The Providence news. (Providence [R.I.]) 1891-1906, 1896-03-11

Niuety Per Cent Of Those Sold Said to Be
Struggled.

that 90 per cent ~of all the diamonds thqt
are sold In that city at the present time
are smuggled into the country free OF
duty; that. in consequence, the Govern
ment is losing millions of dollars an
nually; and that it will continue to lose
this money until Congress sees At to re-
duce the duty on diamonds to what 1t
was before the present tariff came into
effect. IL was high enough then TO yield
a large revenue, and at the same time low
enough TO make smuggling not worth
the risk involved.
Ever since the tariff went into effect the
diamond dealers Of New York have been
telling the Government officials what
would happen If the duty was not re-
duced. They say now that what they
have predicted has come TO pass. Under
the former tariff the duty on cut dia-
monds was 10 per cent. and uncut dia-
mond were admitted free. When the pres
ent tariff bill was proposed the diamond
cutters In this country contended that
their Industry was an infant and needed
protection. They were making plenty of
money and thought they saw chance OF
making more, so they asked that the duty
on uncut diamonds be raised to 10 per
cent, the uncut stones, of course, re-
naming on the free list
The diamond-importing firms say that
before the new rate was made smuggling
was at m minimum. Very few diamonds
indeed were brought into the country ex-
cept in the regular way, and duty was
paid on all of them. Importation
amounted TO between eight millions and
twelve millions of dollars year, and the
income to the Government was very large
But, they say, the moment the new rate
went into effect the business of smuggl-
ing diamonds was firmly esta blished and
1t has been growing ever since. Small
firms that did an exceedingly small busi-
ness before have grown to great concerns
Their agents call on other houses in the
trace and offer precious stones for safe at
a price less than they can be imported for
legltimately. Men whose Offices were in
their hats have turned into diamond
agents. All this time the sales of dia-
monds In the city has been increasing.
The stock of diamonds on hand has been
increasing. and the importation, accord
ing to custom house statistics, has been
steadily decreasing. Diamonds are the
most easily smuggleS OF all imports, be-
cause they are so small and are SO easily
concealed by the smugglers.
Mr.. Joseph Frankel of the firm OF
Joseph Frankeps Sons, diamond inn
porters, said:
''There is not much to say except that
the volume of smuggling Is enormous,
and there doesn't seem TO be any way to
stop IL except to correct the laws. j know
that we can buy diamonds here cheaper
than we can import them. The imports of
our firm have fallen off 80 per cent. since
the new tariff went into effect"
"Do reputable dealers purchase snug
glea diamonds?" asked the reporter.
Reputable dealers do not purchase
snuggled diamonds II they know they are
smuggled,o he replied. "But they do
purchase diamonds that are brought to
hatf. cold .1n Tkaxr t1II
whether these diamonds are smuggled or
not. They may lie morally convinced
that they are smuggled, but they can't
tell, and they know that-if they do net
sbuy them some other dealer will, and
there is nothing to do but to buy them.
We have an association known as The
Diamond Importers and Cutters Protec-
tion Association This was organized
fer the sole purpose of stopping snug
Cling and prosecuting the men engaged
in the business. Ii works in with the
Government authorities, but with all that
has been done smuggling has increased
tremendously"
-"Suppose a man comes into your place
OF business and offers TO sell a HANDFUL of
diamonds at less than you can import
them fer? Are you not certain that he
Is smuggler?'
"Of course, am certain that the dia-
monds were smnggled, but what is there
TO be doney We have reported hundreds
of cases OF that kind TO the secret service
officials, and they have done their level
best to make out case without success.
1t seems absolutely necessary to catch the
man in the act of bringing the goods into
the country In order to make out case.
Catching the smuggler in the act is
very difficult thing when you consider
that $50, 600 or $40, ,00) worth of diamonds
can be brought in the heel OF a shoe. The
smuggling Is not usually done by the men
who. dispose OF the diamonds here. These
men are watched constantly and II would
not he safe for them to do any of the ac-
tual work. Many of the stores are
brought into the country In the steerage
of ships. Many are brought by ships
officers, pursers, and Others. Some firms
have messengers running between here
and Europe. However they get here, al
most enough are brought free OF duty to
supply the total demand. Most of the
diamonds used here now are small ones.
A few years ago the style ran solitaire.
Now the cluster jewels are more worn.
These small diamonds were never cut In
this country but before the present tsriff
went into effect they all brought in reve-
nue. to the Government, and they don't
bring in any revenue now, asia glance at
the statistics will show. The frms that
do he largest part of the smuggling busi-
ness have come to be known in the for
can diamond importers. IL is recog-
nized business Legitimate houses want
to conduct a legitimate husines. They
are willing to pay the highest collectable
duty, but this duly, it will be seen. is
not a collectable duty, and NO matter
how much the dealers may want to sell
only diamonds that come through the
Custom House they cannot tejs sure. Ii
was possible some yearP ago to go to the
Custom House AMI find out all about the
importations. SO that IL diamonds were
offered for sale the man they wers offered
to could find out whether they had been
regularly imported or not. That law has
been changed, too, and there is no way
now of being sure. The law, as it stands,
is injuring honest houses, and the dis
honest ones are getting the business.
"Is there no Eemedyf" =,
"None except TO change the law so that
smuggling Won't be 80 much of an OBJ
ject."
Another diamond importer who was
seen corroborateo what Mr.. Frenkel saio.
"Mr. FTankel," he said, sis the secre-
tary of the association, and speaks with
authority"
The contention on the part OF mum ber