Evening star. [volume] (Washington, D.C.) 1854-1972, 1899-01-07
BATTLE OF THE STITCHES
A Famous Custom House Fight Against
Embroidery differentiation.
How Consul General Du Bots at st
Gall Has Effected a Note
worthy Reform.

One Of the most interesting and famous
fights against differentiation ever made by
the custom house authorities is now being
waged against the exporters of Swiss en-
broideries. During the past ten years an
average of 81 100000 worth of these beauti-
full products have been exported from
Switzerland to the United States During
that period the government has lost several
millions of dollars OF revenue by underval-
| uation. Early last year Appraiser Wake
man of New York, aided by Consul General
Du Bots of St Gall, Switzerland, where all
invoices of the Swiss embroiderie rs are con-
sula ted, inaugurated a vigorous campaign
against the differentiation system that has
prevailed at ST. Gall for so many years.
In this work they were aided by Special
Employe of the Treasury Bradley and Spe-
| cial Agent of the Treasury Whitehead
Consul General Du Bots, who has taken
such active and intelligent part in this
| reformatory movement, is Mr.. James I. Du
Bots of this city.
1t has been a battle royal. and the fight
is still Immense capital is involved alb
normal profits are endangered and a great
industry is deeply interested in the Result.
For many years there seems TO have been
tacit arrangement between the exporters
at St. Gall and the customs authorities in
New York to recognize The stitch basis in
obtaining market value-that is, to the
stitch rate were to be added all other items
of the cost of production, and to this were
| TO be added certain percentages for gem
eral expenses and profit to make market
value. Years ago, by implied agreement,
the rate of Is confines per one hundred
stitches and per cent for general expenses
and per cent for profit to make market
value was adopted by the st. Gall export
ers, and to this agreement, which was in
violation of the law and a fraud on the
revenue, some one in authority seems to
have given silent consent. 1t was a viola
nj he Ia hlp he Ia
actual market value of the day of ship
ment must be given in the invoices 1t was
a glaring fraud on the revenue because Is
confines per one hundred stitches was and
is % per cent below the rates paid in open
market, and the percentages added TO make
market values of and per cent on all
classes of embroideries exported were alto
gether too low on so-called fancies or high
novelties.
The average differentiation on the
S10.000,000 worth of embroideries, laces and
handkerchief exported to the United States
from st. Gall during the past ten years
has been at least 20 per cent As the aver
age duty during that time has been 30 per
cent, 1t may readily be seen that an esti-
mated loss to the government of at least
100000 year is not an unreasonable valu-
alton.
covered this condition of things he prompt
| ~ raised the standard of revolt against the
so-called tacit agreement, placed upon it
the mandate of the tariff law. actual
value ON the day of shipment" Joined his
forces with those of Consul General Du
| Bots at st. Gall, and waged fearless and
aggressive war for over a year.
The result is that Schiffli embroideries
which, for many years, under the implied
agreement were invoiced at Is centimes
per 100 stitches, are now being invoiced at
"a centimes per 100 stitches. The hand
machine embroderies that were being in
voiced on the neutrality-suspicious. plan"
| anywhere from % to 80 centimes per 100
stitches, are now being invoiced at 30 CEN
times. The percentage of thirteen for
general expenses and profit on all embroid-
| cries has now been advanced to from 20
pep cent to 40 per cent on fancies and high
| novelties, and the stitch count has i'm
proved at least IL per cent since the expert
control was established at st. Gall last
July.
Protests have been made by the Swiss
! minister against the action of the custom
house authorities. Protests have also been
made by the St. Gall exporters, who have
claimed that the action of the appraiser
would ruin their trade with the United
States. But in the face of all these facts
the, embroidery. lace and handkerchief ex-
port amounted to 81 .009. 1875 for November,
1888 which Is the largest export in any
one month since the establishment of the
/ consulate at st. Gall, and nearly a half a
million more than during the month of
November 1897.
Besides this handsome saving to the gov
eminent and this remarkable increase In
business some of the best export firms of
St Gall frankly confess that while year
ago 1t was difficult to do satisfactory bust
ness in the markets of the United States,
owing to persistent differentiation and con-
of things has made 1t possible for them to
operate there with satisfaction and profit.
Both the government and the honest ex-
perters have reason to welcome the new
order of things producing this result
+N Mn