National Republican. (Washington City (D.C.)) 1872-1888, 1874-06-23
BUFFERS GREAT SPEECH.
{ confiausd from Firsi Psge.)

BUFFERS GREAT SPEECH,
q N.Y. tcontiauss from First Psgs)
demonstrates such undervaluatiop. Is done for
the sole purpose of defrauding our revenues.
To show the accuracy Of the conclusion, 1t 1:
only necessary to turn to articles which pay
purely specific duties By their undervalua,
ton nothing Is to be gained. Take for ex
COTTON GOODS.
Total Of heavy printed cotton exported in the
same year as above from Great Britain, u.s..
yards; other countries, 6SS ,175, PIP yards
Total declared value to the United States, So,
25S, 29 80; TO other countries, S73 224 ,652. 20
Average per yard to the United States, II y
cents; to other countries, 191x cents.
LIGHT PRINTED corToNs.
Total exported same year. 141 .6O4 1928 yards
to the United States, 9 ,824 ,6SS yards; othei
countries, 132, 279 ,640 yards. Total declared
value to the United States, Isl ,591 ySS
other countries, SIS, 1886, S4S. 08. Average pei
yard to the United States, u cents; to othei
countries, 10 cents.
Here it will be seen that as soon as we ap-
proach goods paying exclusively specific duty
the average rate of invoicing is higher to thu
that Q better class of goods generally is sem
here than to other countries, and leading t.
the inevitable conclusion that the same differ
ence Of higher rates of invoicing would prevail
In worsted, linens, carpets, &c., II they also
paid specific instead of an ad valorem Of
mixed duty. The same facts are true regard
ing imports from other countries.
The Comittee on Ways and Means may repl,
TO this-which would be the fact-that theI
MT had Nha.a Lzr A.
Certainly not. If they have, their report doe:
not show it. They have examined only case
OF Individual merchants 70 find out II the law
nave worked supposed hardships, and do no
the case OF the people, to see how they are de
frauded. The committee put forward mos
prominently Of all, as example of the hard
ship OF the law upon honest men, the case o
Phelps, Dodge & Co., making the case Of tina
hrm the groundwork for all their recon
mended legislation; and in their report, and il
the debate which followed, and which for day.
members of the committee had substantially
to themselves, no one has uttered q word o
animadversion upon Phelps, Dodge & Co. M
harsh language Is used; all that is reserved fo
the officer who brought their pleaded guilt tc
light. In the course Of the evidence, as takel
before the committee there seems to be studied
and careful attempt that that firm shall ap
pear to the country as honest and injured mer
OF the Government, been robbed of q very large
sum Of money. All the lawyers and chairmel
Of boards Of trade, and there were many, made
It the groundwork of their attacks upon thu
revenue laws. It went forth as the cheUdI d
bdtaiHe of those who desired to take off al
effective penalties to prevent frauds in the col
lection Of the revenue.
The facts Of this case, as stated by Mr.. Dodge
the senior partner, whose testimony as wit
ness occupied longer time than any other wit
ness save one, and to make room for whom tn.
representative Of the National Board of Trade
gave way, are these: (Let US premise by say
ing, however, that none of the active JUNO
partners of the house who swore to the in
voices, and were charged with committing the
frauds were sent for by the committee. =
Phelps, Dodge u Co., q firm of many years
standing, who had imported between " thret
and four hundred million dollars worth o
goods, and had paid the United States Govern
ment more than fifty millions of duties" very
honest-gfving the very language Of Mr.. Dodg'
III VIII say It with perfect confidence tina
our good name and our integrity were neye
assailed in these many years until It was as
sailed BY the Government" meaning tn
charge, made by special agent of the Treas
ury, of false valuation in December, 1872. Mr.
