Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1875-06-23


Chicago Inter-Oeean.
The fact is now notorious that mer-
chants at interior ports Of entry have
been driven from the Importation Of
certain lines of foreign merchandise
through the ineficiency or corruption
Of the New York custom house officials
IN permitting the entry Of such mer-
chandise at that port at undeTvalua-
tons. Our investigations have been
heretofore chiefly confined to broad
silks and silk ribbons. In these ar
ticles the merchants Of Chicago and
other interior cities have been forced
from the foreign markets and CON-
PEELED to buy in New York, thus taking
the risk Of dealing in crooked goods.
We charged this to be the fact six
months ago, and recently an expert
from the Treasury Department found
by investigations at New York that the
charge was absolutely true. He found
that most Of the French silks coming
to this country are consigned to manu-
facturers' agents IN New York at from
ten to fifty per cent less than their for
eign market value. The result Is that
honest importers are driven from the
foreign markets and the customs reve-
nue. is robbed of millions Of dollars an
nually.
Conceiving it probable that this class
Of frauds exists In other lines of goods,
our attention has been directed to
cigars. Cigars pay nearly or quite 100
per cent. duty. The field for fraud IS
wide and the temptation to cheat the
revenue great. Heretofore there has
been quite an extensive business done
IN importing cigars aC this port, but Of
late It has fallen off. This fact gives
rise to the suspicion that crooked
cigars are finding their way via New
York to Chicago. Desiring TO probe
the matter to the bottom, a reporter
was dispatched with instructions to in
terview some prominent cigar dealer.
The reporter called upon one of the
Oldest and most reputable houses in
the city, when the following collOqUy
occurred between the senior member
of the firm and the "Faber sharp
ener:'
s'How many importing houses are
there IN this city ?" the reporter asked
by way Of introducing the subject.
''There are six houses IN the city do
ing an importing and jObbing trade
equal to ours"
"At what time did the tobacco i'm
porting business commence IN this
city,"
1--WE were the first importers, and
the trade commenced during the fail Of
1870. Our business now IN the import
ing line is not so large this year as 1t
has been in previous years, simply from
the fact that We canSbuy our goods a
great deal cheaper than we can import
them"
How do you account for this:''
I'VE are prevented really from I'M
porting direct because there are IN this
country agents Of New York houses
which represent themselves as the gen
eral agents Of Havana cigar and TO-
bacco manufacturers. They offer us
goods in their line at from five to ten
per cent. less than we can import them,
and sometimes at even a greater re-
ductiOn than this. This effectuauy de-
stroys the importing branch Of our bus
mess, because we could not compete
with them by buying direct.
What is the character Of the trade
thus carried On:'
In New York there are ten firms
who carry on the legitimate importing
business. We receive prices current
from them. We, knowing that we can
purchase our stock at so great a dis
count, offer them an equivalent figure,
but they can hold out 10 inducements,
10
higher than those at which We can pur-
chase from these agents Of Havana
houses. We can buy in Havana as
cheaply as they can. I'VE receive their
prices-current and desiring to order a
short line Of goods, we try to purchase
of these straight houses, and when we
offer from three to five per cent. under
the price-current they will not enter
tain our offer, because there are not
sufficient profits in the goods to warrant
1t. We have had goods offered by
agents from five to twenty per cent.
less than we buy them in New York.
What is their mode Of operating IN
the market"
"The agents Of these Havana houses
come here and offer in the first place
their goods at from five to tenp per cent.
less than the goods can be bought in
New York, and then We put IN our bid,
which is usually from five to ten per
cent. under theirs. Such bids are al
ways accepted. These agents come
here. three and four at a time, repre-
senting different houses. They are
travelling agents. This underselllng
business was commenced about year
ago"
IF you can get these goods so much
cheaper, 60 not the importers ike to
encourage this trader
"Eo. We don't want such business
built up. 1t ruins the legitimate in
portations. We want all houses to con-
duct their business fairly and be on an
equal footing. No merchant can i'm