The Bedford gazette. [volume] (Bedford, Pa.) 1805-current, 1862-11-21
New York Custom House Fraud.

THREE QUARTERS or A MILLION or DOLLARS
SAID TO BE INvoLvED-CLERKs AND IMroR.
TIERS IMPLICATED.
! The fact that an extensive defalcation in the
New York custom-house had been discovered
was briefly mentioned in telegraph dispatch
on Saturday. The New York World gives the
following particulars:
The arrest of clerk in the liquidating de.
partment of the custom-house few days 2go,
for destroying valuable records, has led to the
discovery of q defalcation of very extensive
character, covering, it is said period of over a
year, duplicating large number of clerks and
several of the leading merchants of this city;
and, as far as has yet been ascertained, involv-
ing loss to the government of ut least S750, 1000.
Thc suspicious of the collector were awaken
ed some time ago that swindng was going ON,
although there was no idea of the magnitude Of
the fraud, and an officer was detailed to take
charge of the matter The first person arrested
was j. Il. Van Vechten, the entry clerk in tho
iquidating department for the last thirteen years.
He was arrested for destroying books Of record.
He was examined before Commissioner Stilwell,
and released on IS 900 bail An investigations
was then commenced of tho affairs of his office.
1t was then discovered that numerous wrong en-
tries had been made in his books, and that prob
ably the record books had been previously de.
st, Dyed by him to prevent discovery of the fact.
The investigation was continued, and it is be.
lieved that about twenty clerks were implicated
in similar frauds. They arc suspended, and are
awaiting proof which will lead to their arrest
Or TO their being reinstated in their positions as
innocent of participation. The frauds are al
SO traced out Of the custom-house, and involve
a number of leading importers in this city.
The method of the fraud and the completely
existing between the clerks of different depart
ments and the importers will be seen by the fol-
lowing explanation: Suppose, for instances that
cargo of French goods valued at fifty thou
sand francs arrived at this port to the credit
of city merchant, and that he, on presenting
the invoice at the custom-house, swears that il
is only worth ten thousand francs. The entry
clerk, having an understanding with the mer-
chant, receives this statement. The entry clerk
may order only one among dozen bales Of wors-
ted to be examined, and so, it certain bales have
on them private mark, he may direct only
these bales to be opened All the other bales
may contain silk goods, and thus be passed tho
same as the specimen bale examined as worsted.
A number of clerks in different departments
must be in the secret or the fraud cannot be
successfully carried out. e > kl. t
The Post, of Saturday evening, says: al-
Tho investigation of the lately-discovered
frauds is proceeding, and continues to develop
the most startling facts. We cannot at pres
emf, in view of the amounts involved, the per-
sons who may become implicated and the fur
thcrance of justice, give full particulars until
an official statement shall be made BY the prop
er authorities.
Of course, in matter like this, the widest
and most absurd rumors will arise. Various
statements have been made rs to the amounts
of which the government has been defraudod-
1t is we'll to state that many OF these reports
Give the value of entire invoices, Instead Of tho
amount of duties that accrued upon the impor-
tarion; and although the sums thus held back
and shared by the denquants are large, they do
not reach the figures stated in some Of the morn
ing papers SIS.