Thomas Wood, Junior v. United States

• Court: United States Supreme Court
• Writing for the Court: STORY
• Citation: 16 Pet. 342,41 U.S. 342,10 L.Ed. 987
• Parties: THOMAS WOOD, JUNIOR, Claimant of twenty-two Packages or Pieces of Cloth, Plaintiff in error, v. UNITED STATES, Defendants in error
• Decision Date: 01 January 1842

41 U.S. 342 16 Pet. 342 10 L.Ed. 987 THOMAS WOOD, JUNIOR, Claimant of twenty-two Packages or Pieces of Cloth, Plaintiff in error, v. UNITED STATES, Defendants in error. January Term, 1842

[Syllabus from pages 342-344 intentionally omitted]

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Error to the Circuit Court of Maryland. At the district court of the United States for the district of Maryland, on the 27th day of December 1839, the United States filed an information claiming a forfeiture of twenty-two pieces of cloth, of the value of $2500. The information contained nine counts. Afterwards, and before the trial of the cause before a jury, a discontinuance was entered by the district-attorney of the United States, of the first, second, third, fourth and fifth counts. The case was tried before a jury in July 1840, on the remaining counts in the information; and a verdict and judgment were rendered in favor of the United States. The claimant took a bill of exceptions to the charge of the court, and prosecuted a writ of error to the circuit court. In that court, a judgment was entered, pro form a, in favor of the United States; and the case was brought by the claimant, Thomas Wood, by writ of error, to the supreme court.

The information filed by the United States, in the district court, in the third count, on the 66th section of the collection act of 1799, alleged, that the goods were not invoiced according to their actual cost, at the port of exportation, with design to evade the duties thereon. The sixth, seventh and eighth counts, on the 4th section of the supplementary act of 1830, and the ninth count, on the 14th section of the act of 1832, alleged, under different forms of statement, that the invoices on which the goods had been entered, and the packages containing them, had been made up with intent to evade or defraud the revenue.

The defendant's first plea was a denial that the goods had been seized for the same causes of forfeiture alleged in the information. The second plea set forth certain warrants issued under the 68th section of the act of 1799, authorizing the search for and seizure of goods entered without permits, and concealed in certain stores in Baltimore, and alleged, that the seizure was made under these warrants, and not under any other authority or for any other cause than that which was contained in them. The third plea alleged, that the goods in question were imported into New York, and duly entered and unladen under regular permits; that in order to the ascertainment of the duties, the collector caused them to be appraised, according to their actual value, at the time and place of exportation, and also caused one package out of every invoice, and one package out of every twenty packages

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of each invoice, to be opened and examined; and that the packages so opened and examined were found and reported to the collector to be correctly and fairly invoiced and put up; that, after said examination and appraisement, the duties on the goods were duly ascertained and estimated by the collector, and paid by the claimant; that they were then delivered to the claimant, and were shipped by him to his agents in Baltimore; and that, whilst in possession of said agents, they were seized by the collector of the port of Baltimore, as alleged in the information.

To each of these first three pleas, the United States demurred generally, and the court below being of opinion, that they contained no matter of defence to the information, gave judgment in favor of the United States on the demurrers.

The remaining pleas were, in succession, applicable respectively one to each of the counts of the information, and were simple traverses of the respective causes of forfeiture alleged in them. Issue was joined on each of these pleas. These, which were the only issues of fact tried, resulted in a general verdict for the United States; on which a judgment of condemnation was afterwards entered, as above stated.

It appeared by the bill of exceptions, that at the trial, the United States, to maintain the issues on their part, read in evidence to the jury, four entries and invoices which, it was admitted, were original entries and invoices, and had contained the twenty-two pieces of cloth against which the information was filed, and it was admitted, that the numbers then on said pieces were the same that they were when imported, and had not been changed or altered; that the said four invoices were severally passed through the custom-house of the port of New York, according to the forms prescribed by the acts of congress; and that, with one exception, the said twenty-two pieces were included in the packages designated by the collector of New York to be opened and examined. And it was further admitted and agreed, that the duties on the amount of each of said four invoices had been paid, according to the prices therein stated; and that the goods therein mentioned had been delivered, under regular permits, to the claimant, who afterwards shipped the twenty-two pieces taken from several of the original packages included in said four invoices, to the consignment of Beadell & Company, at Baltimore, for sale.

