New-York tribune., 1879-08-26
LOCAL MISCELLANY.
1rNDrRvNuATION OF vFLvETS.

UNDERYALUATI0N OF NELNEIs
SBE REApPRAIsEAIENT OF oEIBERMANN & CO.'S I'M
PoRTArIoNs SUSTAINED BY COLLECTOR MERRITT
-THE REVENUE DRFRAUDED BY FOREIGN MANU-
FACTURERs.
Collector Merritt TO whom appeal had been taken
In the reappraisement of fancy velvets imported Dy
T. OeIbermann & Co., No. 81 Grceue-st. yesterday
rendered a decision sustaining the valuation made
nv the general appraiser. The advance on the
invoiced value of the goods is 27SlO per cent While
tbe merchant appraiser Mr.. Eames, OF H.
r. Cladin g. Co.. had increased the value
a trihe less than 10 per cent IN order IL Is sup
posed TO avoid the infcton of the penalty for un-
deryauation. The decision Of the Collector IN the
case is important inSsmuch as it indicates probably
n similar decision in parallel cases. lmportations
amounting to $4,000 are detained awaiting the
result of the reappraisement.
The undervauation of foreign goods Of silk manu-
facture has been the subject Of investigation for
many months. The attention of the Department at
Washington was called last Winter to the maghl-
tude of the violations of the revenue laws Secre-
tary sherman was anxious 10 correct the evils com
blamed OF. and he designated A. X. Tmgle, Chief of
fhe Secret Service to investigate the matter with
the aid of the New-NOrk agents OF the Secret service
the abuses have been shown clearly 10 exist lhey
formerly tire custom of NcW-lOTk merchants 10
visit the foreign markets aud make their purchases
ard for simple reasons, tins habit mas ceased auu
the trade has fallen almost entirely INTO the hahuS
Of the NeW-IOrk agents OF foreign manu- ctUIeTs.
Ii is said that six years ago at least 10 per
cent Of tle silk goods imported into this country
were b1urht directly by New-IOrk merchants OF
the French and German manufacturers: IL Is
claimed that new not per CCut OF the nnpoi.a-
tious are CtIcct purchases. The cause OF tIls
change lu the course oi the trade IS auHhuleo, ~
customs officers entirely to the practice OF qnruer-
valuation 10y foreign manufacturers In,9
uIdeTyaiuatlODS are sara 10 average dnHutt
33l8 per cent. lt has been estimatcd iId'
1he loss 10 the revenue 10y uuderyauatlons,
since fine r,ut8l OF the mOety Gcrs, would Teach as
ligh rs S25, 100000 annually Inc imports
~ sin, Good, alone have amounted 10 about
500 OO0 600 and an average uuO"rValuaIloh OF
:}3i3 per cent has cauSed large loss yearly {" tue
revenue frOm imports. iue JOSS 10 Amer
goods ouiy of the aecuts OF foreign manu-
facturers rs beyond calculation. In this Inyestga-
ton the first point of inquiry was IN respect to the
honesty of the examiners at tins port II was I9uhu
from The records OF the public offices that the Gov
erment had lost during the past hye years DetNeeh
$1,000 900 and Si.OOJ,cJO Annually, NO chaI2es
AGAINST the integrity of the officer under whose
management of the department these losses
had been incurred were made but he
was removed temporarily in order 20 correct the
evils which under him We're found to exist Oue
examiner was dismissed on written proofs or ms
dishonesty. Two new examiners were appointed,
aud, since thr inquiry was begun, importers lhe.l-
selves have advanced voluntarily their invoices IN
order 10 escape the possible penalties resulting rom
relppral-tmoIt. The revenue has been increased
largely during the present ear by tins action OF
Ihe veivets imported into this country are manu-
factured solely for the American trade, aud often
according To tire taste patterns of tho American
buver. Tho agents of the foreign manufacturers
have claimed during the progress Of this inves,iga-
tIOu thai tle dudDle value of the goods was de eI
mined by the cost of manufacture, together with
n fair profit which is admitted TO be 10 per
cent This manner of making the inyolces
has resulted in the evasion OF fuiI du-
ties There has been absolutely no foreign
market for the goods, Intended only Tor the Amer-
can ira lc, and American buyers have been driven
f.om open and direct purchases the foreign mar
kets The Nev-lOIk agents of the foreign manu-
taciurcrs receive commissions on all business from
the United states ON direct orders from l2 TO b
Der cent and on orders through them Of 10
per cent. The price at which the goods are
sold 10 the American merchant does not form
basis for the iuvOiced value. Goods sold
to different merchants at II, IL or 10 francs are all
invOiccd at 8 francs, and then the manufacturer
consigns to his Newly ork agent goods of the same
quality and pattern InvOIccd at francs The Tor
Cign manufacturers is enabled thus TO underSell
his own customers in their own market.
The agent is said by customs officers to be
merely gO-between to evade the full payment OF
the duties. " He in ef Ct says to us" customs
officer explained yesterday, YOU have no business
10 inquire about what do in America, and we
won't do anything Europe"
The invoice of T.. Oelbermaun 81 Co, on which
decision was given Yesterday consists of fancy vel
vets worth about - 800. They were manufactured
10y Christoph AIdreas, Crefed. The advanced
value of 273lO per cent carries with 10 penalty OF
20 per cent on the whole invoice and the duty-6O
per cent-Ou the increased valuation