Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1873-05-07
Phelps, Dodge & Co.

Phelps, Dodge & Co.
The case Of this firm is fitted to arrest
public attention. In any other country it
would arouse public indignation, and lead to
revolution in the management Of the Gus
toms The case is briefly this;
Last summer Phelps, Dodge & Co. con-
tracted for nearly two millions of dollars
worth Of tin metal in Europe 1t was i'm
ported by them from different manufactor-
les. 10 the invoices Of some of the con
signments there were slight technical irreg-
uarities, operating in favor Of the firm to
the amount of s1664 and against the firm
aud in favor of the government to the
amount of over $4,000. The balance Of
the errors was thus considerably in favor
of the government, and this simple fact is
conclusive that the firm had no intention
whatever Of delraudirg the customs. A
favorite clerk became aware of these errors
and reported them to the Treasurer. By
the strict letter Of the law the entire in. |
voice is forfeited if any irreguariiy is de-
tecied, and one.quarter Of the forfeiture
goes to the iuiormer, one-quarter to certain
officers Of the government and one-half to
the u. S. Treasury. Also, by the law, the |
Secretary has power ITO remit or mitigate
any penalty or forfeiture it, in his opinion,
it has been incurred without any intention
to dcfraud." The Attorney. General gives
a written opinion to the Treasury, stating
that in his judgment the offense was not in.
territorial and that the loss of any revenue
by Irregularities was more than compensat.
cd by the gain which thus accrued.
Notwithstanding these obvious facts, the
Shylock Of the Treasury Department in.
sisted upon the forfeiture, aud finally ac-
cepted, in compromise, the sum of SILL
0l723. The facts as published by the
firm, and as confirmed by documentary evil
dence by the late District Attorney, Hon.
Noah Davis, and by the Special Treasury
Agent perfectly exempt the firm from any
suspicion of dishonor and fraud show it,
impossible that any intent to defraud could
have existed in their minds, and place the
Treasury Department in the most pitiable
and melancholy light. The government
takes out Of one Of the most honorable
and eminent firms of New York, S27l 900,
and gives to an inlormer, who ought to have
been sent to State prison, one-fourth por-
ton Of it, divides another $685. 900 among
its own officers, and puts the balance into
= its own pocket, and this, too, in opposition
to the legal opinion of the law officer of
the Cabinet, and the ineffective protests Of
, the honorable yet Inundated 6rm.
The late Secretary of the Treasury said,
in an official conversation last winter, "that
he regarded the interests of the govern
! ment and the interests of the merchants MS
Numerically opposite" In his treatment
of the firm of Phelps, Dodge & Co., he
u carried out his own false and unworthy
= idea He exacted flesh and blood from
these distinguished merchants for an unin.
j territorial error, without scruple or pity
+ and paid s6s,000 Of it to the scoundre
u who added to the guilt Of dishonesty the
i meanness of an informer; and all this
c when it was 10 hi, discretion to remit the
> penalty. The only regret the business mer
of the country can feel at the retirement
s of the late Secretary of the Treasury from
l. that position, is, that he goes from it into
seat in the u. s. Senate. A man whC
e looks upon the government as the foe O
is the merchants Of the country, is unfit fo
a any public position, Such case as tint
It in England, would have driven the ministr,
IS from power, and Parliament would have re
Ie stored every farthiDg of the ill-gotten gain
3 Such policy as this would soon put al
i. end to our national commerce, or make ev
g cry honorable man the relentless foe of
is system so shamefully administered by tn
y Secretary of the Treasury
e 1t is well, perhaps, that this gross out
" rage on an eminent business firm shoul,
have been committed by man who hail
70 from the State of Butler aud Ames
e State, that once bred illustrious statesmen
rs but which has fallen so deep as to give it
n conspicuous honors, in signal cases, to me
'e from whose souls all honesty and homo
ir have fed to take refuge in their speeche,
r. and who seek to gain in patriotic ex
le pressions what they have lost in virtue an
deceucy; a State which still holds on il
S records voted stigma on its most learned
d ablest and purest Senator; State that di,
" approves its noblest men, aud rewards an
" iattens its greatest political scoundres