New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-01-18

the four balls al "a SnlillnGS. Tess -
per cent but upon urgent demand the pii, was
DESTROYED and il was allowed to go In with the
unfinished yarn at l3 shillings pence. as the
quantity was too trihing to daily about AIter
ward the purchaser came back to Mr. Thompson
and said: I'VE don't want TO put our iahei on
the product Of your mill. We want you - pu'
your bel on these goods.
goods were shipped to the United States at the
invoice price of IL shillings pence apparently
for the purpose of proving fraudulent market
value for similar goods. As we were unable TO
establish a foreign market value for the gooos
in this case we sent to every large port in the
United States. from Boston to San Francisco to
inquire about this matter. and found that the
goods had been sold at ~ shillings less
% per cent. after deducting duty and all egiti-
mate expenses. and that was the price fXed by
the Board Of General Appraisers as market value
therefor
OTHER METHODS OF EVASION.
Another feature Of the consignment business
was thus described by f. c. Hovey. representing
the Customs Textile Association OF the United
States:
The two features which find to be sub
versve Of good administration are, nrst, tnat
provision in section under which goods import
ed into this country can be brought forward ana
entered at the custom house in the name OF
what may designate. for the want or pei
ter word. "a stool pigeon. | refer 10 the GUS
tom house broker. A manufacturer on the o'her
side consgns his goods, not TO John Jones an
actual merchant. but TO custom house nro oix;
who under the present bill must be recognized
as the bona fide consgnee. even though as soon
as the merchandise has passed the custom
house, he turns II over to the one VINO really
owns it.
He the broker. subscribes TO the oath. under
the terms of which he declares he has no kn2wi-
edge Of the existence of a second invoice. ms
he can conscentiousy do. Oftentimes the owner
or merchant cannot do so. the goods being under
valued and the second invoice safe In his once
II is a fact that French and German dress goods
are to-day coming to New-York. being entered
at that port in the name Of custom house brok-
ers the name Of the real bona fide owner or con-
sgnee Of the goods rarely being disclosed. Thus
does the bona fde owner avoid the risk OF being
followed criminally for perjury he not having
taken the oath denying the existence of the sec
ond invoice.
Simon Goldenberg of New-York. an importer
of laces and embroideries. gave the committee
q good deal Of information about the consgn-
ment business He has been an importer doing
business in NewYork City for more than forty
years Among other things he cites the case OF
"a legitimate importer who found consigned
goods at the Public Stores, which were to be de-
lvered to him IN dollars and cents with an un-
LIBERALIZATION Of 40 per cel 1t fr )m the price that
he was TO pay for them. and with his own num-
bers and tickets upon them" These were duty
paid goods. Mr.. Godenberg also said:
Most of the large concerns in Europe have es-
tabshed agents in this country. New YORK Is
filled with them. They have small offices and
they receive those goods. OF course their firms
are back Of them. Further consgnees in Amer
lea or so-called commission houses. have these
young men with offices in their stores, who re-
ceve these goods from the manufacturer and
make the fraudulent entries. thereby shielding
the consgnees themselves from any conse-
uuences or RESPONSIBILITIES. The commission
houses however are the real recipients. pay the
duties sell the goods are responsible FOR the
return Of money and settle with the manufact-
urers direct instead of the so-caled agents. and
latterly many such manufacturers have come
TO this country with samples Of their isolated
h11 ha 20
smallest kind of orders even from retailers, and
deliver in American money dollars and cents
then return and cOnsign those goods to the
houses here. invoice as they please and pocket
all the profit II man is detected in under
valuations the chances are that ninety mine
times out of one hundred the young man is not
TO be found. He goes to Canada or back TO Eu-
rope. One Of my confreres has placed affidavits
al the Treasury Department showing that
man was directly employed for that purpose,
and giving the manner in which their business
Is transacted.
j. ~ WRIGHTs TESTIMONY.
Among other things J. n. Wright. represent
Ing the firm Of Arnold, Constable & Co, Of New
York. said:
A great deal Of the undertaking Of consigned
goods is they are generally consigned by the
manufacturer abroad and sold to arrive in dol
lars and cents. The reason that dollars and
cents are only given is to defraud the Govern
ment | believe. by stopping the appraisers
from getting at the market value
Mr. Turner-Will you please explain how
that is?
Mr. Wright-If you want to buy certain ar
ticle. the agent comes to you here and says
eve will sell that to you, not in marks or
francs the currency of the country. but we Will
sell IL to you in dollars and cents" Sometimes
they say: 1--WE will sell you in the marks and
francs. but we will land. You VIII have to pay
us in dollars and cents. We will not give you
the invoice in marks or francs and we will do
the landing for you
Mr. Turner-How is fraud disclosed in that
transaction?
Mr. Wright-The fraud is, they undervaiue
those goods.
Mr. Turner-Those currencies are all convert-
bic into currency?
Mr. Wrght-Where they give you mark or
franc valuation their invoice was an undervai-
uation when il comes here.
Mr. Turner-They do not want 10 show their
invoices?
Mr.. Wrght-They do not want to show their
invoices?
THE GERMAN SYSTEM DESCRIBED.
In letter to General Grosvenor Of Ohio.
which he laid before the committee, an official
of the United States con sular service in Ger
many wrote that one-fourth Of the exports from
that country TO the United States consisted OF
consigned goods He described the working Of
the system as follows:
Samples of merchandise are sent by the
manufacturers to their agents In New-York. VINO
negotiate sales through those samples. Upon
sale being effected, the German manufacturer
10 notified OF the price al whlrh the eoous niHe
heen DISPOSED OF. The American agent sells IN
dollars and cents TO his American customers ana
charges from TO ~ per cent as commission
on the gross sales. The foreign exporter, or
manufacturer through his relations with TINS
agent or commission house Is not only an eX-
porter but he becomes an importer or MS own
goods through this agency. When he receives
q return or an account Of sale from the com
mission house In New-York. he is aware OF the
nature Of every charge which his goods are SUD
iected TO in their delivery in New-fo rK ne
knows exactly the rate OF duty, the amount or
the agents commission. all the Custom House
charges the storage etc. and he knows that
his agent has made from y TO 10 per cent prom
On TIC cross sales The only element which Is
not ixcd is the amount OF duty to be PAID
Naturally, the further he can decrease the m
voice price Of his goods, when nave ateaag