New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1879-09-13
VALUATION OF SILKS AND VELVETS.

A STATEMENT OF WHAT Tux CUSTOM LAWS OF THO
UNITED STATES REoUIRE-A GENERAL CRITICISM
OF MR. FRENcH's POSITION.
WAsHINGrON sept l2.-Sllk and velvet import
ers of New-fork through their counsel, have adj
dressed letter 10 Mr.. French. Assistant Secretary
Of the Treasury In reply to his letter 10 Congress
man Shallenberger published In The IRlBUSg Ok
September o. This reply is printed below;
TIE Hon H. F. FRENCH. Asslsrnt Secretary Of tie reas-
DEAR SIR Your letter published IN The NEwYorx
TRIBUNE of the 6th inst, TO ths Hon : -haen.
berger an effort the public that The recenc
action OF the Customs officials at Tho port respecting ia-
portatons OF silks aud velvet. nas been ID iast nrx
ers You shoud nave known that H. men whom YOU
thus dish0nOr among the oldest, best knoSn
and respected merchants and importer. oi tbs city,
We have not tho article which furnishes the *.
clse for the publication OF your lettcr and shall
SIMPLY ask your attention aud that OF the public to q
Fairly stated then qu -tiOu l. Are the prices n
which the recent sils and velvet mporia0ns nave D..
entered by the importers such required by re
Customs laws OF tne United states Tue answer dc.
ponds q determination OF what the laws in question:
require. The rule for determining fUiable value
lxed by sections 1900. 29O2 and 2.so4 o. the Revised
statutes L is ne ae7,ai naet rGIs On rof sais grts
States. IN, ne principal narkss ~ ne so"n1y
tons 2,sO2. 1922 aud 1923; tue spptsser- are 70
qured Use " all reasonable ways and means fnr
ssoertaining this ysue and 70 that end 70 exhnins
parties oath, and 20 require tie production 9f let
ter- accounts and invoices" The object Of thl- M
gu.ition however merely 10 reach correct for
egn value The Importers insist that Tie entries cor
recty give this value IIe Cus,oms 9rical.. yer,
AXE the goods, 10 some cases, pay dny OF iro
20 to 40 PER eeaS ia sa nns TO- not tI ep qG & NJ
ported under orders Dut 20 me endae tnsoiices
imported under orders. the appraiser has advanced
precisely the goods To different prices, according
AS they were sold IN this Tor different amounts
Thus our local officials virtually repeal The existing iaN
and tbemseyes set up new one name y that duties
foreign market on homo value not ON the foreign
The importers pronounce this act unprecedented op-
press We and uuwarranted By statute, judicial d-cisol
or Treasury regulation rms leeuo4 mas RI eai'Thy
received iuIcn eXaHiuation NJ W'.rc. 'i ~, y,
that the evidence Of foreign market or dnthbe
value actual selling price, or Offers 10 sell OF t1s
Orsinar gOods IN tue countIl - ii ~
ton made But II Is replied that IN me present. csAes
this rule cannot be applied because the entire pro-
duct OF the foreign manufacturers Is sent %
agents here, and no goods are sold or offered
that In these reappraisemens 10 Mas not shown.
and obviously canno be true thit no sks or Feves
similar those question sold or offered for sale
rc5 Nv 5he i@porters Who te.tiied rom their own
know OF the actual market value OF the goods IA
the country wlenre hey were imported based on '.le
In fact ain ulty IN procuring the best evidence o.
foreign market value.
But granting that general test Of foreign market
duuahle value name y. actual sales or offer 10 sei
abroad. could not bee applied "a these case The courts
and Treasury Department following the courts, nave
lard down rules procedure ~ such Ia the
sherry wine q Benedict, -ly tbs entire product
taken consigned 10 the manufacturers agents. and tn
six riOOon case IS Benedict, 800. nearly the entire
product WAS Slapped. principally under orders. Ia
these ease. the Court hcd the absence " actual
sales offers 90 eel, OF the same en- siniar goods IN
the foreign MARKET thr actual h.fAet VAN" sH.ud
be- determined by adding tO tie cost ~ Pro
ducton reasonable manufacturers pront; and
IN the Hughes recently tired here. tie
Court decided hlt York prices ere mo- evidence q
NcwYork orders had nothing Whatever io DO with tx
ng the foreign market price, or cutl,ole y'lue Tho
drcsse,i to Customs Collectors after stating nj hat the
ff.ff 90 Ntlu Is
offers the goods abroad. and el tna where nO foreign
saes are made to Amcrcats sales o. OILERS b.
