New-York tribune., 1874-03-21

OFFIciALs-BUTLER's THREAT TO DISGRACE
| PHELPS, DODGE & co.
| lBY TELEGRAPH TO THE TRIBUSE.l
! WASHINGTON, March 20.-The Ways and Means
Committee continued the consideration of the
nOiety system to-day, and Judge Noah Davis
| Of New-York resumed his statement with especial
reference to the of Phelps Dodge & Co. Nobody
was present but the members Of the Committee, an
official reporter, and attorney of Phelps Dodge g.
| Co. Mr.. Daviss statements were in reply to ques-
tions by various members Of the Committee, and as
n consequence of the ground previously
| gone over.
Mr.. Dawes said: understood you yesterday to say
that the question OF fraudulent intent did into
| the discussion of the by the Court and jury
| Mr. Davis answered that when the jury found
| that tho merchant knew he was doing the act, and
| that such o violation of the law, the question
of intent could not be considered by the jury. In
such relief should be given if fraud is found
| by the jury. Relief should be granted in other
cases. if found right, by the Secretary of the Treas
ury. The power of renting a penalty is not
judicial power, and therefore it might be exercised
by the Secretary of the Treasury on notice to all
parties The Treasury laws are very complicated
very numerous and require careful study to know
what's in them 1t is very difficult for merchants to
keep and perform the laws owing to their intricacy
Mr.. Davis said that the act of 1866, and some pre-
vious statutes require in addition to the cost value
of merchandise. TO add the cost of boxes and
great many incidental charges port charges, export
duties, putting on board, &c. Where they are
omitted, forfetures accrue. Many cases arise from
inadyertent omission, because the merchant does
not know they are required. They are purely Incl
dental charges. If they remain dutiable, the
statute should provide that when they are
omitted the Collector should add the amount
and percentage of cost. Probably in
nine out Of ten cases they are omitted
acciden tally and yet many Of seizure Of books
and forfeiture of invoices of this kind. Under
valuation of a single item should not forfeit the
tire invoice. Ii might lead to efforts to get in arti
cles undervaued, if il only subjected the merchant
to the loss of a single item. The forfeitures should
be more than the single item but the present law
acts very uniusty by forfeitng the whole invoice.
There should be modification of the law. for it
operates with terrible severity. 1t is different from
ali other laws in that respect.
was two and half years DstrictAttorney. he said.
There were many seizures OF books. ordinarily, the
Collector wrote me letter by special agent who came
with the papers all prepared The letter would request
to aid IN the matter II the papers complied with
the rules OF law a warrant was issued. oher agents
besides Jayne appledFrdnk How, and one OF his assist
ants. and think special agents from Boston and Pliia
delpha-on matters in New York, perhaps affecting
transactions In other places In some cases further pro-
ceedings were based on developments OF new frauds,
not known at the time OF seizure. know at least OF
one two where tho allegation OF one kind and the
proceedings were Of another invariably told the
officers that they had business to go beyond the
pose forth, and II they did they were liable tres
passers a6 nitiO.
1t very difficult 10 suggest amendments to system
so liable to abuse. and which ought not think, TO be
allowed The dclsons have been TO uphold the consti-
tutionality OF the law being analogous TO proceedings
10 discover stolen smugged property. NV judg
mont is against the law. subpeuas would
not answer the purpose. Many frauds
would not 10 petected without the right Of
search; but II better that some frau ia uupun
ished rather than uat greater evil be carried on IL
is not found necessary In the execution Of any crim
nal law II the law IA amended the books should he
brought into court and the summoned and heard
by counsel. The court could then decide II the books
should be inspected, and II the party owning them
should be present.
Think the manner paying the services o. the DIS
trct-Attorucy not wise The tendency Is 10
lead to compromise without delay. order to get the
fees In Phelps, Dodge & Co.'S case the fees were
$500 ont Of all proportion TO the professional services
and large enough havo It's influence 10 induce
the Attorney 20 compromise when there should be
vigorous pro-tcuuOn 0f the otrudcr | know ths is
against myself have b,en inseusinv inndcGced
In this way. Attorneys should not De personally
l Interested.
case about days before the close ~ my term When
NV interview with Bliss occurr'd. were alone
7 had N red 10 divide" my fee equally with hm.
We had. conversation as previously gwen. We then
partcd aud went 10 Jsynus room aut asked for him.
aui was told De was m The Naval oh eIs private NOON,
There saw JAYNE, tue Collector the sur,cyoo thc
Naval ONccr, ana senator ConAhne ant possibly some
clerks. spoke o. these gentlemen. Mn. javuc said
Isaid was IUjnC 20 give advice but m rc,rcyt to
fees Ina that case they should to my suscss0r amt
was therefore cuurcly iudcucndcut thcn tolt him
that The decisions ~ the courts iu NcVNo,k invariably
hold that invoices wcrv wholly forfeited bat that Jadsc
al ui .ad the forfeiture might o~is attach o. thr p1r
Judsc We want to know ot you What has bcon thc a..
whcthtr thc Nb,c l.vc.c tn rh,lps. podg a Vo cas,
j. forfeited, ouN - 'ial Items.
ucuar items UNDERMINED Sowc discussion hcrc aros'
and senator J0ukug. who had the statute In hls hand
rrad lover t. ~ said 70 N0suo doubtful % ha thai
the Whole of the iuvocc forfeited aud he thought
il the duty of the Cooctor ia hrins SUITS tor all uc '
,,,c tstrad % on the tainted itcms sad the
would undoubtedly bol ss he did - shown IN toe
,gtouot c,se aud some others iu which given
street aud rgid construction 20 the laws Al par
ucip,ted In The conversation. Collector Arthur
nd he hsl gr,s; doubt ~ thc proprcty
ot ordering suits merely for the forfeited ucm. re
member case vhcrc only the forfeited items sued
FOR, after consultation with the s,crury ~ the
rrrasur, l sal N the case pressed, I did
not believe any jury would give verdict tVr
on,.t .tuhe the amount V'rcd, on account % disparity
between the amount claimed and the loss to the Govern
mcnt tleu the Gentlemen IN conference heart on
Jan p is1 that letter sent o. blss ordering him
to commence suu tot N,eno,l AMI that chcck hom
rbclps, nodeo a 60. tor ,eheN both came together
At the afternoon session ot the Ways aud Means
Committcc Judge Davis resumed hts statement and
answered the questions put o. him. Tie said be- did
not see any terrorism, ot hear any thWats against
Phelps. pcdsc 4 Co. Mt jayne stated the pcnal.
p,s and sai thc, had subjected themselves &, these