The Washington times., 1902-08-11
Secretary Shaw Told Gov
ernment Has Lost Enor-
nous Sum.
IMPORTS ARE UNDERVALUE0
Former Attempts 10 Obtain Suitable
Assessment OF Foreign Goods Were
Faiiurcs-AnOther Scandal Said to
Be Brewing.

Facts have been laid before Secretary
! of the Treasury Shaw which point 10
the existence of scandal in the iIl-
portation of china ard pottery, involv-
ing losses to the Government exceed
Ing even the amounts lost through the
frauds in Japanese silks. It is asserted
by experts who are not themselves in
terested in the matter that system OF
undervauation has been practiced for
the last twenty years which has caused
00o to 81. 600 eco year.
While it has been known for several
years that this loss was going on. per-
sistent efforts to correct it were nuiii-
fed by the inertness or hostility Of
Government officials.
Astonishment is expressed that the
determined attitude OF the Secretary
of the Treasury and the new officials
appointed by him had not served as
warning to dishonest importers. It was
said that frauds have been detected
in stu another line of imports and that
when an investigation that is now in
progress is finished disclosures of
startling nature will be made.
President Interested.
Not only has Secretary Shaw been
asked to put an end to the alleged un-
dervaluations of pottery. but the facts
have been submitted to President Roose-
welt. who is said TO be taking a per-
sonal interest in the case The COM
plant was made by men interested in
the pottery industry of the United
States. the headquarters of which is in
Trenton. y. j. They declare that the
wages paid abroad are less than one
third Of those paid in this country and
that II the duty provided by law is not
collected here they will be placed at
the mercy of the foreign producers.
Under the Dingley tariff act, pottery
is subject 10 ad valorem duties. The
rates vary from % per cent to so per
cent of their market quality. The great
bulk of the importations are subject to
duties of So and 60 per cent of their
value
Little trouble has been experienced
in obtaining a fair valuation of pottery
imported from England. but there have
been many disputes in regard to the
actual value Of imports from France.
Germany and Austria. Controversies
have more than once arisen over the
value of imports from Limoges. which
Is the center Of the pottery industry n
France
Pottery Undervalued.
1t is asserted by men who are In a
position 10 know what has been going
On in the appraisal of pottery that the
have averaged about
one-third for many years. The Trenton
pottery makers say the period covered
By the alleged frauds Is not less than
twenty years
For the first eleven months of the
present year the valuation of pottery
which was 100000 more than for the
same period last year. This increase is
accounted for largely by the fact that
there have been many ad
rances in the valuation of this class OF
IMPORTS. For the present year it is ex-
1ected that the total valuation OF the
pottery sent here from abroad and sub
ect to duty will not be far from s10.-
100 900
If the charge of the pottery men that
IMPORTS are being undervalued one-third
$ sustained the true valuation of this
-ear's imports should be s13.000.O0O, and
It the rate OF 80 per cent the loss to the
Government will be S1,5Oo.OO0.
Dinner Sets Invoiced.
There is evidence that recently dinner
ets have been invoiced and admitted
II valuation OF 26f.. which could not
70 bought abroad for less than 36f. or
Sf.
One OF the obstacles of the situation
$ the fact that, notwithstanding the
.reat value of the pottery imports and
he difficulty OF making a fair valuation
!, them, only one man is assigned TO the
uty of appraisal at the present time.
t is believed by the home manufactur-
rs that the nature of the task demands
he services of four or five men. The
esult of the latest effort to advance
he duties on pottery is being watched
18th interest by manufacturers and with
ven greater interest by officials OF ths
reasury Department.