New-York tribune., 1896-01-08
TO STOP FRAUD IN JNFOICES.
CHAIRMAN nTNGLEY INTENDS TO COR
RECT AN ABUSE.
A.: rxoRNors LOSS OF REVENUE FROM CUSTOMS
CAUSED BY rNDERvALUATIoNS- NS-cHANGES
IN THE Law PROPOSED.
IBY TELEGRAPH 70 TRE TRIBrNE.l

IN THE LAW PROPOSED.
fBY TELEGRAPH 70 TKE TRIBUNEl
washington ian 7-"Accordlng to all the infor-
notion that I have been able to gather the proper
,ion OF fraudulent invoices and undervaluatons
and the consequent loss or revenue from customs
under the existing tariff law are enorinous-S'i"Pis
frightful." said Chairman Dlngley, OF the ways anu
Means Committee. to Tribune correspondent TO-
dov He continued: I'VE shall 10 whatever We can
to uut a stop to this by propos ng amendments 10
tho customs administrative Law OF 1890 ana We shaIi
N, lin Tomorrow to hear suggestions from experts
OF the subject. Tee committee "ili then pfoohp's
Ia We before i, the chairman and one oihet Hen'oei
Of he Board of GonerIl Appraisers OF NI" -o'hs'
and ON ThursIa, \ sss,dnt secretary hamin, oi 'h7
,rro,su-v Depsrtren, who has the general over
,lrh, NJ tho customs service. will have hearing
The rrob'om is an exceedingly difficult one 20 deal
with under the circumstances. but nope tAa. inc
committee VIII De able to find reinedies WHICH,
v.bue thev may no, cure WI at least alleviate eX-
is,ing troubles and TO considerable extent pre-
Won't fraudulent invoices and impor;at-ons
"In regard TO what schedules does the trouble
., manly 4, be ard to what Is IL due?' asked
The Tribune correspondent
"It arc,y lies In the schedules when incln'e tex
tiles" replied Mr.. Dinsley, put II also app"es "
tho other schedules wherever ad valorem rates oi
duty wer. substituted for specific rates oy the act
., so, An IDEAL tariff according TO my V!e"'
q
imposed upon every imported article when entered
into conpetliion With Ike article or domestic
manufacture or production. As far as practcapIe'
h, ,ie, was carried out IN the tariff law OF 1881,
and tho customs administrative law or the Same
,.,r was framed with due re, ,arl 20 that .dea Inc
las of 1874 was based rpon contrary laea OF
,,.r, and 20 4 very !arge extent SPECIFIC rates OF
dntv were superseded By al valorem rates Inc
natural consequence has followed the frauos upon
,h, revenue have Increased to an enormous extent
domestic producers and manufacturers have su'-
ferol 10 like extent. and consumers nave h''
been benefited 10 any extent
is ANYBODY able 10 estimate wlth la'' "''"aF
IA, loss ~ revenue on account of the SUBSTITUTION
NJ ad valorem rates for specific rates OF uu'y
well that would be an eXceen'hsy u''e ~
thing 10 do. According TO customs o"'cia's WIN
are r,per;s and men of long experience however.
,,,,r,s,,ons OF textile goods. chiefly woolens' OF
the total value according to INVOICES OF s"'VuVV'
,-.ssr, n total actual value Of Slpo",W Ihat
Is an estimate-not Wild guess-ot men oi 'o"S
experience and men who are adopts III 'he'. u"'
ness VINO are striving To the uthios- o1 't.e'
h,,i,v 70 nreyent fraudulent importations Ihe
removal Of the specific duties from teNtles ""'
most unfortunate act. not only as Il a"eo'en vac
Cov.rrucnt but domestic manufacturers and thcir
o,.rat,ves and consumers well. Inc ohiy per
sons who have been benented are '"e '''''"'
manufacturers and importers -
I ,ho 6rst seven months OF the year 1929 the
al impOrtNtiOuS
-. renor, of the chief OF the Bureau OF Statlsues
-, "a, rr.asury Department. amounted 10 l'o'o'-
~o, nourds the total invoice value OF wAieh
amounted TO sl.e0555s. being an average Oh "oou
a cents a pound Under the existing Id" ''' -
., duty on woolen yarns valued a' ho' '"o'' '
40 cents pound is 80 per cent al 'a'o'e,' M CIV CIV
:, ,..,uad at NOR. than 40 cents pound the rate
" 40 or can, al valorem. In the hrst seven
,on}hs Of 1854 the total importations 9a nvan
,,orns amounted TO 279.G5S pounds me to'al ~
aHnmt s. cents a pound. ON those Yarns I'm um'e e
tne ~ law u vaIucd at not more than 80 cents a
hound 10 cents pound ana 90 Pe' ,nd NOT NOR.
ore valued at more than 30 cents a anu no. i d
,So a. crrts A pound II cents ana so per cen. az
vaoroia: valued al more taan !" &c, ve"ts al valoren
Vii he observed that the average nVo.re u saao
of The woollen yarns imported durihs ',e 10 ~. ahol
m,nths OF 1895 after the spectre fa'rs W. 20 .bon
bsJ va, 10 cents pound. 80 per cent less man M
tho average invoice value OF tne WSo'e" f sa. Under
he law of 1890 despite the fact thar tne letter anu
more expensive grades near IN ne n.s syen months
Of iss the total mportations OF wooen or oa
cloths amounted to SSiS Pouhas ,hs arerare of
value OF which &S,2O2s, being an aVeiase p y,
about % cents pound The rates OF duty unaer In os
law OF 1880 were as follows Valued az n1' - osr
ccnf nd yalorem: valued a more than ~ cents a
pound 5 cents pound and 80 per cent TO ~ per cei'
During the first seven months of is9S the total i'm,
poraons OF wcoen or worsted cotns & o1 wr,cS
90 sO3 065 pounds the total invoice vaue 1i W, W.
was SIS 52y 1856 being an average OF about DO css a
law on all theye import lions. regardless OF quality,
wos 40 per cent ad valorem. II Will I've noted tnat
nader the ad vaorem rates the average invoice Vaiue
of this class OF imports was about q cents pouhu
or about 80 per cent less than was FOR tlie CORE
spending months of the preceding year uncer tne
law OF 1890, which imposed specific rate as Wen as
an ad valorem rate on all such importatons There
was no such decrease in the cost value OF ssuch
impotatons and II the exact facts could be asce!-
talned they would undoubtedly show that at least
two-thIds and probably fve-sxths. of the decrease
was due to fraudulent invoices and undervaluations
oi the woollen ana worsted yarns anc c.otns I'M
ported during the first seven months OF last year.
In other words. 20 to 20 per cent Of the wooen ana
worsted yarns and cloths Imported In that period
in free OF duty. The Government lost the rev.
enue The American manufacturers ana wage
earners engaged In those industries suffered from
unfair competition the domestic consumer PAID as
much he did before. and the foreign manufac-
and importers reaped all the profit. IL s fair
and probably safe TO presume that the Ways ana
Means Committee will unanimously recC fmend such
changes In the customs administrative law as In It's
Judgment will minimize II not altogether prevent.
future frauds on the revenue by means or under
valuations. for If there IL any one thing that the
Government now needs more than another 1t Is more