National Republican., 1875-12-08

such articles besides inducing a tendency to aug
ment the evil Of their elandestine introduction,
In the collection of duties upon fmportatlons,
two evils are chiefly operative to prevent the Gov
ernment from realizing the full measure OF reve-
nue-irst, smuggling, and secondly, undervalu-
alton.
The first of these evils is more generally preva-
lent especially the northern frontier, than is
commonly supposed the enat 9r6nies and aIdena1g
ing circumstances, being very great, II not In some
respects insurmountable.
Without going into full details 1t may be said,
by way of illustration, that in the four collection
districts Of Vermont, Champlain, Oswegatchie
and Cape Vincent, having frontier line of more
than three hundred miles, with eight principal
ports or stations and forty-one minor stations,
after deducting the number permanently en-
plOyed at such principal points and four for ser.
vice in Canada in connection with the sealing of
ears, there are but fifty-nine officers remaining
for service at the minor stations and as a coast
this number one officer for permanent service at
each minor station, there remain but fourteen as
preventive force, or less than one man for every
twenty-One miles of frontier.
These statistics apply to portions of the border
which offer speedy and direct means of travel be-
tween Canada and the United States, and which,
during several months Of the year, are thronged
by travellers of every condition and with every
variety of object in view- from those bent merely
on pleasure or legitimate business TO those whose
chief occupation is to defraud the revenue.
Information obtained by the Department from
trustworthy sources renders 1t quite certain that
systematic frauds have been perpetrated by
smuggling over the border wines, brandy and
other articles Of merchandise. Similar Observa-
tiOns might be made as to other parts Of our from
tier.
The second general cause which operates to pre-
vent the Government from receiving its full meas
ure of dues is differentiation, a source Ofperhaps
greater loss than the direct otense of smuggling.
This evil is attributable in part to the devices of
dishonest importers, in part to the fluctuations in
market values, but more. probably to the defects
Of the appraisement system itself. Without dis
paragement Of the class of officers known as local
appraisers, many of them of long experience and
thn aA fpfao
MED that there is often very great diversity at the
different ports regarding the classification ald
valuation Of merchandise. While this diversity
sometimes arises from an honest difference OF
opinion IL not unfrequently happens that there is
cOllusve action between assistants or other sub
ordinates Of the appraisers, and the importers,
which when once begun, is n source of constant
loss to the revenue as well as of injury to honest
merchants.
To correct these evils the Office Of general ap-
praiser was created; and to those offices. five in
number, supervision over appraisers and their as
sistants is committed by law. But can satisfac-
tory results be anticipated from their labors when
the large extent Of their field of operations is
sidered in connection with their limited number?
To the general appraiser at Boston are assigned
ports and districts thirty-five in number. To the
general ayyraiser at New York, the district of
New York city. To the general appraiser at
Philadelphia, twenty-five ports and districts. To
the general appraiser at Baltimore, hfty-seyen
districts and ports. To the general appraiser at
New Orleans, eighteen districts and ports.
The labOrs and duties of these officers have been
greatly increased by the privilege Of immediate
transportation granted to importers in the into
riOr by the act Of 1870, whereby the number of
ports requiring the attention of the general ap-
praisers is enlarged and uniformity of valuation
rendered much more difficult.
Tho first general suggestion which presents
itself by way of remedy for some Of the defects Of
the present system OF appraisements is an in
crease in the number Of general appraisers, to be
drawn from the rank of subordinate officers of
requisite. ability and experience: and, secondly,
a consolidation Of customs districts, by which
minor districts would be merged in larger ones,
Tins reducing the gDhere action of this class
officers and enabling them to concentrate their
efforts 10 better advantage.
In connection with the general subject Of con;
solidation of customs districts 1t may be remarked
that an examination of statistical returns from
all the districts in the United States will show
that in some of them the amount of business
transacted is not sufficient to Justify keeping up
the corps Of officers whose aggregate compensa-
tion exceeds the amount Of revenue collected by
them, and who can render adequate return only
by acting n preventive or detective force. That
species of service requires a greater number of
officers TO guard exposed lines of coast and From
tier than existing circumstances will permit.
Consolidation Of a number of districts would IA
citate the performance of such duties, besides SO
curing q reduction of the aggregate expenses.
And as auxiliary to this. il is recommended that
fixed salaries be made applicable TO all ports and
districts. and that all officers be required to pay
into the Treasury all fees. perquisteS and enlolu-
ments, Of whatever nature or character, received
by them.