-flered and 90 that when no f0r ian -alls what
ever are made the market value ~ -iml ar goods
Of other manufacturers may be taken. lays down
this further rue a. follows; " In cs-es where
the manufacturer ships all his goods to tie
United safes on consignment for sale and nc
mrket value cannot be asccrtained By the meth
DDS before indicated. It should BE- liked ny
materials OF the goods AZ the time and place = manu-
facture and fair manufacturers prgrt al led" sueh
Il he law 80 ciared by re -atnir u, courts ana tLe
Treasury Department. and te entire offence 81 these I'M
pOrters - ia asNAS o. ana those over Wh"m you mol
o~fiy claim 20 exert Only a moral LnNrn,t ~ cn-
force the law as It Is, and not 10 make new !aw.
The rest solely On The prices of goods
sold Ia TINS country upon orders lot Iu'tir oeAt.ry
For ts teerc il NO law Foreign buyer, hive testified
lIor1ers have .hown the OF nanuia tGre with
far manufacturers profit added" Tie appraisers
force gal rule making New-lOrk order price,. 10
stead of foreign market VaIue Tue Das7 o ouilr nern
issue between tne importers whom yOu ccUOunce
as cOnspiratOr-" aud especially foreigners, and
ihe Customs officials " hom on eulo.izc.
You state that about % per cent 0f all tie silks and
veIy Il Imported come through ageui- o. foreign manu-
sacturcrs and that OF the manufacturers eu-e 10
directly the chants, aud you charge HAT the
manufacturers and agents are engaged ia conspiracy
10 dcfrud the reyrnde and 70 destroy al comPetiton
But there not precisely the same competition aud
eagerness t. sell on the part OF The selling agents AZ
would be- on tue part OF the manufactured But
when you charge tDat this method " doing Dusiuess
Intended defaud the revenue, the VI tba
cnarzr - stil more sarng DO You not KNOW tnat TIE
methods pteNhl efcrlWE,icg tAG notably ia Tie
United States IN respect TO our own manufacturers Al
our dJDesuc manufacturers 7,l their goods throuzl
agents and our great commission houses arc 1uLt 40
upon this system.
Wl.h reference the means OF relief for importers
FROM unjust apprs- nlents you say tAa u ile Imported
l. dissatisfied, ne may appeal 20 board Consisting OK
Sehelt appr 4.ssl, sie 80 . ~ ~ - -
meicnnnt or Of TWO sHeh ,neichunI. ana u Icy u.s.
What has been the practical application of tniS Ia" IN
tie cases now IN Question Merchant appraisers. men,
bers OF largest business hrm. have bcr selected by
Collector they aud the Official appraiser. lawyer.
sustained tho Official appraiser. Moreover. IN
10 escap, the excessive delays NOW attending
agpra iseueus where the general appraiser member
merchant appraisers, nut that Application has been
fused. Eydcndy importer ~ be compelled 10 accept
the decisions OF tue Customs officials. Lyen right VI
appeal % court refused II one caec where IN ad
vance 0f yearly 30 per cent had neen made DY TIE gem
ersl appraiser and subsidized b. the Go ecof We were
directed by crns 10 request tho CO ecior ~ DING
al action 20 forfeit Tie hoOds VI thr fe' as ls pro
yded oT ~ LAW Ia sue. cases. md tLDs ~ "a. only
but THIS a2pcaOn TIE Collector IAcN &c "eul,e Ihe
po.Iuon therefore, Ia VIII Tie mp rtss ,sta1 th.r
N fhey compelled OT the Customs olnclals topaz a
Gusy Of perhaps nom 20 u ~ PEI cent ia addi.ioa
a. b. original Cf 80 ~ dccislOas 0f
the merchant appraiser are "hOH vf' Hlv1tn ~ ne
general ayprasr and Collector. Wnose rlon ir hlalg
81 the Government refuses submit the rcappralsu-
nent twp rcnanl appraisers; a. lie Government
Likewise refuses 10 rclEs tie gOr- ul an action fur
forfeiture correctness az tr attiOLs and ~
la-tly al THE s done upon pruc pie n valuation
urcly new. and as thiuk We have shown molly
warranted Dy Law.
TIE epithcIs II your sletter such ne =" fraudulent
agents - ad for~isucr might per4aIs DE furaef
criticised toe OF good tastes ~ ofliai dOcg-
H. but believe INA. your sccOad t.Jusnt viii
couaenn the use or Application ot sue4 erns ~ these
ca-cs
h /, not M All surursinc that vo. are able 10 cio-a
your letter by sauns that the collected upon
m. YOU'VE N que.lIOn va. been lnIseli lncreased