New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-03-23
COMMERCE. HAMPERED.
SEIZURE LAWS.

SEIZURE LAWS.
THE FIRST NOTIFY HuNTER-HOw SPECIAL REVENUE
LAWS WERE OBrAINED-HIsTORY or THE LEGIs-
LAT1ON-THE POWER OF THE AGENTS AND THE
DILEMMA OF THEIR VICTIMS.
Previous to 1868 the Revenue laws OF the United
States were burdened with very small number OF
" fines. penalties and forfeitures.n Merchant was
An honored name attempts to defraud the revenue
were of rare occurrence and those who engaged IN
them were always exposed by honest importers, as
soon AZ the facts came to their knowledge, for the
whole power and influence of the importing class
was exerted on the side of the Government, and
against fraud.
During the third session of the XXXVIIth Con-
gress there appeared at Washington person VINO
was called special agent of the Treasury, and VINO
pr0fessed to have collected mass OF important evil
dence proving a systematic differentiation by i'm
pOrters in their invoices for entry at the Custom
house. He was a lawyer Of considerable shrewd-
ness and cunning. He induced the Secretary OF the
Treasury to believe not only that great frauds were
often practiced but that he tthe agent was almost
the only person in the United States VINO
could expose them in the pr"sent and pre-
vent them in the future he also cialmed
that existing laws were wholly inadequate 10 pre-
vent these frauds and that revision Of and large
WINGED Secretary Chase of the correctness OF his
views and proper revision was ordered under the
direction of this agent and the Solicitor of the Treas
ury. The act of March 3, 1868, ITO prevent and
punish frauds upon the revenue" was the product
of the Joint labors of the special agent and the law
officers of the Treasury. 1t was presented to Con-
press as emanating from the Treasury Department
with the approval of Mr.. Chase, who believed
it necessary for the protection of the revenue.
None but its authors knew it's scope purpose OF OUT
rageous injustice. 1t attracted no attention from
the press was not specially brought to the notice OF
either the House the Senate, received little con-
sderatOn in Committee, and was accepted as proper
by Congress upon the general theory that the Secre
tary of the Treasury would not present a measure
which he did not consider both necessary and
proper Ii is doubtful whether the existence OF TINS
bill was known outside the Treasury until it had
passed both Houses and been approved by the Presl
dent.
THE IMPORTERS DILEMMA.
Congress- has been often charged with Injustice
but it is doubtful whether it ever enacted more
unjust law than the act under consideration. By
the revenue law as it then was, and ever since has
been the merchant was required to invoice his
goods for entry, not at cost but at the wholesale
price and actual market value in the principal mar
kets of the country" whence they were exported.
Upon such an invoice alone could the goods be en-
tered. Any other rule of value exposed the goods
to seizure and their owner to heavy penalty.
Leaving this act full force the act OF 1868 required
the merchant to make tnplicate invoices
of his goods at their actual cost 10
him, and TO make oath that the same
t. e., the invoice" contained a true and
ful statement of the time when and the place where
h. cfu
and of all charges thereon. and that no discounts,
honnties or drawbacks are contained in said invoice
but such as have been actually allowed thereon"
He was further required to procure q consuPs certi-
cate TO the truth of these facts with numerous Other
details One of these ixvoces to be sent to the
Collector another to be preserved by the consul and
the third to be used in the entry Of the goods Ii the
invoice did not conform to these requirements, the
goods were forfeited and the goods could not be
entered unless the invoice complied with the law IN
all respects.
The passage of this act placed the merchant in this
! position: By the Revenue law he was required to
inyoice his goods at market value at the time OF
expectation under penalty of seizure. BY this act
he was required to invoice them at actual cost at the
time of purchase under like penalty. If he invoced
at cost they liable to seizure under the Revenue
law and could not be entered if invoiced at market
value they were liable to seizure under the act OF
1853 and could not be entered. Ii was only in the
single case where market value at the time OF
expectation and actual cost to the importer
happened to coincide. that he could make an
honest entry which conformed to the law Ii
/ every case where time elapsed, and there was
a change in the market values between
the time of purchase and that of expectation, the
goods could not be entered without perjury. And
;a loxu fnI Thare haa baen me
since 1863 when an importer could enter his goods al
the Custom-house without making oath that Their
market value at the time of expectation was pre-
cisely equivalent to their cost to him. Goods are
constantly 1uctuating in price. Many are sold un-
der contracts running through series of years. at
fixed price which is sometimes above and sometimes
below market value Railroad iron, for example
is seldom entered at actual cost; but the importer
must always make oath that it is. Who then but
the Government is responsible for the prevailing
idea that Custom-house oath is a mere fOrmality
UNBoUNDED POWER OF AGENTS.
But to return 70 the act of 1863 Its second clause
directed the Solicitor of the Treasury to take cog
nizance of all frauds attempted frauds upon the
revenue aud provided that he should Exercise a
general supervision over the measures for their pre-
Ivention and detection. The act placed the whole
subject under his control and made him the chief of
the corps OF special agents and moletyhunters, and
the power placed in his and their hands fearful
When they made it appear to any district judge
"that any fraud in the revenue has been at any
time actually committed or attempted by any person
,Or persons interested in in any way engaged in
THE importation entry of merchandise" such judge
was required to issue forthwith to the Collector his
agent or assistant, "a warrant to enter any place
premises where any invoices, books, or papers re-
IL. 30 md cd
and take and carry the away to be inspected"
and such officer authorized to retain such books
,& c.. as long as may be necessary"
The history of lepislaf ton nrohahlv does not fur