Another remedy. and the most effective which
could be adopted for correcting the evils of the ap
praisement system, is the substitution. as far as
practicahle, OF speCitc Tor adAalorem duties. This
change would work n great reduction in the
amount of labor requiring the knowledge of eX-
perts. The entire process of ascertaning duties
would be more simple, certain and safe. OppOr-
tunities for cOllusive differentiation would be
greatly lessencd, and, If errors committed,
they could not as to specific rates and amounts
be accounted for, except upon the suppOsitiOn of
culpable negligence or actual fraud; whereas, in
respect tO adyalOrem duties, an error of Judgment
may readily he assigned as Il sufficient explana-
tiOn.
Such change. either with or without n decrease
in the number of dutiahe articles, would insure q
very considerable reduction of the force at the
chiefports with a consequent diminution of ex-
penses.
The revised tariff contains thirteen schedules
embracing upwards of fifteen hundred dutiable
articles which either distinctly specified or in
cluded in general special classificatiOns To
these must be added nearly one thousand articles
not enumerated. but which, under the general
provisions of sections 299 and 25l6 of the Revised
Statutes, would be assigned q place as dutiable
either by virtue of similitude to some enumerated
article, or articles, manufactured or unmanu-
facturcd, not otherwise provided for making over
twenty-five hundred in all. The free list contains
an enumeration of over six hundred articles, thus
constituting a total aggregate of more than three
thousand articles embraced by the tariff either as
dutiable or free.
OF articles subject to duty and either named in
or subject to specific classification by schedule,
eight hundred and twenty-three pay adyalorem
rates varying from ten to seyenty-hve per cent;
five hundred and forty-one pay specific duties ac-
cOTding to quantity or weight, and one hundred
and sixty pay compound. or both specific and ad-
The articles 70 he dealt with under sections
2499 and 2jle, which, as before stated, number
nearly one thousand must necessarily be subject
TO either specific ad yalorem, or compound duties,
but in what proportion it is impraeticabe to state
From this general recapitulatiOn Of the features
of the tariff with reference to the number of arti-
cles embraced in it, and the variety Of rates ap-
plicable thereto TO say nothing Of questions aris-
ing under the free list, it is evident that every
and simple system of duties on imports must con-
tribute not only to the ultimate safety of the Gus
toms re Venue but to its more prompt and econom-
ical collection.
But the only sure remedy for the evils of snug
CLING, and cOllusrTe or other undervaluations,
lies at last in the selection and retention of faith
full and competent officers. Neither laws nor reg
ulations however stringent or minute, will accom-
plish the desired results without faithful officers
Referring to the estimates of receipts and cx-
penditures for the next fiscal year, and to the
necessity now existing for the accumulation of
gold in the Treasury, the Secretary again calls
the attention Of Congress to the effect Of the of
1872, repeating the duty coffee and tea. In his
last annual report the Secretary expressed the
opinion that the act admitting these articles to
free entry had been without advantage to con-
sumers in this country, but that the duty re-
pealed had been added to the cost abroad.
The repeal Of duty has been followed by increase
OF export duty in the countries of production, and
this increase is paid by consumers. Subsequent
consideration Of the subject has confirmed the
views heretofore expressed and the Secretary
recommends restoration of the duty on the arti-
cles in question. Being imported In large bulk
the duty is easily collected and the opportunities
for fraudulent Introduction are comparatively
slight.
During tho fiscal year 1873 the cost of collecting
the revenue from customs was reduced more than
half million dollars per AMMAN by dropping from
the rolls in the various customs n considerable
number Of officers and employees and by reduc-
ing the salaries of Others which are not fixed by
lBsE, but arc under the control Of the Secretary
There has been 4 large falling of in the aggre-
gate amount Of fines, penalties. and fsrfeiIures
connected with the customs. which constitute n
part of the appropriation for the expenses Of col
lecting the revenue from customs. The amount
received from that source for the quarter of the
current fiscal year is only SIS, 52l75 and it b est-
mated that for the entire year the amount will
fall about s9OO,0oo below the sum received from
the same sOzrce for the fiscal year 1872 ..-
In view Of this decline, further reduction Of ex-
penses has recently been made at the rate ef a
little more thRn million dollars per annun
which secures decrease of nearly six hundred
thousand dollars for the remainder Of this fiscal
year. Whether the reduction can be maintained
without danger 10 the revenue remains 10 be de-
teTmined. The power of the Secretary however,
does not extend beyond the appropriations made
by Congress, and 1t is his purpose, well as his
duty, TO keep the expenses within the amount au-
thoriZed by law. o.. ..
A detailed statement of the various sums of
money refunded under the provisions of the act of
March 3, 1875, and other acts Of Congress relating
to the revenue together with copies Of the rulings
under which repayments have been made has
been prepared, and may be found in the tables ac-
companying this report. .
INTERVAL REVENUE.
The report of the Commissioner OF Internal
Revenue, herewith transmitted to Congress, pre-
sents fully the condition Of this branch of the
revenue with estimated receipts for the remainder