New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-03-25
CHICAGO's CHARGE OF FRAUD.
a REPORT TO SECRETARY SHERMAN on 1I!E ACCU
Stations OF WESTERN MERCHANTS.


sATIONS OF WESTERN MERCHANTS.
IBY TELEGRAPH TO THE TRBUNEI
WASHINGTON, March 24.-WesteTn importers are
a good deal interested in the controversy which
lately sprang up between Collector William Henry
Smith, of Chicago, and Mr.. H. B. James chief of the
Custom House division of the Treasury Department.
Ii seems that tho latter ordered the collection of
duty at the rate of 80 per cent ad vaorem certain
importations of burlaps by New-YOrk houses, and
that he directed charge of 50 per cent TO be as
sessed on an importation of goods which were al
legged to be similarly made by kOlm & Company, of
Chicago. The inference was that Mr. James was
member of the alleged "New-YOrk Custom House
Ring" and that lie and the officers of the New-York
Custom House were favorng importers of that city.
Mr. James has just made a long report 10 the Sec
rotary of the Treasury on the subject of these accu
stations in which he proves beyond question. by the
testimony of appraisers at New-York. Baltimore and
other ports who are experts the examination of the
goods in quesiontha the buraps imported into Now
York upon which duty of 80 per cent charged
were not similar to those imported into Chicago. on
which 80 per cent al vaorem, was collected.
The former wero known as "bWrlaps."
"split burlaps" and "similar 10 burlaps,"
and the latter were technically known as
"jute paddngs stifiencd with starch TO
certain extent to prepare them for the uses
for which they were imported. Nit james closes
his report by saying that he believes the publica-
ton of the accusations against him was made with
a view to creating clamor against him on the sup
noSition that he is identified with Tie NcW-YOrk
Custom House Ring" He says:
You VIII remember, that in the letter addressed 70 you
the frauds in Customs matters ~ the East especially
Nc-.York. were greater than those Of the Tweed and
Wbislcy Rings combined; and that while Tins con
. ~ Wet stands no harce wIatevcr and Thai no
Eastern be trusted TO break the combination.
The efforts made by the President and yourself.
through the medium OfLe Jay Commission ferret
fraud al NewYork fresh in the minds OF all and no
onTt tban myself That there have been aisak,s anI
bavc %n gross errors N ne ADMINISTRATION Of tc Gus
tom House business at New-iork, / have long hecn
satisfied.
against the East mas to great extent, grown up since
the depression Of business commenced some three or four
chants have been disappointed IN the fact that they have
moi realized from the Immediate Transportation Act AL
the advantage which they SXpec I'd From some
cause. goods could DC purchased IN Newnork cheaper
man they could be imported and shipped West and tis
has been charged TO fraud While think the charge ia
IN considerable extent true-ard II results IRON the
system OF manufacturers abroad consgmng all the
goods Of their manufacture 10 agents in NcwYOrh for
Sale and refusing to sell them TO- any other per'on except
through such agents unless aiaTgey advanced price,
G"ver1ment OF tie power when 1t had possessed 10
ferret out aud break up such Combinations.
SO long the law stands now, II Is difficult task
for department entirely To stop this practice "
signing goods at less prices than should be allowed
inpOrtug certain lines OF goods because they could buy
them cheaper in NewYork from the agents OF the man
uiacturers than they could import them Themselves,
that Il wonder the Western merchants are placed in
the same position.
Eut the evidently wants in this depart
ment controlling the Customs service who shall be
kceny alive to their interests. They expected much
when yon were appointed Secretary OF the Treasury,
and they appear 10 have realized their antelope
tious You said several times that when you
i'm the Senate you considered 1t your duty 10 look after
the interests section which represented. but
when You became Secretary OF the Treasury you
sdered Il your duty act for the Whole country. Tue
president has announced this idea which CONTROLS
MS administration. have acted upon the plan.
and i'm the administration Of business have tried to know
neither East nor West North nor South freetrade
protection but have used my best endeayors simply
carry out the law.