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H. OF R.]

The Army.

[APRIL 15, 1830.

⚫ more agreeable at this moment; but believing that nothing | let their parents educate them, and not the public Shall in our situation or in our relation with other powers, how we listen to the gentleman, or shall we listen to the voice ever pacific at this time, can give a certain assurance of of experience, which has taught us an effectual lesson on uninterrupted peace, a state which may exist in the ima- this subject? gination of the poet, but which no nation has yet had the Sir, we have tried the gentleman's plan. We did forgood fortune to enjoy, I have deemed it my duty to pre-merly appoint those who had educated themselves, and sent that organization which will most effectually protect we found that their education, however good, was not a the country against the calamities and dangers of any fu- military education, and did not fit them for the wants of ture contest in which it may be our misfortune to be in- the army. Nor is a military education to be obtained in volved. any other way than at a military school. The gentleman Economy is certainly a very high political virtue, inti- has also expressed his regret that places in the army are mately connected with the power and the public virtue of given to the rich, and not to the poor; and yet he is for the community. In military operations, which, under the giving those places to such only as have been able to obbest management, are so expensive, it is of the utmost im-tain a good education for themselves. Does not the genportance; but, by no propriety of language can that ar- tleman see, and must not the House perceive, that the tenrangement be called economical, which, in order that our dency of his plan must effectually exclude the poor military establishment in peace should be rather less ex- Should such a plan prevail, you must either put ignorance pensive, would, regardless of the purposes for which it in commission, or confine your commissions to the sons of ought to be maintained, render it unfit to meet the dangers the rich. The gentleman's plan is a plan pointed directincident to a state of war." ly against the poor, but the existing system throws open Mr. TAYLOR resumed. Let it be remembered [said the military employments of the Government alike to poor he] that this was the language addressed to the House in and rich. Like the gentleman, I am not in favor of a pri1821, a period in which the condition of the country called vileged order, but I am equally opposed to making a prifor retrenchment quite as much, if not more, than it does at vileged order of the poor as of the rich. The son of a rich present. The nation, in that very year, had been compel-man has as good right to be admitted to the service of his led to borrow five millions to meet its current expenses. country as the son of a poor man-as good, and no better. I, too, [said Mr. T.] am in favor of retrenchment, and when But let us have no privileged order, either of rich or poor; the necessity of the country shall call for it, I shall ever be and I insist that there is no plan which can be devised, that prepared to reduce the public expenditure, wherever it is so truly and perfectly republican in its principle as that can with safety be reduced. But I am not for destroying: of our Military Academy. How is it supplied with its I am not for pulling down and laying waste what we have students? Every congressional district in the United built up at so much labor and expense. To retrench use-States is or may be there represented by one cadet. That less expenses is one thing; to cut up the best defences of is the principle of the institution. There may at some the country, and wantonly destroy them, is another. Re- particular time be a slight departure from it, but that can trenchment was called for when this report was made and be only because there have been no applications from paradopted, more than it is now. There is nothing in the ticular districts. There never has been but one cadet educondition of the country at present, which requires us to cated at that institution from my district. He is now there, reduce its establishment yet further than in 1821-nor can and in the senior class; and, when appointed, there was no it be done without essential injury to the service. A re- other candidate for appointment belonging to the district. mark was yesterday made by a gentleman from North Caro- Can the gentleman devise a system better calculated to lina [Mr. WILLIAMS] iu reference to the Military Academy spread its benefits equally over every part of the United at West Point. If I understood him right, that gentleman States? For my part, I cau conceive of none which said that the institution ought not to contain more than one provides such an entire exclusion of every thing like an hundred cadets; that that number would be sufficient to aristocratic principle. But, sir, if there be abuse, such as meet all the wants of the army, and to provide as many the gentleman apprehends, it is not for us to correct itofficers as could be needed for the existing establishment. there is another and a higher power, which will do that Sir, can the gentleman have forgotten the report which effectually. I refer to the sovereign people at home, who was presented to us last session on this very point? The have both it and us in their hands. If a member of this report of the Secretary of war (which will be found in the House gets a warrant for his son or other relation, when second volume of Executive papers, second session twenti- there are more worthy applicants within his district, doubt eth Congress, number 41,) states that the number of cadets not that he will hear of it. The people who are the sovegraduated from that academy within eight years, was two reign depositaries of power, will take good care to tell hundred and eighty-seven; and a very singular fact was, him of it, and that in a way that he will remember. We that precisely the same number of vacancies had occurred need not trouble ourselves on the subject. There is a far in the army, so that the number supplied from that semi- more powerful principle that will regulate that matter. nary, was just sufficient to meet the actual wants of the Sir, the gentleman's plan of an army, with a reduced service the corps of engineers having required eleven ap-number of officers, and with no major general, was bepointments, the artillery one hundred and ten, and the infantry one hundred and sixty-six.

