New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-03-27
REVENUES FROM DIAMONDS
SMUGGLING HAS LARGELY DIED OUT
SINCE THE REDUCTION IN DUTY
A LESSON WHICH THE WILSON ACT IAo"hi
u,,.,r1.,r,nNs IN THE MARKET FOR GEMS
SOUTH AFRIcAs RICH STORES

narration OF precious stones under the pins'y Jaw,
suggested some inquiries on the SUBJECT '"'.
was made on \. j. o. hodehP!'' '
the association who said: $780,, .
:. ,,o ,,ro,or,ion Of the diamonds found come
from the mines OF South Africa. ana so'"e Sea''
ago when all the mines were run
so grca; an influx Of stones poureu nv ~ ,
kets Of the world as materially to lower ,''e 'a"'
Of the gems and in consequence 'aree' ~
the revenues OF the mine-owners' '",s ,
formation OF the famous Cecil Rhodes Barney Bar
nato syndicate. which controlled the SOU" 1'
output OF diamonds and sold only certain mum
her Of the stones annually. since 'ha' INV wa
monds have remained steady in value
.T'nder the Dngley tariff the precious s'
showing the greatest Increase In importation are
noeln diamonds small stones such as are uSen III
marnulse rncs, emeralJs. rubics and pedi''' ~
goods OF the most expensive quai'y s"o" "
greatest increase. and i may be stateo 40 :" ee'
eral rule that tho importation OF precious s'oneS
into b rn,ed states has increased in direct ratio
with the wealth Of the country Now only the
very finest are imported those Of less VaIue oehs
brought in in the rough and cut here
DIAMOND CUTTERS OF NETWORK.
THE diamond cutting establishments are scat
tered all over the country In this CITY they centre
around Gold and Blocker SITS. ana there are some
in Brooklyn and Newark Diamond cutting Is an
expensive operation but II is the diamond cutter
who costs and not his tools. Tho operatives are
almost wholly Of foreign birth and are principally
Hebrews from Amsterdam. They are the only
men who thoroughly understand the art OF cutting
the stones which consists principally In being
able to Judge by the eye rough stone and 10 de-
ermine how the finished gem be turned out
with the le1st waste Of material These men are
brought up the trade from infancy. and are OK
ceedingIy clannsh It is almost impossible per-
suade them to take Americans apprentices
THE trade experiences much trouble with them.
as they will work only when they need money.
md nail off ls
obtained from them until their funds srent in
csrousing. The present Administration helps dla-
mond and lace importers far more than the pre-
v!ous one. The Government has detectives scat
tered all Europe watching for attempts
defraud the collectors OF revenues
HIGH TARIFFS YIELD POOR RESULTS
II. H. Treadwell who has been with Tiffany &
Co. for the last twenty-five years and who por-
sonally conducted the tight before the Congress
committees to obtain the reduction In the duties
on diamonds. spoke follows
we are IN" only country o: the hrst-cass
charge a duty on precious stones. as all other
nations hut ours consider the gems equal
a bill OF exchange and such admit them free OF
duty
The duty OF % per cent under the Wilson bill
put enormous premium smuggling and in
consequence 1t became epidemic. From 1859 to 1864
all increases on the tariff precious stones
and above per had resulted so disastrousiy
to the revenues derived that they had shortly been
repealed. In 1864 the tarir became fixed 10 per
cent duty cut stones with rough stones ad-
mitted free. This tariff remained unchanged for
thirty years. until the passage of the Wilson bill
which placed the rate Of % per cent on cut and
polished gems
I'm 1898. the last year Of the operation ~ the Nc
Kincy law. the value OF the cut material imported
into this country sl4+0929 which 10 per cent
duty yielded the Government revenue Of $l.fI082.
In 1895 under the Wilson bill the imports had fallen
O-fs
duty to % per cent yielded revenue OF 1922 III,
showing a loss to the Government OF 1881 975.
But the imports kept steadily decreasing, and In
April 1897 fell TO the incredibly small sum OF
s2207i. with revenue of only f55ls. The last year
Of the Wilson law. compared with the last year
% the Mckinley act. showed A loss OF revenue OF
considerably over 81 .ONOCoo Il proved with a ven
gcance tho truth OF Sir Robert PeeIs famous rule:
Double the tariff and halve the revenue. Halve
the tariff and double the revenue
DIAMONDS GREW CHEAP
I'm the mean time there was no dimnuton IN
the number OF sales OF diamonds in this country.
which showed thai gems worth about fl2no,60
were being smugged annually. Diamonds were Of
fered right and left In our market at from 10 Is
per cent below the value OF such goods In Euro
pean markets. plus the % per cent duty then in ef
feet Naturally the smuggers were anxious 10 re-
tain the greater duty. and made a strong effort 70
prevent It's removal. delicate satire on the char
acter or tho opposition 10 the reduction may De
found IN the fact that one OF the principal advo
Gates Of a high tarn has just lately been con-
victed OF smuggling
That this reduction Of the tariff was a wise one
IL shown by the fact that IN the first four months
II the Dngley law stones OF a value OF between
10000 and 100000 imported into this
try against $4,000 for the corresponding period
OF the year previous. and an increased revenue OF
500 60 earned.
THE OI-TIOOJ< TOP cNI'CGTLRS
THE dlnand- cutters. diamond-setters and deal
ers in precious stones In the United States prom
ised the Treasury Department at Washington that
Il it would assist in getting the tariff reduced they
would aid in stopping smuggling and this led 20
incorporation OF the Diamond Importers and
Cutters Protective Association. We know where
most OF the large precious stones abroad are held
and when any OF them are offered here at below
the market rates We believe they have been SNUG
gled. and so advise the Department.
Il wish to say the Department has given us all
the aid have asked for and has shown a will
!ngness to do more than it ever had before under
nny previous Administration"
VIEWS OF Mr.. KUNz.
George Frederick Kunz expert in gems for Tiff
fanny 90. and for the United states Government,
said:
establishments for cutting precious stones are
on the Increase here. This class of labor receives
from $50 10 SO week, but is limited tho
number employed, as a careful estimate has shown
that the greatest number OF diamond-cuttcrs
ever employed in this country never reached over
80 I'm any year. and In 1897 II had decreased
10 2-5 IL il again the Increase now.
South Africa produces the largest part OF the
worlds supply Of diamonds at present. and In the
Las these fields have added rough
stones 10 the worlds wealth to the value OF
no 10000 or the enormous sum In money OF
Syg Opp0 When In their finished state these
&, ms were worth twice as much, or s.OOm000o and
since the foremost experts value the known exist
ing prccious stones In the world az N.0DGo,o01 II
viii be- seen that since the discovery OF these
mines their product has almost doubled the worlds
store OF precious stones
There have been many curious attempts to
smugglc diamonds. Concealine them In cakes Of
,oap hollow canes umbrella handles. or watch
cases where the works have been taken out. arc