The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-11-26
CUSTOM HOUSE AFFAIRS.

sl.se
The Discovery of Fra uds-An Important Con.
ference Yesterday Afternoon-What II Was
All About-The Character of the Inyesti-
cation.
Yesterday afternoon, shortly after three O'CLOCK 8
conference was held at the Collectors oflce in the
Custom House, at which the Collector the Sur
veyor OF the Port the Naval Olcer and District At
torney Perrepont and the Solicitor OF the Custom
House participated. The conference, though hav
ing reference TO public affairs, was OF pr.
vate nature, II being thought inadvisable and,
indeed incompatible with the best interests
or the revenue and due and strict
enforcement of the law TO give premature publicity
the results OF recent investigations or to the
clusions arrived at with regard TO them. 1t was
authortatiyely stated, however, that this was not
the first nor an unusual conference, since the same
officers have been in almost daily consultation with
each other, the investigation proceeded and the
revelations and disclosures OF fraudulent transac-
lions were gradually accommodating. Of all tins II IL
said the Department al Washington has been Kept
fully advised from day TO day, aud all these officers
are working earnestly and heartily together to I'M
eartB whatever OF rascaty may still be hidden and
to bring guilty parties into court TO have meted
out to them their deserved punishment.
The outcry raised In some quarters as to "secret'
.'Star C0nmDeTN HguAsftluu tne OuiSSke uhilcu
declare to be wholly unjust and unfounded. Pub
licty would in many cases defeat the very object OF
tue present investigation, Tor " would place on tnef
guard nearly all those on whom suspicion OF unfair
dealing with the revenue may have rested, much OF
the evidence In The possession OF these parties would
be destroyed, and thus they could easily escape.
A case was pointed out as striking example OF
this:-An importer comes to the Collector privately
and states that firm, which he names, engaged In
the same line OF business with himself, and
the sales Of which are not larger than
ms own, are rapidly accommodating money.
while he with the utmost care ana with the
same facilities and advantages OF trade ana the
came extent Of commercial patronage, but honestly
paying what is legally due from him, can just make
both ends meet. lie gives details known TO him
which confirm his suspicious. This statement is
taken. That mporer's invoices, as well as those OF
the firm named by him, are compared, as are also
their returns OF sales AZ tue internal Revenue Asses
sor's Office IL IL said that occasionally some very
curious details the result OF these Investigations
II such do appear as are calculated 10 strengthen
the suspicious aroused the case Is still further nves
fiuafed and, II the circumstances disclosed warrant
IL, the books OF tue firm thus accused are seized,
from which either corroborative testimony Is
gathered or the suspicious circumstances are dis
proved and all further proceedings abandoned.
We're the preliminary investigation not carried on
privately II ia contended the firm or importer in
question would have an opportunity OF making
svSs With the most important part OF tue evidence
and the fraud on the government could never oe
detected This is the theory that prevails among the
aricials mt The Custom House and they seem to
think shat there Is any wrong IN the proceeding ~
should not be imputed to their efforts to protect the
government, but rather TO the prevailing cunDrous
system OF levypg duties on imports, Dy winch 50
many loophoes arc opened for fraudulent practices
10 creep IN, aud which necesstafes counteractln&
detective police system, az II were 10 discover ess
practices and have the law fairy executed. 49,.
one OF the principal Officers al the custom HOUSE
secuted the idea recently thrown out 10 INC puplS'
tnat about 200 OF our prominent importing NIL ,
chants were found to have been guhty o. itauus
upon the government. and he stated that tiie NUN
Der OF parties as yet discovered TO have ayaiea
thenselyes OF the opportunity Of defrauding the
revenne with tne aid az corrupt officials, By under
valuation, or false returns Of the weigners, eos
not exceed ten in all and the amouns Oh sae euty
unIusty withheld from the revenue IL notuins
near the amount stated. There nave been no secret
compromises aud there win be none but .le ~ aw s,ss
was one az the ohieGta Of the conference held yeS