The respectable gentleman from Tennessee says that he will not consent to educate young men at the public expense, to make them officers of the army. Sir, he cannot help it. He must do it; he must educate them either as cadets, or as lieutenants. He has this choice, and this only. He must either educate them as cadets before they are commissioned in the army, or he must admit them ignorant, and educate them in the army as lieutenants; and which plan is the cheapest? To pay them as cadets, or to pay them as lieutenants? Which method is most for the economy of the army? Will he put the public property into the hands of men well disciplined and thoroughly instructed in every part of their duty, or will he commit it to ignorant and undisciplined men The gentleman says,

fore this House when it gave the army its present organization. A plan something like that did pass this House, and was taken up in the Senate; there it was met by the plan of the Secretary of War. That body compared the two, and after mature deliberation adopted his scheme in preference to ours. It was sent back to this House in the form of an amendment, and here it was long and gravely debated, and, notwithstanding the extreme pressure of the times, this House concurred in the judgment of the Senate, and finally adopted the Secretary's scheme. In 1815, when we were cheered with the news of peace, and were permitted to reduce the army, a question arose between the two Houses as to the number to be retained in service. This House passed the bill fixing the military peace establishment at six thousand men, with one major general. The Senate amended it, by raising the number to fifteen

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APRIL 15, 1830.]

Collection of the Imposts, &c.

[H. OF R.

thousand, with two major generals. This House disagreed must settle in his own bosom. Because he happens to be. to the amendments. The Senate insisted. The House in- opposed in sentiment to the policy of that act, ought he, sisted on its disagreement, and asked a conference, which as a good citizen, as a member of Congress, entrusted by was agreed to by the Senate. The brave and patriotic the people with the solemn duties of legislation, to withhold gentleman from Kentucky, who sits near me, [Col. JOHN- his aid toward carrying the laws of the country into exeSON] was a member of the committee of conference. That cution I present this simple inquiry to every candid mind. committee agreed on the number of ten thousand, with The tariff of '28 was enacted for the protection of the dotwo major generals. Their report was confirmed by Con-mestic industry of the Union. Have not those for whose gress, and the peace establishment was fixed accordingly. benefit it was passed, a right to come to this House, and It continued thus until 1821, when it was reduced to six ask and demand of us that the faith of the Government thousand, with one major general. If that number was shall not be violated, nor its benefits lost, for want of our only adequate then, it is certainly not too large now. With vigilance and care? Is it not derogatory to the honor of so great a number of posts, and an army dispersed in small this Government, that it should pass an important law on detachments over so wide an extent of territory, it is in- which the people have relied, as it was their duty to rely, dispensable that we should have a large number of officers. and then the law should be flagrantly violated, and that Let any gentleman deliberately weigh the reasoning of the the people, disappointed and deceived, shall ask in vain Secretary's report, and he must, I think, become satisfied that we will enforce our laws? I need not say that the that an army on the present system is better adapted to faith of the Government, that its dignity and honor, all the situation and wants of this country, than one either forbid such a disgraceful state of things. Would not the larger or smaller. I, for one, am prepared to be content-world declare it degrading for legislators to reply to such ed with whatever the House may finally conclude to do. a demand, that all that they have solemnly done means It may, however, seem somewhat extraordinary that the nothing; that when they passed the law, they knew and ingentleman from Kentucky, and his friends, should be en- tended that it should prove a delusion, that it should carry deavoring to put down the strength of the army, when the appearance of doing something for the domestic industhey are in power, when I, who am considered as being try of the country, while the real purpose of those who opposed to the reigning administration, should be found passed it was to confer no benefit, but to practise a deluendeavoring to sustain it; but it is with a view to the in- sion on our fellow-citizens? Sir, there is no man on the terests of the nation at large that I take the ground I at floor of this House would dare utter such language to the present occupy. In a matter of such moment, we should people of this Union. They would teach him a lesson that all consider ourselves as called to act for a great people he will not readily forget. But we have not yet arrived for this free and powerful nation; and not for any partic- at such a crisis, and I trust we never shall. I have said ular administration, which may happen this day to be in that the tariff law is grossly violated; and the interposition power, and may lose it to-morrow. The great sovereign of this House is called for, to put a stop to its violation. I predominating power is in the people themselves. It is acknowledge that it is incumbent on those who make this their interests, and not those of any administration, that assertion, to show that it is true. It is for them to prove we are sent here to sustain; and we ought to provide, ac- before this House that its laws are evaded and violated, cording to our best judgment, for their safety and happi- and that the evasion and violation can be prevented. I ness, without regard to any ephemeral fluctuation among place the cause of this bill on that ground; and if I cannot those who may chance to be in the possession of political make out such a case as will prove that this bill, or somepower. [Here the debate closed for this day.] thing like this bill, is called for by the state of the country, let it be rejected. On that issue, I am content that the question shall rest. But if I can and shall show that the law is violated, violated grossly, openly, and in the most shameful manner, then I appeal to gentlemen to say whether they can reconcile to their sense of duty, rendered doubly sacred by the high station they here occupy, to vote against a measure whose only object is to prevent the most alarming evils.

