The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-09-04
THE CUSTOMS INVESTIGATION.

MEEIING OF The WOOD INVESTIGATING COM
MITTEE -INrERtsIING TESTIMONY DY COL
LEcToR MERRITT AND AUDITOR rREIcHHL.-
ROUTINE OF TIE CUSTOM HOUSE SYSTEM
WHERE REDUCTIONS GOULD BE MADE.
The sub commit Of tho Committee OF WAYS ana
Means appointed by the ii auss OF Representatives, at
washington-Fernanco Wood, of this city, chair
man-met in one oil the rooms OF the Naval Office in
the Custom House yesterday morning. Inc members
OF the committee present were Mr. Wood, Judge
Phelps, OF Connecticut, ana General Randall Gibson,
OF louisiana Tho absent members were Nathaniel p.
Banks, of Massachusetts,; General Garfield, OF Ohio;
j. Randolph Tucker, oil Virginia. aud Henry b. Harris,
OF Georgia. Most OF the abscntccs are at home at
tending to the Cor gressio In their several
districts winch they candidates for reelection.
VIEWS OF JACKSON SCHULTZ
Mr.. Jackson :. Schulz appeared on behalf OF tho
Now York Chamber OF Commerco and said be desired
to point out several matters which would DO advsa-
BILE Tor the committee to inquire into Without going
into the tarn question he supposed the committae
would touch upon o.her points He regarded the con-
su!ar system as u great tax on merchants without
having the effect Of stopping fraud upon the reve-
nue. There was also the question OF homo vaIu-
atons as compared with those OF foreign countries.
He ascribed 10 this system twohrds OF the frauds
committed GU the revenue and held that the system
OF giving bonds for goods was oppressive 10 mer-
chants He beev ed that great economy might be intro
used In tho Custom House manag cement. Many OF
the departments and bureaus might be consolidated
and thus economy effected. He held that these
bureaus we're SO numerous that they became Ike the
barnacIcs the bottom Of Ship and, like n ship In
that condition, the bottom OF the system should be
taken up and thoroughly examined and scraped. Mr.
Schultz KIDD the com nj Dnrt n dav whom
they would be ready to hear the Chamber OF Com.
mcrce OF Now York and the Boston Board OF Trade
the questions invoiv,d in the Investigation. The
committee assigned "Wednesday, the 1lth inst, ut
half past ten A. NJ, for hat purpose
COLLECTOR xRRKIgr on STAND
Collector Merritt, who is somewhat an invalid,
stated that no Naval Officer before he became Col.
lcc:o or and submitted list of the persons employed
in the eight divisions of the Custom House he ex-
planned tho process, alter the arrival OF ship by
winch duties are ascertaneu The goods handed aud
the revenue collected He SAID the consgnee sends
estimate OF tho duties he expects to pay,
panied by money deposit TO tnnt amount. On the
goods being examined and appraised It 1t Is iourd
has not deposited money enough no is required
to pay ~ the dem.it, aud then gets permit Tor
anding Oi his goods. The permit ID signed by the
Collector and he Naval Ofccr and directed to tho
Surveyor, who has charge vi the goods until such
permit Is issued. rhe rule Is that ton per cent all
imports have TO be sent 10 the public cx-
nmsnation. II the importer paid too much duty
Their gets refund. Tho entries before "a me liant
gets possession al HIS gooas pass through
hands. There are two checks IN the Collectors
office. aud then they pass INTO the Naval Ogicc. The
Collector and Naval Oicer nct Idc pendenty oil each
other
In reply TO tho inquiry why one class of officers,
we'll paid could not all ia business efficiently ana
render the other unnecessary, the Collector
rhs arst entries to be made hastily the rush
bus iness. aud II mas been deemed better to nave
thorough check GU them 10 iuly establish thor cor
rectnesx II you could appoint officers who ould al
ways be correct and honest one class would perhaps
be Sufficient II has been estimated shat by the
Ina nlnr fho
ON 20 mas bern saved to tho government he Knew
O several cases where largo refunds had becn claimed
Onice Is regarded the light OF reviewing olce.
There been discovered very many discrepanc es
in the Cooclor's Office which were discovered In the
Naval Once by the cheek system. Ono case involved
The vi 500 900, ana the other 100000 The per-
the serv .ce. The Collector SAID he perfectly will.
ing operate Ia every effort 10 secure economy IN
tho Custom House and simplify the whole system Of
its adnin tstration.
ROUTINE OF THE AUDITORS OFFICE
Charles Frecael, audi'or IN the Collectors Office.
explained tho routine business. He has cuargc OF all
| moneys which do not pass through the cashiers
hands, all matters connected with Appeals, refunds.
aiies and torieurcs Tor goods seized PAID
| the cashier ny tho AUDITOR.
MT Wood-Has tho pronristy oil uniting tho offices
OF Collector aud Naval Oicor ever occurred to you
| A. No, SIR
q. How many do you employ In your Officer A.
From ninoty 10 ninety 1.-Two persons
| Q Could hot The services Of some OF those be dts
penscd wilhS A. Not we'll II requires many aa
|
eicionty. l might possibly dispense with the
| services oil "a few.
| q Can you furnish q detailed statement OF the
amount paid, 10 whom paid and Tor what purposes Tor
| the last fiscal year! We want to know how much Il
costs run tho machiae. We have record OF that
| kind in Washington.
Tno witness replied that he could furnish the state.
| ment required.
|
| General Gbson--Does your OH g exist by law9 A..
| BY general order from the Treasury Department I
have occupied the Office the LIST OF May last was
appointed by tho late Collector aud held tho post
ut the Will of my superior oEcer report directly 10
tho weekly, sometimes m0nIhly y,
| according to tne magnitude OF the amoubis
| Have many OF your subordinates boon long ems
| ployedY A Yes.
foi--tnat In, do you pay more Tor labor time
| than you 40 NJ anothcry a. There arc lew vi tho
extra ciass-cierks appointed ny the Secretary ut
| " Washington to perform specisi dute<.
| Gcucral Gibsou--lu New Orleans found that there
largo add tons to the payr0s at certain times
| Witness 1T IA not SO hore
| O. What would be tho effect, do you think, OF ON.
good behavior rather than tho caprice Of new COL
lector A. thiuk the effect wouid oe miraculous.
There Is u tcrrbi state oil nervousness smon somo
CLERKS arising from tho apprehension that they may
| DO suddeniy dismissed.
Tue witness stated that the influx green inc Z.
pcrivnced men when changes were maue was 70
small hardly to be perceptible lie had bIied
/ tom House tour years ana hall; was familiar with
the workings oil tho warehouse system tho account
arc sworn 70 by notarics public, oil winch there
| plenty IN tho Custom House.
! rhc committee adjourned until this morning al
! eleven o'clock