New-York tribune., 1878-04-20
DISCOVERY IN THE SILK TRADE.
now EUROPEAN MiNCFAcTUEEEs AND IHEIl' @
,crxis MANAGE TO KEEP CONTROL OF 1HB


NOW EUROPEAN MANUFACTURERS AND THEIR
AGryis MANAGE TO KEEP CONTROL OF lhb
SILK IMPOLTATI0Ns.
Try TELEGRAPH TO TIE TRIBUNr.l
WAsHIxGToV, April 10.-The commission a!-
ponted bv the Secretary of the Treasury 10 inquiry
into the accusations made by Western customs
officers and merchants against the customs onIceIs
of New-York, for allowing goods to be entered at
less than their real value. reports some remarkable
discoveries relative TO The importation OF silks
1t saws that il is not only impossible for Western
merchants to import silks in bond. but leading
houses in Eastern cities even, cannot purchase them
abroad and make profit upon them.
Tho commission asserts that during the last three
or four years none Of the silks imported INTO inc
limited States have been brought in by American
dealers. The foreign dealers and manufacturers
and their agents in this country manage to place
silk fabrics on the American market at lower rates
than they can be purchased abroad ana imported
bv American dealers. The way in which TINS Is ac-
complished is described by the commission as fol-
lows: The foreign manufacturers refuse to sell to
American merchants or their agents, but VIII make
contracts to deliver goods to them in the United
States. duty free Then the European manufac-
turers consign all their goods either to them
selves or to their agents in New-York City,
and the goods so consigned are valued
at much less than their real cost, the undeTyalua-
tion amounting, in some instances, TO as much as
80 per cent. To the agent in New-lork Is lntrus-
ted the duty of getting the goods through the Gus
tom House. and they have become so expert IN tins
matter that they have no difficulty i'll securing the
entry of silks even when the undervaluation is
great The commissioners say that many lines of
silk goods. which are worth 81 80 per yard, have
been Systematically appraised at the Ncw-Hork
Custom House at 50 cents, the European manufac-
turer having no difficulty in obtaining the necessary
consular certfcatIOn Of his invoices and the agent
in New-York succeeding in making the necessary
oath that the cost not greater than set forth IN
the invoice.
3 BY means of this undervaluation, the commission
asserts ring in NewYOrk City controls the entire
s1lk importing business, to the exclusion of such
American houses as A. T. Stewart d Co. and IL Is.
Clafn & Co., and many others of high standing, all
of which purchase Of the consgnees instead OF the
manufacturers in Europe.
The members of the commission also assert that
this system is not confined exclusively to the under
valuation of silk goods but is adapted In greater or
less degree 10 nearly all classes of European goods
on which an advalorem duty is collected.
The investigation is also said TO show that the
Consular Service is very carelessy, if not conuply
performed especially in the certifcatiOn of invoices.
Many Consuls appear to pay no attention to the
details of invoices. The importers have testified
that invoices covering goods valued from $4,000
TO $50 900 are never examined by the COnsuls. In
some instances they are sent by the manufacturers
10 the Consulate by q messenger or boy, and re-
turned properly authenticated. The excuse which
is said to be made by the appraisers in New-l Tor
these underyaluatIOns Is that the importation OF
silks having been for several years III the hands OF
the agents or brokers of European manufacturers,
there have been 10 imDOrtatlOnS by leading houses
by which standard of value has been fixed.