, 1874-03-21
SECRET HISTORY OF THE pHELPS-DoDG1
GAZE

4ne tobIlIH0ny OF Ju4Eo Noaa 1aVlB pe1oTo
the Ways and Moans Committee gives the pub
lio tor the first time, an insight into the way in
which one Of our most famous firms, composed
| of man wl,n have dono mora fnr their country
than tho whole tribo who blackmailod them,
came near being mado our most infamous firm.
BUSINESS men should read. mark, and inwardy
digest the remarkable story. They can then de-
eide whether OF not they care to run the risk Of
being troated in tho samo way themselves.
The law requires that Invoices OF imported
goods shall contain tho cost and all the expenses
Of transportation. The latter proviso includes,
Of COURSE tho expenses from the place where
they were bought to tho port whonce they are
shipped. The invoice muHt be verified by our
Consul in the city where the goods are manufac-
tured. Some Of tho invoices Of the shoet-tin
imported by Phelps. Dodge i Co. we're verified
by our Consul at Liverpool lin violation OF law,
hiuce no tin is manufactured in that city, and
did not contain tho cost Of transportation from
the place Of manufacture to Liverpool. The
error, on Bomo millions OF dollars worth Of i'm
ports, involved q loHs to tho Government
OF 5000. It WAS discovered through clerk
who had been discharged from the firms employ,
At the request OF tho Custom-House authorities
Judge Davis, WHO WAS then United States Dis
ttio.-Attorney OF New York. o1amined the state
mont laid before him BY Jayne, and gavc his
opinion that the case ought to be examined.
Jayne then took the books and papers Of tho
firm. Dec. S0 1879, George Bliss. Jr.. waB 60
crotly sworn in as Dayis' SUCCESSOR. On the
same Guy, Dayis, ignorant that 10 Was really out
Of of1ico, was as1od to attend consultation at
tho Aator House between Jayne and the Phelps
Dodge counsel. Tho Inter offered to pay $780,
900 fora settlement in full. This was declined
Jayne then stated that the articles actually
Affected by the error in tho invoices were worth
s2e0, 600. On the evening of Dec so. the firm
agreed to pay this amount. They had previously
appealed to Boutwell, to save thom from being
blackmailcd, and had received from that sapient
statesman the reply that he would do nothing
for them, because ho regarded the interests OF
tho Government and IN importer ns directly
antagonistlo, and thought each ought to try
to get all that waa possible out OF tho other
An appeal to Grant got no response.
To DO cure, 1t had been urged III favor OF his ro-
election that tho financial interests of tho coun-
try demanded it.. aud Phelps, Dodge d Co. had
contributed S20, 900 to get him ro'olected, but
lie was safe for four years. more, and the dupea
must take care Of themselves. So they yielded
perforca- They could not fight longer. Thoir
name was under cloud Their trade was
crippled. Even in far-oG Singapore, the charges
against them had gained oredenco. On tho
morning Of Dec. 81, Judge Davis, still ignorant
that Bliss had stolen into his place.
met tho latter, told bin he WAS about
to close up the Phclps-Dodgc case that morning.
and offered him half tho fees, inasmuch as hls
official term would begin the next day. Bliss,
moved by this generosity, blurtcd out tho in'
formation that Davis bud been duped. ~ WAS
told last night what took place at the Astor
House." said ho, "and was at the Collectors
house till late hour, and know 1t IL not to bo
settled to-day" 80 there had beon secret
meeting Of the roguss to 500 whetlor they could
not giyo tho screw another turn aud aqueaze
moro blaoktnnll out Of their yict!ma. Davis
went to tho Oustom-1Iouae and found
there the Collector, Surveyor, Naval Officer,
aud Jayne. The buzzards Ind gathered
over their prey. They questioned Davis about
the Inv in tho case, aud ho answered them. Tux
lug care to htato at the outsot that 10 would now
accept no fees In the matter In any evont. He
told thsm no jury, unla.s especially advised by
s1uags. would give them vszalat. III after