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WEBSTER, N.Y. MS80

(716) 872-4503

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■n—T

RCULAR

Messrs. OGILVY & CO.,

OF MONTREAL,

TO THE

IMPORTING MERCHANTS

OF CANADA.

[Printed for Gratuitous Circulation.]

MONTREAL :

GAZETTE PRINTING HOUSE, NEARLY OPPOSITE POST OFFICE.

1871

T t

A CIRCULAR

Messrs. OGILVY & CO.,

OF MONTREAL,

TO THE

IMPORTING MERCHANTS

OF CANADA.

• ■ ** ■ nr' rf*! — I '*f r"""""" t fiTf n" > fi g> rifi

IPrinled for Gratuitous Citculation.']

MONTREAL:

<JAZETTa PRINTING HOUSE, NEARLY OPPOSITE POST OFFICE.

■ 1871 "'--, ""V^ :-' r :-'<:'^.

.1,

■:- ■ 7'..^'^ :-"■;-■■.-■.

TO THE

'::''M'

IMPORTING MERCHANTS OF CANADA.

For the information and guidance of our fellow-
merchants throughout Canada, we give the particulars of a case
connected with the Import Trade, and having an important
bearing on the interests of the country.

A business experience of more than twenty years, as import-
ing merchants in this city, has not furnished any paraMel to the
case, as set forth in the accompanying documents. We were, of
course, fully convinced that the procedure and pretensions of the
Customs officials here were unjustifiable ; and it affords us much
gratification to find that our position and views have been
sustained by the Department at Ottawa, which acted very
promptly and fairly toward us, thus settling a most serious
question.

The gist of the matter is this, — The Customs officials here
say, we must not buy abroad and bring into Canada cheap
goods ; if we do, (as in the present case,) we are to be called
upon LO pay duty on a higher price than was given for the goods,
besides an additional duty or ^ne (which fine goes into the
pockets of the officials !) of 7I per cent, on the invoice and extra,
valuation. The Legislature never could have contemplated such
procedure. There can hardly be a question that it is for the
benefit of Canada that goods should be furnished to consumers
at lowest possible prices.

One of our partners remains constantly, we may say, in
Europe, at very considerable expense ; and surely he has a right
to make tij best use, of his time in examining the various
markets, and purchasing at whatever he may consider the lowest
rates, at the most favorable points. Lately he bought a con-

■■■■r.'<mx^iKi':-f!::.~

'■■/..

siderable lot of Tartan Dress Goods from Messrs. A. & S. Henry
& Co., of Bradford, England, part of which was sent to our house
in Toronto, and at once passed through the Customs there ; the
rest of them (15 cases) we entered here on the loth of July, and
paid duties according to Messrs. A. & S. Henry's invoices, which
truly showed what the goods cost us. Two cases of the fifteen
were taken to the Examining Warehouse, as required by law, for
inspection. They were kept there for eight or ten days, during
which time the Appraiser carried samples to a number of whole-
sale and retail houses in town to get valuations put on them.
On 2ist July we were called upon by Mr. Villeneuve, the
recently appointed Appraiser, to make Post Entries, /. e., to pay
additional duties of from 25 to 50 per cent, — in other words, to
add about 33^ per cent, to the cost of the goods, pay duties
accordingly, and also a fine of 7J per cent

The law allows the Customs Department to take any goods
they may think under-valued, at 10 per cent advance on invoice.
We at once offered our shipment at this rate, thinking that if the
goods were really supposed to be under-valued to the extent of
33 to 35 per cent, the Customs authorities would not hesitate to
take them at 10 per cent over the invoiced price ; or they were
at liberty to take six of the cases which they considered 50 per
cent under-valued at same advance of 10 per cent But they
would adopt neither alternative.

Feeling confident in our position, we did not for a moment
deem it requisite to ask for any legal opinion. In this, our
adviser afterwards told us, we were wrong ; " for," said he,
" there was a trap laid for you, and you fell into it." The trap
was this : — We expressed in writing our dissatisfaction with the
Appraiser's valuation ; the Collector then appointed two persons
to meet and value our goods, one, if not both, of whom had
previously been consulted on the subject, and given high valua-
tion ; we had no voice in the matter, — could do, we were told,
nothing more. The two persons appointed met, and, notwith-
standing that the Collector had invited us to be present, and
to offer such representations as we might deem necessary in
support of our interests, — we were not questioned in any way,
(although the law allowed these merchants, or the Appraisers,
to examine us on oath,) but were requested to leave the room !

We were shortly after furnished with a copy of the valuation

x'miF^ fgf

arrived at, "af/^r hearing evidence,'* hy the two merchants — see
docume^'t marked C, (on p. 8,) and also document from Collector
marked B.

Deeming the proceedings altogether Irregular and unfair,
inasmuch as we were not permitted to make explanation or
defence, — and also feeling that no just valuation could be put
on a large and mixed lot of Fancy Goods on the inspection only
of a few pieces, (12 cases of the lot were in our warehouse and
never asked to be looked at,) — we purposed appealing to the
Collector to have the whole matter reconsidered. He had,
however, left the city on the same day as the valuations were
made ; and, finding that the persons left m charge had no power
and were unwilling to grant any delay, (see document marked
D, on p. 9,) we laid cur case befoie the President and Council
of the Board of Trade. We would strongly urge that a stop
be put to the system of consultation by the Appraisers with
merchants previous to appraisement, and then calling on these
very merchants to officially value same goods.

We annex extracts from the Customs Act bearing on this
subject, (on p. 21,) and urge on the merchants of Canada the
great need there is of some important changes. Amongst
others, provision should be made, we think, that Appraisers be
recommended for their appointments by the Board of Trade,
after a thorough examination as to their capacity for the office ;
and that experts to determine value of goods, in cases of sup-
posed under-valuation, should also be named by the Board of
Trade. A fair salary should be paid the Appraisers, and their
participation in fines done away with. When the Collector
considers goods under-valued he should take them at 10 per cent,
advance, or allow the importer to enter according t.> invoice. Of
course, in case of fraud, the goods should be confiscated.

We append affidavits of Messrs. Henry & Co., (on p. 23,)
showing that they sold a portion of same lot of goods to go to
France at same prices as were paid by us ; also one from the
sellers of the goods to Henry ci: Co. - '

On the 28th August, we got from the Custom House here,
docum*-nt marked F, (on p. 24,) giving up the goods after a
detention of nearly two months.

In bringing the particulars of this case under your notice, we
do it as a disagreeable duty incumbent upon us, — in the hope

■,^-.^:JT--.T-&':-"i.'iy:.V-iLi£F.i"-.

that it may stimulate you to take action towards protecting your
interests and rigji.s, by procuring needful amendments to the
Customs laws,— and at the same time remove obstacles from the
trade of the Dominion, by restraining public servants from over-
stepping the bounds of official duty.

OGILVY & CO.

Montreal, September, 1871.

> »

* '

■ > '- ■ .

'i'fc.

