The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-11-17
THE CUSTOM HOUSE FRAUDS,

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Gan Quiet Along tho Linev Yesterday-Tbe
Drawback Frauds in Stath QUOT United
| Stntcs Grand Jury Investigate Them
Rumors of still Other DepreJafions on the
RevenGe.-Revenae Officers Start In Oaher
Business.
The stupendous frauds upon the United States
Treasury, which have lately become bat partially
known In all their aricaiars, are still occupying
the public attention. The preliminary investigation
which has been had for two days before United
states Commissioner John A. OSBORN, aud reports
OF which, with a fuli abstract OF the testimony
and correct copies OF all the documentary evidence
offered, have already appeared in the HERALD, has
shown that these frauds could not have been sue
cessful without the conniyance, or rather without
the direct assistance OF certain officers in certain
administrative bureaus or the government. II is
said tina whatever OF proof has been presented to
the Commissioner IN the two cases now pending
before him IL but 1.-THE OF what the officers have
In their possession, and which Is said to be
whenitng even against parties not yet under arrest.
IL Is for this reason 1t alleged that this part OF
the evidence Is Withheld for the present. but some
remarkable disclosures are limited al, whenever the
warrants now In the hands or the Marshal shall
have been executed ana the parties accused
arraigned before the proper tribunal for either
examination or trial.
For the present all remains IN statat quo The
Marshal Is making dngeDt search for those he holds
warrants against ana who are not yet arrested, ana
the further hearing OF the two cases against Il. Null
ligan and Francis A Howard stands adjourned.
There were no new developments made i'll these or
the other cases yesterday-at least mono that
considered proper or timely to furnish for publica-
ton. There other matters being inquired INTO,
out the researches are conducted under thick
veil OF secrecy which could not be penetrated.
SO much, however, may be said that these re-
searches relate TO affairs IN the custom House, aud
one high official let fall the remarK-and did so, per-
hapa, unguardedy-that ''the result OF these
searches may reach the onlce or the
United States District Attorney Whether these
inquiries now going on have reference to stu
further disclosures OF internal revenue draw
back frauds, or whether they relate to fictitious
claims for drawback money on dutiable goods I'M
ported and then exported again. under the tariff
laws OF Congress, did not transplrei but whether
they refer TO one or both the rear Is expressed tlat
more frauds may be detected, and but Few have any
doubt that this fear Will be realized The Disulct
Attorney or the United states Tor this district Judge
Edwards Piefrepont, was Kept very busy by further
and still more thoroughly examining the papers,
documents ana vouchers III relation TO the draw
backs, and was Tor several hours yesterday alter
noon closeted with other PROMINENT officers or the
government consulting iii regard to them Judge
PlerreponI is determined TO veutate the whole ar
fair and probe 1t TO the bottom, and TO mete
way OF form implicated or connected with
this vast and extended conspiracy TO defraud
the government out OF hundreds OF thousands OF
dollars. Ii Is as matter Of course, expected be-
fogehand that all possible legal qulbbles aud every
imaginable techncaty OF the law which cunning
and experienced counsel know how and when 10
use Will be invoked and urgently pressed on behalf
OF the delence out tue government and its prose
cutting officers are determined that none VI these
suplertuges shall prevail.
In connection With THESE legal proceedings very
interesting episode need no longer be suppressed.
II is wei known that most OF the parties charged
with these frauds were arrested at the beginning OF
they were indicted by the United States Grand
Jury Tor this district Finding themselves Ia
| such tight place and understanding that
the District Attorney had evidence more than sum
cient TO convict them, twothirds OF those who were
ARRESTED made haste 10 pioer tieir services 10 inc
| ernmenr TO unveIl the whole scheme aud turn
| States evidence II immunity rrom prosecution and
punishment he granted them. The proposition was
accepted with regard 10 Jew, and those only such
from whose knowledge Of the transactions the best
mens, no prospect of future release from their own
personal responsibility on account OF then particlpa
| ton IN the frauds was held out 10 them.
CUSTOM HOUSE OFFICERS IN A NEW LIGHT
! Yesterday forenoon, before United States COM
| missioner shields, another case Was ventilated,
showing that some OF the Custom House officers are
willing TO do almost anything 80 turn an honest @
penny from ceftlfsn 10 fraudulent export returns
tofalsely personatug revenue officers ana at emptng
to rob importers The case IL appeared before the
Commissioner yesterday morning was as follows
Frederick q. A. kenure was formerly an enaploye IN
the New ork Custom House and Is now engaged In
is still holding ONCE under Collector Grnnell These
two on Saturday last, the 1871 day OF November,
proceeded 10 the house OF Mir. Duverger, i24 East
Tenth street, and told hIn they oteeTs In the
revenue service OF the United states; they mad
Information tnat Air Duyerger hal secretly i'm
ported large quantity Of valuable lace without
paying the legal duty thereon ana that theg were
directed to connscate the goods. Mi. Duyerger de-
INJURED 10 the soft Impeachment or beng SNUG
gler and declined To surrender the goods, where
upon OF the ''oficersr showed revenue baugc.
and the other Grew pistol threatening to shoot the
frightened Frenchman II he made any resistance
70 their cOnfscating and taxing away the ''smug-
gledn lace. Ihls new KIND OF 'mora suasion''
had It's eject On Mr. EuYerger, ana, while protesting
his innocence OF the charge OF smuggling, lie was
wiling 10 submit TO an investigation. He would
carry the goods himself and accompany the "otli-
cers' wherever they might take him, but he would
not let the goods, valued at I00Of go out OF his pos
session Inc Officers assenied to this proposition
and The three started TO broadway, where at the ST.
Charles Hotel, room No. Is, they matted. here the
oiicers' Kept the goods aud babe the man 80. Mr.
DnVerger made inquiries at the Custom House and
at other oces, found out tue true character OF tho
two men, and yesterday Mr. L. r. Ioole, OF the Gus
tom House. appeared before Commissioner shields
and made the necessary AFFIDAVIT, on which q
rant issued, ana kenufe and Lalor arrested on
tue charge OF falsely personatnQ revenue olicers
The defendants were committed IN default 81 $4,000
bail each ana the examination Was iXed for next
FRIDAY, NJ eleven O'Clock a. NJ