The New York herald., 1869-12-17
TME ALLEHED SUGAR FRAUD
Fhe Findings by Colonel Howe and How
he Fonna Them-Sampilng and Re.
sampiing and Their Results.

There was quite an excitement, and a serious one
in quarters created by tie announcen 3nt that
extensive frauds had been discovered IN the Gus
tom House, especially III regard TO the Imports OF
sugar and that several tsoDe accounts had II
hundred) OF the most prominent importing firms
were implicated and would soon DC attacked by
legal proccs5 III regard 30 the rumors above refer:
rcd TO the HERALD OF Wednesday last published the
following statement, which. It may now be proper
TO say came from the most unloubtcI sources
ore by authority OF tho Secretary OF the Treasury
w& promulgated sterday in regard 10 the withdrawal OF
annhcr set o samples bo to appraiser
whose dny i is made 20 ecmpm .wh the samples
tered bond for warehosns and a. after sich second
ana 10 be eorrec lie w,arsws az the raoa om The
warehouse TO be permitted his new orir "a said te have
ntcrcres with the freedom OF commerce by ntcrposlns
sa.y 81 ye Sr. alter aSs "a a
sgrrasca the y Paid and cvsy'sns law as",nds &
upon this regulation additional barrier guarding
honest tir importers M might enrich ,acmscYs,,
Further inquiry in the proper places has revealed
the fact that the HERALD was right.
THE HysroRY OF rHB SUGAR CASES.
In July last parties rcsidlDg in phlIadelphia and
some In baltimore complained to the Treasury
Department as Washington that there was some
irreeuarity in The New York Castom House In
respect TO the importation of sugars. The lrreCu-
iarity complained Of consisted in uutersauatlon.
and consequent lower rate oi duty, thus eDs..n1r
the Few York importers to undersei ir,,r coupe
titors in olhec cilies OF tnoso complaints Collector
Grnasi' and Colonel Franz r.: Howe, special
assas sn wsc R '' 1t % Sco nosa af Treasury aspsa n
that me da'ity OF sugar most imported ls rated 10y
the bntch sta9darl Eqs ~ Il aad 40; thai al under
N0 ~ pa .. uuiy OF three GEMS per pound from
NO. II 10 40. 10 four cents, anu above that five
cents, anl tnat 1t was believed sugars OF higher
grade rated lower IN order to cyadc the higher
rate OF duty
When Colonel Howe received this Information
from the Treasury Department he made careful iu
quiry as to the manner Of e''''~~.c,. ,,
v,,srvrn rouse and No found that the ,sanlpl,ngt
OF sugars was done Dy parties not subject to his
control; that the appraisers generally relied on
the Dntch standard for their guidance, and
ihat ulcle was no present reason to question:
their integrity. Of TINS state of affair; he
apprised tue department IN July iaS. 10 was
suggested TO Secretary Boutweh 10 SfGssr stimuli
taneous sampllnR" or slI .IIs sugars In bond
ny other oicers. ana also ~ expert. This suggcs-
ton was adop.ea, ana the secretary ordered % re-
sampng" Of all the sugars ~ bond, anu also, where
II wss deemed advisable from suspicious crcuni.
stances to have the hogsheads or cases rcvcighed.
Ta,s order came 1T the same time TO Collector rin
nell and TO Colonel Frank =. Howe, ana these gen.
tlemcn under the authority thus granted proceeded
on tuesday morning to executeit.
WHAT THEY TOuSD.
They were quietly AZ work, however, even before
that New samples OF sugars IN uond have been cx-
amined and compared with tie Dutch standard
samples SINCE December D. but the great raid
on oil the GARAGES N the b,ndcd ware
day last. over loo dilcscnt 'lotsr have
been examined and great discrepancies were dis
covered between the first appraisemcnt and the
second by Colonel Howcs olcers. For instance,
In one case sugar rated at NUMBER twelve
found, by comparison with tho legal standard TO be
above fiftecn. and thus subject TO two cents per
pound more duty. In scarcely any one case has the
Lrst sAmpllnx corresp0nded with the result Of the
second examination ~
But II was not thought advisable to stop trade