The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-06-27
PHELPS, DODGE & co.
General Buffers Charges Answered by
the Firm.

the Firm.
TO THE EDITOR OF THE HERALD
In your very fair and able comments OF the 22d
lnst on the late speech OF General Butler reference
Is made to certain charges against our firm which
we have thought it well to notice IN the following
which please give place in your columns:-
Alter the full statement heretofore published OF
the difficulty Of our firm with the customs authori-
ties, and the subsequent exhaustive examination
OF the whole matter by the Committee OF Ways
ing OF the MOety and Seizure acts we had not
supposed 1t would be necessary TO add anything
brutal and cowardy attack made upon us during
the closing hours OF Congress by General Butler,
certain charges were preferred by him. in his
character as Representative, upon the floor Of
the House. against our firm, so definite and with
so much OF apparent authority, that we feel called
upon, in justice to ourselves and the public, TO
make once more brief statement.
The charges, specifically preferred. were in the
First-That we had as firm attempted to de-
fraud the government and evade the revenue by
importing metals in the form OF works OF art and
statuary. in reply to TINS it is only necessary TO
say that the importations 10 which General Butler
referred were made before the firm OF Phelps.
Dodge a. Co. came into existence, and before any
one OF the present or late members Of the firm be-
came connected with the metal importing bust
ness, the senior member OF the firm. William Il.
Dodge being at the time engaged in the dry goods
business.
Second-That IN the Tariff act of April 1864.
which temporarily increased the rates OF duty on
imports fifty per cent ''Mr Dodge went to the
Treasury and had q comma taken out in one place
and put III another, and thereby cleared
The exact facts in respect to this charge are as
follows In the very fu revision OF the tarin, as
embodied in the act OF June, 1864 (and not the act
of April, 1864 so specifically mentioned by Gen.
eral Butlerl, 1t was decided by both houses of
Congress- after full discussion that all increase of
duties on tin and terne plates would imperl the
large Industries already taxed under the internal
fruits. fish and vegetables. meats and the ike, and
so tend to reduce, rather than increase the re-
decided to increase the duty on sheet iron, gal
vanlzed with an admxture OF tln--which article
had been imported under the name OF "tin plates
galvanized" and SO definitely and distinctly named
IN connection with and at the same rate as "gal-
vanized ron' in every successive tariff since 1857
The Dill was passed on the 30th OF June and went
into operation Immediately. on examining its pro-
visions we found, that while the duty ''tin and
terne plates, remained unchanged at twenty-five
per cent ad valorem. the addition OF comma alter
the word "plates,n in the clause atm plates gal
vanized" rendered the whole paragraph amogu-
GUS if not absurd, and apparently imposed a new
duty OF two and half cents per pound an increase
OF 100 per cent on existing duties Seeing how
conflicting rates LOT one ana the same article, we
applied at once to the Collector tor decision IN
respect to the course to be followed. The Collector
saw the difficulty. and referred us to Mr.. Fessen.
den. then IN New York, and just appointed Secre-
tary OF the Treasury: We called upon HIM and he
Immediately stated to US and TO the Collector that
he had been chairman OF the Senate committee
and also OF the conference committee which had
charge oil the Iarln bill in question; that he fully
remembered the discussion as to tin plates, in
which he had taken part; that the full sense Of
both committees mad been that tin plates should
remain at twenty I'VE per cent ad vaorem; that
the comma" had evidently been added by mis-
take IN the haste OF engrossing and could not be
considered as the true Interpretation OF the law.
He accordingly ordered the Collector to pass he
goods at twenty-five per cent. and stated that on
his return to Washington he would issue special
order making the construction Official, and this he
did under date OF July %, after taking full time for
consideration and consultation with his former
colleagues in Congress and the experts OF the
Treasury Department. AS finally interpreted by
direct favor; put, on the contrary, had the teen
meal error been allowed to STAND and to entail
very excessive increase OF duties, the advance in
the price OF stock on hand would have yielded to US,
in common with all other importers and dealers,
a very considerable profit. The iacts therefore,
were exactly the reverse Of those stated by Gen.
Thfrd-Genera Butler states that in our large
ana complicated business SIN s every invoice brought
stated, and that We were consciously and con-
tinualy guilty Of fraud.
knows, on the contrary flor as the paid attorney
OF the iniormer ne has given attention TO the SUBJ
jectl, that alter most careful and merclless ex.
Jayne and his experts. aided ~ our own clerks,
brlbed 70 injure their employers, with the full use
some fifty that could in any way be made the sub.
ject OF controversy; and that In the case OF some
OF these, Of from $4,000 to 100000 each, the ut
most possible loss to the government could not have
been In excess Of from eighty cents to 81 per in
voice. And, furthermore, that the total loss
CIdiHieu ny koNtTHHtuL OH all Tue Invoices was
only about 81 GOO. out OF an importation OF some
$4o.0Oo,000 and covering the space OF five years..
We believe General Butler further knows but
wliuy conceas the fact that the same error and
misunderstanding OF the intricate law which COM
PEELED us, under severe penalties, to invoice our
goods both at cost price and at market price, led
us. in the case Of great number OF impcrtatons,
10 invoice their value above cost, and so resulted
in gain to the revenue and a loss 10 ourselves
immensely greater than the government claims to
have lost
FfndUy-Lookng at all the circumstances and
the character OF this speech its constant iasidca-
tons ana perversions OF truth, and its brutal per-
DICT as to its effect to any VINO have aIrly looked
into the matters OF winch IL treats.
PHELPS, DODGE co.
NEW YORK, June &c. 1874.