Messrs. Ooii.vy & Co. •, ■ ^ •, 'i ??: ■ '

Qentlskxx, ' '

I beg to inform you that I require a Post Entry of 25 per
cent, to be made on the si.v cases, 29-in. Clan Kirtles, marked <o>
Montreal, 057, 723, 724, 72G, 727, 728, ex "Lake Erie," per Euty
No. 680— value as per invoice, jE377 48 9d, stg, AI»jo a Post Entry of
30 per cont. to be made on the three cases, 30-in. Tartan Kirtles, marked
<o> Montreal, 734, 735, 736, ex " Lake Eri'}," per Entry No. 680— value
as per invoice, £199 5s 2d, stg. Also a Poht Entry of 50 per 'jent,, to be
made on six cases, 34-in. Clan Kirtles, marked <o> Montreal, 656, 694,
695, 725, 729, 730, ex "Lake Eiie," per Entry No. 680— value as per
invoice, £362 7s 9d, stg.

(Signed,) J. C. VILLENEUVE,

' . ., Appraiser.

Customs Examining WAnKiiousE, »-* ' i

Montreal, 21st July, 1871, •

(S.)

Montreal, 26th July, 1871.

A. M. Dklisle, Esq.,

Collector of Customs, Montreal. > ,

Sm,

We have a letter of date 21st instant, from Mr.

Villeneuvc, Appraiser, requiring us to make Post EntricH of 2" per cent, on
£377 4s 9d, stg.; of 30 per cent, on £199 Ss 2d, stg.; and of 50 per cent,
on £362 78 9d, stg., value of goods entered by us.

As we have paid duties on the actual cost of these goods, we must
decline to comply with Appraiser's requirement. We consider the goods
are dear enough, and should be glad if you will a. ime them at 10 per
cent, advance. If the Appraiser is any way near co. ect in his valuation,
you will have a good bargain, and we shall be glad to hear if you take it.

Yours respectfully,

(Signed,) ^ OGILVY & CO.

A. M. Delisle, Esq., '^>

Collector of Custom^, Montreal. • >-''■'■- i - ■'

Sib,

We wrote you yesterday on subject of Post Entries.

We confirm our dissatisfaction with the appraisements.

Yours respectfully,

(Signed,) OGILVY & CO.

Messrs. Ogilvt & Co.,

Montreal.

(A.)

Cuttom Howe,

Montreal, 27th July, 1871.

Gektleubn,

I beg to aoknowledga receipt of your litters of the 2eth
and 27th inbtants, expressing your dissatisfaction with the valuation made
by Customs Appraiser of certain goods entered by you per Entry No. 6»0
and beg to infonn you in reply thereto, that pursuant to the provision
made in Act 31 Vir.. Cap. 6, See. 43, T have summoned two disinterestea
merchants, acquainted with that kind of goods, to attend at the Ousvcrns
Examining Warehouse, on Monday next, the 3l8t instant, at eleven o'clock
in the forenoon, for the purpose of examining and appraising the same.

It is optional with you to be nresent at this appraisement, and to offer
such representations as you may wish in support of your interests.

I am, Gentlemen,
■ Your most obedient servant,

(Signed,) A. M. DELISLE,

Collector.

^: ;:,:•;;, ;;:/.-:^,..;-.,,, (B.)

Custom House ^
Gentlemen, Montreal, 31st July, 1871.

I beg to transmit herewith, for your information^

copy of the decision arrived at by the merchants summoned in accordance

with +he 43d section of Act 31 Victoria, Cap. 6, to ex"minc and appraiso^

certain "Clan and Tartan Kirtles," entered at the C'lstcms by you per

Entry No. 680, and have therefore to request that you will be pleased to

amend your entry agreeably thereto, and pay the fee oi $5 . 00 to eaoh of

the referees.

I am, Gentlemen,

""* ' Your most obedient servant,

Messrs. Ogilvy & Co.,

Montreal.

(Signed,)

A. M. DELISLE,

Collector.

(c.)

We, the undersigned Wholesale Importers of P"/ Goods, having been
summoned by A. M. Dclide, Esquire, Collector of Customs at this Port, to
appraise a quantity of merchandise, contained in 1.5 cases, entered by
Messrs. Ogilvy & Co., under Entry Nc. 680, do hereby declare, after a
thorough examination of said goods, and hearing evidence touching the

same, that in our opinion the fair market value at place and date of ship-
ment of said goods, was as follows, viz :

Six cases, 29 inches, Clan Kirtles (is. Id. stg.) say one shilling and
one penny stg. per yard. Three cases, 30 inches, Tartan Kirtles (Is. 6d.
stg.) say one shilling and sixpence stg. per yard.

Six cases, 34 inches, Clan Kirtles (Is. lOd. stg.) say one shilling and
tenpence stg. yer yard.

(Signed,) JAMES JOHNSTON,

(Signed,) GEORGE YOUNG.

Montreal, 3l8t July, 18U.

True Copj of Original remaining of record in this office.

(Signed,)
C. H., Montreal, Slst July, 1871.

A. M. DELISLE,

Collector.

(J>)

Sir,

Custom House,

Montreal, 4th August, 1871.

Adverting to the Collector's letter of the 3l8t ultimoy
I regret to have now to reiterate the request therein made, viz : that you
would amend your Entry No. 680 of Clan and Tartan Kirtles," according
to the valuation made by the merchants summoned to examine and
appraise the same, and pay the 50 per cent, additional duty, as provided
by seetion 44 of the Customs Act, in cases of under-valuation to the extent
of 20 per cent., as well as the fee of $5.00 to each of the said referees, as
fixed by section 43, sub-section 2, of the said Act,— bo as to enable me to-
avoid the very painful necessity of requiring the production of the balance
of goods in that entry, agreeably to the condition of your Special Bond;

No. 64.

I have the honor to be, Sir,

Your most obedient servant,

(Signed,)

J. CRISPO,

Acting Collector,

Messrs. Ogilvt & Co.,

Montreal.

Montreal, August 8th, 1871.

To THB President and Council ok the Board of Trade :

Gentlbhen,

We beg to lay the following statement before you
with a view to receiving your advice and assistance, in what we conceive
to be a very arbitrary and unjust proceeding towards us by the Customs
authorities of this Port ; and it being a matter of public interest that no
•obstacles should be put in the way of fair and honest trade, we hope to
have the beaefit of your valuable aid in the matter.

Last month we imported by the " Lake Erie " about £1000 sterling
worth of Clan Tartans, last season's goods, bought from and invoiced by
the well-known and highly honorable firm of .Messrs. A. & S. Henry & Co.,
of Manchester and Bradford. We paid the duty, on entering the goods, at
their correct cost and invoice value, on the 10th July, and were surprised,
•on the 2l8t of that month, to receive notice from the Appraiser for the Drj'
•Goods Department to make a Port Ent'-y of —

25 per cent additional value on £377 4 9

30 « " " 199 5 2

50 « « « 3fa2 7 9

We wrote the Collector, (as per copy herewith marked S,) and, on
the 27th, got a document from him, which we enclose, marked A.* On
the 3l8t, our two senior partners being absent, Mr. Thos, Ogilvy went to
the Custom House in readiness to give any information, or to answer
■any questions. He was asked none, and would not be listened to by
Mr. Johnston, but was told by him, '« Oh, we know all about it, and we
request you to leave the room," or words to that effect.

On the afternoon of the 31st we got the accompanying document,
marked P., from the Collector, with enclosure marked C, and again, on the
4th August, one marked D.

We beg to state that Messrs. Johnston and Young are not "discreet
And competent " judges in this case. Neither of them have been in the
English markets for years, and, therefore, they are unable to form a correct
opinion of goods of a fluctuating character, such as those in question.
Besides, we are credibly informed that one, if not both of them, had
previously seen and put valuations on our goods.

That we should now be called upon to pay duy on far above the value
of the goods, and a fine of 7 J per cent, besides, is, we think, very monstrous.

We have got a number of certificates (fifteen) from merchants, most

* See these lettera on pp. 7, 8 and 9.

of whom have only just returned from England. These we send for your
perusal. All, you will observe, bear out our position.

We are,

Your obedient servants,

OGILVY & CO.

P. S. — Wo may mention that a large lot of the same goods ha\e been
^entered at the same prices at the Port of Toronto.

To THE Honorable S. L. Tillky, C.B.,

Minister of Customs.

The Memorial of the Council of the Montreal Board of Trade,,

EESfECTFULLY SheWBTH :

That the documents herewith transmitted, relating to a case of deten-
tion for alleged under-valuation of certain quantities of imported goods
entered at the Port of Montreal, have been laid before the Council, viz. r
(1) Letter of Messrs. Ogilvy and Company, with accompanying papers;,
and (2) the certificates or opinions of a number of merchants as to the
values of said goods, which values have been called in question by a
Customs Appraiser; —

That the Council have considered the case with much care, and
believo that the prices at which Messrs. Ogilvy & Co. entered the goods,
were the actual cash and Mr market value of them at the time and the
place of purchase ; and that the duty paid by them is the full amount-
contemplated by Parliament, in legislating respecting Customs Duties; —

That, independently altogether of the particular case to which your
Memorialists herein respectfully beg your attention, there is a principle
im olved in the action complained of, which will operate injiuriously t»>
the mercantile interests of the Dominion ; —

That the Council cannot but feel that it is unfair that commercial firms*
should be charged with under-valuing goods imported by them, and that-
they should not have opportunity to defend themselves, and show that
they have acted honestly ; — and that the Council think the extra duty is
of very much less consequence to any respectable firm, than the loss of
standing and character involved in the charge of imder- valuation ;—

That the manner in wuich the value of goods appears to be ascer-
tained, by Customs authorities sending them round to numbers of mer-
chants in the city, — as indicated by the Certificate;", — and the opportunity
thus afforded to the Collector to select persons whose valuation is iix
accordance with the views of the Appraiser, should not, in the opinioik
of your Memorialists, be continued ; and that if there is to be any reference
to merchants for the purpose of appraising goods, it ought to be provided
that the selection of such merchants should be by some person who has-
not already formed an opinion on the value of the goods, — and the
merchants who act as such Appraisers should, in tk) instance, be persons
who have been spoken to on the subject before they meet to appraise ;—

That it seems to the Council that, where the Importer is prepared to
prove that the price at which he has entered goods is the actual cost, and
fair market value, — and that no discount for cash has been deducted, —
that no additional duty should be imposed ; but that, on the other hand

-whenever the Government can unequivocally establish that there has been
under-valuation, and show that the declaration of the Importer is false,
then, and in that case, the legal penalties should be inflicted ;—

That in the particular case herein referred to, Messrs. Ogilvy & ':io.
declare in their letter to the Conncil, that they had no opportunity to
prove that their entry was correct, and that the prices in the Invoice and
T5ntry were the true prices paid for the goods ; for, although they were
invited by the Collector of Customs to be present when the Appraisers
met, they (Ogilvy & Co.) were requested by the Appraisers to leave the
room, and were thus not allowed to make any statement ; —

Wherefore, your Memorialists most respectfully beg, in the interests of
justice, that you will intervene in the case before referred to ; —

But more especially do your Memorialists solicit your intervention in
'the interest of the trade of the Dominion, and all the merchants honestly
engaged in it, — that such practice as sending samples of goods through the
trade be discontinued, — that the selection of merchants as Appraisers be
limited to those who hav e not previously been spoken to on the subject, —
that there be no additional duty charged, nor any fines imposed upon Im-
porters who can establish that their entries have been made for the actual
cost and fair market value of the goods, no discounts for cash having been
deducted, — and that the most ample opportunities be given to any and
every Importer to prove his case.

Most respectfully submitted, and signed on behalf of the Council of
the Montreal Board of Trade,

(Signed) WILLIAM DARLING,

Vice-President.
Montreal, 9th August, 1871.

(Signed) WM. J. PATTERSON,

Secretary.

Montreal, 9th August, 1871.

"To THE Hon. the Commissionkr of Customs,
Ottawa :

Sir

"We beg to present to you a case, which we feel much

hurt and humiliated about, and we now humbly pray that you will be

pleased to consider it without delay. On the 10th of July we entered a

large lot of goods, at their cost and invoice value. We were called on to

add 25, 30 and 50 per cent, of Post Entries. This we declined doing, and

requested the Collector to assume the goods, at 10 per cent, advance, as the

law gives him power to do ; but he refused, and nominated two persons to

value them, inviting us to be present, to offer e'.plunations. The law

allows the valuators to put us on oath, and obliges as to answer all

(■;■.

questions and produce all documents connected with the case. We weve-
asked none, but requested to leave the room.

Neither of the merchants called in have been in the English market*
for many years, and are not competent judges in this case ; besides, one^
if not both, had previously valued our goods. The goods are a mixed lot,
and all should have been surveyed. This was not done, as twelve cases
out of the fifteen were in our possession at the time, and not looked at.

The very same goods have been entered at other ports at same quota-
tions as our invoices, and nothing said.

Fifteen letters, from merchants quite recently returned irom Eng-
land, who have seen and valued our goods, will be sent to you by Montreal
Board of Trade, all bearing out our position, and showing we have paid
correct duties.

Our prayer is that you will at once give instructions to deliver up our
goods, without further duty or fine, for unless this is done a stain will be
put on our honor most difficult to obliterate. Already we have sutfered
much pain, and ulso a very serious loss from detention of our goods.

We arc, &c.,

OGILVY & CO.

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CERTIFICATES.

Montreal, 4th August, 1871.
I arrived on Tuesday last from Britain, per S.S. " Austrian," where I
had been engaged for seven weeks in purchasing dry goods. When calling
to-day on Messrs. Ogilvy & Co., I was requopted by a member of the firm
to give an opinion of the value of a certain lot of Tartan Kirtles, of which
I was informed Mr. James Ogilvy had purchased eight hundred pieces.
Taking into consideration the quantity procured, and that the goods in
question had been for the space of one year in the hands of the party from
whom they were obtained, and also taking note of the fact, that this class
of goods is not as saleable as they once were, and therefore likely to be
offered, in Britain, at a less rate than formerly, I came to the conclusion that
Messrs. Ogilvy & Co. had had the goods invoiced to them at Is. I'l. per
yard, which, under the circumstances above stated, I considered their fair
market value.

(Signed,) JAMES BURT SUTHERLAND,

Of Laing. Sutherland & Co.,

London, Ont.-

MoNTEEAL, Vth August, 1871.
Messrs. John Ogilvy & Co.

Gentlemen,

I have examined the invoice; and account current

of Messrs. A. & S. Henry & Co., of Manchester and Bradford, in tlic former of

which are described the purchase of a large quantity of Kirtles, and I am

quite confident they are true and faithful documcints, and are the records^

of bona fide transactions between you and that eminent firm. In short, the

City of Montreal could not piu-chase a fraudulent invoice from them.