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It also appeared by the evidence on the part of the United States, that the claimant had entered at the port of New York, in the years 1839 and 1840, twenty-nine importations, of which those in question were a part. Twenty-eight of these importations, including the four in question, were entered by him, and upon his oath, as goods of which he was the actual owner, by having purchased them for exportation, from the party by whom they were invoiced to him. Of these importations, the four which included the twenty-two pieces in question, were entered in 1839. Fifteen importations had been previously made, and ten were made after these four importations. All of the twenty-nine entries were accompanied by invoices. From the aggregate gross apparent cost of the goods in these invoices, some of which contained cloths alone, and others both cloths and cassimeres, there was a deduction in every invoice of five per cent., in some cases described to be a discount for cash, in others for measurement, and in two, with out stating for what. It was in proof by persons conversant with the British market, that by the course of business in the places where the goods purported by the invoices to have been bought, no such discount or deduction was ever allowed on casimeres, whether invoiced separately, or included in the same invoice with cloths. It was also proved, by persons well acquainted same invoice with cloths. It was also proved, by persons well acquainted could not, at that time, have been fairly bought for less than prices which exceeded, by a large per-centage, the prices mentioned in the invoices; and with a view to show further, that the invoices were fictitious as to the prices, and that the discount was fictitious, it was proved, that in every one of his importations made after the seizure of the goods in question, the claimant acquiesced, without appeal or objection, in the acts of the assistant-appraisers of the customs and their assistants, in disallowing a similar discount or deduction of five per cent., and in raising the amount of their appraisements considerably beyond the prices mentioned in the invoices.

Before the evidence was given on the part of the United States, the counsel for the claimant objected to the admissibility in evidence of the invoices of the other goods imported by the claimants as above, before and after the importation of the goods in question, and of the oral testimony offered as above, in connection

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with them. 'But the court overruled the objection, being of opinion, that the question in the cause was a question of fraudulent intention; the inquiry being whether the invoices of the goods in controversy were made up with intent to evade the act of congress, and defraud the revenue; and that the acts of the claimant in passing other goods through the custom-house are evidence.' This opinion formed the subject of the first exception of the claimant, on which he now insisted in this court.

The second exception was to the refusal of the court below to give to the jury the instructions requested by the counsel of the claimant, and also to the instructions given by the court to the jury. To understand the character and extent of this exception, it is necessary to introduce the prayers of both parties for instructions to the jury, with the answers of the court. The United States, by their counsel, prayed the court for its opinion and direction to the jury:

1. That the issues which the jury are sworn to try, involve no questions except upon the causes of forfeiture alleged and traversed; therefore, no question relating to the seizure of the goods is in issue, or in any respect material, upon the pleadings in this case.

2. That if the jury find, from the evidence in this cause, that the invoices which contain the goods now in controversy, were made up with an intent to evade or defraud the revenue of the United States, the United States are entitled to condemnation of the said goods; although the jury should also find from the evidence, that the said goods have been passed through the custom-house, at New York, by the collector thereof, or by the appraisers, or other officers of the customs, and the duties calculated thereon been paid, or secured to be paid, and the said goods delivered by the said collector to the importer.

3. That there has been shown, on the part of the United States, probable cause for the prosecution, under the third, sixth, seventh, eighth and ninth counts of the information; and therefore, under the 71st section of the act of 2d March 1799, the burden of proof lies upon Thomas Wood, Jr., the claimant; and it is incumbent on him to prove to the jury, that the charges in the said five counts of the information are untrue, that is, to prove that

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