The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1883-12-11
FRAUDS ON THE REVENUE.
Gigantic System of differentiation Un-
Notwithstanding Discoveries Made by
Secretary Folger-How Silks, Anfline
Dyes and Carpet Woods Escape the Duty.

WASHINGTON, Dec. 10.-The Secretary of
the Treasury and the chief of customs agents
in their reports declare that the undervalua-
tions in imported merchandise have increased
to an alarming extent. They made the follow
ing points: First, that ring of foreign manu-
facturers and importers exisIs which controls
theiimportation of goods subject to adivalorem
duties to this country; second, that this ring
manufactures its. own merchandise and con-
signs it to it's own agent in the United States,
making no sales in Europe, thus establishing
no market price there: and that the valuations
given in the invoice only represent the actual
cost of manufacture oftentimes less than
that AS consequence of this system it is al
ways possible for the foreign manufacturers'
combination to prevent competition
with other European or with American
manufacturers, and that American
merchants as rule buy their goods of these
consignees in this country. These charges
have been denied by the New York appraisers
and by New York newspapers. The Secre-
tary of the Treasury has decided to reply to
these denials, and to prove his charges. He is
PREPARING a digest of the information rec ceived
by the Treasury and State Departments on
this subject. The digest will contain more
sweeping charges than were made in the re-
ports. Three lines of merchandise are spec
tally mentioned as subject to the grossest un-
dervalaation, namely, silks, aniline dyes and
carpet woods. Our consuls in Switzerland
have had in their service for year some of
the most skilful experts in silk manufacturing.
The reports of these experts show that silks
exported to the United States have been un-
dervalued to an enormous extent. One expert
upon discovering the extent of the frauds res
signed his position, stating that the frauds
were so enormous that he did not care to re-
port against the manufacturers who were his
friends. The reports show that the in
voices represent the values of the silk in some
instances less than the material in manufac-
ture. The undervaluation in aniline dyes is
enormous. The reports on 80 cases show an
underyaluation of 81, 900 francs, The informa-
tion as to the undervaluation of carpet woods
will, perhaps, create the most excitement es-
pecially among the Ohio wool growers. These
reports show that the differentiation on these
wools are fully 100 per cent. The new tariff
law classified this grade of wool below and
above IL cents per pound. The reports show
Europe below 10 cents; yet the invoices on
that every pound costs less than IL cents. The
result has been that Ohio woods were in COM
petition with these fraudulent invoices.
These are illustrations of the information
which the Secretary of the Treasury has col
lecteds He has called upon the New York Gus
tom house for list of all cases of undervalu-
ations during the year. The appraiser reports
that three months will be required to make
the report, although he has protested that the
undervaluations are of little consequence.