I have also examined the goods, and certainly find them of fair value,
and even somewhat lower than the same weight of goods could be procured
of any new and fashionable styles for the present season's sale ; but these
goods are evidently of last season's production, and which have l)een sold
at considerable reduction in price in the different markets of Britain ; itv
fact, these kind of goods of fancy dress styles are continually selling at low
prices. Cost of production is not thought of, and I have every reason io
know the same kind of goods have been purchased by other houses at
equally low prices, and in other cases been offered them, and declined to
purchase.

It is quite absurd for parties here, who have not personally visited the
different places of production of Fancy Dress Goods in Britain, this season,

to attempt the valuation of those kind of goods when their knowledge is

limited to last season's prices and styles.

I would consider it unjust to make you pay more duty than the

ordinary rate.

I remain, Gentlemen,

Your most obedient servant,

(Signed,) HENRY THOMAS.

Montreal, Yth August, 1871.

At the request of Messrs. Ogilvy & Co., I have this day examined
several cases containing Clun Serges. Having but recently returned from
England, where I have been purchasing goods for Messrs. W. & R. Muir,
arid therefore being perfectly familiar with the market, I have no hesita-
tion in saying that these goods as a lot, are entered at their full and fair
market value (at time and place of shipment) as per the invoices shown

by them to me.

(Signed,) ARCHER ROBERTSON.

! i

? I

MoKTREAL, 7th August, 1871.

At the request of Messrs. Ogil'. y & Co., I have this day examined
4S3veral cases containing Clan Tartan Kirtles. Their full market value is
lOd and Is Id, sterling. I may also mention that my firm was about
three weeks ago called on by one of the Customs Appraisers to put a value
on these goods, and we then valued them at the prices given above ; and
I still maintain this is their full value.

(Signed,) JAMES MORGAN,

Of Hemy Morgan & Co.

McKTEEAL, 7th August, 1871.
By request of Messrs. Ogilvy & Co. I have looked over some cases of
Clan Tartans imported by them this Fall, and though not prepared to set
an exact value on them, not having bought any of such goods this season,
I yet can state that while lately in the English markets I was offered same
kind of goods, held over by parties from last year, at a reduction of from
twenty to forty per cent, on last year's prices.

^ ^ A. LAMARCHE,

r - ■ ' ', Buyer for P. M. Galarneau & Co.

Montreal, 5th August, 1871.
Messrs. Ogilvy & Co.

Gentlemen,

Having examined a fair representative of the
fifteen cases Clan Kirtle Cloth purchased by you from Messrs. A. & 8.

Henry & Co., Bradford, England, and from what I have seen with reference
to all Clan Goods in the English markets this season, and in consideration
of the quantity, and being a job lot, do give as my opinion that the price
paid by you, namely, 10 Jd and 13jd, is nothing loss than I would expect
to pay for such a lot.

I am yours, very truly,

GEOEGE HARDIE,

Sutherland, Hardie & Fleming.
Montreal.

k jktbbal, 7th August, 187L

At the request of Messrs. Ogilvy & Co., I have this day examined a
shipment of Tai-tan Dress Goods, ex " Lake Erie," cases <o>. I am an
importer and dealer in such goods. The values, as per 0. & Co.'s invoices,
viz., lO^d and 13jd, stg., I consid^jr to be a fair and full value.

(Signed,) JOHN FEASBR.

MOiNxnEAL, 8th August, 1871.
Messrs. Ogilvv & Co.

Dear Sirs,

I have to-day been called upon by you to examine
a large lot of Kirtlos bought by you from the firm of Messrs. A. & S. Henry
& Co., Bradford, Yorkshire.

I have examined the goods carefully, also the invoice from the sellers,
and the account current to the Manchester house of A. & S. Henry & Co.

I consider the goods very cheap intrinsically, but the styles are not, iu
my opinion, desirable for the trade of the ensuing season.

I had the oflfer of several lots of goods of the same quality at about
the same prices, and declined buying them, because I consider them
unsuitable for the trade.

I cannot underetand how any parties Iiere, familiar with the English
market during the present season, could put a higher valuation on the
goods than the prices paid by you. I have just returned from the
European markets, and am perfectly satisfied I could procure any quantity
of the same goods at or under the prices upon which you have paid the
duty, and consider the Appraisers entirely mistaken as to the value of the
goods.

I am, Dear Sirs,

Yours, &c.,

(Signed,) JAMES B. STEVENSON.

N 1

• I

Montreal, August 7th, 1871.

T have to-daj' examined a number of pieces of Clan Tartan Dress
Goods imported this Fall hy Messrs. Ogilry & Co.

Having very recently returned from making selections for my own
business, I have not the least hesitation in saying that the prices paid by
them, as per their invoice, viz., lOjd. and Is. IJd., are the full and fair
market value of the goods, as I was frequently offered similar styles at a
reduction of from 30 to 50 per cent, discount on last year's prices.

(Signed,)

JAMES DONNELLY.

Messrs. Oqilvy & Co.

MoNTBBAL, August 7th, 1871.

Gkntlemkn,

As one of the firm of Messrs. James Roy k Co. I
examined, at your request, both the goods and invoices of Clan Serges
purchased from Messrs. A. & S. Henry & Co., which our Customs refuse to
pass at the invoice price.

I am perfectly satisfied that the luvoice represents the fair value of the
goods at the place of production, and that no house in the world could get
other than a bona fide invoice from them, authenticated by their signature.

I consider it unfair to the trade that men who have not bought goods
in Britain for many years should be called upon to arbitrate in a case like
this. Those, and those only, who are regularly in the habit of buying,
personally, knowing the markets and their workings, are able to put a
value on goods such as those in question.

Yours, &c.,

(Signed,)

JOHN GORDON,

Messrs. Ogilvt k Co.,

Montreal.

Montreal, 5tb August, 187L

Dbae Sibs,

I have examined the following cases, viz., Nos. C94, 695, 723, 726,
727, 728, 730, 734, containing pieces Kirtle Tartans, and, comparing the
goods with invoice, consider them to be at full market value. Similar
Tartans were offered me, on 25th May last, in Bradford, at a reduction of
one-third from last year's prices, and that in small quantities, where I
could select just such patterns as would be saleable, while yours may not
be properly proportioned. Having left England on the 13th July, where
I had been to make our Fall's selection of Dry Goods, I should have no

i!li

hesitation in approving yonr invoice to be correct. I am satisfied
most of the wholesale buyers of tliis season have seen those goods at tho
Humo prices as offered to mc, and thut they will say the goods are not
invoiced under market value.

Yours truly,

(Signed,)

WM. DENOON.

Messrs. Ogilvv & Co.,

City.

Montreal, August 7th, 1871.

Gbntlbmbn,

As requested by you, I examined a quantity of
Kirtle Tartans, contained in cases Nrs. 695, 723, 730, 728, 734, 694, 726,
727, of which you exhibited Messrs. A. & S. Henry & Co.'s invoices, which
I recognize, showing that the goods were bought of them at lOd and
Is l^d. These are last year's goods, and do not embrace the new Clans,
and from the manner in which they are assorted, I consider you paid the
full market value for the lot round and round. I may just add that in the
month of May past I was repeatedly offered last season's Tartan Goods tt
25 to 35 per cent, under the prices obtained in 1870 ; and that our London
friend was offered a large lot by Messrs. A. & S. Henry & Co., in April, or
early in May, which I believe to be the same which you afterwards
purchased, and, as far as my memory serves, at these same prices, and he
declined to buy them.

