New-York tribune., 1896-01-09
CUSTOMS EXPERTS HEARD.
AN EFFORT TO CHECK FRAUDULENT
IMPORTATIONS.
THE WAYS AND MEANS COMMITTEE WRESTLING
WITH DIFFICULT PROBLEM-TEsTIMONY
CT GENERAL APPRAISERS soMERvIIIE
AND LrNT-AMENDMENTs TO
TLE

lBy TELEGRAPH TO TEE rRrBuNE1
washington. Jan S-T'e hearing before the Ways
ana - ans committee Of the House OF Representa-
'ives to-day was an important as we'll as interest
ing one. The proposition so to amend the Customs
Administrative law of 1880 provide sufficient
and effective safeguards against frauiulent i'm
portations with the facilities which the existing W.
with lis ad valorem rates Of duty affords. Is a
complex and exceedingly difficult one as every
Dody VINO mas paid any attention 70 the problem
fully realizes. Probably no other person so well
and Justly appreciates the difficulties as do the
officers who are directly and personally concerned
in the administration Of the Tariff law Two f
these ofhcials-Messrs. Somerviile and Lunt who
are general appraisers-appeared before the com
mittee to-day Both Of them will be recalled as
| their statements were not finished What they lid
say however. was important and Interesting and
II threw much light on the question under consid-
Grafton which was how to reduce the underyaiu-
| atons OF imported goods to a minimum
Will the relative merits OF al valorem and spa
| cifc rates Of duty directly brought under
| discussion to-day. 1t was plainly evident from the
general tenor Of their statements, based long
hcial experience and observation that al valorem
rates of duty not ony operate to the DISADVANTAGES
or honest merchants. who are importers of fore!Ln
| goods. but TO encourage and promote frauds on
| the Government According 10 the statement Of
Judge Somervile. the proportion Of imports con-
signed TO agents OF foreign manufacturers Il rap
idly Increasing. and in regard certain classes of
| tain the marke' value at the time and pace Of
expectation OF such goods Is always an exceedingly
| diiiicuit. and in many cases virtually an impcs-
| slbe task
At the hearing to-day only the surface of this
abuse was scratched. II was made plain enough
however that when line Of goods IS manufactured
| In England. Germany. France or any other country
especially FOR the American market and consigned
to an agent of the manufacturer in this country.
those goods have market value in the country
where they are produced. The problem set before
the customs officials. therefore. to ascertain the
| cost OF production Of such articles as defined by
the law. in order to establish a market price" In
order to DO thus much dependence must be placed on
| Consular officers Of the United States in foreign
| countries some OF whom are Incompetent and many
| Of whom are Indifferent negligent. The fact
also brought out today that in the opinion Of Gen
eral Appraiser Lunt more than % per Of all
importations passe. through the custom mhouses
at the foreign invoice value by the examiners who
| examine only 10 per cent Of the goods described in
each invoice. and whose reports accepted by the
| deputy appraiser and general appraiser and
frmed by the collector OF customs. Nj. Lun, said,
however that far his observation extended the
examiners n rule We're competent and honest men.
who Try discharge their duties faithfully ami who
seek Information from every available II.
! der 10 prevent fraud
REMISSION OF PENALTIES.
one importan, and interesting fact Indicated. but
ing was that the additional duties imposed by law
| on unGervaiuei mportations have been uniformly
RENTED under the present administration ~ the
Treasury Department. Il appears that this has De-
done in Difference 10 an opinion given by Nj c'ney
! when he Attorney General 70 the effect that
I the additional duties thus imposed H. The
nature Of penalties which within the power Of
the Secretary OF the Treasury remit. Appraiser
Lunt b!untly said that in his opinion this decision
| unsound and would not be sustained oy the
| courts Another Interesting and important ia
brought out was THAI suits are seldom never
brought In behalf OF the United states to recover
the bonds of importers whose Invoices hav. been
discovered to be fraudueni--the goods having been
previously released by the customs authorities ana
sold by said importers Chairman Dingley asked
Appraiser Lunt several questions to obtain his op!n-
ion IN regard to the biz offered by Genera! Draper
| OF Massachusetts. on December IS. to amend the
| customs administrative law of June TO- 1870. The
first section Of the bill proposes to amend Section
| OF the law by adding the 10 l)wins prov'so.
| That the additional duties provided ior IN ihi-
shan not in any cas- excl ., Perc'ntnm ndn % I'M
| they are assss ssei.
Mr. Lunt suggested thai the limit should be loo
! per cent instead OF 3D. He inclined 20 demur
to the second proposition OF the b.H TO AID TO
Section OF the act the following words
| The statements herein required and ,he .nvoices
| 10 which they refer. well the invoices o, all
m sba s b a n Of t2e secrery of the
| Treasury the collector or Appraiser Of the port
| goods in this country who are not cngaGed IN N.
Importation for sale o. such goods OF pE 'ne' ''s"'
! representatives
| Mr. Lunt said however that he would Ike TO
| have an opportunity TO study the question before
! expressing a decided opinion. and the hearing was
/ adjourned until tomorrow morning 70 allow him
| and his colleague. Judge Somerville. TO do
PROVISIONS OF THE DRAPER BILL.
1nar1,uch as General Diapers bin forms ne
| ~,ou,duork OF the committees consideration and
| nrohable recommendations. Il is pertinent here 20
| reproduce the other provisions
substitute for Section Il OF The act OF June lo.
| 1890 the following
That when the market yaas as herein boi dTnne5
partially manufactured and subiect to al yaorem loren
| cannot be ascrr'a,n.e rom "a - W O tr %
Guotaons le III S he c' satsfacfon Of the anpra
ng officer the appraiser or appraisers shah use AL
available means to aseertah ~ coz o' y, ,io,
t,1 - 1r ,o cost OF production to include cost Of
materials and OF fabrica,ions all general expense
| covering each ana every 'n,.ay o. Ns ~i.9 & i
ierest on and deterioration OF tte manufacturing
plant and insurance thereon toscther %.th tht eA-
| disc ready for shipment and an addition ot 10 per
and IN n sss shall such merchandise be appraised
! ur,on original appraiscment or reappraiseineni az
certained With said 10 percentum added; and the
apprasing officer shall IN addition 10 iae proofs OF
all available means 10 ascertain the prlce Al "h.rh
merchandise subject 10 alpralseInent was Al me
date of shiprn-nf 10 the United States quoted IN
the regular trade journals in The country OF pro-
duction or sale and IN the price lists and offers
Of sale of the producers foreign vendor thereof.
and in case in which the prices gwen IN such
quota tions waether trade journals, price hsis or
offers of sale. shall be 50 ascertained, shaIl me
merchandise be appraised for duty at less than
such price; ana on goods consigned provided ior
( i'm Section Of this discount. dra"hackS;
commission. royalty bounty shall be allowed ana
deducted in appra.sng and determining me MAJ
ket or dutiabe value # such Merchandise, ana IN
f,1, usr 10
tained by purchase or otherwise shall any araN-
hack or discount except the regular ana usua rale
| discnunf OF any commission. rOYaliN or DOunt}, ne