COLLECTION OF THE IMPOSTS, &c.

On motion of Mr. MALLARY, the several bills which by special order came up for consideration to-day, were postponed; and

The House went into Committee of the Whole on the state of the Union, Mr. MARTIN being called to the chair, and took up the bill reported by the Committee on Manufactures, "in alteration of the several acts laying duties on imports," [the more effectually to enforce the collection of the duties.

tions. They allude, chiefly, to other nations. In this, it is not my intention to examine minutely their domestic policy, but shall refer to views and feelings which exist among them in relation to the domestic policy of this country. If we look to France, we find her pursuing her own wayexecuting her own policy, undisturbed. She has taken a firm stand for herself, and remains unmoved by the flattery or menaces of any other nation. Her Government and people allow others to do the same. This may be also said of Holland, of Prussia, of Russia. These nations undertake to judge for themselves of the best means to promote their own interests. They are willing that all others should enjoy the same privilege. They are not engaged in harassing all the world with their doctrines of political economy. But can this be said of England?

I have alleged that one of the most important laws of the country is violated. To prove this, it may be proper to show that both disposition and interest exist to do so, Mr. MALLARY, chairman of the Committee on Manu to show who they may be who have that interest and disfactures, who reported the bill, rose to address the com-position. On this point I will make a few brief observamittee in explanation and support of the bill. I will now, [said Mr. M.] with the permission of the committee, endeavor to assign as briefly as I can those views which have been entertained by the committee who reported the present bill. I am aware that the subject has an important relation to the policy of the country, but, as to the present bill, it does not involve any of the principles or questions which grow out of what has been denominated the tariff policy. Its one object and only purpose is to provide a remedy against an abuse of the laws of the country. I shall not disguise the fact, that the principal object of the bill is intended to enforce the tariff law of 1828; but there is no need, in discussing it, to enter into the policy of that law. It has passed. It has become a law of the land. It has received the sanction of this Government; and the question now is, shall it be carried into execution, or shall a law, thus solemnly and deliberately sanctioned, be suffered to be every day violated with impunity, when the Government which passed it is aware of the violation? This question each gentleman

All know the course that nation has pursued towards this country, and all other countries, for the last twenty years, when the encouragement of domestic manufactures was discovered. When the United States were her colonies, they furnished her with one of the best markets in

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the world for her various manufactures; after the war of It will be observed, and to this I would call the most the revolution, our markets were again thrown open to her steady attention of the committee, that on those goods trade. This continued until our late restrictions on com- which have not been appraised, no penalty is incurred, merce, and war closed our markets against her. In the if the entry were ever so fraudulent, were the law ever mean time, most of the great nations of Europe became so flagrantly violated. The committee are most respectdetermined to rely on their own resources, and sealed their fully requested to bear this in mind, as, by the practice markets against English manufactures. When our late at the most important custom-house in the United States, war had terminated, the market of the United States be- it will be shown that the penalty can never reach any came doubly interesting to England. Her people poured goods except the package sent to the appraisers' office. into this country their immense surplus of manufactured Here arises one of the great causes of complaint. It goods, which could find no other market in the world. would be inferred from the law itself, that the collector reShe discovered that our people and the Government show-tained the custody of all the goods contained in the entry ed strong determination to give aid and encouragement to until the appraisement was made. But this proves to be our domestic industry. a mistake. Neither the collector nor any officer has the control of any except the package which has been sent to the appraisers. The penalty reaches these, and these alone. This will be more fully explained before I close my remarks.

