New-York tribune., 1874-03-06
GOVERNMENT SPIES.
1AyNps DISHONESTY EXPOSED.

GENERALIZATION OF GOODS INSTEAD OF UNDh"-
VALUATION BY PHELPS, DODGE Co'-hi'h VI i
Gals ENrLOYED TO DRIVE THE FIRM 10 BET
T1FMENT-DANGER TO THE ADMINISTRATIONS IN
THE PRESENT sYsrEM--A POWERFUL ARGUMENT
BY MR.. HYDE.
fay TELEGRAPH TO THE TRIBUNB.J
WASHINGTON, March 5-The developments Oh To-
aav have swept away like chaf the ingenious, un-
foir and dishonest statements of exlreasury Agent
Jayno before the Ways and Means Committee LIS
hypocrisy. his facility of expression, MS kho"i,
edge of the laws relating to moietes' ana
the positive ignorance of the members oi
The Committee as to the mannerin which merchahIs
are robbed under the guiso OF laws rela'hg '"
seizures forfeitures &c. had all combined 10 RlVe
Mr. Javne better standing before the committee
than he deserved. and for time at least IL
w9s apparent that ne had made strong impression
on their minds that there was not an honest ner-
chant in business. The tide now has been so com
pletely turned that Mr. Jayne has not friend upon
the Committee.
The clear, compact, simple statement Of Mr.. Dodge
.o-day and the remarks of Mr. Hyde at the meeting
of the Committee this evening" have placed before
The members a picture of the diseraceful
,ystem now practiced, so plain in every
featpre that it cannot be misunderstood.
The system was shown to be so monstrous in It's
character and extent that it extends into Legisla
tive halls TO the judicial bench, and almost to the
very feet Of the very highest in the land.
Mr.. Dodge showed that his firm had been In busi-
ness for 40 years. and that during the time they
had paid the Government in duties alone $5O,OoO.-
cc0 and that never before had they been charged
with fraud or had any trouble. The amount OF duties
due when Mr. Jayne began was contessedlY only
$1,000 and the total importation on which the al
legged underyaluation occurred was only S6,6oS'
He also showed that during one year the
firm had added to the cost of goods between
100000 and S3OOOO0 and paid duty on them
at the increased rate of 25 per cent During
period Of five years the firm had done business of
spOO0OOO The firm, as he could show, had on
freouept occasions by accident, received goods
AT An oycrvaluation. Mr. Dodge described
tbe manner in which he was informed of his alleged
frauds in Jayue's den, Jayne. James, and Noah
DAVIS were present. From that time the game of
intimidation began, and on every opportunity Mr.
Phelps was reminded of the number Of years the
members of the firm could be sent to prison, how
much they could be fined, and how much they
could be made to forfeit This game was not
confined to Jayne and the small players, but
the names of Congressman, Judges, Sena-
tors. Secretaries and the highest powers
IN the country were used to drive the firm TO o set
tlement. Gen Butler.was so much concerned that
he himself played the part Of threatener. He told
Mr. Dodge that there was one letter which would
convict the firm before any court in the Union.
Even the fair name OF Senator Conkling was not
unheard during the efforts TO enforce settlement
There were many considerations which induced
the firm to settle. In the first place, the official
power thrown against them was frightful in its ex-
tent and could scarcely be resisted. Ii evident
that conviction would bs forced, and the payment
OF even q decree against them of $l,7000O0
would seriously impair their credit at home
aud abroad; and further, it was known to
them and TO nll that Secretary Boutwell,
was about to 60 ont OF Office, and knowing Gen.
Buffers power and his interest in the case. 1t was
not improbable that he might influence the success
SION Mr. Dodge said there were SIX or eight leading
mon ia the country, among them several members
Of Congress who were strangely interested IN the
case. He would have given the names of the mem
hers of Congress had the Committee asked them,
but the Committee thought it would make the in
yestigatiOn rather too pungent.
The argument of Mr.. Hyde is described as being
one Of the most powerful and startling ever made
before a Committee lie said among other things
that he could state from his experience while United
Rtates Attorney and from his thorough acQuaint-
snee with The subject, that merchant having due
regard to bis character and capital would venture TO
continue the business Of importer un-
der the preseut law and It's prac
teal administration. and that the ter
Jor of merchants had been greatly increased
within very recent date by knowledge Of the
fact that the leading representative Of the Admin
istration in the House Of Representatives and one
Of the controlling IN the oounsels
Of the nation was the man TO whom
special agents and informers TosOItcd for
legal information, and who their paid attorney
and heavy participant in mOst Of the compromises
recently effected This was said in a manner which
carried conviction, and the portrait recognized
ss that of Gen. Butler. Mr.. Hyde said he knew the
faCts he charged.
1t was after 10 o'clock tonight when the Commit
tee closed it's session. and another meeting called
for tomorrow. Just before the adjournment was
made Mr. JAYNE gave indications of hedging for
he could not help seeing how the tide was turning
against him. He told hr Hyde that had
lie known that there had been any over
layment on the part of Phelps, Dodge q
Co he yonld have ebtained their release. He did
not know there had been more overvaluations thar
uuderyaluations, he would not have proceeded
against them. Ii is evident that the entire Commit
tee without a single exception. are on the side OF
the merchants Their whole proceeding and con
versation showed it, and some of them have even
gone far in private conversation as to denounc'
Jayne a rogue. The merchants have prepared q
bin which they win urge upon the Committee,
MI Hyde viii speak on the BILL and close TO-
morrow Some other member Of the Boston delega-
ton will follow and Mr.. Schultz will probably close
The speaking. The merchants are unwilling "a
spend longer time here than is necessary and from
present indications they viii be able TO start foI
home on Saturday night,