Dodge again reiterates that statement: " Tn,
first knowledge or hint in forty odd years o.
business that have had with the Government
that was accused Of any dereiietion Of duty
was when sitting at the board OF one of ou
large institutions, i received q note from m,
partner, asking me to come to the custom
house," Tin December, 1879 that thereupol
he went, and found his firm accused of having
in many invoices for five yeass--which was a
far as the Government could 60 back, on &C
count of the statute of limitations-sworn to q
false valuation, for the purpose of defraud
ing the revenue; and that the books and paper
Of the firm touching those importations woul(
be seized If not voluntarily produced TO tn
officers, Thereupon, yielding to the necessity
his books and papers were produced, and from
those books and papers the special agent o
the Treasury made up an account, first, o
$3.50, 600, but afterward coming up to tn
enormous sum of, s271 ,000,, the amount o
articles in tho invoices in which "simple mis-
takes" only, as Mr.. Dodge now declares, haS
been made in stating their value, by which tn
Government had lost duties to the amount o
some sixteen hundred dollars only. Blu
Phelps, Dodge & Co., fearing that these "sim
pie mistakes" would hold them guilty in
court, and being " subject to system of ter
rorism which they could not withstand, ii
order TO save themselves from the oppression
of the Government officials, in entire con
sciousness of integrity and innocence of al
intended or actual wrong, after they had takeI
counsel Of four most eminent lawyers, anC
after rejecting upon the subject for more thai
six weeks, made an offer of compromise O
penalties for the crime of importation by falls
invoices, which they confessed in writing theJ
had done, and paid this very great sum O
money into the Treasury as penalty. 5g ~
This Is the statement, in brief, as Mr.. Dodge
puts its forward in connection with the record
He admits that the house OF Phelps, Dodge
Co. has had, for many years, a branch house
in Liverpool-Phclps, James & Co.-whicf
was substantially the same in interest as the
house in New York, composed of the samt
Phelps and the same James as the house ii
New York. To exclude all conclusion that thii
Mr.. James OF this firm in Liverpool did any
wrong, Mr.. Dodge tells US that Mr.. James
Joined the firm and removed to Liverpool
"where, for over forty years, he has been thu
resident partner, sustaining the character of q
high minded, respected and honorable mer,
chant, and for number Of years past the old,
est American merchant In England; his name
a synonym of honesty and uprightness, and
shedding o lustre on bis own country and
American merchants; gratifled by the honors
conferred abroad, but ever looking with pride
as an American citizen, for protection to his
own country: In all this time not a question
had ever arisen as to the vast shipments made
to the house in New York, On entering his
OIuCc one Jay II OOCeIuOcT, 1919, ne IOuuQ the
following dispatch, in loaded lines, in the news.
papers: - t-.. N, $500.
: "'PHELps, DODGE & Co., NEW YoRK.-
This great firm have had their books and pa.
pers seized by the United States for alleged
frauds on the revenue to the amount of 81 ;.
750, 000.' ..-f .,-. . 1r-ar-'r '..- '..--'
81 will not attempt to describe the feelings
of such man. will simply say that the
shock came well nigh killing him; nor has he
ever entirely recovered. He felt that a life
long reputation, dearer to him than aught
else, had been struck down, In q moment, by
his own Government, on which he depended
for protection. he had passed his three-score
and ten until then with an unblemished char.
acter, and felt that, at least, he had a right to
demand that he should be considered innocent
till proved guilty. Can q law liable to pro
duce such results be justP' ~ 2, sgat5 q
If this account of Mr.. Dodge Is in the main
true; nay, If it is found to be true in any sub
stantial portion; if his firm had maintained
always a name for integrity and honesty Of
dealing with the Government; If his statement
about Mr.. James be true, that Sin all this
time not q question had ever arisen as to the
vast shipments made TO the house in New
York, !" then agree, "that law liable to pro.
duce such results not only is unjust" and
should be repealed, but that 1t is the duty Of
the United States Government to condignly
punish the officers who have done so gross 8
wrong to such honorable men, and not only tc
repay them the money that has been extorted