Year: 1874

II eliminated in gross extorton and corruption not
to say crime


INJUSTICE OF THE SYSTEM.


This act OF March 1863 as will be seen by an examna'
tion OF It's provisions, declares that IL any o"ner con
signee or agent shall knowingly make or attempt 10
make an entry by any false invoice or raise consular
or any other false or fraudulent practice or
onrances Whatsoever said goods their value shall
be forfeited In this law will be seen that the intent
10 evade the payment OF duty ia carefully omitted.
that the person making the entry knew had reason TO
suppose that connected with the transaction
minute or technical the item fact. they must find
against him. In effect the law virtually declares ior.
the fact ascertaned Is prima facfe evidence OF know
edge SO the owner or claimant OF the merchandise must
satisfy the jury that the document was not by the person
making the entry known or believed 10 he IN
particular false The question of intent TO defraud
the revenue was not necessarily nvoved IN the ques-
ton at ALL The importer was not even permitted to de-
BY this crafty legislation inspired by disngenuous par
ties importer told In effect IL ia not for you 10
whether not the revenue suers we have other aims
important TO and 10 our friends than the inter
the latter could satisfy the Jury that he ignorant
verdict coniscatlng his property must be FOUND.
sequcnt amendments in the least calculated to
facilitate the collection OF the revenue. On
the contrary, they eXcrescence upon the sys-
tenn and operated delay and embarrass at every step
And my object In calling attention 10 them Is not SO
much the hope OF securing at once all the requisite
changes show how injustice to the importer under
their egis is carried on by selfish officials, ana 10 eect





will not dwell upon the several acts relating TO the
appraisal of merchandise they run through the stat
present system was authorized by the of July "a,
1866 IL unnecessary To here state even the general
features OF this law as whatever seems important TO my
argument will be disclosed rs proceed.


The ninth section Of that act directed certain costs
and charges therein specified 10 be added TO the ap-
praised value order make the dutable value. SO 1t
will be found that the importer is subjected to several
statements relating TO each importation one known
as the invoice value the appraised value. and
another dutiabe value As the law stands the entry


time II the appraised value exceeds the entered value
10 per penalty follows of 20 cent ad valoTem
value In order to bring II to the market value
10 be found by the appraiser That would be too fair as
where the value had suddenly advanced be-
tween the date of invoice and the date Of ex.
portation. In word, the case stands thus
An importer must produce an invoice stating the
actual price he paid II the goods are purchased ana
prOCurement the entry paper AT the custom house must
must be valued by appraiser the date of exporta
ton II this appraised value, with costs ana charees
10 per cent then. addition 10 the regular duty pen
atty of per cent is added should be stated that the
importer may himself add on his entry 10 make his ap
probation OF market and dutiabe value; but the COZ
ectOr under circumstances take duty on less IMAM
the entered value no matter how much less the
appraiser reports the real value at the date of
expectation Add TO all this intrcacy and tech
erroneous OF false within the knowledge OF the
owner cOnsgnee, agent. the whole Is forfeited ana
we see how well the entire thing is arranged entrap
the unwaIy ana TO enable avarcious and grasping oil
erals TO prey upon the purses trne with the repu
tons of honest men. Let read from OF the chap
ters of this record of labyrDths For example, II ner-
chandse manufactured in the interior OF Germany,
therefrOm to the United states through France
and pnt shipOOard at Ulvre, which Is the country
and the time eXpOrtaiOnl If, when the merchandise
left Germany, Its real destination was NoW-fork, Is me
cost of and other to the frontier
Of that country dutabe itemf Aad If ST. Is the cost
of transportation and other expenses incurred aiter tle
merchandise leaves the borders of Germany to the port
81 oD 81 P6e a Of March s. @ saws ha an nyoe Of
manufact tured goods sent here by the manufacturer
need only contain the actual market value thereon at
the time and place when and whore the same were pro-
cured or manufactured" There is no requirement. in
regarl Of packing or envelopes, as would ord-
naTiy be embraced in the case OF purchased goods,
which are usually delivered to the purchaser ready for
shipment. As VIII he seen If an importer having act
wthnolds them from hs by accident OF design,
the invoice is held TO DO false and the Whole Is liable 10
forfeiture


CAUSES OF COMPROMISE IN THESE CASES


Early in the present introduced bl having
for its single OBJECT the changing OF the law which for
feits whole invoice for the unlervaluaOn Of one item.
IL passed this body some time ago. but believe still
fingers in the House of Representatives.


Again. when the merchandise arrives in Ncw-York,
who. If any one shall add the entry the dutiabe
specified in the ninth section of the act OF 1861
II business OF the Importer or OF the collector
upon the report of the appraiserf The law does not
say aud yet this section indicates that such additions,
whether made by the othef snail De regarded as
labyrinth more completely devsedl And all this not IN
the interest of Legitimate commerce ana honest cOec



for espionage and greed.


Ii should be borne IN mind that the penalty of % per
cent or One1h of the whole value IN one case ana the
entire value the other, does not necessarily involve
apv element of fraud. The importer be wholly in-
nocent each instance. IL NAV be- ana no doubt gen
ery Is trivial OMISSION careless neglect, want Of pre-
else information, disagreement OF opinion between
the importer aud the fna apprasement IL Will not DO
ia ay that the merchant mag into court the mat
ter OF sOcaed false invoice because the burden OF PROOF
ober words he asked to prove negative, which Is
always "A very difficult thing TO do. Hence the coinprO-
which we have further illustration OF the VlldDOus
practices under cover Of vicious laws BY compromse
/ mean a sort trade between the Ouicers ana the
special agent of the Government oD tue one hlnd
and the Importer on the other, not 10 Dlihg tle
case 10 trial If "a certain amount OF money Is pald Oi
cnurse INC DoWer TO fix terms and enforce compliance
all on side OF the former They ho'd up INC law,
great and influence OF one high In the commence
Of the Administration; they menace reputation Ihey
arrest the wheels Of business and threaten SIM larger
draft upon purse OF the unfortunate vctin need
not recite the Of Phelps Dodge Co., Of W0O1ruH
A. Robinson James f. COlWe * Co., and others, for the
facts are familiar to all. 1t seems clear tha among
other reforms, the one relating to compromises snou
not be overlooked. There should be no compromise
until the s actually tried III court ana Iueh tue IA"
March 1923, affords the proper Ieliei IL y Is e
port by the Judge, discontinue the prosecution upon
such terms as may be deemed reasonable and just.


COLOSSAL PERQUIsIrEs OF OFFICIALS.


Perhaps the most noticeable feature of the present
system is the enormous emoluments OF the collectors.
naval officers. surveyors, and special agents, and the
pernicous practices by which they obtained Nearly
three.fourtbs Of the imporatOns of the country are
entered at the port Of NewYork and in treating Of the
practice aud effect there shall best present the abuses
and the wrongs OF the system itself, the principle
Involved applies alike to all other customs districts The
officers receive certain fixed salary and in addition
are entitled 10 share In the proceeds OF
fines and penalties imposed or collected IN
their several districts The reports OF the Secretary
of the Treasury of February IL and March H. 1874 show
that the net OF money covered into the Treasury
from March 1862 March l. 1874 out OF seizures hnes
penalties, and torfeures at the iort OF was was
$ O95 90 that OF this amount the mOiees PAID the
Collector Naval Ocer and Surveyor at That port were
S5OOOs 65 IL will be upon examination mat OF the
amount received into the Treasury there sti remains