The Rutland daily globe. [volume] (Rutland, Vt.) 1873-1877, 1875-07-17
FRAUDS ON THE REVENUE.

When we read of the ever recurring
frauds on the revenue we wonder not
Many of them are real frauds and intended
as such. More are unintentional and the
revenue Is innocently defrauded. We
speak not of smuggling, for there fraud is
willful in every instance, but of importa-
tions by differentiation in cases where ad
0alorem duties are chargeable. These are all
made possible by the completely of officials
In some cases by actual bribery, but in
Others by conflicting construction of the
law. In this latter class, not only is the
government defrauded but often the i'm
porter. When an importer is so defr uded,
with human nature as it is, the temptation
is held out to him and other5 to make
orally by way of differentiation. 1t is
doubtless true that the government has
lost largely by the importation of the silks
for tic selling of which some of the lead
ing New York merchants are now under
Indictment, but such losses are only rem
dered possible by the completely of custom
house officials. In these cases, the indict-
ed merchants are undoubtedly innocent of
crime or criminal intent, the wrong
doing being on the part of others-and
those others mainly persons in the employ
of the government.
These cases arose from criminal fraud
III differentiation and from doubtful con-
struction of the lava construction, how
ever, not affecting the valuation. But it is
not to this class of cases that we refer; we
intend only to speak of frauds rendered
possible, made unavoidable, by an alleged
differentiation arising from conflicting de-
cisions relative to the statute imposing
duties, and we can do this best by referring
to single case. In 1867, wool, SO far as
the paying of duties was concerned, was
divided into classes, and both specific and
all caIo'em charges imposed, it being, also,
enacted that "the duty upon wool of the
ri rst class which shall be imported washed
shall be twice the amount of duty TO
which it would be subjected it i'm
ported unwashed. And the duty upon
wool of al classes which shall be import.
ed secured, shall be three times the duty
to which it would be subjected If I'M
g washed" The true, natural construction
OF these provisions, as it seems to US, would
be that M6 duties should be doubled and
trebled, including, of course, both the
specific and all oalorem duties, and SO the
department decided. Upon the face of it.
the object of the law would seem to be TO
protect wool growers by actually prohibit
ing the importation of washed and secured
wool, and not to enhance the revenue by
high rate of duties. Such at least would
be its natural effect, and such would result |
from the departments decision.
It is true that those manly instrumental
IN procuring the passage of the law, de- |
clared that their object was only to double
and TRIBE the specific duties, leaving the |
al CdL0r6m duties the same on washed. nm |
washed and secured wool. 1t seems to us
however, that their object, or the intent of |
the law makers, is of no particular conse-
quence for, If we understand the rule of |
law correctly, intent is only considered
where the letter of the law leaves the true
construction in doubt. But not go thought
New York importers OF an United States
court. The increased duties having been
paid, suit was entered against the collect
or for the recovery of the money paid for
the increased nd oalorem duties, and the
circuit court for the eastern district Of New
York decided that the specific duty only
was doubled or trebled, and rendered
judgment against the collector accordingly.
The attorney of the United States suffered
the judgment to stand, taking no appeal
therefrom, and so the law, having been
construed by court of competent jurisdic-
ton, was supposed to Rave definite, de-
termined meaning and one upon which the
government and the importer could and
would act.
The matter ran along for some time
when rumors were set a1oat to the effect
that the decision would be disregarded by
the treasury department, and to set the
matter at rest, the national association of
wool manufacturers, at their meeting In