New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1883-12-22
PRICE THREE CENTS.
UNDERVALUATION OF SILKS,
EXTRACTS FROM AGENT MARTINS REPORT.
ALLEGED SYSTEMATIC OBSERVATION-DISCLOSURES
MANUFACTURERS SAY.
[BY TELEGRAPH TO THE TRIBUSE.l

treasury 0fhcials asserted thatthe Government was
| being defrauded by O number of importers who
were in the habit of receiving from their consign-
Ors in Europe and elsewhere invoices which showed
systematic undervaIuation for the purpose Of
| evading the revenue The statement was pro-
nounced false by several papers in New-York. and
as rejecting upon the character and standing of the
New-YOrk merchants To substantiate the charges,
Supervising Special Agent Martin has adj
dressed letter to Secretary Folger, which is
summary of the information contained in reports
on file in the Department concerning frauds upon
the revenue by differentiation and other practices,
it is in part as follows:
THE INVESTIGATIONS N SWITZERLAND.
"The Consul at Horgen, swzerand in report to the
Secretary State dated June 16, 1892, says Il have
considered my particular duty make careful exam
ination into the system OF invoicing silk that article
being the principal export from this jurisdiction, and
convinced that the Government loses very large sum
annually from differentiation Of said material
e. have already been informed that two
houses within my jurisdiction have system Of under
valung their goods and Mr. Byers Consul at ZURICH has
informed me that he has heard the report II is
openly said here that the silk trade is heavy TO ths
United half the profit OF the export is draw
from undervaluatiOn'
October 49, 1882 the same Consul reports that having
had the aid Of an expert in the examination OF SILK
invoices during the month, his previous impressions
Of undervauations more than confirmed. he
expert clearly OF the opinion that all the invoices are
undervaued, and all should be raised.
November |, 1sS3 the same Consul transmits
statement showing the result OF the reports made to him
and by him. and transmitted TO the Appraiser at New
York by the expert employed investigate the values OF
invoices Of shipped from that consulate from which
il appears that from September s. 1888, to October l,
1888, on 80 invoices the advances made amounted 10
S35s7l rs. These silks shipped TO the following
w-York firms viz: Luckemeyer & schefer, Fleit-
mann Co.. G A. Auffnordt & Co., oberteufer, Abegg &
SON. Fl Oberteuifer Sons, Edward Warburg Co.,
Stopper streats Victor Ocbells. Gsen, Nceser Co,
g,or "a The Consn AZ 1}ase referring 10 a report
previously made by him regard undeyanatons
OF goods consigned by Bensa Bro to A. Kepstne New
York communicated additional evidences OF underyaua.
tlon consisting eight invoices OF Anine dyes shipped
valnaon of these c0nsicnments will reach an enormous
figure In some the difference between prices stated
consigned invoices and the prices received from actu
Under date Of October g, 1888 the Consul at Zurich
stated that he had employed an expert who had Deen ex
and who found regular differentiation Of price, he
states that former silk expert employed ny hm eI MS
nca work with the remark that he FOUND
too much fraudulent und eryauation among pfomnene
shippers, some Of whom were his friends ana tnat they
would it hot for him TO do his duty with the IN
voices The has pee9 & Soos a III 6s
would leave the Office and let the invoices alone.
DISCOVERIES AT BAsLE AND CREFELD.
Under date OF October IL, 1888, the Consul at Basic
reporting upon invoices OF velvets and short plush
ribbons that investigations made by him delnon-
strate the proof OF former reports on underyaatons He
refers TO OF the yOrte and successful tricks Oh
dishonest importers OF including small quantity OF cor
recty rated goods in shipment with large quantity
Of undervalued Ones and covering the whole with con-
sular invoice so vague and indefinite In Its terms
tnat In and pressure OF business at the Appra
ers office the under valued merchandise may escape
notice He gives alist of fifteen invoices OF ribbon shlppea
by Fechter Fills, manufacturers OF Basie toC a. AS
francs He states these invoices fraudulent In
that the ribbons therein mentioned are hVoS1
al from three 20 sXyve centmes per lne whilo
in case has he been able TO OBTAIN an esun1e ot 'he
market value % o. the & goods Snns1 az s s . October
1888 he that veets manufaG tuTed at CLefetd
states in large quantities. are greatly uDdoryalued that
the methods by which these underyaluations are main
velvet manufacturers OF Ceeld and the adjacent villages
Of Viersen form close cooperative vSi aSsoeianOn ZION
sell their goods freely 10 purt hasers from Eng.
