The New York herald., 1878-09-13
INVESTIGATING THE CUSTOMS.

AUDITOR FIscBEL AND DEPUTY COLLECTOR
PHELPS EXPLAIN MATTERS TO Mn. WOOD.
The subcommittee Of the Congressional Committee
OF Ways and Means met again yesterday morning. in
the office Of the Naval omcer at the Custom House.
The only member present was tho chairman. Mr..
Fernando Wood.
The first witness called was Colonel Fische Auditor,
who had been examined before. He said that he had
furnished the accounts to the committee, embracing
abstract OF the payments mado each month. Tho
aggregate amount for incidental expenses paid for the
last fiscal year was $4i7.5l6 So. He had advanced
money to the deputy collectors aud the seiz.
room for necessary expenditures, which Is
charged TO CONTINGENT expenses The money
is taken from o fund. regularly estimated for
and allowed by the. Secretary OF tho Treas
ury The department sends draft on the Collector,
wp,ch s deposited with the Assistant Treasurer and
the money drawn and expended on proper vouchers.
The witness presented the accounts and vouchers,
which were voluminous, and required some time IN
the examination The moneys expended BY the
Deputy Collectors, he said, wore regulated by law,
and the accounts whom presented monthly are paid
by the witness. The aggregate receipts, according to
Colonel Fsche outside OF those for duties, amounted
$123 50 "a for the nscal year ending June 80 He
explained to Mr. Wood that tho money received from
the sale Of bad seals, cordage, samples and 80 on
returned monthly account me amount
charged Tor seals fixed by laws tho samples are sold
by auction. The samples Guild not be sold a. pri-
vate sale, tho rules beng too strict.
DEPUTY COLLECTOR PHELPS
Mr. +. Phelps, Deputy Collector, was next called He
stated that he had charge OF all SUITS against the
Collector, whch are generally brought Tor the refund
Ing of duties wrongly collected through improper
classification. He explained at lengsn the WORKINGS
of the drawback department ana told how imported
Goods which are deposited in warehouses and duly
PAID were sometimes exported, IN which case tho
drawback department. refunded Tho duties paa minus
Ono Dor department
Internal revenue paid on manufactured articles, as
clos are originally stamped, but as the exploration
proof against iutcrnal consumption the manu-
iseusr entitled o,xer roIna IN SI Sr MS woos as'pu n
stated that the most important bond taken
in his department. was the warehouse bond II is
given for the payment oi duties on unclaimed goods
remaining IN bond for three years. Mr. Wood
wished know tho goods themselves, which are In
curty for the duties. Mr. Phelps explained that, for
many reasons, the abolition OF the bond ana toe
the government. Almost invariably these goods de-
tor ri0rate In value, and, In majority ol cases, the
bo unable TO realize the amount OF tho duties For
this reason Mr. Phelps considered the bond most
important one II bad been suggested Mr. Phelps
sa,d, that every bond entered into by oondsman DO
much cash against MIN, and that the entry
taken out ana the duties paid. In the
opinion OF the witness such a rule would seriously
I'm pede tho oi the port, for men couid not
bo found TO submit to my sucn agreement The bond
he considered ample security. and In proof OF his
opu,on ho states tnat OF abou, twenty mine thou
sand tukcn during seven years o,iy about sixty had
proved bad Passing from tho warehouse bond no
said that tho next bond in Importance taken by him
was the imm cdiate transportation bond. This pend,
ruther tho law authorizing H. he regardef as one
OF the most pernicious on the statute books, an
opinion IN which Mr.. Wood said ne fully agreed. Mr.
Phelps detailed serattm tho different BONDS taken by
his department. .
Wood shat certain brokers have more facilities in
your Office Tor so,ug on bonds, and that shey gain
large business py being able to 60 on bonds 70 any
cxisnt?"
mo SIR We taks all brokers whom We know 10 be
solvent aud in good repu,e, aud to 0s men VINO wii
not default GU their bonds. The substantial cond
tions OF expert bonds seldom or ever violated, as
the goods put board the vessel IN tho presence
OF u ofl;er. Tho regulations on these bonds
are absurd and prepostsrous and cause much trouble
and inconvenience to tho exporter The exporter
osnnot have his bond oancs,led unless he produces
the consular certificate from abroad, and the an
davits OF tho captain and mate that tho goods wore
landed"
Mr. Phelps, having concluded Tho narrative OF the
routine of MS ofoe asked permission TO make few
stat aud thereup0n developed spicy phase
In the proceedings. absolutely erroneous," "mar.
velously Imaginative and peculiarly incorrect"
OF The statements OF Mr.. Hyas aud Mr.. Schultz. Ho
said that the formor In saying that the merchants
wero bothered and taxed with fees aud commissions
which are provided tor by law, was wide OF tho
truth 40 enumerated some cascs 10 which NOR
chants feared conascasI0a Of thoir gooos' wnoreas
forfeiture are decfeed by law. Tne special
OBJECT OF Mr.. Phelps attention, however, was
Mr. jackson Schultz Regarding the statement Of
that gentleman, that steamship companies were In
having their snips seized hc requested that
Mr. Wood sh oud call the sentlemsn in question and
by thom disprovo Mr. Scnuitxs assertion. As mat
ter OF fact no said that within ton years only Two
steamships had been sczcd-to vii. the DsHmark
the England. Mr.. Phelps was adverse 10 seizing
the England, thinking that tho Denmark would bo
sufficient II condemned, TO pay all the amount OF Tho
muct oi tho company 10 ina. eueot ne wre'e 70 ,nc
Secretary OF tho Treasury. Word was sent BACK TO
seize tho England, and The order Was obeyed Con-
ocrning the protests from the sugar trade, ne ssid
there been ngis protest this year. tth re-
gard the Of idle So 900 year clerks, tho
timo books OF tho different departments would prove
that 10 be an imaginative statement. ME Schultz
also mistaken in asserting that all hides Imported
an comiug from tho sido OF tho Cape OF Good
Hope had 10 pay extra ton per cent duty.