She was alarmed, and we were soon overwhelmed with her doctrines of free trade. Our policy is represented by Englishmen as absurd, old-fashioned, and that it would be monstrous folly to continue it. It is denounced in every corner of England, and its violation and evasion openly re- I will now proceed to explain the proceedings at the commended in every town and city in the kingdom. It custom-house in New York. The information I possess seems as if all classes of her people considered they were is derived from the highest sources of respectability, and doing God's service to render ineffectual the protecting on which I feel confident the fullest reliance may be laws of the United States, and prostrate all our manufac- placed. Indeed, it may be substantially obtained from nuturing establishments. Under such circumstances, influ- merous American merchants engaged in our European enced by the most powerful considerations of her mighty trade. That our laws are evaded, and the manner by interests, we can well comprehend the exertions her people would make to accomplish the ruin of the rival industry of this nation.

which it is done, are well understood by a vast proportion of the business men of New York. It is a common remark-it is in the mouth of almost every one in that I shall now [said Mr. M.] proceed to examine some of city. But being in possession of full, ample, and accuthe provisions of the existing revenue laws, under which rate information, I will present such as the time and oethe alleged frauds are perpetrated. They have been casion may require for a full understanding of the subject. found, in practice, to be wholly ineffectual. By the fif- It will not be required of me to give a history of a vesteenth section of the act of 1823, "the collectors of the sel from a foreign port, from the time she is first boarded revenue shall cause at least one package out of every in- by an officer of the customs, until the goods imported in voice, and one package at least out of every twenty pack- her are sent into the market. I will give all that is neages of each invoice of goods, &c. which package or pack-cessary to a full understanding of the subject. After the ages he shall have first designated on the invoice to be bond is given in an estimated amount of duties, an order opened and examined; and if the same be found not to cor- is made to send the designated packages to the appraisrespond with the invoice thereof, &c. a full inspection of ers' office, which is done; a permit is then granted for all all such goods, &c. as may be included in the same entry, the goods not ordered for appraisement. Before the apshall be made; and in case such goods, &c. be subject to praisement is made, and before any fraud can, consead valorem duty, the same shall be appraised, and subject-quently, be detected, if any exists, I am well informed ed to the penalties provided in the thirteenth section, in that most or all of the goods contained in the entry and inthe case of suspected or fraudulent invoices," &c. I am voice, except those in the public store, are sold, and dissensible, sir, that this is a dry subject, and somewhat diffi- tributed in the shops throughout the city, or sent in varicult to be understood by those who have not devoted to it ous directions out of the city, and, of course, out of the their particular attention. I will endeavor to make my-control of the collector. It should also be observed that self understood as well as the occasion will permit. The a large amount of goods is imported into New York on collector designates one package of goods out of every in-account of houses in Philadelphia, Baltimore, Boston, voice at least, and at least one package out of every twenty | Albany, &c., and these are frequently taken directly packages of each invoice. These selected packages are from the vessel in which they were imported, in vessels sent to the office of the appraisers, for them to examine and destined for those respective places. So far have delays appraise, according to the provisions of the sixteenth sec- taken place in presenting invoices to the appraisers to have tion of the act of 1823. The collector, also, if fraud was sample packages examined, that instances have occurred of suspected, might send all the goods to the appraisers con- their being left for eight or nine months in the public tained in the same entry. store before the appraisers were called upon to make the The appraisers are bound by law "diligently and faith-examination. It is also to be observed that the appraisers fully to examine and inspect such goods, &c. as the collec- make no examination until the invoice is presented to tor may direct, and truly to report, to their best know them, and that the final adjustment of duties cannot be ledge and belief, the true value thereof," &c. On their re-made until they report to the collector the result of such port the duties are computed. examination.

