New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-04-29

suls Ike William F. GrinnelI now In Manchester
but formerly in Bradford and Charles Meeker.
nov In the woollen district, are experts who know
the value Of exports at a glance. Their expert
ence offers the best possible safeguards against
frauds and impostures. for merchandise can
be shipped to the United States from their dis
tricts without the samples passing under their
eyes. An honest, efficient Consul with a trained
pair Of eyes is worth swarm of secret detectives
working up clews from anonymous correspond
ents and hints in the dark.
American tariff law requires the merchan dise
to be invoiced at what is described as the actual
market value" at the date OF shipment. Bradford
goods ordinarily contracted for six months
in advance and are made to order. When ready
for shipment these goods may be worth
less in the open market than the contract price.
Merchandise which ordered six months ago
has fallen in value, from the overstocking OF the
American market; but goods shipped any time
last year on orders received six months previous
ly might have risen In the open market In
either case the only value which the manufac
turer or merchant could assign to them was the
contract price. which represented what would be
paid for them. without reference to six months
fluctuations in prices. In ordinary practice the
consignor or manufacturer makes oath before a
British commissioner at the American Consulate
that the value Of the merchandise invoiced Is the
actual value wholesale price. at the date OF
shipment in the principal markets Of Great
Britain and the American Consul supplements
this declaration with a certificate that this valua
ton is correct. But II is evident that technically
the valuation Is not the actual market or whole
sale price. 1t represents ordinarily the contract
price agreed upon when the goods were ordered
six months before shipment. STILL 1t is the basis
Aaxxr tt,a t,,v
er and the British manufacturer and to large
extent of all dealings with the American retail
merchants. for the goods sold to them at
fixed prices months In advance Of their shipment
from Bradford.
The British manufacturer or consignor natu-
rally takes the ground that the only proper basis
of valuation Is the contract price. which repre-
sents what ne will receive for the goods when
made and shipped. 1t is the market price far
as he Is concerned and II Is the one TO which he
makes oath in the declaration. When there is q
rising market It may involve technical under
valuations but the conditions reversed when
prices have been tending downward Moreover.
the contract price for goods Of the same quality.
ordered at corresponding dates. will not be uni
form, since variations will be caused by the
credit Of the importer and the magnitude Of his
trade Experts contend with great force that 1t
Is not practica BILE In the Bradford trade TO carry
out literally the administrative clauses Of the
American tariff law. With six months lnterven-
ing between the ordering and the delivery of the
goods and with all the circumstances affecting
the individual transaction. 1t is not possible to
invoice merchandise rigidly In accordance with
prevailing wholesale prices. An honest English
manufacturer names the contract price and ships
the goods with a clear conscience and that is
the only basis on which Consul can be asked to
certify to the accuracy Of the valuation.
SAFEGUARDS AGAINST FRAUD.
That there Is a large class Of undervauations.
which are not only technically Inaccurate but
conspjcuously fraudulent, is hardly open to doubt:
but with the high standard OF commercial moral
ity prevailing In England, these transactions are
less frequent here than In Germany and France
The practice OF requiring oaths to be made before
a commission authorized by the Supreme Court
of Judicature in England Is a safeguard against
fraud: and this is lacking In Continental coun-
tries, where the process OF undertaking mer-
chandse for the American market is facilitated
But in England well as In Europe the best
safeguard against Irregularities and fraud is the
presence OF trained ability in the American con-
sulates. 1t is the duty Of the Consul. whenever
his suspicious are aroused. to give Information
to the customs authorities when the invoices are
sent across the Atlantic; and II he possesses ex-
pert knowledge he can do more to prevent fraud
and to promote the interests OF commercial moral
ity than any detective on secret Treasury service
Consuls like Mr.. Grinne and Mr.. Meeker. whom
I mention not only because ! have personal
knowledge OF their qualifications for their Office
but also because they We're appointed under OPP
posite political Administrations. represent the
class Of from which permanent consular
force ought to be recruited.
Indeed this whole matter Of undervaluations
supplies one of the strongest arguments for
radical reform OF the consular service which Will
take 1t entirely out Of politics and convert IL into
business department manned by experts. whose
tenure OF Office will not be affected by political
elections and changes Of Administration. With
q trained service Of this kind the administration
Of the customs laws would be greatly facilitated
and a most effective system OF checks and bal
ances against undervaluatoh and fraud would be
established !. N +.