The Portland daily press., 1873-04-30

The dispatches from the Modoc country
given elsewhere, indicate that our troops
have met with bloody repulse that can be
regarded little better than causeless slaughter
The accounts are very unsatisfactory, DUE
there is enough to indicate that a small Dody
was led by the indians into an ambush ana
there massacied.
The Case Of Messrs. Phelps, Dodge s. Co.
There never has been an alleged or real at
tempt to defraud the Government Of tariffs
due by law that has caused SO much comment
as the case against Messrs. Phelps, Dodge &
Co. of New York which was compromised a
few weeks since by the payment of $271, Off,
IS, No house in the country was more wide
ly or fayoraby known. Few, if any, have
done so much business in the past decade. In
addition to this, the gentlemen comprising
the firm, are widely known and respected as
high minded, patriotic and every way reliable
citizens, 1t is for these reasons that the pub
lie have been unusually interested to know
theparticulars of the whole transaction that SO
suddenly brings stain upon one of the hlth-
erto most honorable houses of the country.
Not long since we published an abstract OF
Messr-. Phelps, Dodge 6 Co.'S statement OF
the Matter. 1t was an admission of techni-
cal violation of the law but denial of any
purpose to defraud the revenue. Indeed,
they assert that if the whole transactions of
the firm were considered, the Government
would be found to be the gamer. Their
oaense was the making of a second invoice of
certain importations of tin which differed in
some particulars from the invoice sworn to
before the United States consul at Liverpool.
The tariff was to be certain percentage of
the cost price when it was greater than the
the contract price and the reverse when the
contract price was greater than the actual
cost. On certain lots, the firm asserts that
its Liverpool agent through ignorance of the
laws invoiced at the contract price which was
sometimes less than cost and sometimes
greater, but on the whole the result would be
favorable to the government. He not only
did this but he made oath that such invoices
as be presented to the consul were the only
ones made and then sends others giving the
actual cost of the goods.
A clerk employedby the firm saw this irreg-
ularity and as the firm aver, selected such of
the invoices as made an unfavorable showing
against the revenue and destroyed those
showing the opposite.
In the course of time the spy becomes in
former, and Messrs Phelps, Dodge & Co.
say they prefer to settle the matter for just
the value of the goods, the packages of which
are tainted with irregularity rather than be-
come involyedin a long suit in law.
Since the publication of the statement Of
Messrs. Phelps, Dodge & Co.. the Treasury
officials have given the official correspondence
in full. The first communication relative to
the alleged irregularity is report of Special
Agent Jayne on the matter in which he says
that he finds that the invoices of the manu-
features which he received from the informer
agreed in every particular with those on file
In the custom house except in the price paid,
the difference being four shllings or less per
package and in emitting the cost of transport
tation from Wales to Liverpool the place Of
shipping As both invoices were made in the
same hand writing and in direct violation of
the provisions of the law governing the in
voicing of ad-valorem goods that has been in
force since 1853, Mr.. Jayne concludes that
it was systematic attempt to defraud the
government. To conclude otherwise, is
to assume that this great firm in the
transaction of their enormous business knew
nothing of the import or meaning the oath
taken by their Liverpool agent or taken many
times daily by some member of their firm and
have known nothing OF cared nothing for the
laws they have Systematically disregarded and
defied, at least so says Mr.. Jayne.
The transactions begun in January 1871
and of invoices which have been entered
since that time, S1,726,060 have been tainted
with fraud and would have been liable to
seizure if discovered. The items on which an
under valuation occur, amount to but S217,-
OFT % on which the amount of undervalua.
ton is $8,657.78 and the total amount of du.
ties that the government should have receiv'
ed on the same is $1664,6S. The total i'm
portation OF the firm is about Sc, 600 ,o0(
annually.
government had good case aga inst the firm
indeed it admits as much when it makes the
proposition TO compromise for the cost of the
goods. The other question, and the one
most important in connection with firm so
widely known, is, was it an act of oversight
and carelessness or we'll devised plan to de-
fraud the government? Messrs. Phelps,
Dodge & Co. say it was not; and while they
fail to show that such was not their intent,
and it is evident that their Liverpool shipper
failed to gard the express provisions of the
law, it is hardly possible that men of their ex-
perience and reputation in business circles
would have the folly to engage in fraudulent
transaction out Of which they only realized
$1,000, and thereby vitiate an importation thai
embraced millions of dollars and run the risk
of damaging reputation upon which nc
value could be set even in commercial circles.
Good character and reputation must stand
for something, too; so in view of the circum-
stances, the Judgment of fair minded men
will be that this great firm had become care.
less in some of the minor details of theil
enormous business.
THERE is dead lock in the municipal gov.
ernment of Lawrence. Six Democratic alder
men were elected with the Democratic Mayor
but the common council is composed of eigh
teen Republicans and twelve Democrats. The
city officers holding over are all Republicans
The Democratic board of mayor and aldermen