If there are any other points upon which I can give information I
shall be ready to do so.

Very truly yours,

(Signed)) W. J. McMASTER.

Montreal, 7th August, 1871.
i have this day examined a large lot of Tartan Dress Goods imported
by Messrs. Ogilvy & Co., and invoiced at lOjd and Is Ijd, sterling. I
consider this to be their full value. In my business I am often called on
to make advances on goods. On this lot I would not advance within
15 per cent, of the invoice. I may also state that last month I was shown
a sample of such goods, and which I now believe to have been Ogilvy &
Co.'s, and asked to value them. My impression is I put a lower price on
them than Messrs. 0. & Co.'s invoice.

(Signed,)

JAMES BENNING,

Of Benning & Barsalou.

R. 8. M. BocrmtTTK, Esq.,

Commitiioner of Customt, Ottawa.

MoNTnKAL, AugUKt 8th, I8tl.

Dkar Sir,

This will serve to introduce you Mr. John Ogilvy,

Dry Goods Importer of this city, who visits Ottuwa for the purpose of

explaining to the Hon. Minister of Customs and yourself, the entry for

duty at the Customs here of a lot of Clan Tartans ptjrchased by his firm,

Messrs. Ogilvy & Co., this summer, in England. I have examined the

invoices of these goods, as well as other documents connected with their

purchase, and am perfectly sati-sfied they are all genuine and correct in

every particular, and that it would be a grave injustice to Messrs. Ogilvy

t Co., as well as a most dangerous concession to inexperienced and

ignorant Appraisers, to cause thorn to amend their entry and pay duty

on an increased valuation.

The numerous letters and vouchers, from many of our flrst-class

importers, which Mr. Ogilvy can show you, will prove the correctness of

my statement.

Yours respectfully,

(Signed,) THOMAS WORKMAN.

North British Chambers^

Montreal, 14th August, 1871.
Messrs. Ogilvt k Co.

Dear Sirs,

I have examined the Invoices of Messrs. A. & S.

Henry & Co. for £739 16s 9d and £199 5s 7d, and the account current in
which they are charged, and have not the shadow of a doubt as to their
being genuine. From our large correspondence with British houses, I
know Messrs. A. & S. Henry & Co. to be of the highest standing, and
incapable of falsifying their invoices, even if you (which is equally im-
probable) would ask it of them. I think such an imputation, both on
them and you, is most cruel ; and attempts of this kind, upon such frivolous
grounds, should be frowned down by the Government, as not only unjust^
but calculated to throw obstacles in the way of trade.

I have also read over the letters of Messrs. Stevenson, Hardie, Denooil,
Donnelly, Laing, Gordon, etc., just from the British Market, men upon
whose experiv^nce and truthfulness, full confidence may be placed j and in
view of their distinctly expressed opinion as to the correct valuation of
your goods, I do not see how the Government can hesitate for a moment
to discontinue their demands.

I am, yours truly.

JAMES COURT,

mam

EXCERPTS FROM CUSTOMS ACT.

First we give Declaration required on entering goods, viz : —
Declaration qfthe Owner, Consignee or Importer, with the Hill 0/ Entry.

(1) Name of
Owner, Importer,
ur OoiiDlgneu.

(2) N a m e o f
Owner, Importer,
ur C'oiiMlgnuti.

(3) l8 or ore, liie
Owner or Owners.

(4) lie or they,

I, the undersigned, (1) , hereby solemnly doclaro

that the witliin Bill of Entry contains a true account of the (jooda
imported as therein stated and whereof (2)
(3) the owner ; that the invoice herewith produced ia

the true and only invoice ; whieh (4) ha received or

expect to receive of the said goods, and that the prices of the
goods as mentioned in the invoic , exhib't the actual cost (or the
fair market value) of the said i.oods at the time and place of
exportation, and that no discountu t'jr f.asb are made in the said
invoice prices.

Signed at Montreal, on the day of 187 , in '

the presence of *

[Hemarks. — How could wc hav^e entered our goods save as we did in
face of above declaration ? — 0. & Co.]

In all cases where any duty is imposed on any goods imported into
Canada, ad valorem, or according to the value of such goods, such value
shall be understood tO be the fair market value thereof in the principal
markets of the country whence the same were exported directly to Canada.
And every Appraiser and every Collector, when acting as such, shall by all
reasonable ways and means in his power, ascertain the fair market value
as aforesaid of any goods to be appraised by him, and estimate and appraise
the value for duty of such goods, at the fair market value as aforesaid.

Any Appraiser or any Collector, acting as such, (or the merchants to be
selected, as hereinafter mentioned, to examine add appraise any goods, if
the importer, owner, consignee, or agent is dissatisfied with the first
appraisement) may call before him or them, and examini' upon oath, any
owner, importer, consignee or other person, touching any matter or thing
which such Appraiser or Collector deems material in ascertaining the true
value of £ny goods imported, and may require the production on oath of
any letters, accounts, invoices or other papers in his possession relating to
the same.

If the importer, owner, consignee or agent, having com.plied with the
requirements of this Act, is dissatisfied with the appraisement made as
aforesaid of any such goods, he may forthwith give notice in writing to the

Ll ,,

}

"i f

Collector of such disRatisfaction, on the receipt of which notice, the Col-
lector shall select two discreet and experienced merchants, familiar with
the character aud value of the goods in question, to examine and appraise
the same, agreer y tx) the foregoing provisions, and if they disagree, the
Collector shall decide between them ; and the appraisement thus made
shall be final and conlcusive, and the duty shall be levied accordingly.

If in any case the actual value for duty of any goods as finally
determined by the Appraiser or Collector, acting as such, or under the
next preceding eection, in the case- therein mentioned, exceeds by 20 ^
cent, or more, the value for duty, as it wouM appear by the invoice and
bill of entry thereof, then, in addition to the duty otherwise payable on
such goods, who a properly valued, there shall be levied and collected
upon the same a further duty equal to one-half the duty so otherwise
poyable ; and the value of any goods for duty shall never b« appraised at
less than the value for duty as it would appear by the invoice and bill of
entry.

[Remarks. — In short, supposing a merchant buys a lot of goods in
England, and on entering them for duty the Appraiser takes it into his
head that they should be -.ntored at 20 ^^ cent, more, and can get two mer-
chants (as in our case) to agree to his views, then the importer must pay
an extra duty on the 20 #" cent, valuation and a fine of 7J ^ cent, on the
whole invoice. Who looked after the merchants' interests when this was
made law ?— 0. & Co.]

ii I H

This is the proper writing referred to in the annexed aflfidavit of
Henry Mitchell.

JOHN GUENEY, J. P.

I, Henry Mitchell, of Bradford, in the County of York, in "Rlngland,
Merchant, a partner in the firm of Messieurs A. & S. Henry anr* Company,
trading as Merchants at Bradford aforesaid, and at Manchester, in the
County Palatine, of Lancaster, in England, make oath and say as follows :

In the month of April last my said firm sold the goods mentioned in
the copy letter hereto annexed, to Mr. James Ogilvy, of Montreal, in
Canada, Merchant, at the following prices : tha goods contained in the six
cases therein referred to numbered <o> 657, 723, I2i, 726, 727 and 728,
at 10 Jd per yard ; the goods contai.icd in the three cases therein referred
to numbered <o> 734, 735, 736, at 13jd per yard, and the goods contained
in the six cases referred to numbered <o> 656, 694, 695, 725, 729 and
730, at 13jd per yard.

