The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1879-01-12
THE COURTS.
ENFORCING THE COLLECTOR TO SHOW CUSTOM
HOUSE FILES

ENFORCING THE COLLECTOR TO SHOW CUSTOM
HOUSE FILES
Late in the fall of 1878 one Peddrick the Custom
House clerk of Bernhard Il Hutton one of the Oldest
and largest importing houses in the country, alb
seconded and the House officers claimed that
duties to the amount of $l2O,OO0 gold had been
due and unpaid for some time from that firm They
notified pay that amount and have their ware
house bonds cancelled. The firm had issued checks
for the full amount of these duties to Peddriek at
the time of the withdrawal from warehouse
of the goods and had always supposed that
this amount had been paid at the Custom
House in the regular course of business nasmuch
the Collector had in every issued permits to the
warehouse men informing them that the duties
paid in full and authorizing the delivery Of the goods
to Bernhard & Hutton. The firm at once sent to the
Custom House their bookkeepers and clerks. who
commenced the examination OF their entries and
bonds on file, which purported to show far
they went, that all the duties due had been
promptly paid, and the permits for delivery
surrendered by Bernhard Hutton to the
Collector upon receipt of their goods from the
government warehouse in every rected
that the duties had been paid in full. They began
records showed such payment II in fact NO PAYMENT
had been made by Peddrick, and they were told by
the customs officers that Peddrick had filled blank
spaces in the permits to make them other goods
than those upon which the duties had been paid and
that he had probably pocketed the difference.
pened that permits we're issued rsciting
the payment OF duty with blanks that could
be filled up to cover other goods. The only
answer they have yet received that while they
still examining the records OF the Custom
Court for about $llOOO and another in the District
Court for about $4,000; that in the former an at
tachment was issued against the property Of the Arm
on tho ground that Mr.. Hutton, who had residence
at Orange, n. j., president of the State Of
New York; that this tied up their business and
time. and put stop to their scrutiny of the
Custom House files; that the Arm
promptly deposited in the two courts the
full amount of the governments claim and interest
in gold to abide the result OF the suits whereupon
the attachment vacated; that then it became
known that the firm would defend the suits and upon
the application of their counsel to inspect the
defence Collector Merritt refused to permit any in
spection access to them. According to the course
of business at the Custom House, when duties are
paid the record evidence of payment appears
the permits for the delivery of the goods and such
other papers as are kept and filed in the Custom
House; that the customs officers instructed to
and do customarly refuse to give any receipt for the
payment of duties and that checks are taken but
the gold must be taken the counter; and there
FORE unless the importer In person pays the duty no
is at the mercy of dishonest clerk or dishonest
the record evidence Of payment on the
Custom House papers. The defendants, upon
their counsel to the records, applied to Judge
Choate in the United States District Court for stay
Of all proceedings by the government until they
should be permitted free inspection of these records
and also mandamus directed to the Collector to
compel him to permit such inspection. These mo-
tions on for argument yesterday before Judge
Choate and the right of the defendants to the inspec
ton of the papers covering all the foregoing ground
was discussed and the claim was made in behalf
OF the defendants that under section IA of the
Judiciary act the United States District Court could
issue tho writ of mandamus in the pending suit
in aid Of it, to enable the defendants to make their
formal answer. Assistant District Attorney Jones
pezred the Collector and the government, and
Assistant District Attorney Roger NJ. sherman and
John N. Whiting for the defendants Judge Choate
reserved his decision saying that he would reach 1t
during the coming week.