The Montgomery advertiser., 1905-03-31
CLAIM OF BORGFELDT
IMPORTER DIsPLEAsED WITH AP-
 PRAIsERs' TREATMENT.
BiE Company, Paying Guwernrsent a2,- 100000 Annually in Duties, Lays
 Its Case Before President Roosey cit

Washington. March s0--The Presi- dent today gave a hearing to repre- sentatives of GeorEr Borgfeidt and Company of New York, who are ale legged to have undervalued certain im- portations of Chinaware. The hearing was granted on the request of the ex- ecutive committee of the Merchants Association of New York, who com p1ained of the treatment which had been accorded Borgfeldt and Company by the board of general appraisers at New York in advancing the foreign market value of their importation 10 per cent and especially in not giving sent evidence in rebuttaI of that upon which the advance in valuation was based. The practice of the board of general appraisers in excluding from It's hearings in cases of this character the importers whose invoices are un- der scrutiny is, 1t Is said, fully sus- tained by law and the decisions of the United States Supreme Court and a number of other decisions were cited in support of this contention. In ex- plantation of this practice of the board Secretary Shaw says:
 ordinarily in reappraisement cases the government IS represented by counsel. The government introduces such evidence as 1t has. and members of the board of general appraisers re- quest the presence of such merchants as are supposed to have expert knowl- edge on the subject. The honest i'm porter affords the government its prin- cipaI protection against fraud and yet the honest importer hesitates to give testimony against his competitors. however interruptions. If hearings were open, importers would seldom if ever, give testimony against their ri yals. for there Is no way to compel their attendance. Therefore, while the government is making its case the im- porter and his attorneys are usually excluded and frequently the witnesses object to the presence even of a spe- cial agent of the Treasury Department. In such instances these officers are also excluded Trade secrets are frequent ly involved, and witnesses demand the greatest possible privacy. While the importer is making his case the gov- ernment Is seldom represented and never when the importer objects. The hearing is ex parte and all evidence given is confidential. The government can secure testimony with no other understanding.
 In a letter to the President in rela- ton to the case. Secretary Shaw brief lv reviews the evidence submitted. which. 1t Is alleged, tends to show that the China imported by Borgfeldt and Company was entered at a value con siderablv less than the same class of ware was entered by other importers. If was stated in support Of the values given by Borgfeldt and Company that they have favorable contracts with leading potteries in Europe under which they take their entire output for several months each year and thus are able to secure the exceptionally low nrices which are given in their in- ,,oices If was also stated that this e,.n, navs the government in customs S,,ttos annroximately $2,000,000 a year z ,rhe President declined to interfer' |, inc premises and sustained thu ,rreasurv Department in every particu lar Counsel for Borgfeldt & Co. asked that a different board of three De deslg mated to try another case. This th' secretary willingly granted ana prom tsed to give Mir. Borgfe1dt the purpor ,ha evidence introduced agains btr, if If could be done without reveal tng inc identity of the person giving tho Testimony. or betraying confidence
 one obiect of the hearing before tho president. Secretary Shaw stated. wal to secure. if possible. his cooperation in getting an amendment to the GUS toms administrative act, making hear ings before the board pupiic and stop hing the practice which has prevailed from the organization of the customs division of hearing confidential testi' mony. This case and those of other innportations by this firm have attract ed much attention in the pottery trade i'm this country and especially that oi the American Potters' Association which, it Is said. has been largely in strumental in securing the evidence upon which the action or tne board oi ,ransral anpraisers was based.