These goods had previously been shipped to New York, but they did
not obtain a market in that city, and were returned to England as
unsaleable. They were afterwards offered for sale in the London,
Manchester, Glasgow and Bradford mavke^'s respectively, but they could
not be, and were not, sold in any of such markets at such high prices as
were afterwards obtained for them from the said James Ogilvy, as above
mentioned. Other portions of the same goods, returned from New York
as aforesaid, were sold by my said firm in France, at the same prices as,
and no higher, than those obtained from the fc, ud James Ogilvy.

The sale to the said James Ogilvy, by my said firm, was made in good
faith for the best price which could be obtained for the said goods, and, in
my opinion, the mid James Ogilvy gave a fair market value for such goods,
as the same were a mixed lot, and are not worth the price set upon them
for the purpose of assessing the duty payable in respect of them.

HENRY MITCHELL.
Sworn at Bradford, in the County of York, this 10th day of August,

1871, before me,

JOHN GURNEY,

A Justice of the Peace for the Borough

of Bradford aforesaid.

iCopy-^

I, John Jackson Townsend, of the firm of Messrs. Townsend and King,
New York, hereby make oath, that the Tartans referred to in the annexed
copy of letter, were sold by me to Messrs. A. & S. Henry & Co., Bradford,

at a price lower than they sold them to Messrs. Ogilvy & Co., Montreal,
and that Mesisrs. A. & S. Henry & Co. got a fair profit on them. I further
malce oath that the price Messrs. A. & S. Henry & Co. paid for them was
the best price I could get after trying the markets of Loadon, Manchester
and Glasgow.

(Signed,) .toHN J. TOWNSEND.

Sworn at Manchester, in the County of Lancaster, before me, this 10th
day of August, 1871.

(oigaed,) PETER RUJER, M.D.,

One of Her Mcyesty^s Justices of the Peace
for the County of Lancaster.

(F.)

Custom Jlouse,

Montreal, 28th August, 1871.
Gentlemen,

I beg to inform you of the receipt of a letter from

the Department, acquainting me that the Honorable the Acting Minister

of Customs, having had under consideration your application relative to

valuation by referees of certain Tartan goods entered b)' you at Customs

here, is of opinion that the said goods were entered correctly, under the

statute, at their fair market value ; and, therefore, has been pleased to

direct that the portion of the goods in our possession be delivered to you.

I am, Gentlemen,

Yo u: most obedient servant,

^ " \ J. CRISPO,

Acting Collector.
Meesrs. Ogil\-y & Co.,

Montreal.

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CRITICISMS OF THE NEWSPAPER PRESS.

VALUATION OF GOODS FOR CUSTOMS.

After giving an analysis of the Circular, tlie Montreal Herald of 2l8t
September, says :

"In the end, after two months detention of the goods, or of that part of
them which were taken to the V/arehouse for examination, this prayer was
complied with. Perhaps it is hardly necessary for us to comment on
a recital, which, though compressed as much as possible, ^ s already run
to a considerable length. We could add no authority to the representation
of the Board of Trade, composed of gentlemen, who unite to a knowledge
of the class of transactions, of which this was one, a personal interest in
preventing fraudulent entries— who cannot, therefore, be supposed to wish
to screen any one really guilty. We shall, therefore, content ourselves
with one observation, — it is, that at this moment, when the American
merchants of the West are eagerly looking to this port as a relief from the
oppressions of New York, it is of the highest consequence to prevent any
system or any customs growing up here, which, by subjecting merchants
to unjust exactions or needless embarrassments, would diminish the
advantages which they expect to find in dealings carried on under our
Government."

(From Herald of 23rd September^)

VALUATION OF GOODS.

With reference to the article published on this subject a couple of laya
ago, we have been requested to say that the Appraiser at no time either
believed, or acted as if he believed, that the invoice presented by Messrs.
Ogilvy & Co. was a fraudulent one, or as if it did not fairly represent the
price they had paid for the goods entered. But he considered it his duty
to see that the goods were entered, not at the price they cost, but at their
Value at the time of exportation. His theory is, that they were bought for
less than their value, and that even if they were not, that value had
augmented between the time of their purchase and that of their shipment.
In support of this view, we are informed that he has certificates from
gentlemen in the Dry Goods Trade equal in number, and, as he thinks, in
value to those printed by the Messrs. Ogilvy. This of course narrows the
question to one of a proof of value. But being admitted that the invoice
was honest, and Messrs. Ogilvy in good faith, was it reasonable that these
gentlemen should be subjected — we do not say merely to an auguzented

rate of duty — but to a fine, which certainly implies punishment, and hence
wrong doing? We might also remark that the presumption is strong
that the price paid to a strong house was at the time a fair measure of
the value, and that the increase of value, running from 25 to 50 per
cent., was a large augmentation to be accounted for by mere lapse of time.
We may presume that the Appraiser was in good faith as well as the
importer ; but whether the fault lies with the law or the administration of
it, it is not the less hard measure for a respectable house, acting, as it is
confessed, with perfect honesty, and basing its action upon authentic
proofs of a real transaction, to bo involved in a Custom Hoiise controversy,
and to be visited with a tine upon the mere opinion of valuers, offset by the
contrary judgment of other and equally well informed valuers. This was
all the more hard, because the Messrs. Ogilvy proposed to the Collector a
course which tested not only the honesty of the firm — if that were in
question — but also the actual value of the goods as they estimated it. If
in the opinion of the Customs authorities there really were good ground
for insisting upon post entries at prices augmented from 20 to 50 per cent., it
is manifest that there must have been a fair speculation in taking them at
10 per cent, advance on the first entry. We suppose that course when taken
must be held to involve some reproach upon the importer ; but certainly
no greater reproach than the alternative of subjecting him to {, fine as well
as insisting on re-entry; and in the present case it was urged on the
department by the Messrs. Ogilvy themselves. The latter gentlemen do
not attack the Customs authorities with any bitterness. They complain of
being wronged, and it seems to us that they have been ; but whether by
the due enforcement of the law, or the undue enforcement of it, is not a
matter of much consequence, except iu so far as concerns the mode of
applying a remedy. But when merchants enter their goods at the honest
price paid for them not very long before, to a house of respectability, not
tinder any pressure to make sacrifices, and when they urge the Customs
Department, on a demur to their entry, to take the goods at 10 per cent,
advance, it seems hard to see what more can be expected of them. They
can scarcely be bound to guess the highest frices, which some one else
who has not bought goods may put upon them, under pain, in default of
h'tting that limit, of the disagreeable consequences of enhanced charges
and a fine. The Appraiser has to lut in accordance with the law, and
under the obligation of an oath ; but if he is right in this case, in the
construction of the statute, the importer seems to require some protection
as well as the revenue.

(From Gazette of 22nd of September. 1871.)
APPilAISEMENT EXTRAORDINARY.

