New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-03-14
AMENDING THE CUSTOMS la "
MR. PAYNE'S REPORT ON THE WAYS AM
MEANS COMMITTEES BILL.

| MEANS COMMITTEES BILL
| HOW 1T Is PROPOSED TO CHECK FRAUDS IN IN
VOICES OF IMPORTED GooDs-A MATTER OF
| GREAT IMPORTANCE TO MERCHANTS
| fry TELEGRAPH TO THE TRIPUNE.l
| Washington March 13-Mr. Payne OF New-York,
| to-day submitted to the House the report OF the
| Ways and Means Committee, which had been pre-
| pared by him and approved by the committee on the
| bill TO amend the Customs Administrative Act OF
| 1890 The bill is of such great Importance that
the report explaining its provisions and showing the
necessity of them will be read with unusual interest
by everybody engaged in the foreign trade as well as
| by everybody who desires that the Government
shall not be derauded OF any portion OF the duties
| which should be collected under existing laws.
1 Omtting some extracts from the testimony OF Gen
| eral Appraiser Somerville before the committee and
the report OF the Farchild Commission of 1898. Mr..
Paynes report reads follows:
| The act of June 10. 1890 the elimination of
many years OF effort and study TO simplify the laws
relating TO the collection Of the customs and to pre-
vent fraud upon the by reason OF undervau-
alton. That the result was a long step IN advance
OF all former legislation the subject has been
abundantly proved by the result of six years expert
ence under the present law. These years have also
demonstrated some weak points In the law OF $780,
some of which the present act Is calculated to
remedy. Your committee are sensible that me only
complete cure Of the evils OF differentiation Is IN a
deals In quantities and weights alone In determining
rates of duty cannot be successfully evadtd On
the Other hand duty that depends Wnoy or 1,d IN
ard fraud. against which administrative law.
however drastic. Is complete defence Market
values nuctuate. They are TO some extent matters
OF Judgment and cannot be made to conform to
these observations, OF course all VIII admit now
ever much some Of ia may differ to the relative
value OF specific or an nd valorem system.
The customs Administrative act OF 1880 provided
for board OF nine general appraisers. This board
received jurisdiction TO determine the value OF I'M
ported goods in usual wholesale quantities In the
markets OF the country OF expectation at the time
lating the classification of imported merchandise
under existing tarin laws. Your committee have
present law and have availed themselves OF the ad.
vice ana assistance OF the Assistant Secretary or
praisers. importers and others who have had prac
teal experience on the subject and Of Commits
which ex-Secretary Fairchild chairman. The
report OF the Commission is appended to this report.
WHERE THE TROUBLE IS
The difficulties OF administration under the present
law do not arise from the regular importation Of
standard goods. These have a fixed market value
which be easily and definitely ascer,ained at
the point and date OF shipment. Reliable testimony
as To the quality and value OF these goods is easily
found But the chef trouble Is in relation 10 con-
signed goods and second relation goods OF kind
peculiar to a locality or a factory The consignment
OF goods is increasing very rapidly. There seems
TO be no reason FOR this Increase except the fact Of
the difficulties the way OF detecting fraud in the
valuations OF consigned merchandise. A manufact-
OUTPUT to his Clerk on this sae There no saI.
and hence no invoice containing the actual price
II is extremely difficult 10 get at the truth Again
the importer frequently buys up the whole output
OF a factory for year. amounting sometimes TO
lower than that for usual wholesale quantities as
required by the present law. and yet is impossible
to md similar goods on sale In the market or at any
The appraiser must resort to the expedent Of
ascertalnlng the price OF goods as near like mo
importation as possible He may to the cost
cinsion Rn, he Is groping in the dark After no
has used his bes, means Of information and has
appeal 70 the fun BOARD. and appear with Wit.
ncsses and take evidence before them. In actual
amendment in this oil notice is required in all
cases The honest importer has always the means
sihcation OF his goods. lie has his full day in
conr, s...,. -,
the A., Of 100 and strikes out the provision which
allows The Importer. Z purchaser 70 maxi MS
Tho reason for this change is well stated by Mr..
Sparrcits In his statement before your committee
-, Section hn the Td,ib 2 u Pu ssaas b !.
NE currency a,u"tS pan hd trn,mershIo Eases
where importers have appeared before us and
stated that the money actually pad for the mer
make them pay the least amount Of duty. Mer-
chandse purchased IN France or Germany may be
invoicod a. Austrian forms the value or which cur
rency "a estimated hy the Director OF the Mint
and proclaimed by the Secretary Of the Treasury
IS relatively less than the proclaimed value OF the
German mark or French franc. and importers thus
evade paying the full amount Of duties chargeable
on the merchandise II the law requires that the
invoice shall be made out in the currency Of the
country OF expectation both az TO the conslsned
and purchased goods the possibility OF fraud IN the
manner suggested will be overcome
The principal amendment 10 Section Is found IN
an addition 10 the section The purpose s 70 com
pei persons In foreign countries making declarations
9i OF maxi. Sah odTe fS local IS @
traie authorized by the laws or the country OF eN
poriatlon 10 take such oaths as are required, III
order that they may be punishable Tor fsise swear
ton IL ali the countries except Great Britain where
IN. statute now provides for this proposed cohui
ton IL is believed however, that the various Gov
ernments would promptly comply WIN ths requ' e,
this country might be cut off. Full discretion In
tn, premises is lodged with the secretary OF .ne
Treasury Under the present law 'n h. ~ eaaI
authority 10 administer oaths In foreign countries
and of course there is no punishment tor idse
oath under such circumstances In section We
tails In Section we seek to break up the practice
which now prevails OF custOm-hOuse Drokers peIilS
allowed to administer oaths to their own EeI ~
There are also some amendments whlch make inc
language more DEFINITE.
THE PENALTIES PROPOSED.
One OF the most important amendments Is that
nrono..d 10 Section The present law provides IN
effect that where the appraised value exceeds the
value in the entry by more than 10 per cent only
the same duty shall be collected as housn 'e ue
value had been correctly stated In the entry But IN
case the appraised value exceeds the value IN the
entry nv more than 10 per cent. then an additiona
DUTY shall be collected equal to 10 per cent or the
total appraised value for each per ceht hat sutn
appraised value exceeds the value declared IN the
enfrv For example II the value is advanced II per |
cent by the appraisers the additional duty VIII pe
22 per Of the total invoice as valued py tne APP
praiscrs II advanced 10 per cent the usual duty on
the appraised value only would be collected me |