The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-03-31
APPEAL TO ROOSEVELT FAILS.
SUPPORT ron SHAW'S SHARP
TALK TO NEW YORK NERCH


Heated Conference In Presidents once
Regarding duties on CHINA Berg
frldt 4 90. Accused Of Under Val
uinE Invoices ON Thelr ImpOrtGtlons
WARRINGTON, March So somewhat
heated conference was held In President
ROossyelts once to-day, the subject Of
discussion being the proper valuation Of
certain cheap chinawure imported by q
New York firm Besides the President
there we're PRESENT Secretary Of the Treas
uTy Shaw, delegation representing the
Merchants Association Of New York, and
w. Wickhaln Smith, the custom house
lawyer. The delegation brought with them
big basket Of chinaware, which they laid
out, piece by Liece ON the Presidents big
mahogany desk, for his inspection. The
argument waxed warm, and 1t soon APP
peared that Secretary Shaw and the other
visitors were hopelessly at odds, and that
the President was expected to settle the
dispute. He did 80 by refusing to inter-
feTe. No china was broken.
Secretary Shaw's position WAS stated in a
letter addressed to the President which he
delivered during the conference. In this
letter the Secretary roasted the Merchants
Association and severely scored the firm
Of BOrgfeldt & Co., importers Of the par
ticular wares which caused the dispute.
IL was commended by the Treasury authori-
ties and by Collector Stranahan that certain
invoices Of ohinaware brought into the port
Of New York by Borgfeldt & Co., were under
valued and were therefore liable to be adj
mitted at lower duty than was honestly
due the Government. Collector Stranahan
ordered a reappraisement, although the
Merchants Association asserted that Secre-
tary Shaw did IL.
The Secretarys reply to the Merchants
Association had the more ginger In II because
committee Of that body had gone over
bis head by writing a bitter and sarcastic
complaint Of his official acts to the Presi-
dent. The Merchants Association made
special case OF the Borgfeldt invoices, in
which the Board Of General Appraisers
advanced the valuation 10 per cent. The
committee who addressed the complaining
letter 10 the President consisted Of Clarence
Whitman, John C. Evans and Henry X.
Towne. In their letter they said, among
other things, referring TO the bearings before
the board OF general appraisers:
The second principle involved il that
all evidence in any proceeding involving
the good faith and honesty, as well as fnan-
cial interests Of an accused party, should
be open TO the public and that the accused
party should have the opportunity to cross
9 famine and 20 ofer testimony in rebuttal,
We ara fully aware that this practice Ia
legali2ed by a provision Of the present
customs administrative act
To this Secretary Shaw says, In his letter
to the President to-day:
And they might have added that this
practice has the sanction also Of the Su-
prene Court Of the United States. ] con-
code that the legislative committee Of the
Merchants Association have frequently
asked Congress TO amend the law but they
have thus far failed, and think in no in
stance have they secured the support OF
any one Of actual experience in the collec
ton OF customs duties. / submit that 1t
does not lie with the executive committee
Of the Merchants Association TO ask that
this law be violated OF ignored simply be-
cause an unsuccessful attempt has been
made to have II amended
Mr.. Shaw then explained the method
Of procedure in cases Of reappraisemant
before the board. He said itwould he i'm
possible to secure the necessary testimony
Of many importers and trade experts un-
ess the hearings were held behind closed
-loors, for these witnesses would not consent
10 give away their trade secrets.
The Secretary also replied TO the COM
plant Of the Merchants' Association that
Mr.. Shaw had said that ~BOrgfeldt a Co.
have been under suspicion Of undervalu-
ing for a long time Mr.. Shaw quoted
8 CURES from the invoices Of Borgfeldt 4 Co.
md some Of their leading competitors, show
ng that the former firm had almost in
yanably declared a much smaller valua-
hon TO the customs officerson precisely the
same kinds Of goods.
In conclusion the Secretary declared
hat he should enforce the law as il stands |
until the Merchants Association succeeds ,
q its task Of convincing, Congress that |
he law is bad.