National Republican., 1878-12-03
SPECIAL AGENTS WORK.
Annual Report Of the Treasury
Division.
Large Amounts Saved To aud Recovered for
the Government-hIiiions Lost by tho
Repeal OF the Moiety Act-How tho
Revenue Laws are Evaded-
A Deliberate system Of
differentiation, SC.
Relation Of the Bureau to IN. R.y.pu


Tho annual report Of the Division of spe-
cial Agents, Treasury Department. shows that
during tho year ending June 30. 1878, the
value OF seizure reported by special agents
was $l0s, ,s5i95; amount involved In suits in
stitutcd upon information OF special agents,
$500 ,09i.53; amount recovered by suit or
otherwise, $35, ,osI.70; inc. cased duties or
penalties collected. s7O,063.3S; reduction in
expenses recommended, s6i, ,7S1 30; saving by
reduction In drawbacks on sugar. rs recon-
mcnded by special agents, 30i,5l5S2 csti-
mated saving In charges and commission cases,
81, 100000; arrests and criminal prosecutions
Instituted, IS.
Tho number of agents authorized and en-.
ploycd during the year was twenty:
Per diem compensation. SIS, 100 %
Travelling expenses. 1874 Sc
Total cost .,...,....................S S7G,52i S6
Eight cases of defalcations by custom officers
were discovered during the year, amounting
to 50, ,662.29. OF this amount Sj.75i.s3 has
been paid Sl5,3iO.75 Is In suit on official bonds
Of collectors, and $2,5G6.7i has been charged
to collectors by the accounting officers.
There were twenty-five bonds OF common
carriers approved and eighteen discontinued,
leaving 125 bonded routes, of which twenty
seven arc for the transportation Of unappraised
goods. These routes arc bonded by railroad,
steamboat, and canal companies, and In n few
instances by single individuals. Tho value Of
packages transported under bonds during tho
year was s., ,s6l 239, and the estimated duties
thereon was $l,O44, ,i62,1s.
| II Is estimated that tho saving during the
last fiscal year In the cost of collecting the rev.
enue over that Of tho year previous was S77s,-
1925. II Is also stated that In largo mum
bcr Of districts the cost Of collection forms
large percentage Of the amount collected, while
1 Ia s.N.. EN~sat L.. L..
| receipts. In many of these districts, which
were established In 1882 when all commerce
was carried on In sailing vessels, there arc now
no importations Of foreign merchandise what
over, and the duties Of collector arc confined to
routine matters pertaining to the coastwiso
trade. 1t is suggested that the Secretary of the
Treasury be authorized by law to consolidate
two or moro custom districts Whenever In his
judgment the public interests so require.
The report says II has been estimated that
tho loss to the revenue by undervaluations
since the repeal OF the moiety acts would reach
rs high as S25000,000 per annum. There can
be no doubt that many millions are lost every
year on this account. In some classes Of mer-
chandize American merchants have been COM
PEELED, by reason Of undcrvaluatiOns, to stop
importing OH their own account and to buy
their goods from commission merchants, who
receive tho merchandise OH consignment from
manufacturers in Europe.
Special efforts have been made by the dvis.
| ion to ascertain the true market value of Ger.
tain lines of goods which arc imported by con-
signmcnt cnly, aud these efforts have been par.
TALLY successful.
The ovasian of full payment of duties by up.
LIBERALIZATION OF certain standard goods, notably
silks, vclvcts, laces, and fine kid gloves, has
not only been matter Of comment among our
merchants, bnt has for the past four years.
with the exception of a few invoices of gloves
imported at Philadelphia, prevented direct i'm.
portations Of such goods by American NOR
chants.
Another obstacle In the way OF obtaining
accurate information on this subject Is tho
reticence Of merchants. Compelled by reason
of the existing monopoly Of the trade in silks
and gloves to have business relations with the
agents Of foreign manufacturers, 1t Is readily
seen that q due regard for their own interests
is sufficient TO prevent that assistance in ex
posing and suppr, Ssing tho evil Of underyalu-
ations which could and would, under other
circumstances, no doubt be rendered to tho
| Government.
The disposition on the part of European
manufacturers aud tradosmen, particularly on
the Continent, to cvade the American tariff has
grown so widespread ttat even retail dealers
milliners, dress-makers, and othor trades
pcoplc-aro in the habit of rendering to Amori.
can tourists, as an induccment to them to pur-
chase goods, false invoices to enable such
touriS's upoH tHeir rcturu nouict " CNdue
portion of the legal duty.
Although tho fact Of the existence Of sys.
tom Of deliberate ihdorvaluations Is known
to every wcll-iniorncd merchant in the coun.
try, tho difficulties attending the production
Of such convincing proof in specific cases us
will justify proper advances on appraisement
arc also inseparablc.
There appears to be but one efectual remedy
for these difficulties, aud that Is tho substitu-
tion Of specific for adj rdiorem duties, both as
to silks and gloves.
The report then refers to charges and com
mission cases. 1t is estimated by tho officers
who have examined these claims that the sum
of $780, 900 has been paid since 1866 to author
lied attorneys of importers In cases upon which
no legal protests had been made.
The papers in so of the $50 suits still pend
ing have been examined, and of that number
533 are pronounced invalid for want Of legal
protests.