New-York tribune., 1874-03-07


mttee, asking them to modify the law that honest
merchants can do business under IT, and made other
suggestions for their protection
The Committe then adjourned till u o'clock this even
ing.
EVENING SESSION
N. ID. Spauding OF Boston addressed the Committee
Ways and Means this evening briefly auding to the
expressions under the moety system. and the
dsreputabe resorted to for the purpose OF pro-
curing information against rchants gterne fortunes
being held out to clerks who shall act In the interest OF
the special agent detective He and those with whom
he acted asked for good laws and good men TO execute
them and that the punishment be but in proper
ton 10 the ofiense
CASES PERSECUTION IN BALTIBoRE.
Andrew Reid of the Baltimore Board of Trade was
heard. He mentioned several Of oppression. His
own and five or SIX other houses In that city engaged in
the sugar business bad much to complain. Judge
Giles on one OCCASION sent for these merchants who
repaired to his office. He informed them that the de
tectives had sworn that they had committed great
frauds. The Judge said he did not believe they
properly harged with fraud. Int ho would give them
opportunity to set themselves right They said their
books were open to examination The detectives
ned the books and then asked TO see private cor
respOndence invoice books and everything else bearing
on the subject The detectives stated that far they
had everything right and in order. :" You
have made grave charges against u.s." said the mer
chants " and want yon to scqult us OF them" The
detectives said they would not do that, and after
making further examination reported 10 Judge
Giles, who informed the merchants that they
had good ground Of complaint against the detectives
but he did not iknow that they had any remedy MI
Reed also mentioned several cases Of fragrant wrong
committed against his house, connected witn TIC matter
OF paying duties an0 pimentO.
PEAR FELT BY MERCHANTS,
G.. B. Eaton OF the counsel OF the Committee on FeF
Reform spoke of the fear that exists among mer
chants In regard TO the Of books and papers He
knew Of a merchant f. New.York whose place was
entered by number os Custom-house subordinaes
without authority of law. No warrant shown. They
occupied the four days. and forbade BIN selling
goods The merchant after legal advice demanded 10
their warrant, or he would have force 10 turn them
cut when the subordnate left the premises III another
they examined books without warrant but found
nothing wrong IN them. In another case mer-
chant, whose books had been seized, was sum
moned 10 the CustOm-house 10 have them ex-
amned. rap was heard the door, and
voice heard saying, Shall Mr.. soand-SOs goods
be passed The subordinate OF the Customhouse shout
ed back wi,b oath. "No. never. Mr.. Eaton showed
that, tho Interpretation of the revenue laws by the
courts extreme injustice is often done by calling and
treating irregularities as frauds, and nlictng punch
nent through the special agent.
The CONSTITUTIONAL QUESTION.
He then proceeded to argue the unconstutonalty OF
the law authorizing ths seizure Of books and papers
The principle announced In the Constitution OF the
United States that no shall nc deprived Of his Iiie
liberty OF property without due process OF law, was
taken from that established England after being
fought and argued throughout centary. The English
maxim is that shall be compelled TO accuse
himself, He had collected numerous leading authOri-
ties showing that this not only applies TO criminal
cases. where suits brought to recover penalties
and forfeItures. The seizure of books and papers
to3 DO used III the prosecution of the
owner making man testify against
himself Mr Eaton stated at great length tho serious
objections 10 practical working Of the present law
authorizing such seizures, including cousons between
merchants clerks and nformers and IN conclusion said
80 reSa,dcd ths question of arbitrary seJzuro 1rst
inviting q corrupt consp -cicy.
ANOTHER sToRP oP OPPRESSION.
Mr. Cephas Brdinerd Of New-York said that TN
now had the importers the cooDty dared 10 toll the
story OF oppression. In the course OF his remarks he
referred 20 q In which he was counsel on war
rant Of the Custom-bouse. E.ghty-three msce
aneous books, four buidles Of correspondence, and
two boxes OF papers were taken from a
Ger.sn importing house that had been IN
existence 10 years 1t was charged that the
House had committed fraud on two invoices Of hair
cloth one on the 2sh of October 1902 and the otner
the 18th OF October previous. part Of these
books remained IN the NewYork Cusom-HOuSe to
day. could procure the correspondence necessary
10 he used in suits OF these merchants Tue selzng
two months They took away more than $4,000 worth
Of goods including yevets, plushes, &c, on warrant
relating TO hair.coth. NiDeteen suits were brought
against the merchants.
His clients thus outraged. and the consignors
feeling it, the Governments Of France, Belgium, aud
Prussia interfered through their representatives ana
asked the Treasury Department for an investigation.
Mr Brainerd came and with Baron Gerot called
the Secretary who examined the and felt much
Indignation as any OF them on the 2sh OF December
Mr Braine rd went TO the ,Iarshals Office ascertain
what had become of the books, and informed that
they had been sent 10 the CustOmhOuse He found they
had been pot into in possession OF ths informr
He was told by them thai had looked at only
or go books, hut had before seen bad
of fraud They SAID ." IL had better be settled for
s7bOGO II IL Will drive you out or the
market Mr. Brainerus clients declared that thev would
,n,cr nav that sum Mr.. boutwell, said ne would give
instructions TO the DstrictAttorney to examine into
the subject which was done When the seventeen cases
dviuded TO two. The matter terminated the codnsvl
giving check for 100. From this case hl couid
be Judged. - ..,----- 49,.
the Congressional Special Committee In 1874 held IA
New YORK and asked the Committee 20 read what Mr..
Jayne aDout threats Mr. JAYNE on that occasion said
he put handouts on persons 70 scare hc no never
read the law and told them they were Fable
10 90 10 Prison and he said TO them the better
course would be to confess what wicked thing It was
~ dtyauS tho revenIe the best way was to tell what
they done when that failed nc read the terors OF
the law. Our polite friend, Senator Bsyari, s,d 10
that field" 6ut Phelps, Dodge Co.. VINO
paid s271.OOO went into that feld Mr Brainard cor
the system by which merchants are now outraged By
special lagenIs and their associates, the punishment
conng 10 the merchants before indictment and trial
10 O'Clock.