The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-03-07
More Evidence Of the Infamous 0ppres-
sion Of the System.
THE BAN OF TERROR REMOVED
Systematic Blackmailing by Spies
and Informers.
WASHINGTON. March 9, 1874.


In relation to notifies, &C, there were present to-
day representatives of the Baltimore Board of
Trade, namely:-Andrew Reid Decatur Ii. Miller,
Hamilton Easter and Samuel 7. Thompson.
MI. HYDE representing the Boston Board Of.
1rade, resumed his remarks this morning. He had
previously spoken against the moiety system and
now he argued in favOr-arst, or requiring action
to recover penalties OF forfeiture to he brought
within two years, not five, as Under the present
law; second to limit lorfeitures to the articles on
which the fraud Is committed instead Of on the en-.
tire invoice ana, third making payment OF duties
III the absence OF fraud conclusive.
THE SYSTEM OF MoIETIEs INFAMOUS.
Mr.. A. II. RICE next addressed the committee as
member OF the Boston Board OF Trade. The
statements already made were, in his opinion,
sunicient to convince this committee OF the oner-
Gus. he might say Infamous, operation of the pres
ent system OF moieties in connection with the
seizure OF books and papers, The law seized not only
the guilty victim, but the innocent merchant, and
subjected the latter to the same penalties 1t first
struck him down before determining his guilt. He
referred to the recent case III Boston, where an
importing house received the first Information of
charge OF fraud to the extent Of 800 900 through
q newspaper publication. There was no parallel
to this system to be found anywhere in the
civilized world. Nothing was so nagrant unjust
and absolutely oppressive upon any class
as this is upon merchants. This effect
was certainly not designed by Congress
but such had been the result under the present
administration OF law. Why had this 81 stem been
continued so longY Because the class affected IS
comparatively small in numoer, and because 1t is
not Wiling to come forward and face the RESPONSE
blllty. Inc business OF the country Is prostrated
because the mercantile community are alarmed at
such practices as these to winch reference had
been made. They asked Congress 10 denver them
from the oppressive laws, and hoped they would
not plead in vain; that Congress WIN preserve the
reputation OF the merchant at home and abroad.
nOcent while Furnishing all Offenders
OPPRESSION OF THE INNOCENT.
JOHN ": GAMBLER IAN, OF Boston said the business
States which bear so heavily on them. These laws
are unjust and infamous. they are not only I'M
country, because they visit excessive punishment
on the guilty and Cypress the innocent con trary
to the principles Of Justice. Whatever may be the
opinion In Congress-. the mercantile community re-
gard the system OF spies and lniormers as in.
famous. They believe some OF their inalienabe
rights are of more consequence than mere rev.
enue.
Mr.. GAMBLER gave several instances Of severe
oppression where spies and iniormers have, by
base means, obtained Information OF the most pri-
vate transactions or merchants. One merchant,
whom he could name, refused to be the victim OF
plumber and, therefore, fought the government.
From the claim for thousands Of dollars 1t had been
brought down to 500.
THE ONLY WAY TO GET REVENUE
was to encourage trade. More is lost in forgetting
justice tnan can be gained. In reply to questions
Mr. Gambler SAID he had no doubt ii the system of
moieties should be continued the tendency Will
be to decrease impOrtations by American mer-
chants and to throw the business into the
hands OF foreigners, who keep their books on
the other side and transact business here
the system Of informers in the Internal ' Revenue
Department was step in the right direction and
has had a good effect, anu like beneficial result
would follow the abolition Of the system regards
customs. He did not think the suspected mer-
chant has as good chance Tor justice before the
Treasury Department as spies and iniOrmers nave.
The merchant not only suffers loss OF money, but
suffers in reputation which, IN some cases, results
IN ruin, especially when he is advertised by the
Treasury agent as having detrauded the revenue,
in advance OF investigation OF the allegation.
N. b. SPAULDING of Boston, briefly addressed
the committee, asking them to modify the law
that honest merchants could do business under it,
and made other suggestions for their protection.
Evening Session.
NJ. D. SPAULDING, Of Boston, addressed the com.
mittee this evening, briefly abiding to the present
expressions under the moiety system and THE dis
reputable means resorted to for the purpose OF
procuring information against merchants, glitter.
ing fortunes being held out to clerks who shall act
He and those with whom he acted asked for good
laws and good men to execute them, and that the
punishment be severe, but IN proportion to the
offence.
ANDREW REID, OF the Baltimore Board OF Trade
was heard. He mentioned several cases OF op-
That city, engaged in the sugar business, had much
cause to complain. Judge Giles on one occasion
Office He informed them that the detectives had
sworn that they had committed great frauds.
The Judge, said he did not believe they prop
erly charged with fraud, but he would give them
an opportunity to set themselves right.
They said their books were open to examination.
asked to see private correspondence, invoice books
and everything else bearing on the subject. The
detectives stated that as lar as they had seen
every thing was right and IN order.
NO REMEDY FOR THE CALUMNIES OF SPIES.
"You have made grave charges against usn said
the merchants, land we want you to acquit US OF
them"
The detectives said they would not do that, and
after making further examination reported to
Judge Giles, who Informed the merchants they
had good ground OF complaint against the detec-
tives, but he did not know that they had any
Mr.. REID also mentioned several cases OF fla
grant wrong committed against his house con-
nected with the matter OF paying duties on rice
and pimentO
d. b. EATON, OF the counsel OF the Committee on
Revenue Reform, spoke OF the fear that exists
books and papers. He knew OF merchant In New
York whose place was entered 10y a number of
Custom House subordinates without authority OF
law. NO warrant was shown. They occupied the
store four days, and forbade him selling goods.
The merchant, after legal advice, demanded to see
to turn them out, when the subordnates left the
premises. In another case they examined books
without warrant, but found nothing wrong in
them. In another case merchant whose books
had been seized, was summoned to the Custom
House to have them examined. A rap was heard
Mr.. SO aud Sos goods be passed 2'' The subor-
dinate OF the Custom House shouted back with an
oath. mo, neverP' Mr. Eaton showed that in
the Interpretation OF the revenue laws by the
courts extreme injustice is often done by calling
and treating irregularities as frauds, and nfct-
ing punishment through the special agent. He
then proceeded to argue the
UNC0NSTiTUTi0NALiTY OF THE LAW
authorizing the seizure OF books and papers. The
principle announced In the constitution OF the
United States, that no man shall be deprived OF
his lie, liberty or property without due process of
law, was taken from that established in
England after being fought and argued
throughout century The English maxim
is that no man shall be compelled to accuse
himself. lie had collected numerous leading au-
thortties showing that this not only applies to
criminal cases, but where suits are brought
TO recover penalties and Iorfeitures. The
seizure Of books and papers to be used
In the prosecution OF the owner was
making man testify against himself. MIR. Eaton
stated at great length the serious objections to
the praCtlCal MOrklng of the nreseuL law authorize