IL as II has been wholly our own And
there are VINO may be inclined TO judge us harsh
for such decision, would ask them 20 recall to mind
tie peculiar rgOr o. our present taru law the enOr-
ment TO make uudcrit; and furthermore, that during
the whole continuance OF The suit our books and papers
would be under the control OF the authorities, and
business be liable 70 be interrupted and our credit
Affected by rumors and nsIeprcsentations when II
would he exceedingly dihcult, not wholly Impossible
" az once reiute aud answer.
The statements IN the foregoing regarding the Gov.
ernInent Investigation are confirmed IN letter from
Judge Noah DAVIS who WAS U. s. District-Attorney