Evening star., 1902-08-11
GOODS UNDERVALUED
AMERICAN POTTERS DECLARE
CUSTOMS TOO Low.
Treasury Department Investigating,
but Do Not Expect to Unearth
Scandal.

For several months the Treasury Depart
ment has been investigating, through the
means OF special agents. alleged underval-
uations on chinaware and pottery imported
into this country. Complaint has been
made by American manufacturers OF this
class of goods and the estimated loss to the
government Is placed at the enormous hg-
ure of S2O,O00O00, covering a period OF
twenty years.
Officials of the department do not look
upon differentiation as necessarily fraud
and in the present instance, while the in
vestigation is being thoroughly and rapidly
made. there is not the slightest apprehen-
sion on the part of Secretary Shaw that
scandal will be disclosed
The question of differentiation on inn
ports is one of the great questions win
which the Treasury Department officials
have constantly to contend. The evidence
presented to the board of general apprals-
ers which is the reviewing body Of the m
diyidual appraisers, Is always on the side
of the lower price. All parties interested
in the transaction of importing goods into
this country are interested on the side or
getting the goods in with the payment OF
the least customs duties. The appraisals
have to be made on the one-sided testimony
as would be produced under such circum-
stances, and If an appeal Is ever taken 10
| the board of general appraisers 1t Is al
ways taken in order to have the appraised
price reduced and not raised.
Hurts American Manufacturers.
| American manufacturers. who are the
| constant complainants to the Treasury De-
| partment on the subject of differentiation
of imports. rarely, If ever furnish data for
the correct appraisal of goods The law
! requires the value Of goods to be fixed
| by their market value in the country from
which they are imported. the cost of pro-
| duction also being taken into consideration
| In this connection.
| In the investigation of the alleged under
valuation Of chinaware and pottery the de-
partment is working along these lines. An
| agent of the department is now IN Europe
compiling testimony to be laid before tne
| board of general appraisers as to the home
market price of this class Of goods, as well
| as the cost of production. On this showing
the officials will make their comparison
with the appraised price which has been
| complained of.
Under the Dingley tariff act pottery Is
| subject to ad valorem duties. The rates
| vary from 25 per cent to GO per cent OF
their market value. The great bulk OF the
| importations are subject to duties or 90 and
| 60 per cent of their value.
| Little trouble has been experienced in OBJ
| tanning 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 Aus
| tria Controversies have more than once
| arisen over the value of imports from
| Limoges which Is the center of the pottery
| industry in France.
| For the first eleven months of the present
year the valuation of pottery imports into
! this country was $500, ,O0O which was
| 100000 more than for the same period last
| year This increase is accounted for large
| ly by the fact that recently there have been
| many advances in the valuation of this
| class Of imports. For the present year 1t is
| expected that the total valuation Of the pot
| terry sent here from abroad and subject to
| duty will not be far from $10,0O0,0OO.
| If the charge of the pottery men that Inn
ports are being undervalued one-third is
| sustained the true valuation Of this year 8
| imports should be S13,OO0,0OO, and at the
rate Of 30 per cent the loss to the govern
ment will be 81 500, 600.