By the thirteenth section, the penalty is prescribed in case goods are invoiced below their true value. It provides that "if the value, at which the same shall be so ap. praised, shall exceed, by twenty-five per centum, the invoice value thereof, then, in addition to the ten or twenty per centum, as the case may be, laid upon correct and regular invoices, according to law, there shall be added fifty per centum on the appraised value," &c. By the tariff of 1828, the difference between the invoice price and appraised value, in order to incur the penalty, was ten per cent. But this seems to have been as inoperative as the difference of twenty-five per cent. in the act of 1823.

To illustrate this subject still further, I will present still further evidence, which I will read from the paper before

me.

It is derived from a source on which, I assure the committee, the fullest reliance may be placed. It is contained in answers to questions proposed, in order to ob tain full and precise information. "If, on examining the sample packages, the goods be found invoiced below their value, can the collector order the other eighteen packages to be sent to the public store, they having been bouded under the permit ?""

This requires a word of explanation. The present collector, for a time, sent two packages out of twenty to the

APRIL 15, 1830.]

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appraisers for examination. He was determined to exe- whereas the whole package is charged with duty as having cute the law. He had reason to believe that frauds were cost one dollar the square yard. The result is, that goods perpetrated, and he wished to use all reasonable means costing fifty-five or sixty cents, and legally chargeable to prevent them. He therefore sent two packages out with duty as having cost a dollar, are employed to bring of twenty, instead of one, as had been the practice before. down under the dollar minimum goods that should be But from the clamor of the importers, and under the ad- charged as having cost two dollars and fifty cents. The vice of the Secretary of the Treasury, he had to return to evasion is so plain, that further comment is totally unnethe old practice.

[Mr. CAMBRELENG here interposed, and inquired on what authority the evidence alluded to by Mr. MALLARY rested.]

Mr. MALLARY replied that the authority was of the most unquestionable respectability.

Mr. DRAYTON made a question of order. The gentleman from Vermont was about to read a document to the House, of the most important character. When the authority is demanded on which it rests, the gentleman pledges himself that it is good and respectable. I do not doubt that such is his opinion, but I have a right to doubt the act; and I inquire of the Chair whether any member of this committee has not a right to demand on what authority a paper rests, which is used for the purpose of having an influence on the action of this committee?

The CHAIRMAN decided that a member, while addressing the committee, might read in his place any paper containing respectful language, and could not be required to give up the authority on which it was founded. It was for the committee to judge of the value of what is disclosed.

cessary.

Q. What evidence does the sample package afford of the quality and actual value of the other packages included

in the invoice!

A. None at all; nor does it afford any evidence of the quantity beyond this-that if a man is found honest in one transaction, it is a fair presumption of his integrity in others.

Q. Is there good ground to believe that invoices are made out in fraud of law, by some agent of the owner in New York, without the direction or knowledge of the owner himself?

A. No doubt but that fraudulent invoices are made out in New York; they have been detected by the appearance of the writing, paper, &c. Latterly it has become more difficult to detect those cases from the appearance of the invoice, as the paper is sent out with the caption either engraved or written in Europe.

The committee [said Mr. M.] can at once see the operation of the existing laws, which I have presented, both on revenue and manufactures. One package in twenty sent to the office of the appraisers, the officers of the GovernWell, [said Mr. M.] if the coast is clear, I will proceed. ment have no control over the remainder, but they are I stated that the authority on which the evidence is found-scattered to the four winds. They are beyond the reach ed, gentlemen might be assured, was of the highest cha- of Government. The duty is therefore paid on the nineracter. The subject was one to which I have paid the teen packages, according to the invoice price, let the enstrictest attention, and, for the present, my representa- try be ever so fraudulent. If the appraisers should find tions, it is presumed, may be sufficient. Now, sir, the that the sample package was invoiced at fifty per cent. answer to the question to which I referred some time ago, below actual cost, that single package alone can be made will be given: subject to the penalty. It is clear that this might be wholly sacrificed, and the importer would still gain a profit. But, as I shall explain hereafter, that single package is in no danger, according to the practice of the appraisers. It has seldom or never happened that they have made an appraisement by which any penalty has been incurred. Such, sir, are the facilities which exist under our laws, for the commission of fraud and evasion. The door is as wide open as the warmest advocates of free trade could desire. It would be marvellous if they did not occasionally pass through it.

