The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-03-08
THE MO1ET1Es EVIL.

THE MOIETIES EVIL.
Mr.. Schultz Throws Moro Light ON the
Revenue Omeers OF New YOrk-Fruud
and PLUMBER ON All Sides.
WASHINGTON, March 7, 1874
This morning Mr.. Schultz appeared before the |
Committee OF Ways and Means. In behalf OF the
merchants OF New York, AMI thanked the commit |
tee for their hearing the statements OF the wrongs
which they now endure. He assumed two PROPOSE |
tions:-
Frst-That the importing merchant has as posi- |
tive and direct interest in the proper collection
OF the revenue as the government itself, and lar |
more so, for while 1t is with the government q !
matter OF dollars. 1t is with the merchant life or
death. The merchant must discontinue business |
II he has to compete with those who are guilty Of |
violating the customs laws.
.yecond-rnat the merchant Is not a non-producer, |
and no prejudice ought to exist against him by |
reason OF his profession.
He made this remark because there were persons |
who think the merchant must necessarily be bad |
man.
LoOsENEss AND DECENTRALIZATION.
John Randolph once said, whiie the question OF |
protection on WOOL was pending, that he would at
any time go mile out OF his way to kick sheep.
He hoped no one would 60 out Of his way TO kick
merchant. He and those from New York acting
sensatives Of the government, to give up some Of
the present provisions Of the law intended as pro-
lection or checks SO there may be no frauds. In
order to show the committee that there are checks
and protection without the appliances which
they sought to modify or repeal, he asked them to
look at the manner In which cargOes are landed
and the necessary customs machinery attending
that business. They would see there are ample
means to absolutely and positively secure the rev.
enue. He asked the committee to repeal the OBJ
noxious laws in order to restore the affection OF
the merchants to the government which has been
alenated by the wrongs perpetrated on them. 1t
Is probably not known to every member OF the
committee that there special agents OF the gov
eminent roaming over Europe to bring all the
COnsulates into harmony with reference to
the ofncial duties required OF them. He
moraliZation in the detective system Almost every
commercial house has a travelling agent abroad
This class fall into the vices OF both Europe anU
the United States, and, meeting at dinner parties,
they get at the secrets OF merchants who are COM
petitors IN business. This information Is paid for
The travelling agents for competing houses are
not OF moral worth. The information they &C !
quire leaks out and is used on this side for detec-
tive purposes. Mr.. Schultz then particularly re-
lated the manner OF taking charge OF ship on
arrival, it's custody by inspectors, the duties Of
watchmen and matters generally with regard to
the passing and delivery OF cargoes, showing the
checks provided by law against frauds, and con-
tending that the government must be responsible
for the acts OF Its own agents. Even q bad law,
executed by good men, may go along somewhat
harmonio9sy. President Grant said. IN order to
1t. You are now, Mr.. Schultz remarked, enforcing
laws which we desire and hope will, In conse-
i'honest trauds''-so called-or Irregularities are
committed, owing to merchants following the law
lations, which they do not, or but seldom see.
Again, the law taxes certain articles specifically,
when the merchant has purchased at ad vatorem
prices.
A CASE SETTLED FOR TEN THOUSAND DOLLARS.
In this connection he referred to Harvey Barnes
man OF Seventy-1ve years oil age. an importer or
sugar. This gentleman, owing to mistakes not his
own, was charged with having forfeited the whole
cargo, worth $4,000 He found this man in prison
under q charge OF undervaluation when the gov
eminent had not taken q cent The case was set
the last dollar he naa Mr. schats did not SDd
this mans name in the government printed state
ment, and therefore suggested that the Treasury
be more particular IN its own statements 1t being
very exact with those OF others.
ADDITIONAL OUTRAGEs RECTTED.
He alluded to another case, that Of MI. Down.
ing, who was charged with cheating the govern
ment out OF $24o,o0o The matter was settled for
did not, after being thus treated, wish to cafed
An American citizen any more. something had
been seiSee' but he had authority from the GermaS
lines OF steamers to say that they had been re-
der to let their ships go. The release from the
bond cost them from 49, 900 to 900. The trouble
the ne agents Of the steamers say they constantly
exercise watchfuness to prevent frauds SNUG
gnng, and make searches to that end. Only two or
| three OF such cases had been discovered.
MORE ''BARNACLES."
Mr. schultz then referred to commercial at
torneys and experts, who are always ready to set
tie dltiiculties-men who get up iruit and ribbon
cases, drawing hundreds OF thousands from the
Treasury in such cases alone, but giving the mer-
chant not over twenty-five per cent. These ex-
perts and attorneys always get up the jobs. He
merchants. The law now runs five years-the
merchants want 1t to run two years. Owing to
the present hardships and unjust annoyances. the
|
drawing out OF business He knew something
about the Salt CASE General Batter told him there
was nothing nagrantly wrong IN it, and that
could have charged him s., oooo when Mr..
Schultz replied, "MOst excellent, Judge" laugh
teri Mr.. Schultz said he was acquainted with the
present officers of the New YORK Custom House,
relations with them were personally and pohti-
cally pleasant. He did not say nor wish to be I'M
derst0Od as jntimating that they act from i'm
proper mouves, but these moieties have turned
their heads. They act as Judges. when owing to
their interests in moieties they cannot naturally
be impartial IN that capacity. He believed their
merchants ask. There was not one man among
them he would not make executor Of his will, but
these moleties having overturned them they know
not what they do.
THE REFORMS DESIRED.
Mr.. Schultz, after speaking an hour and a half
presented to the committee the proceedings OF
the New York Chamber OF Commerce as indicating
the desired reforms, and, in conclusion, spoke OF
the means to which special agents and detectives
resort for the purpose OF exacting money from
merchants, referring to Phelps, Dodge 4 Co., as
furnishing case IN point. de mentioned that
Mr.. Story would be in New York next week TO pre-
sent to the committee his views In connection
with the Salt case.
The committee then adjourned until Monday
morning at ten O'Clock.
pANK pTrpNTApc