The United States Custom House, sometimes referred to as the New York Custom House, was the place where the United States Customs Service collected federal customs duties on imported goods within New York City.
In the 19th century, the Port of New York was the primary port of entry for goods reaching the United States, and as such the Custom House in New York was the most important in the country. In 1853, for instance, it collected almost 75% of the custom revenue in the country. Until the passage of the 16th Amendment in 1913, which instituted a national income tax, the New York Custom House supplied two-thirds of the federal government's revenue.[11] The amount of money passing through the Custom House made working there a prime position, and corruption was widespread. At one point, 27,000 people applied for 700 open positions in the Custom House.[12]
Patronage
Until the civil service reforms of the late nineteenth century, all Custom House employees were political appointees. The President appointed the four principal officers: Collector of Customs, Naval Officer, Surveyor of Customs, and Appraiser of Customs. The Customs House patronage was the subject of great debate during the Rutherford B. Hayes administration, as Hayes attempted to establish a merit-based system of appointments, while Senator Roscoe Conkling wished to retain the spoils system, under which he controlled the patronage there. One Collector of Customs, Chester A. Arthur (1871–1878), later became President of the United States. Arthur was said to have made several times more income as a collector than he did as a lawyer, about $50,000 a year in his first three years in office.[12]