The Providence news. (Providence [R.I.]) 1891-1906, 1902-08-11
Claim Government Has Lost
$2O,OOO,OOO in Import Duties
UNDERVALUaTI0N Is ALLEGED
Former Efforts 10 Secure PropM Assess
msnis on Foreign Made Articles Were
khartIvs knothsr Scandal Brewing.

New York. Aug. 11.-Facts have been
laid before Secretary OF the Treasury
Shaw which point to the existence OF a
scandal in the importation Of china and
pottery. involving losses TO the govern
ment exceeding even the amounts lost
through the frauds In Japanese silks
1t Is asserted by experts who are not
themselves interested in the matter that
a system of differentiation has been
practiced for the last twenty years which
has caused loss to the treasury OF from
81. 900. 900 10 81 500. 900 n year.
While II has been known for several
years that this loss was going on. per-
sistent efforts to correct 1t were nullihed
ment officials.
Astopishment was expressed yesterday
that the determined attitude OF the sec
retary OF the treasury and the new Of
ficials appointed by him had not served
as warning to dishonest importers.
1t was said that frauds have been de-
tected In still another line OF imports and
that when an investigation that Is now in
progress is finished disclosures Of
startling natuTc Will Dc maue.
PRESIDENT INTERESTED IN MATTER
Not only has Secretary Shaw been
asked to put an end to the alleged under
valuations OF pottery. but the facts have
been submitted to President Roosevelt.
who Is said to be taking a personal inter-
est In the case. The complaint was made
by men interested in the pottery indus
try of the United States. the headquar-
ters OF which Is in Trenton. N. 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 for
eign producers.
When Appraiser Whitehead was asked
whether an investigation was in progress
In regard to the charges made by the pot
terry manufacturers. he replied:
II regard IL as my duty 10 appraise
the collector Of the port. l have abso-
lutely nothing to say in relation TO the
matter"
Under the Dingley tariff act, pottery Is
subject to ad valorem duties. The rates
vary from twenty-five per cent TO sixty
per cent. OF their market value abroad In
accordance with their quality. The great
bulk of the importations are subject TO
duties of hfty-hve and sixty per cent. OF
their value.
Little trouble has been experienced in
obtaining a fair valuation Of pottery i'm
ported 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 I'm
ports from Limoges. which is the centre
OF the pottery industry In France.
UNDERvALUED oNE-THuRD.
IL ,s aeoarted l,v mon who a ra tn o M
sition to know what has been going on In
the appraisal OF pottery that the under
valuations have averaged about one third
for many years. The Trenton pottery
makers say the period covered by the al
legged frauds is not less than twenty
years.
For the first eleven months OF the pres
ent year the valuation of pottery imports
into this country was sS,S00.000. which
was $500. 900 more than for the same.
period last year. This Increase Is ac-
counted for largely by the fact that re-
Gently there have been many advances
I'm the valuation of this class of Imports.
For the present year IL is expected that
the total valuation Of the pottery sent
here from abroad and subject to duty will
not be far from S10.000.000
II the charge OF the pottery men that
imports are being undervalued one-third
IS sustained the true valuation OF this
years imports should be 10000 900. and
at the rate OF fifty per cent. the loss TO
the government will be $1,000, 900.
Collector Stranahan said he had no
knowledge of the pending investigation Of
the valuation Of potteries.
There Is evidence that recently dinner
sets have been invoiced and admitted at a
valuation OF 2Gf. which could not be
bought abroad for less than 36f. or 3sf
one OF the obstacles OF the situation Is
the fact that. Notwithstanding the great
value OF the pottery imports and the DIFF
ficuty OF making a fair valuation Of
them. only one man is assigned to the
duty Of appraisal at the present time II
is believed by the homo manufacturers
that the nature OF the task demands the
services OF four or five men The result
OF the latest effort 70 advance the duties
on pottery Is being watched with inter-
est by manufacturers and with even
greater interest by officials Of the treas
ury department.