land, France and other countries, they refuse
absolutely TO sell direct any part OF their products To mn
porers from the United States. Each OF the principal
velvet manufacturers in The Crefeld districts mas an
of the manufacturer. When an independent puIchaset
yelvets he is either the agent IN New York OF
is told that he can purchase tne Soos ~ IIis ,b o S
are impced NewYork at values unknown to the ac-
tual puIohaserthe consular invoice being nlhe 70 inc
agent IN Newlork who pays the duties ana IeiveIs 'Ha
Goods duty free TO the purchaser who orders them IN
Croreld Almost all these manufacturers OF silk go9as rs
in Crefed state that they have been Tor years 70
export their goods to the United states III Immense
quantities without revealing 70 tne Sastoh M nT%so nr
duets really sold and which should form tue Dtss Ot
honest mportstions are made practically impossible and
the customs revenue Is Systematically robbed Oh 'asu
sums OF money.
FMBRoIDERIFs AND YELYETs UNDERVALCED
"Noyembcr 30 1883, Special Agent s. C. Chamberiin
reports an advance in value of 81 per cent by the a
prascrs at Baltimore certain invoices Of Swiss EN-
brotderes entered by Erlanger Bonheim 4 Co. Novem-
Der B. 1882 the Consul at St Gale reports that having
under the authority OF the Secretary Of the Treasury en
poyed Mr.: Jacob sder to act rs G9Neinmeht OF
cm6rolderies, Mr. Studer began his work september
last; that the results far have proved very satsiac-
tory but his employment has caused quite commotiOn
10y the manufacturers and shippers at ST. Gale and all
Government of the United states in general.
some claim that they Will appeal to CONGRESS TINS this
they will appeal the swiss Federal authorities, and
that the control Is 50 unleard OF that hey VIII nave
their invoices lcgazed at another consulate TO avoid all
Snus at Basc referring to former reports show
ing that many of the yevcts and plush ribbons sent
during the sumner and autumn Of 1883, by certain
Basle manufacturers To their agent in NewYork. had
been uniformly and grossly underyaucd In consular IN
voices, forwards samples ana prices showing lnalkes
value of ribbons at Basle during the l ana winter
Of 1888 which he claims than confirms the charges
OF undery valuation hitherto made. In report dated
september Ia 1883, the Consul submits full statement
showing the result OF examination made by him OF the
valuations velvet or short plush ribbons showing the
comparison between the prices at when actual sales were
made and the prices stated IN consigned invoices AFTER
treating the subject in detail he sums up the matter as
follows: reeapltuation ana comparison o te ioieSo-
ing actual market values, as shown by tho
invoices of J. J. Idnder To f. ). Jaifray Co.
exhibits clear and convincing disparity OF Jro1l hrty
u foFy be between the prices at which short plush
ribbons are purchased in Base OF sklf buyers, repre-
senng the highest class OF American importers and the
declared prices which similar yards are nvoced for
consignment small importing houses. Can there be
any doubt that the latter almost with
out exception grossly underyaluedi And yet
1 am Informed by several o. these
signors OF velvet ribbons that their invoices
usually pass the NewYork Custom House without dill
Guilty II this be true-which Is hardly creliblewhat
must be said OF the efficiency of import systemf
What encouragement does IL offer for the Legitimate I'M
Ia fnul nj aupO Of
TO forty per cent ON the Gutiable valuation OF
class OF goods upon which duty OF fifty per cent al
yaorem Is assessedi How Mr.. Jaifray, for in-
stance who pays l03 centimes per line for goods
liAe this sample and the fifty per cent duty
thereon, maintain himself in competition with Mr..
AuifmOrdt, whO receives on consignment large
invoices OF similar merchandise like sample at