The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-06-04
FRAUDS ON THE REVENUE.

Seizure Of Three Tobacco lTauufuctories II
New Jersey, Of Ono in this City, One il
Brooklyn and Ono in Greenpoint.
Investigations made during the past week hav,
brought TO light the fact that very heavy frauds on thu
revenue have been systematically perpetraed by certain
tobacco manufacturers doing business in and around
this city The further fact has also been made known
that certain government inspectors whose duty it wal
to prevent such fraudulent action, have, on the con
rary been parties 10 these swndlng operations Since
Tuesday last seven factories have been seized by Coec
tor Shook Of the Thirtysecond Collection district fol
the alleged rendering Of false returns of manufactured
tobacco, whereby the government has been defauded
u Is alleged OF thousands OF dollars legitimate tax
that article or the factories seized is In Elm street.
in This city, and is alleged to DO the property Of Mr.
Ieckelberg another i is claimed by the officials be-
longs TO Messrs. Buckner Day, and Is located in
Brookyn the third, reported being the property of
Mr. Dreyfous, 10 situated in Greenpoint the fourth,
said TO belong to Mr., H shurt is also in Greenpoint
and the remaining three in Keyport, N. J and
reported as belonging respectively to Messs Bonnel &
Co.. Mr.. Warren and Mr.. Creary.
The manner in which the alleged frauds were dis
covered was as follows:For some time past Mr.. Isaac
Harvey chief Inspector the Thirty second district,
has been OF the opinion that the revenue OF
manufactured tobacco greatly in default of the
gross amount which should have been returned and he
accordingly determined at the first opportunity TO
make an investigation OF the matter and ascertain
where f anywhore lay the fault of the supposed def
cheney. few days ago he seized lot Of tobacco
hriynne barrels) stored in this city, which bore
brand oil certain special inspector and all purported
have been inspected by him one ana the 81 me day
OF this number thirty barrels came from one factory
III keypor N. j., alleged TO belong TO Messrs Bonne
Co. Mr.. Harvey had Inspector Iichtenhein detailed
forthwith TO visit the factory in Keypor ascertain
from tho special inspector whose brand appeared the
barrels how many Of these he had inspected for The
manufacturer on tho day in question. The special in
specto on having this query put to him. referred to his
book, and answered ''ffteen thus leaving sixteen bar
re a having been put the market without the pre-
payment OF any revenue tax. By subsequent reference
to the books in the Collectors Office ii appeared
that on the day in question only fifteen
barrels nstead Of thirty one had charged against
the manufacturer referred TO, thus giving the
suspicion that there mad been between that party and
the special inspector collision or understanding TO
the fraud that had been perpetrated.
Deputy Inspector Iichtenhein then set to work max
Ing investigations ne TO the returns OF the two other
tobacco factories in Keyport and in the OF his
abors found ndices of fraudulent sufficient to
warrant him in making seizure OF the establishments
He accordingly did and these two together with the
one FIRST SEIZED in charge of the government
officials Investigations afterwards made led to the seiz
ure OF the above mentioned factories in this city in
Brooklyn and in Grecnpoin against the proprietors Of
which fraudulent returns also alleged.
Mr. Bonne, however, denies that he had any interest
whatever in the factory first seized in Keyport, that
he s in any wise party TO the frauds reported TO have
been perpetrated.
The deficiency Of tax in the case OF the Newport fac
tories alone WILL the officers say amount 10 not less than
nifty thousand dollars. According the provisions OF
the Internal Revenue law bond should be required
from the manufacturers OF 81 900 for each cutting ma
chine IN actual for the return Of chewing and
smoking tobacco manufactured by said machine; and
also OF specified amount per thousand for the manufac
ture OF cigars So loosely have the requirements Of this
law been carried out by many Of the inspectors however
that IN many cases such bonds have been demanded
and none OF the above mentioned manufacturers had
been asked to file any such documents until about
month ago although they have been manufacturing un.
inerrnptedly during the past year. judging from the
energetic action now displayed however would appear
that the government IL determined in future to collect
the revenue tobacco All the above cases will
Undergo Immediate investigation.