New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-01-18
ONE POINT OF AGREEMENT.
CONGRATULATIONS INJURE IMPORTERS
AND MANUFACTURERS ALIKE.
ABUSES OF THE CONSIGNMENT sYsTEM--HEAvY
LOSSES OF REyEA UE-HONEsT IMPORTERS
vAINLY STRIVE AGAINST DISHONEST
Compel TION-REMEDIEs
SUGGESTED.
tpY TELEGRAPH TO THE rRisuxE.I

SUGGESTED
fpy TELEGRAPH TO THE rRlsuyr1
Washington. Jan. lit became plainly en-
dent in the course OF the recent hearings before
the Committee on Ways and Means that In one
important respect honest and legitimate pur-
chasers and importers Of foreign dutiabe goods
at last fully realize that their interests den.
teal with those Of American manufacturers and
producers. Cndervaluatons Of imported goods
that are subject 10 duty not only deprive the
Government OF portion Of the revenue II ought
to receive, and domestic manufacturers and pro.
ducers Of large proportion OF the protection
that they entitled by law 70 have the benefit
Of az barrier against unequal and unfair for
eign competition but also seriously injure and
in many cases completely demoralize the bust.
ness Of American importers.
The facts recently submitted 10 the Commit.
tee on Ways and Means by both importers and
manufacturers, and similar facts laid before the
same committee by them we'll by officers Of
the Appraisers Department last winter, when the
bill to amend the Customs Administrative act
was under consideration, clearly and conclusive
ly prove that fraudulent undervaluations OF i'm.
ported goods steadily increasing and have
already reached threatening proportions despite
all the safeguards OF existing law; and Assistant
Secretary Hamlin. OF the Treasury Department
is quoted as authority for the estimate that the
Treasury suffers an annual loss Of revenue on
that account amounting TO S25.O0O000. which
sum is equal TO nearly one-sixth OF the total
amount Of customs revenue collected during the
fiscal year ended June 80 1896. This estimate
is regarded as too low by some competent au.
thorities, but when the fact is taken into con-
sideration that the bulk OF the goods smuggled
into the country by means Of undervaluatons
consist Of textiles and other goods subject to
ad valorem rates of duty under existing law.
Mr. Hamns estimate is big enough to seem
startling
GROWING EVIL.
According TO the information and evidence
furnished to the Committee on Ways and Means
by importers. manufacturers and producers, AZ
well as by officials of the Treasury Department.
the Increase OF mportations Of dutiabe goods
consigned by foreign manufacturers to their
partners and agents Chat u.s. to themselves In
the United States has kept pace with the in
crease Of undervaluations. This increase has
been more rapid since August 1894. than ever
before. and the consignm Mt business has now
assumed proportions that were not foreseen or
dreamed of even six seven years ago.
What consigned goods? In his statement
before the Ways and Means Committee last
year Judge SOmerville. of the Board OF General
Appraisers. defined consigned goods as follows:
They goods procured otherwise than by
purchase which are consigned from the other
side to the parties who really own them. or the
agent for them, on this side. They not pur-
chased"
Mr.. Dolliver asked: us that large propor-
ton Of the impor;atons
Judge Somerville replied: 1T is growing very
fast"
Then. after some further questions by other
members of. the committee followed these ques-
tons and answers:
The Chairman-Do understand you 10 say
that the business of importations through con-
signees is increasing. and that the opportuni-
ties for frauds through AUTHORIZATIONS are
greater when goods are consigned than when
imported by purchasers?
Judge SomerVille-I think
The Chairmar-And is 1t not true that in
large class of these importations. where there
may be a question of the valuations the i'm
portations through oorsgnments?
Judge Somervie-A very large proportion Of
them is.
The Chairman-Do | understand you 10 say
that in the Board Of which you a member
you deal more particularly with classlhcations
than with appraisements?
Judge SomerVille-Yes. sir.
The Chairman-So that the business 10 which
you have been devoted is that of classification?
Judge Somerville-Yes. sir / think Mr.. Lunt
give you information Of more value on the
subject of undervauations than can. We dis
cuss the questions in the Board all the time,
and necessarily | have acquired some limited
information in reference To such subjects by
reason OF the appeals taken To the Board which
is a Board both of classification and an appel.
late Board Of Appra sement
Mr. Wheeler-Is II not true that IL the condi-
lions you mention continue they will finally stop
all mportations except through consignees?
Judge Somerve-It would. | think. with rcf-
erence to certain classes of goods. Certain
classes Of goods have a market value easily as
certainable they being standard goods, and are
purchased well as consigned; but the ten
dency OF the consignment business is very
largely to drive out the purchasing business.
HOW THE GAME is WORKED.
The testimony Of General Appraiser Shar.
retts on the same subject both important
and interesting Following are some extracts
therefrom
think there should be some additional legisla-
ton with regard to consigned goods. A major
part Of the undervaluations Of imported mer-
chandise. think can safely say is on such
goods. Foreign manufacturers shipping goods
TO the United States frequently employ as their
agent in the United States TO whom they con.
sign their goods some young man OF no pecuni.
airy responsibility, who rents a room at a nloder-
ate price or who has desk room with some WE'LL
known importing firm. No stock Of goods is car.
red in this country If undervalued at the time
Of the investigation. when we ask the agent tho
name of some party or parties to whom his en-
ployers sell similar goods in Europe. he will usu-
ally inform us that they not sold in Europe
or I'm foreign markets. but that they are manu-.
featured exclusively for the American trade The
law says that the dutiable value is the price at
which such goods freely offered for sale in
the principal markets of the country of expor,a.
ton and frequently told by these impe-
cuniOus young gentlemen. who have acquired the
" isdom Of a customs lawyer and the austerity OF
n Judge. that we must turn To Section : and ac-
rept the cost Of production specified on the In
Dice plus per cent. in lieu of market value an
he basis upon which duty must be assessed The
invoice cost of production usually is about ONE
half the amount the manufacturer receives for
his wares. II appraslng officers had the right
to estimate a value based upon the selling price
Of similar goods in the United States exclusive
NJ duty and charges. or by comparison with
similar goods sold in the country OF exportation
)r in adjacent countries. consigned goods would
be placed upon a parity with goods purchased in
.aad faith hX hnnesi innnrlnrs IN this .ra: