The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1878-05-04
Frauds ON the Revenue.

| The special commission appointed by the
| United States Treasury to discover how much
cause exists for the complaints that imported
| goods are shipped to agents by foreign parties
at false valuations, for the purpose of defraud-
ing the revenue and competing with honestly
imported goods, were yesterday in session at
the Custom House. They consist of General
Meredith, chief appraiser. and special agents
| N. w. Bingham of Boston, and B. a. Kinds of
Chicago, formerly of this port.
The charge of fraud first started in Chicago.
| where it was claimed that New Workers could
import goods at much lower rate than there,
Since then it has been charged by our import.
ers that by some underhand work goods ara
brought into the couptry and sold SO cheap that
they canrot do business. For instance ths
fact that only two cargoes of sugar have ar.
rived here this season is cited as one of the
grounds of complaint.
From the testimony taken in other cities It is
shown that both the government and the legiti-
mate importer are suffering loss through
species of differentiation systematically carried
on by foreign houses represented by agents in
this country, or rather in New York. At the
present time this differentiation is chiefly CON-
fined to all silk fabrics, gloves, &c., but the
testimony tends to indicate that the practice ia
gradually extending to new lines of imported
goods where the dnties are chiefly ad valorem.
80 that an evil, which..has hitherto been limit
ed, threatens to become quite general if not
remedied at once.
THE state of things has been brought about
by a system of differentiation at the port of
h1o c1ou of
represented in this country by agents to whom
the goods are consigned. These parties in
voice the goods at much lower price than any
importer in this country can purchase them for
abroad. The American consuls at the port of
export either through carelessness ignorance
or by collision, allow the foreign merchants to
certify to invoices in which the goods are large
ly undervalued. They are shipped to New
York, and there the customs officers, without
attempting, or at least without being able to
correct the prices, estimate the duties upon the
undervalued invoices. The goods are, as be-
fore stated, consigned to agents, who sell them
to wholesale dealers at stipulated price, duty
paid. As the duties on these goods are largely
ad valorem, it will be seen at once that the
government, through this false valuation, is
defrauded of large amount of revenue-an
amount variously estimated to be from ten to
fifteen millions of dollars annually.
1t is the practice of the commission to select
10 each city some prominent importer to sit
with them. G. W. Woodman, the dry goods
merchant, has been invited to meet with them
here. In Chicago, where they first met, L. q.
Letter, of the firm of Field, Letter & Co., was
selected. Then on going to st. Louis, Hugh
McXttrick, of the firm of Crow, Hagardne &
Co., was chosen. In Cincinnati John Shillito,
of the firm of John Shillito & Co., represented
the importers. In Boston John Hogg, of the
firm of Hogg, Brown & Tailor, sat with them.
The sessions will be continued today and then
the commission will go to Philadelphia, Balti-
more and finally to New York, where the sew
eral representatives who have met with them
are expected to be called together to assist in
making up decision.