The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-06-20
bill OF the Committee OF WAYS and Means almost
every one OF them been removed.
w0RSTED sTUFFs.


Now to the proof. Let us take a manufacture
which has but Just been begun IN this c0untry
all kinds sent from England TO the rniteS sts,es
are simply enormous, as the supjoined examples
Combed, not mllled, worsted s,uns exported.
from Great Britain IN one year, total number or
yards, 154 2oe4 OF these there were SEM to tho
los, 664 $50 yards Total value as declared in the
invoices TO the United states, loaA,74l "A; to
other countries $33, 33l 100 ~. Average Invoice
value per yard to the United States 2lc. to other
countries where there 10 no tarin OF duties, 39.7c.
Dinefence or underyaluat,on ~ per cent. Esti-
mated annual loss duties On this single class Of
goods, $50 1870 40.
Total OF other worsted stufs exported In five
months. l74 yards: TO the United States.
Is, ~, 72s yards; to other countries, 90 S56,i49
$5O73376 Is; to otner countries, SIS, OBS $50 so.
Average per yard to the United states, IL cents
to other countries, 3l1s cents. Difference, or UNI
dervaiuation, IS per cent.
LINENs
Exports in one year to the United States,
slo,5o77eo o.; Average invoice value, lA9 cents
per yard. Exports same year TO France, Prussia
$1,6i6,2la ". Average invoice value, PAS cents
per yard. difference or nndcrvauation in linens
sent to the United States, 43 per cent.
LINEN YARNS
Total exported IN one year, a. os2, 40 pounds to
tries, 81 pounds Total declared DIVA Value to
the United states, "A cents per pound; to ether
yarns sent to the United states, 50 per cent.
LINEN DANAsk AND DIAPER.
Exported 70 an countries n. one 9s year
the United States. s4issil 50; to other countries,
$560S1 0S. Average per yard 70 the United states.
30 cents TO other countries 43 cents. Undervalu-
alton, 20 per cenk
from the looms OF Kidderminster Halifax, &c., is
enormous. In bags leather, gloves. percussion
caps, &C., the same ratio OF differentiation 10
shown TO exist, in fact 1t does with all articles
paying an ad valorem duty.
fhe whole needle trade OF Redditch and vicinity
branches OF our foreign trade, entirely IN the
dent agent or partner here, thus defyfng deteo-
tion and exposure except bv the greatest skill,
stimulated BY the highest rewards Certain - ~
pOrtation shipped Ia the United states are IN
quality and cost far better than the average shipped
to other countries and therefore the average rats
OF invoicing should be much higher ior the United
States whereas as we have seen, II Is vastly lower
This fact therefore, clearly demons trates SUCH nn-
LIBERALIZATION IL done for the sole purpose OF de-
fraudng our revenues.
COTTON Goons.
To show the accuracy OF the conclusion II 10
only necessary to turn TO articles which pay purely
specific duties By their unaerva 1 nothing
Total OF heavy printed cotton exported IN the
same year as above from Great Britain, 7l5Sss,e42
yards; to the United States, 27,3S4, 430 yards;
other countries, $685. .22 yards. Total declared
value 10 the United states S., 22e %; 70 other
United states. tx cents; to other countries l0,s
cents. Total Of light cotton goods exported same
SS246ss yards other countries, 1872 27s $40 yards.
Total declared value to the United States,
Average per yard to the United States, u cents;
TO other countries 10 cents
Here it win be seen that as soon as We approach
goods paying exclusively a specific DUTY the aver
age rate OF invoicing is higher to the United states
Of 70 "oas j. mere a 20
couHtrles, and leading to tine inevitable conclusion
that se rs 81 Hs pr
II they also paid SPECIFIC instead OF an ad vaorem
or mixed duty. The same facts are true regarding
( tvnr ~. m n HOY pGn
THE PHELPs-DODGE AFFAIR.
The Committee on Ways and Means may reply to
this-wnich would be the faCt-that they have not
had these statistics before them. Certainly not.
II they have their report does not show it. They
to lind out II the laws nave worked supposed nari.
ships, and not the case the people, to see how they
are defrauded. The committee put forward most
prominently OF all. as example OF the hardship or
the law upon honest men, the case Of Phelps,
groundwork for ali their recommended legislation;
and in their report and IN the debate which tO-
tee had substantially 10 themselves, no one mas
+ uttered a word OF anlmadversion upon Phelps,
is reserved Tor the occr brought their pleaded
guilt to light. In the course OF the evidence,
taken before the COMMITTEES, there seems 70 be
studied and careful attempt that that firm shall
appear to the country AS honest and IN
Jured merchants who had, BY the dcvicesor
q very large sum Of money All the lawyers
and chairmen OF boards OF trade, and there were
many, maze it the groundwork OF their attacks
upon the revenue laws. IL went forth as the
che,dI DE- bGt0tUe OF those who desired to take or
lection OF the revenue The facts OF tnis case, AS
! stated by Mr.. Dodge, the senior partner. whose
! any other witness save one and TO make room for
/ whom the representative OF the National Board Of
saying. however, that none Of the IL i active
junior partners OF the house who swore 70
hitting mil y', the frauds, were sent for by the
I committee.) Phelps Dodge Co.. a firm
] NJ
goods, and mad paid the United states governments
more than $50 900 600 Of duties very honest-eiv.
with perfect confidence that our good name and
our integrity were never assai,ed in these many
meaning the charge made BY special agent OF
the Treasury, OF false valuation in December, 1872.
4 first knowledge or hint in forty odd years OF busl-
dess that have had with the government, that
sitting at the board Of one OF our large
institutions ! received note rom my
n peeembe l7 That n
went. and found his firm accused OF having IN
many invoices for five years-whicn was as lar as
the government could go back, on account OF the
statute OF limltatonsswornt to az false valuation,
for the purpose Of deiraudng the revenue; and
those mportatons would be seized ii not volun-
tariiy produced to the officer. Thereupon. yield
20 ans nose and S
special agent OF the Treasury made up an account.
first, OF $3.50, 600. bur aterward coming up to the
enormous sum OF $27l,Oo the amount Of articles
in the invoices In which simple mistakes''
only, as MI. Dodge now declares, had been
made In stating their value, by which
the government had lost duties to the amount OF
some 81, 600 only. But Phelps Dodge & Co.. lear
Ing that these simple Mistakes would hold them
guilty in court, and being subject TO a system
1sy t mot ~
the government officials In entire consciousness OF
integrity and Innocence Of ali intended or actual
wrong after they had taken counsel OF four most
eminent lawyers, and after rejecting upon tho
subject for more than SIX weeks, made an offer OF
nOofcA nf fnR ~
Importation by false invoices, which they
confessed in writing they had done, aud
paid this very great sum 0! money into the rreasu
~, as penalty. This is the statement, IL BRIEF 49,
Mr.. Dodge puts 1t forward In connection with the
record He admits that the house OF Phelps Dodge
! 4 Co. has had for many years q branch house In
/ Mverpool-Phelps, James Co.-whch was sub