We have had on our tabic for some days a proof copy of a circular by
Messrs. Ogilvy & Co., of Montreal, to the Importing Merchants of Canada,
de'^ailing what appears from tlio statement to have been a very cruel case

of oppression on the part of the Custom House Officials. The facts of the
case, as stated by Messrs. Ogilvy & Co., are as follows : — A member of the
firm, who spends most of his time in England, where he has amply oppor-
tunity for watching the markets, recently purchased a lot of tartan dress
goods from Messrs. A. & S. Henry & Co., of Bradford, Edgland, part of which
was sent to their house in Toronto, and at once passed through the Customa
there ; the rest of them (15 cases) were re-entered hereon the 10th of July,
and duties were paid according to Messrs A. & S. Henry's invoices, which
truly showed what the goods had cost. Two cases of the fifteen were taken
to the Examining Warehouse, as required by law, for inspection. They
were kept there for eight or ten days, during which time the Appraiser car-
ried samples to a number wholesale and retail houses in the city to get
valuations put on them. On the 21st July, Messrs. Ogilvy & Co. were call-
ed upon by Mr. Villeneuve, the recently appointed Appraiser, to make post
entries, i. c, to pay additional duties of from 25 to 50 per cent.,— .in other
words to add about 33j per cent, to the cost of the goods, pay duties ac-
cordingly, and also a fine of 7 J per cent, upon the whole invoice. To this
they very naturally demurred, and, with the apparent desire of avoiding
any trouble, offered to give up the goods upon the ten per cent advance,
as provided by law. The Collector refused to take them on those terms, and
two merchants were called upon, as provided in the Customs Act, to value
the goods. These two gentlemen met, and notwithstanding that the Col-
lector had invited Messrs. Ogilvy & Co., to be present, and although the
law expressly provides that in such cases evidence upon oath may be
taken touching any matter or thing .vhich may be deemed material in as-
certaining the true value of any goods imported, they were asked no ques-
tions, but on the contrary were requested to leave the room. The result
of this appraisement was a certificate confirming the estimate of the
Official Appraiser, the certificate declaring that the valuation had been
arrived at <' after a thorough examination of said goods, and hearing evidence
touching the same, " notwithstanding that some twelve cases had not been
examined at all, and that the gentleman who was most competent to give
evidence, and who ought, in common oourtesy, to have been examined
upon oath was notpremitted to make any observation, but was even ex-
cluded from the room while the examination was proceeding.

Messrs. Ogilvy & Co. veiy properly still refused to submit to what they
considered not only an unfair and improper appraisement, but a cruel im-
putation upon their honour as merchants. They presented the case to the
Board of Trade, their letter being dated on the 8th August, a week after
the olT.cial notification of the result of the final valuation. With the letter
were fifteen certificates from merchants who had just returned from Eng-
land, aud who were well acquainted not only with the class of goods in
question, but with the market value of such goods in Great Britain. These
certificates all declared the goods to have been entered at their fair value ;
some of them saying that they had been offered the same goods at the prices
invoiced and had not purchased them. The matter was taken up at once

by the Board of Trade, and on the 9th August, a memorial was sent to the
Minister of Customs, reciting the facts, enclosing the certificates, and soli-
citing his " intervention in the interest of the tn ie of the Dominion, and all
" the merchants honestly engaged in it, — that such practice as sending
" samples of goods through the trade be discontinued, — that the bclection of
" merchants as Appraisers be limited to those who have not previously been
« spoken to on the subject, — that there be no additional duty charged, nor
" any fines imposed upon Importers who can establish that their entries
" have been made for the actual cost and fair market value of the goods, no
" discounts for cash having been deducted, — and that the most ample op-
" portunities be given to any and every Importer to prove his case." At
the same time Messrs. Ogilvy & Co. addressed a letter to the Minister of
Customs, praying that the goods might be given up to them ; without the
imposition of any fine, or the payment of any duties other than those or-
iginally and honestly paid. Mr. John Ogilvy visited Ottawa at the same
time, taking with him a letter of introduction to Mr. Bouchette from Mr.
Thomas Workman, in which the opinion is expressed « that it would be
" a grave injustice to Messrs. Ogilvy & Co., as well as a most dangerous con-
" cession to inexperienced and ignorant Appraisers, to cause them to amend
« their entry and pay their duty on an increased valuation." On the 28th
August, Mr. Crispo, the Acting Collector of Customs, addressed a letter
to Messrs. Ogilvy & Co., informing them of the receipt of a communication
from the Department, acquainting him with the fact that the Honourable
the Acting Minister of Customs, having had under consideration their ap-
plication relative to the valuation by referees of the tartan goods entered
by them at the Customs here, was of opinion that the said goods were en-
tered correctly, under the statute, at their fair market value ; and, there-
fore, had been pleased to direct that the portion of the goods in possession
of the Custom House be delivered to them.

This is the case as it appears from the circular before us, and our readers
will agree with us in the opinion that it is a most extraordinary one,
one calling for much more official notice than the mere re-delivery of
goods after a detention of nearly two months. It is very much to be
regretted that it should have followed so closely upon the appointment
of a gentleman as appraiser in the Custom House here, about whose
qualifications for the position very grave doubts existed at the time. Mr.
Workman, in his letter to Mr. Bouchette, speaks of him as " inexperienced
and ignorant," expressions which it should be impossible to apply to a
gentleman occupying so important a position at the chief port of entry of the
Dominion. And yet the simple facts of the case, as presented in the official
documents submitted by Messrs. Ogilvy & Co., force us to the conclusion
that they are not altogether inapplicable in this particular instance. T'-at,
in this case, he made some eiforts to ascertain the value of the goods before
venturing to charge a highly respectaljle firm with an offence so heinous
that we hesitate to call it by its proper name, is evident from the docu-
ments before us, Mr. James Morgan, in his certificate, after stating that
the invoiced price was a fair market price for the goods, says : — " I may

" also mention that my firm was about three weeks ago called on by one
« of the Customs appraisers, to put a value on these goods, and we then
" valued them at the prices given above." Mr. James Bcnning, of the
firm of Benning & Barsalou, after stating that on this lot of goods they
would not advance within fifteen per cent, of the invoice, says : — " I may
" also state that last month I was shown a sample of such goods, and
" which I now believe to have been Ogilvy & Co.'s, and asked to value
" them. My impression is, I put a lower price on them than Messrs.
0. & Co.'s invoice." Here there is evidence that these goods had been
shown to persons with a view to ascertaining their value ; and evidence
that at least two firms, whose opinion on the value of goods is c;rtuinly
trustworthy, decided that they had been properly entered. How many
gave a different opinion does not appear ; but the statement made that at
least one who did so was afterwards called upon to appraise the goods is
a most damaging one. The law, in submitting the appraisement to " two
discreet and experienced merchants " in case of dispute, certainly never
contemplated that those merchants, or either of them, should be personally
interested, even to the extent of having expressed an opinion, in the result.
To admit the principle acted upon by the Customs authorities here is
simply to place the honour of every merchant at the mercy of the
appraiser. If, when impulse moves him to consider goods under-valued,
he may hawk samples round until he finds some merchant willing to say
that they are under-valued, and then call upon that merchant to give
" final " judgment, no importer can consider himself safe. And when it is
remembered that the appraiser has a direct pecuniary interest in discovering
that goods have been entered too low, to allow practices such as those
exposed in this case is simply to put a premium upon excessive official
interference on the part of appraisers.