Answer. They cannot; for the goods are not under his control, and no provision has been made by law for him, in such case, to enter the warehouse of the merchant, and take away the goods to be appraised.

QMay not the eighteen packages, as soon as they are landed, be sent by the consiguee to auction, and sold!

A. They not only may be, but frequently are, put on board of packets or steamboats direct from the ship, and forwarded to the purchaser, owner, or ultimate consignee. Q. What remedy has the Government other than by adding the penalty of fifty per cent., and that, too, though the goods are invoiced at one-fourth of their value?

A. The Government has no remedy-not even that which you seem to suppose it to have; for the fifty per cent. cannot be added until the goods are examined, appraised, and declared to have been invoiced below their true value.

This answer has reference to the acts of Congress to which I referred in the former part of my remarks.

QDoes not each package of woollens usually contain goods of different qualities and value, often varying in the invoice price from fifty cents to two dollars and fifty cents or more, in the square yard?

A. They do. Of late, whole packages are frequently invoiced, all at one price per yard.

I shall now proceed to show that the facilities have been pointed out, have been well improved, and describe the means which have been employed. It cannot be expected that a full development of all the evasions can be made. Those concerned are not among the most ready to make disclosures. But I am in possession of some facts which most clearly show that fraud and evasion do exist, and how they are managed. The ship Silas Richards entered New York last spring. It was believed that many of the goods imported in that vessel, as in all others, would be found invoiced with a view to evade the legal duties. A rigid examination was desired and allowed, and suspicions were fully realized. I have before me a letter addressed to the collector of New York, signed by several of the most respectable merchants of that city, which will explain the result of that examination. The names will be given to any member of the committee who may desire to see them. I will read what may be material.

On this, [said Mr. M.] he would give a brief explanation as to the effects. By including in the same invoice different qualities of cloths, and then making an average of the price, the whole package is brought, for instance, NEW YORK, 9th July, 1829. under the dollar minimum, and charged with duty as having cost a dollar the square yard. The effect is obvious. DEAR SIR: We were invited a few days since to examine By placing in a package a few pieces-five or six, costing at the public store, a quantity of broadcloths, just imnot more than fifty-five or sixty cents the square yard, ported in the ship Silas Richards, and which, we were inthe same package may be completed with goods which formed, were invoiced at less than one dollar per square cost above one dollar the square yard and legally charge- yard. After a careful examination of several bales of said able with duty as having cost two dollars and fifty cents goods, we are decidedly of the opinion, that, although a few

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pieces in each bale might possibly, under the present ex- to ascertain the actual cost paid by the agent of the importtreme depression of trade, have been bought in Eng- er. The information returned was of the most positive land at a dollar per square yard, yet that the principal and unquestionable character. It stated, among several part of them could not have cost less than one dollar particulars of minor consideration, the time when the goods twenty-five, to one dollar and fifty cents per square yard. were bought, by whom, and of whom they were bought, We have been informed that these goods have been ad- and the exact nett price paid for them. The result was mitted to an entry with an addition of but nine per cent. to (as anticipated by judges) that they actually cost the imthe invoice, and that this addition will bring but a few porter twenty-five to thirty per cent. more than he had pieces of them over the minimum of a dollar per square paid duty on at the custom-house.” yard. We are also informed, that, of the two appraisers "A merchant of this city happened to go into the store called in to say what addition, if any, should be made to of an importer, who does the bulk of his business by auethe invoice, one was an agent of the British manufacturers, tion, and, seeing a package of desirable goods, inquired who is constantly receiving and selling large quantities of the price of it. The invoice was exhibited, through a cloth at auction, the other an auctioneer, both of whom mistake of the importer. It happened to be that by which have a strong interest in passing goods at the custom-house the goods had been entered at the custom-house, and by at less than their value. Now, sir, as we are constantly which they had paid the duty. It was at least thirty-five in the business, and have been for years past, of purchas- per cent. less than many other importers paid for the same ing in England for cash, on our own account, or of receiv- description of goods at the same time. As a proof of this, ing goods to sell on account of our friends, and feeling and to try whether the cost exhibited was fictitious, the confident, as we do, that the goods referred to were in-dealer offered to the importer twenty-five per cent. profit voiced at from twenty to fifty per cent. below their value, on the cost exhibited. This was refused, with his assurwe cannot refrain from most respectfully inquiring if it be ance that at that rate he should lose money, which he could true that but nine per cent. has been added to the in- not afford to do. Had the custom-house invoice been the voice, thereby screening the owner from the penalty which real cost, would he have refused this enormous profit? This would have been incurred had ten per cent. been added, act speaks for itself, and does not need further elucidaand still leave the consignee to pay a duty of but forty tion." cents per square yard on the principal part of these goods. "It is a common custom, and one well understood by If it be so, our friends and we must abandon the business merchants, that many foreign importers, resident in this of importing cloths, for we are paying a duty of one dol-country, and who do nearly all their business by auction, lar per square yard on the same quality of cloth, as a large are in the constant habit of receiving two invoices of each proportion of the goods in question are, while the foreigner is sending them in and paying but forty cents per square yard. We deem it a duty we owe to our Government, as well as ourselves, most respectfully to protest against such a course of business; a course which has driven many, and will drive every honest man, out of the importing business, and by which Government is defrauded of the revenue. SAMUEL SWARTWOUT, Esq.,

