The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1865-10-28
FRAUDS ON THE INTERNAL REVENUE.
-~~~~~~~~-~-~~~~~~~~~~~
How the Government is Cheated
of its Dues.
Seizure Of Three Hundred Barrels OF spirits
by the United States Authorities.
A Custom House Clerk and Virginia
Ex-Rebel in the Case.
A LARGE FIRM IN BROOKLYN IMPLICATED.

Ever since Congress passed the act imposing such
heavy tar on all manner OF and foreign spirits
some of the dishonest dealers and importers have
sorted all manner of cunning devices to evade the pay
ment of the taxes imposed on such commodities by tho
existing laws The United States authorities
have been busy engaged for months past in endeavor-
ing TO ferret the guilty parties and bring them TO
punishment, but without success until Thursday last
Private information had been given to the United
States Commissioner and Assistant District Attorney Of
the Eastern District OF Brooklyn, TO the effect that GER
tain parties had attempted raudsntly export three
hundred barrels OF alcohol Of New York without
paying the tax and detectives at put on their
track. After considerable difficulty the plot dis
covered, and the OF all the parties concerned
known to the United States officials. The following
all the facts connected with the that at
liberty to publish for the present:-
The three hundred barrels in question originally
owned by the firm of Cuthbert Cunningham extensive
dstilers in the Eastern District who have also bonded
warehouses for the storage of bonded goods They
the goods TO a man named Benlham Fabian, osiensibly
from Richmond, who bonded the goods in the Custom
House for expectation board vessel called The
Anemon, which registered in the usual form. The
entry OF the goods in The Custom House made in
the name Of Richard Clancy, who turns out 10 be
mythical CHARACTER having existence only IN the fer
tile imagination of the chief actors In the fraudulent
transaction Clancys name appeared ON the shipping
eachone for the shpmdnt OF one hundred and seventy
barrels one for one hundEd and thirteen and another
for seventeen making IN all three hundred barrels.
The date OF the entry October TO- and the bonds
actually filed up aud assigned at the Custom House
that day. which could not have been the bad not
of the entry clerks been in collision with the
| peirators Of the fraud.
The entry sets forth that the alcohol in the bonded
warehouse Cuthber, Cunningham, the original own
Of the goods. This circumstance appeared rather
suspicious and was the first link TO connee the hru II
Cuhbcrt 4 Cunningham with the transacon Again,
the order for the delivery OF the goods to Fabian
dorsed by this hrn, without which endorsement tho
| goods could not have been delivered
The six signed To the bonds, like that OF Clancy,
also turn out TO be mythical individuals which proves
that at least one or more clerks in the Custom House
have been pryy 10 the whole transacion a. the law
requires that sureies signing bonds for the export OF
bonded goods must forward IN person aLd qualify
thtrolyency but in this IL turns out that the
signed to the bonds fictitious, such per
sons having local habiation or name in tb. commu
nifty
| The names of the parties in the Custom House who
have lent themselves 10 this swindle are known 70
the officers OF the United States Marshal, and in few
days OF the most startling Developments IN con
necton with tbs case are expected 10 DC uniodco 10 mo
| public.
| This man Fabian, who appears as one OF the chief
actors in the Affair." nj time, previous 70 the wall
employed in OF the departments at Washington,
but resigned his position and entered the rehci service
and now turns up a rebel refugee from Virginia HIS
family, up Ia within few days sncc, were stopping ~
the Stevens House in this city; but when The d.tcc
tives called yesterday quest Of Mr. Fabian they
informed that he and his family had disappeared
mysteriously, leaving the Messrs Cuthbcrt cunning
ham explain their connection with the Transaction
One clerk the Custom House sad 10 have been PAID
$40 900 in single tranacon where the government
deiraudcd out Of fabulous sum oil money IN the
manner
The United states Comms sioner and District Attorney
busily engaged in investigating tins aud other
Of similar character ahd when all the iacts are
developed il win astopsh the community 10 learn o
what the government H. being delfa de" by
the carcessncss malfcasanto Of some Of ~ employees