We write thus with the greatest pain. It can be no ->leaBure to us to
find fault with public officials whose duties are at all times onerous and
responsible, and who are entitled to great forbearance and consideration in
the performance of them. But the interests of the trade of the city, and
the honour of our merchants are matters of infinitelT' greater moment. "We
cannot forget that the present appraiser received his appointment in violation
of a principle which should, especially in positions where technical know-
ledge is required, be always inviolabl'o. He had had no experience in the
appraiser's office, and although an admirable statistical clerk, had had no
opportunity of showing any special aptitude for the duties of appraiser.
The first results of his appointment are certainly not calculated to inspire,
public confidence either in his ability or judgment ; and we are strongly of
opinion that the Government should follow up their action in restoring
the goods to Messrs. Ogilvy & Co., by such changes in the appraiser's
department as would inspire some degree of confidence for the future.
We can assure the Minister of Customs that in saying this, we speak
the almost unanimous opinion of the merchants of Montreal, and we
certainly speak in the interests of the trade of the whole Dominion.

(From Gazette of 25th September.)
THE SYSTEM OF APPRAISEMENT.

The circular issued by Messrs. Of,Mlvy & Co., to which we made reference
on Friday morning, and in which they lay before the merchants of Canada
the particulars of a case of appraisement in the Custom House here, calls
for notice apart altogether from the particular firm interested. We have
been assured, in connection with that case, and have been requested to
make the statement, that the A jipraiser did not, in requiring a post entry
to be made by Messrs. Ogilvy & Co., desire to impiite any dishonest intent
either to them or to the firm from whom they had bought their goods. On
the contrary, he was quite satisfied that the invoice presented was a just
and hon-st inv^oice, tliat it did not represent "cash values," but was for
the "usual and ordinary credit;" and th'at it was only because such a
course would be an imputation of intended fraudy that the goods were not
taken at the lo per cent, advance as offered by Messrs. Ogilvy & Co. Thig
explanation having been made at the request of Mr. Villeneuve himself
we proceed to consider the whole question.

The doctrine laid down by the Custom House authorities at this port, in
this case, is that the invoice of goods is not to be taken for purposes of
duty, — that in fact the market value of goods is something different from
the price paid for them ; and that merchants, therefore, in making entries,
are bound, not simply to submit their invoices, but bound to consider
whether they have not paid too little for the goods, and to add enough to
the invoice to bring them up to a higher value. Such a doctrine, thus
simply stated, seems to us so monstrous that we can hardly imagine it to
have been the intention of the law. The .3 L.th clause of the Customs Act,
it is true, seems to favour that view, but read in connection with the entire
Act, we are inclined to think that it is open to the more reasonable one.
The following is the clause : — " In all cases where any duty is imposed on
" any goods imported into Canada, ad valorem, or according to the value of
" such goods, such value shall be understood to be the fair market value
" thereof in the principal markets of the country whence the same were
" exported directly to Canada. And every Appraiser and every Collector,
" when acting as such, shall, by all reasonable ways and means in his
" power, ascertain the fair market value as aforesaid of any goods to be
" appraised by him, and estimate and appraise the value for duty ot such
" goods, at the fair market value as aforesaid." Now, the question is what
is to be esteemed the fair market value ? The following clause states it
thus : — " The fair market value, for duty, of goods imported into Canada,
•- shall be the fair market value of such goods in the usual and ordinary
" acceptation of the term at the usual and ordinary credit, and not the cash
" value of such goods, except in cases in which the article imported is, by
" universal usage, considered and known to be a cash article, and so bnna
"fide paid for in all transactions in relation to such article; and no

^T'^

" discounts for cash shall in any case be allowed in deduction of the iUir
" market value as hereinabove defined ; and all invoices representing cash
" values, except in the eases hereinabove referred to, shall be subject to
" such additions as to the Collector or Appraiser of the port nt which they
« are presented, may appear just end ref*onablo to bring up the amount to
" the true and fair market value as required by this section." This last
sentence in the clause seems to us to govern in the interpretation of the
whole. It assumes the invoices to be the test of value, because, where the
invoice is for cash, and then only, is the Collector or Appraiser entitled to
make any addition to it. Even the extent of that addition is limited to an
amount necessary to bring up the prices to the value « at the usual and
ordinary credit." It seems tolerably clear, therefore, that except whore the
Collector or Appraiser may have reason to suspect that the invoice is a
fraudulent one, the only ground upon which it can be rejected for the
assessment of duty is that specified, namely, where it represents " cash
values."

And this view is sustained by other clauses of the Customs Act. Thus
by the fourteenth clause the collector is empowered to require, on the
entry of goods, the " production of invoice oi invoices," as proof that the
" goods are properly described and rated." The reason for the appointment
of appraisers is stated to be the protection of "the revenue and the fair
" trader against fraud by the under-valuation of any such goods " ; showing
that the appraisers' right to interfere, except in the one case of " cash
values" is limited to cases of " fraud by undervaluation." No one pretends
that a man is guilty of fraud by undervaluation, when he produces an
honest invoice of goods at the ordinary rates of credit, even though he was
fortunate enough to purchase at a bargain. So by the 42nd clause, it is
declared that the appraiser, or collector acting as such, " may call before
" him or them and examine upon oath any owner, importer, consignee, or
" other person, touching any matter or thing which such appraiser or
" collector deems material in ascertaining the true value of any goods
" imported, and may require the production on oath of any letters,
" accounts, invoices, or other papers in hi.s possession relating to the
'■' same." Now it is quite clear that all this proceeds upon the presumption
of a suspected or fraudulent invoice ; and not to one honestly setting forth
the price at which goods were purchased, "at the usual and ordinary
credit."

There is but one clause in the Customs Act which, even by implication,
Would impose upon the importer the obligation of fixing for duty a valu«
on goods different from tiiat paid for the goods, viz., the 38th clause, which
reads :»-" In any such Bill of Entry as aforesaid, the person making the
" same may add such sum to the value stated in the invoice, as will bo
" sufficient to make the value for duty such as it ought to be, and such
" value shall then, for the purposes of this Act, stand instead of the value,
«' as it would appear by the invoice." But this must refer either to cases of
cash invoices, or to cases where the invoice does not represent the amount

^{^tuczKat

paid for the goods, and is, therefore, a fraudulent invoice, the presentation
of whicii, if its frauduleat character were established, would cause the
forfeiture of all the goods. Inasmuch, however, as the whole system of
appraisement is, within the terms of the Act itself, simply to protect » the
" fair trader from fraud by under-valuation," it is perfectly clear that it
was tiever intended to go behind an honest invoice to ascertain the value
of goods.

Although, looking at the Act in all its clauses, we arrive at this con-
clusion, and although it is evident that the Acting ^oHictar of Customs,
Mr. Campbell, took the same view, there is no doubt that a different
principle has governed the conduct of the Custom House Officials at this
port. For this reason, it is to be hoped that the law will be so amended
as to remove from it all ambiguity. To impose a penalty upon a merchant
for no other reason than that lie had been fortunate enough to buy his
goods at a low pr'ce, to make his doing so, and presenting the actual
invoice of prices paid for them, " a fraudulent under-valuation " to be
punished by heavy penalties, is surely most extraordinar} legislation. The
distinction between cash invoices, and invoices according to the custom of
the trade for credit, is one, the reasonableness of which may be apparent
enough. It is a protection to weaker against stronger houses, and it
encourages trade by preventing monopoly. But to say that the ordinary
business energy which watches the market, and secures purchases on the
best terms, is to be thus punished, is to lay down a doctrine that ought
not for one moment to remain embodied in the legislation of the country.

"'-

PBINTED AT GAZETTE PKINTINQ HOUSB.