New-York tribune., 1874-03-06


h9norabyi but Il they had followed the seeretary' 3
lie came here % to see So Mr. Boutwell, S we'll and and stated
tho case TO him. He told Mr.. Boutwell,
and 1t was simply matter between themselves and the
government They objected 10 gong to the courts but
h mr. boutwell, advised that they should do So saving
lnat II the matter should then back for his con
he would look at 1t personally and carefully
M r Dodge consulted with his partners, and they came
10 !ne conclusion not to go to court
MT Dodge remarked that Gen. Butler said no had a
sufficient to convict them in any United States Court
me hrn learning what it was. laughed When the firm
putting 1t 10 boxe1. 1t put in bundles with stops OF
galvanized iron round them The appraiser called their
boxes. To avoid future trouble they wrote to their
friends abroad to put tho tin in boxes thereafter with
reply came that they would endeayor 70 follow in
structions but the manufacturers added, II in any
Gen. Butler now had it. "we will on this" he saId
convict Phelps Dodge Co. in court in the United
ton the firm decided that they, had better pay the
amOnn, demanded than have Judgment Of sso 70 @
ceiying moiety ON this large amount the informer
would receive the GS Sety on only M The I@ % dd
that tmo tho question OF his being elected to the
be his successor as Secretary OF the Treasury They
therefore concluded not to renew their Offer ANA settled
aud paid money get rid OF the Infamous charges
against them and being at that time In ignorance OF The
real amount they owed the Government.
They think they we're fools for paving the money
but there in this thing The first day they
went into the room at the Custom-house there
was terror. and there was terror throughout. They
found themselves logged by spies in any steps they
took They could not have private meeting OF tue
firm at night but what t was known in that DARK no
at the Custom house There was no lawyer In Their
Office but what it was known One OF his partners as
such letters he wished retain, burned the rest
They received a letter from their attorney informing
them that Mr.. Jayne said that Phelps, Dodge q 90
were burning up their papers ana hG w %odid did
Mr. jayne know Because he had under pay man IN
their store, the second bookkeeper They traced tne
fellow, and turned him out OF their store. He went
where he was now employed. He was clerk in tue
Post-onice place obtained for him by the agent
DODGE said that the man is named Kennedy.
Mr., Dodge remarked that being now 70 years Old and
having been I'm the business % years. ne had hoe 10 DC
permitted 10 die in peace Theirs was the case oaa
tczcd the greatest record held mp TO yndlcate
rhe firm admit that OF their goods were under
valued by mistake the market value at the time or snip
main lines OF invoice. The underyauatiOn was on
a few boxes. and the difference between the
lore they put it on their invoice book It was OF
fuctuaton in metal in England. In the month OF Janu
ay 1872, they paid 2S shlings in July, "a shngs, ana
in December, 35 shiings In reply 20 the accusation
that they had paid Il 900 to an appraiser Tor DAMAGES on
Russia sheet iron, he said that they found that the
ship sailed from ST. Petersburg six months after the date
II said the money was paid He could prove that
$5s by their GENERALIZATION, aud on their total
imports that year OF 100000 they voluntarily added to
tin paving the Government Is per cent duty. with
this statement Mr.. Dodge submitted tho case.
EVENING SESSION.
On the assembling Of the Ways and Means Committee
tonight Mr. William L Dodge concluded his statement,
saying:
From the first moment the thnnderbot fell us,
great has laid the assumption that no one
for moment snspected that had any kno~iengo OF OF
irregularities in office. thus by Implication placing
pretended fraud some otner members OF my hrm
fall together. We are all one family, eonsisuog
Uf brOthersin-laW aud our own sons, hnd, as
bic OF an ATTEMPT to cheat the revenue They are all
independent Of any motive to such an act and the three
seniors after maintaining an honorable position t we
have reached near three-scOro ana zen, WIN oods
blessing honest labor, and having
enough without stealing intend to 90 to o6, a.,
unspotted reputation save that which our Govern,
franSness, and not as one suffering from a
sense OF injury. but as one who has for the
i've times as much every year as the amount claimed
due the Government that unless something Is done to
their support aud few years viii suffice to
transfer the business to unnatuazed Foreigners who,
keeping books In this country Will. after
American merchants will driven from commercial
pursuits We shall then present to the world the sad
spectacle OF great country without merchant marine
and its commerce handed over 10 strangers
Mr Dodge interrogated at some length on the
and gave it as his opinion that specific duties
should be levied IA all cases where prae- rae
bic to more risk than otherwise. In other
words, there was more opportunity for abuse AS to
and detectives but there should be carefully prepared
laws, with officers OF high character aud stand
ing in the CustOmhouse, and not men sololy to
make places. Tic seizure OF books and papers was a
remnant of the dark ages He made correction IN bs
remarks OF this morning He should have said that du
ing forty years the mpOrtaOns OF his irm were be
tween s3OOOOOO00 and si00OO0,oco, and not be weeu
s0OO00O00 aud *j000OOooO, but paying duties to tue
amount OF s5O,OO0,OOO.
REMAINS Mr.. HYDE.
Mr. HYDE, representing tho Boston Board Of Trade
his remarks from yesterday against the present
system OF uOieties He thought, however, that the
Treasury agent might be instrumental in correcting
mistakes at points where they occur and thus
the Government revenue Such officer should be ntcd
for the place and paid good salary. lie
submitted whether il was fair that when a man at
tempted 10 cheat the Government OF 5000 the penalty
special agent IN Boston, aud his assistants hon,
est. lie did not make charge agains, sdnd,,
casS as" occuPrcd @ in Bosos At the instance Of special
agent, the in Boston Jayne. now herr, the
the Marshal. The agent left article with newspi-
stating that the house in question had been guilty
OF defraudng the revenue to the extent OF tloOoOO
II this bad occurred during the late pane,
had not yet been mado against the firm court The
Special Agent had brother who had been clerk 10 that
an idea OF the terrible fear merchants that attempts
may be made TO tamper with their clerks by special
He related some Of the practical workings of the law
saying 1t stood driving the busnoss OF import
houses running no risk 1t impossible for merchants
to live with the terror Of special agents pending over
| them. In NewYork and Boston member Of Con
| the meant Gen Butlerl is retained and
| with a shrewd special agent and the Government At
torney, what chance has the merchant with the Secre
tary OF the Treasury who be honoraby disposed ia
all eases He read from the communication OF Secre-
| tary Boutwell, against the present moety system In
which Secretary Richardson concurs. The Senate
| Committee retrenchment In 1871 also condemned the
system. IL might however, be retained Ia cases oi
smuggling. We have never dared TO seize CuDard
steamer for smuggling by It's officers but citi-
stripped OF their property for violation Of law
either by design nadvertence while the foreigner II