The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-03-11
THE MOIETY SYSTEM.
Continuation Of the Testimony Agent
Jayne Recalled-Apology for the Law and
Its Enforcement-Fifteen Per Cent Of
the Revenue Lost Through Frauds

WASHINGTON March 10, 1874.
In the Committee on WAYS and Means this morn
ing telegram addressed to Representative Shell
don, from the Collector at New Orleans was read,
asking the committee to summon Mr.. Knsella and
Special Agent Lobdell, who are the best informed
men in the country on customs matters.
+. d. MoultOn, of the New York house of Wood
ruff, Robinson Il Co., made statement saying
that during the latter part Of September he dis.
charged clerk from their concern, and immedi-
ately thereafter rumor was started that they
were guilty of Irregularities against the govern
ment. He went to see Jayne. and asked him to
have the matter thoroughly examined He
wanted an investigation concerning their integ-
rity, as his house the largest of the kind
in the country. He procured from Jayne list OF
such books as he wanted and furnished them. He
did not seek to know OF any charge of the govern
ment to see the affidavit If there was one. The
proof slip OF an article prepared for New York
paper was sent to him before it was published. He
therein discovered it was said he had instructed q
young man in the establishment to make entries in
the cash book for the purpose of delrauding the
enue ana entering them incidental expenses,
but that the conscience of the young man
would not permit him to remain in their employ.
He had additional reasons for the discharge OF the
clerk. 1t was supposed the public press protects
the merchants, no matter how much the govern
ment and special agents Cypress them. In the
presence OF two editors OF the papers ne called
attention to the lalsehoods in the article.
S one of them ,,,, SAID that was news and
different sort Of man, and said it should not be
published. Mr.. Mouton took the paper to the
special agent with the request tnat he investigate
the facts winch he did. MIR. Moulton never Knew
who FURNISHED the article Tor publication but in
the course OF the investigation he received anony
nous communications on the subject. Mr.. MOul-
ton spoke OF
THE wAREHoUsING SYSTEM,
and In this connection alluded to the salt case as
connected with his house, arguing that intent
should be considered in an allegation OF fraud.
He had not an exalted opinion OF spies and in.
formers. They reminded nm OF a scene he wit
messed in Florida mock of buzzards In tree
waiting the decomposition OF an alligator so that
they might pOunce upon IT, He shuddered when he
thought OF the present system OF moleties and be-
neved the civilization oil the world represented
something be tier than buzzards and allirators. IL
had been stated shat he came here at the instance
OF General Butler. There was some truth in that.
He saw General Butler several weeks ago and said
to him that this was
HARD CASE
and ne wanted to get out OF It, General Butler
and Means and show them how hard IL is.n Their
difficulty was not with the Treasury Department,
1t was outside. His house had been proved not
guilty OF any Intentional fraud In deliver
ing salt without o custom house permit.
During one year the House itself lost $4,000 Dy
the mismanagement of labor. But the system had
been entirely altered. The amount due Tor the ire
guarlties OF delivery In advance OF the permit
involved s5'ooS.ooO. The House paid $50 600 IN
settlement, not as threat but as the easiest way
to settle the controversy.
JAYNE RECALLED
Mr.. Kelley said the case OF the petitioners had
never been closed, and recalled B. G.. Jayne who
explained the laws IN relation to invoices and the
REQUIRED oath of the actual cost and the market
value. The laws require verify ana nothing more.
There Is no right TO alter the invoices, but addi-
ton must be made to tue entry to make the mar
ket value. The goods must be invoiced as pur-
chased. Duties must be assessed on the actual value
Notwithstanding the goods are purchased below
10 n
the repeal OF the second section OF the act OF 1857
which authorizes the seizure OF books and papers
on the warrant OF the District Judge, and also the
repeal oil the provisions giving moieties to officers
anu lnlormers. the repeal OF all penalties for VIOLA