Year: 1874

~ the rnerchant "this thing IL be yond ne cannot
onnrehend It, and you had better let give it 10 ex-
mart so.andso" The merchant Gays "Well all right
but what is tho charge ~ The broker says, don't
know IT'S a very important case but it VIII be preee
dent for us in other like cases and should judge he Will
charge about $3.50 He will have TO examine into H. and
may be he will have make 10 trip TO o.WashDgtoD"
Well the merchant wants to get possession Of his cargo
ana he draws his check for $3.50 for the expert Even
that Is bad enough; but, II You believe meeven the OK
merits have failed have brains enough 70 90 that DUST
neas and we have got another class now who may DC
called Custom house lawyers and my Judgment ~
that we have got almost dozen Of these firms tell
yOu gentlemen that these experts and these lawyers
combined together getting mp ribbon cases ana fru
oases and such things, and you know In Washington
what getting I'D ribbon cases aud fruit cases MEANS By
the agency OF these there Is an outflow IRON the
Treasury that has amounted or Will amount 10 NoOo~
from those two sources alone Who st that gets these
cases upi Who is 1t that gets the money! Is IL the
merchants No, indeed; they never know anything
about these ribbons fruit but these gentlemen ex-
perts and lawyers about clandestinely
and get merchants TO assign of claims they have for
so Dor cent or rs per cent The merchant asks What
IA the case ~ They reply, No matter 1t s something
that you have not got In your pocket and wo VIII putn
In" The merchant signs tho agreement, and after
year or two tho explanation comes to him. 1t rib
bon case. I have heard some Of tho most marvellous
stories about these cases.


The CHAIRMAN Commit would like you to make
your accurate aud full as you can on that
point:


HONEST MERCHANTS IN MoRB DANGER THAN A


ROGUE


MT ScuULrz-I do not suppose there Is any secret
about There Is relay OF counsel In New-York and
Washington engaged this subject am not here to
exactly what proportion OF the amount recovered
these lawyers have heard It, but dare not
state TO you how much but If you Will appoint special
committee TO go to NewYork AS have suggested that
committee will soon bring out some very interesting
facts that regard These gentlemen experts and these
Customhouse lawyers got up all these jobs be assured
of that Before get through shall try to show you how
they act for merchant. shall not tell you how they
act the Government because have the facts here
and verify them for yourselves They drawing
all these from the Treasury, aud they arc
drawing vaster than will be replaced there by
the chicanery brought into operation against the mer-
chants.


We protest against ths wholesale slaughter OF In
voices by OF the aint attached to one Item. IL
the merchant Is a rogue what does he do II he knows
the law, and is determnedsto evade it, does he put
small which he Intends to evade duty into big


invoice and thus run the risk of forfeitDg the whOel
Would that be the course sharp scoundre would
he not rather say. 81 will put all tainted articles


into ono invoice and will keep all honest articles by





in that way and consequence is that he gets caught
whyi Because he not only puts into an invoice the


items may tainted. but he puts all the items that
may amount to 20 thousand pounds right into the
place whero they belong. Everybody knows. and no
body better than the distinguished Treasury agent
present that when he goes into house of response
bty he has only to know the date OF any invoice that
ho is after and that he Will find paper connected
with it place; and just in proportion as men are
honest and keep their business under control and In its
proper parmens, just in that proportion are they


liable to be struck. 1t is not with the reacherous
bad man. his books he puts them out or the
way 1t not convenient for him to keep up any regu-
lar SYSTEM Now, tell this Committee that II this sys-
tenn of which we complain goes on, no merchant can
afford TO keep OF regular books aud of course that
will drive every honest man Of the trade. As said
before lust in proportion these houses are regular
and faithful and honest In their TRANSACTIONS Just IN
that proportion are they liable be struck in tho
that we are talking about.


Mr. sHELDoN-I know that to be the fact from my own
experience. not as a merchant but as lawyer.


NO LIMIT OF TIME AS TO LIABILITIES FOR DUTIES.


Mr. SCHULTz-I am very glad to have confirmation on
ono point anyhow. Now, there Is one thing which we
hayo asked for we have asked that there shall be
limit to liability to the Government for duties, and
think that very important question. The law now 10
that the matter for five years. and merchants
are liable all that tine to have their accounts with the
Government reopened. We ask you to bring 1t down to
two years. yet that is not according to my judg-
ment and is not according to equity Such length OF
time is not required the safety of the Government
In my Judgment the liquidation Of the account should
be the end OF the whole matter II have told you the
truth regard to the landing OF cargo. You can see
that there is possibility Of retaining from the Gov
ernment any of its duties. Why then keep the mer
chants bonds and hold them from the merchants even
for two years Our committee has asked that the limit
md nnnhf IN
stand by 1t. Give US two years. and am satisfied,
but say there naturarjustce in it, reason in
it, no necessity IN 1t. say that when account is
finally settled aud closed and the matter hquidaed,
bonds should be returned to the merchant and there
all liability should cease. 1t is generally 10 to 60 days
from the time the goods arrive and the money Is paid
until the account Is quidated say that 1t Is reasona
BILE and right that when the account Is hqudated the
bonds OF the merchant shall be handed back and all his


liability regard to that shipment shall II the Col
ector satisfied with 90 days. let him have 90 days
III that time sufficient, let him have longer time
He has got 1900 clerks and employees they are
not enough give him hundred two more but let him
work. and let the accounts be closed Merchants
put upon their bills Errors corrected. etc.. within ten
days" Why should not the Government act upon tho
same prncipei II merchants acted upon the principle
that the Government acts upon, partner could
retire. could safely die for foar he might be in
yolyed eternaly. (Laughter.l II your bonds were in
the New-York Custom House, mine are, for about
four times than you worth, you would not
think 1t o laughing matter. am called upon by some
friend OF mine to sign his bond for 100000 at lick
do not know respond. for do not know the
amount which am already In. I never get back my
bonds. The Government never attempts to do you
Justice. A merchant has got to protest within
q limited time Il think within ten days., or
his rights are lost forever; but in his dealings
with the Government the Government has got Its equi
nes him for FIVE years Did you ever hear Of such
nonstrous injustice toll you. gentlemen that IL this
thing coca on 10 will be difficult for merchants 10 find