, 1873-04-28
WASHINGTON.
Correspondence Relative to the Case
Of Phelps, Dodge e. Co.



to protoot themselves, nt,d not roly to 70 largo
an cxtont on tho assistance Of tho Federal Gov
ornnaont. Tloro IL growing indspoation on
tho part OF tho Administration to nso any troops
in Louisiana until tlo Kellogg Government has
manifested BONO 7igor In It's own dofonno. This
feeling WIS communicated to Kollogg aomo tino
since, md It accounts for tho ngBroB-
siyq policy innngurat9,a' b, him mt, toWards 1s
effect Of tho anticipated indictment Of lolnery
for treason will DO Rpprocatod when It is ro-
n,o,nhcrod that tho court before which he may
b9 tried is Of the same PolitlcHHl H complexion
mont TO bo tho legal government Of tho State.
TIE VIENNA EXPOSITION SCANDAL.
An exceedingly sharp controversy is promised
botWoon Commissioner Vanburen and tho Soc
growing out Of tho Vienna Exposition scandal.
Tho friondH Of tho Commipsionor explain that
tho. very rcason why ho did not flo
Its bond arose from tho fact that tho fourtoeu
nsado by tIo ssato Dopartmont, @ and VanDron
did not propose to mako himself responatblc foF
the distribution Of fund amounting to 9200, 900.
In lettor vritton today on this aubjoct, sec-
rotary Fish eatd that detailed report Of the OK
forwarded shortly Id and & 1 the earllost moment
tho suspension Of all who shall not DO implicated
will be removed.
THE DISTRICT LEo1sLATuRE
Doard Of Public Works and tie Pennsylyania
Central Railroad, for the control Of
psouRs isS pna Board If a as the WITH afSss Ta o %
over prospective legielntion concerning the
grado Of tie track Of tho Baltimore & Potomno
Railroad, which rune through o park south Of
tho Capitol building, and tllonco proceeds up to
city. The Vice President Of the Board Of Pub
lio Works ia running hta brother for tho 6peakor-
ship, while Tom Bcotts candidate Ia moro pop
l,lar and loBs Objectionable man This feet mRkas
8cott'e succcHa certainty, 10 far aB this contest
ia concerned.
[Tb kho Associated Prtss.]
TREASURY PROGRAMME FOR MAY.
=, WASHINGTON, April 27.-The Secretary Of tho
Now Yorl! to soil 81, 100000 in gold on tho first,
tho second aud fourth Thursdays, in all sc, ,000,-
600, and to buy $780, 900 In bonds on tho frat
oil 81 ,o06,0 Tho Secretary has also dirocted
tho paymont without robaso on and after Mon
dday, tho 20th inst, of interest due on bonds
Commodore John II. Rulch, y. 8. NJ, On tho
rotirod list died here this morning.
THE oABE or PHELPS, DODGE + co.
Tho Treasury. Department publishes tho cor
rospondence rolatige to tho case Of Phelps.
Dodge l. Co. t appears thorofrom that on
January 9l last, Special Agent Jayne reported to
Secretary Boutwell, as tho result Of lis exanlina-
ton of THO books Of said firm that tho firm Ind
deliberately violated cyory provision Of tho law
imported morchandise paying ID valorem duty:
The total vall1e Of invoices e1nminod amounted
to s1,750,00 which, under tile law IL forfeited
to the Untoa s'as not BY Gny technical
but by. deliberately and systematically
chase price by false invoico made false for no
conceivable reason but to lesson the duties. Tho
items proven In these aovcral invoice to bo un-
deryalued. whom taken separately, amount to
about S275 900. The percentage Of loss on tho
whole amount h., therefore, small, yet, says
Jayno, tho importattona Of tho house arc worry
extensive, and II tho Same, or noarly tho aa1no,
portaions other than those included In the State
mont, and on which we have positive proof, the
ontiro loss to tho rovonue must have boon sono
$4,000 Or ! $l5 .oog por nnn,n1m, porhapn ', more:
date of jan. g., writes to Solicitor Of
Of compromise made by Phelps, Dodge l. Co.
Davis sayB tho investigation showed TINT defond-
of fraud. One consisted in invoicing tin, shipped
from Liverpool, the prices paid for it In Wales,
Of which undoryalnation there is no 1nosns Of
knowing the amount; while other spe eies Of
Of aome single item OF class q items, in IN in
voice in which most of the itoms wero correct.
There is no actual evidence Of fraud, says Bliss.
In either, class prior to January, 1871. Tho
douco Of fraud, but It is found in tho momofanda
and in duplicate invoices, il these ever existed,
For tho importations prior to about January,
1871, they havo boon destroyed The lnformer
asserts that tho fraud extended over several years.
and there is considerable indirect proof that this
ia SO In tho similarity Of rates aud standard
itemB bofore and since January, 1871.
Tho invoices showing the sauo pricos before
1871 in the classes Of goods BhoNn to have boon
underyalnea since TINT timo, Of invoices entcred
ninoo carly in 1871. which aro tnnted with fraud.
Tie items In which undoryaluationa occur
amount to $271, ,017.23, while tho amount OF uI-
do1yaluatton is o,858:75. The total amount Of
dutios lost to the Government WAS S16G, ,488.
Tho total importatlonr Of defendants arc about
$1,000, 600 year. While the Investigation was
going on various proposals Of compromise wero
made, but we're such that tho Collector deemed
careful consideration, however, recommends
tho acceptance OF tho compromise now
orored. He is influenced to this courae by
the fact. that the nominal amount claimed Is 30
| enormous tn comparison with the amount Of un-
LIBERALIZATION and fraud, chat 1t would bo difficult
| to obtain verdict for the amount claimed. Tho
amallneaa Of tho fraud also makes tho amount
of1ored an adequate, perhaps extraordinary, pull
sition mado by Bliss is from tho attorneys Of
Philips, Dodge i Co., and, while protesting that
! no frauds lave eyer boon entertained by the
firm towards tho revenue, offered the Treasury
$260,000 In currency OH tho ground that thoro
may havo been ao4s In connection with
tho ontry Of importations In violation
Of tho statutes. AIr, Jayne, also, on
January 6, recommended tho acceptance Of this
offer. A second proposition ofrors the samo
amount as compromise Of oil violations Of the
Reyenuo laws, and settlement OF all duties, pom
| ALTOS, nnl forfcltureB botwoon tho 1As OF Jau-
/ uary, 1868, and tho aame dato In 1879. The prop.
osition wis verbally rojoctod by Bauteld, aid
was subsequently withdrawn.
Mr. Bliss, on Fob. s, oncloBeb to Dau1old
third proposal from the attorney of Phelps,
Dodgok Il Co., offering to compromise all viola
tions OF tho lseyonuo Laws for tho .sum of
e271 ,017.23. This settlement ia recommended
by both DliHs aud Jayne.
hIr Dauaold, on Fob. 10, writoH to tho attor-
noyR Of Phelps, Dodge Il Co. that tho first prop
oHition was rejected bccaueo accompanied by
aBncrtiollH Of Innocence of all intent to do