Collector, &c., New York."

parcel of goods. One of these is made out at a very low rate, and is used to enter the goods. The other contains the actual cost. A foreign importer, by accident, sold a package of goods at a certain advance on the cost, and this cost unfortunately happened to be that by which they had been entered and the duties paid. Shortly after making the sale, he discovered that he had sold the goods at an advance on the fictitious cost, or, in other words, on the custom-house invoice. He therefore goes to the buyI shall now proceed to give the committee a few in-er, and informs him that he had made this mistake, and stances, out of hundreds I possess, of evasions of our insists that he should make up the difference between the laws, and the manner by which they are accomplished. actual and false cost. The buyer, who had got a good My authority is derived from most respectable merchants bargain, and was much surprised at the novelty of this reof New York. I shall not use their names on this occasion, quest, refused to allow any thing, and informed him that, in public debate. I see no necessity, at present, to make if he persisted in this claim, he would go to the collector the designation; yet they will not be withheld, on the ap- of the custoins and expose him. The importer was plication of any gentleman of the committee who desires prudent enough to pocket the affront, and went about his to see them. I shall read the printed statements which business." have been placed in my hands. The authenticity, I am "The foreign importers of woollen goods drive an enorconfident, cannot be denied. My authority, as I have be-mous trade by means of auctions. Indeed, they scarcely fore stated, is ready to be disclosed. sell any thing at private sale. When they do so, their invoices are never shown. In a confidential conversation (as regards names) with a man of integrity, dependent on a clerk's salary for support, I obtained some insight into the manner in which these woollen dealers manage their frauds. The common custom amongst this class of importers is, to enter goods on an invoice made out expressly for this purpose, and which is always much less than the actual cost. He assured me that he never made out a cus-, tom-house entry but from an invoice of this description, during the time that he had been so employed. These invoices he believes to be thirty-three and a third per cent. at least under the real cost at the place of manufacture.

"A dealer of this city purchased at auction a case of goods, which were sold entitled to debenture. Having made previous purchases of the same kind of goods at private sale, and being thus acquainted with the original cost at the place of manufacture, he could judge, with considerable accuracy, what amount of debenture they would yield to him on their shipment to a foreign port. After making the necessary entries at the custom-house, for the purpose of shipment, he was much surprised to find the amount of debenture so small; and on a further examination, found that this was owing to the very low price at which the goods had been entered at the custom-house. It appeared strange to him that one foreign importer should be able to buy the same article in the same market thirty to thirty-five per cent. cheaper than another, both having received the same kind of goods by the same vessel. To test the matter, however, as to the actual cost of the goods in question, a pattern was cut from several of the pieces, specifying the number and length, the vessel by which they had been received, &c. &c. These patterns were sent to Europe, to the place where the goods were made and purchased, and very particular directions were given

"As a proof of this, and most conclusively proving that goods are entered at the custom-house on spurious invoices, the following fact is given:

"A piece of broadcloth, costing four to five shillings. per yard, as entered at the custom-house, and paying a duty of thirty per cent. under the old tariff, would fre quently be bought in at auction, on account of the importer and owner, at two dollars and a quarter to two dollars and a half per yard! Would not any person. in his senses gladly sell at this price, if the piece of cloth did

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