The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1863-02-15
CUSTOM HOUSE FRAUDS.


New York Custom House.
Secretary Chase has submitted 70 the House Committee
Of Commerce the report Of the Solicitor Of the treasury
Department, MI Jordan, upon the Custom House frauds
in New York The Solicitor proceeded 70 New York and
he remarks that the rst discovery clear evidence
THE CASE OF MApAn Hrus1r,L
Suspicious had beon excited respecting imporations or
Madame Heustell, in consequence Of which examna
ton Of her promises was made In the Of which
letter from her correspondent in Paris found relating
TO invoice Of goods which been before entered
pos sn S ~as one q three cases Of goods pus
valuation Of 22l0 francs, including commissions and
charges There were also embraced In the same entry
six other cases 70 DO Of floss cotton and en-
tered at valuation including charges Of 1900 francs
This entry was made on the 26h Of September 1892 and
was dated September 8, l862, and Informed Madame
heusts among other things that the goods had been
insured for 10 900 francs. - :.
inc great discrepancy between this valuo and that at
officers that the entry fraudulent. Madame Heuste
on beng shown this letter. together with the entry
pressed great surprise declaring that the actual original
cost or the three cases in question about eighteen
thousand francs and that such the value expressed
in the true invoice Of the goods which she
her broker. She said that though she had signed the
entry actually made she had done without noticing
that the value expressed any other that stated
in the true invoice having had suspicion Of the dis
honesty OF her broker and she further declared thai the
othersixcases embraced in the entry did belong
her, and that she knew nothing about them
The broker of Madame Heustel was at the time OF this
discovery extremely ILL., and could not be SEEN but tho
handwriting Of the entry being recognized us that Of
an expanatOn He admitted the making out OF the entry
TO have been his act but said that the memoranda for
making had been furnished by other persons that
ne really knew nothing about the actual nature Of the
transaction After delay of some two weeks however
info rmaton gained which satisfied the officers OF his
full knowledge on the subject his office was visited when
large number OF invoices found which had been
taken from the Custom House. some Of them been
soned. ---. ,-t,, -.
OTHER GASES. -.
The result Of the investigation into this particular
was the discovery Of other frauds involving large
Der Of persons. In cases the importer was cogn
zant OF the fraud-n others not. The invoices were
often made in fictitious Names goods belonging to one
person were frequently entered belonging 70 another
In some cases an importer paid money to his broker who
paid the cuprt in the Custom House their share Of the
plumber Seizures made by the government in seve
raj and the result was the recovery of about
fifty thousand dollars
The persons in tho Custom House known TO have any
connection with the Frauds says Mr. Jordan, arc Van
Vechten, Eells and Griggs .'Tbe circumstances deve
oped although they do not show actual completely on
the part Of Henry calhoun, the Deputy Collector who
designated nearly all the packages for examination
Lengwe, the chief clerk and others the record bu
reau in the Solicitor opinion culpabe in permit
ting papers under their care TO be WITHDRAWN The Col
lector promptly dismissed them all Mr.. Jordan in his
Investigations has to the conclusion that frauds
constantly and systematically carrted He thinks
also that there is very considerable direct smuggling
The subjoned startling facts stated in the report
EVIDENCE OF CORRUPTION.
A. to the accessibility Of many Of those employed in
the Custom House 10 corrupt influence the evidence
regret 70 say conclusive and artng The facts deve
oped in connection with the particular frauds before re-
ferred to show that money in large
by officials as the undisRused reward Of fraudulent
connvance. But in addition this the statements
herewith submitted seem to Justify the belief that nearly
the entire body OF subordinate officers and the
Custom House are, in way another the habtual
receipt Of emolumens from importers OF their agents.
One lawyer declares that he has paid TO single record
clerk the sum Of eighteen hundred dollars WITHIN period
Of fifteen months Entrtes from books OF an import
ing house doing but moderate business discovered
showing that about thousand dollars had been paid by
to an examiner within period year Van vechten
admits that he received not less than twenty FIVE hun
dred dollars per annum from such II is shown
that bond clerk, with salary Of Thousand dollars
per annnm enters upon term OF eight years with moth
ing and leaves 1t with fortone of thirty thousand dol
lars majority Of the oncias questioned the subject
by mo admit that they receive such amoluments to
greater or less amount II is true that generally these
amounts represented to be and that
they received osensiby for special services-nno
cent IN their naturereudered By the official for the
porter but think that enough is developed Justify the
belief that they larger in amount than most these
officials willing 70 admit and tina; they be to the
last degree demoralzing and corvup,ng apprehend
one can doubt In my judgment, the giving receiving
Of such emoluments IN any form should be prohibited
under severe penalties.