The New York herald., 1871-01-02
BOSTON, Jan. l. 1871.

tons exposed for many years have recently been
developed In Boston and New York. They cover
period OF several years. and during their days OF
rourishing progress the government has been de-
frauded OF untold thousands and thousands OF dol
lars. Some OF the parties implicated trial
the United States courts In this city Others have
absconded and the trials OF others are delayed for
the time being on account OF several important wilt
nesses having taken up their residence within the
jurisdiction OF the New Dominion. The parties on
trial Dexter I. Mills, well known Boston
wholesale dealer In oils and alcohol; Samuel @.
Lund. formerly an officer in the Boston Custom
House, ana now liquor dealer here, and Milo B.
Skeele, George Underwood, John I. Perry and
Alden Freeman--the four latter being truckmen in
the employ OF Mr.. Mills The trials commenced about
week since, and likely to occupy fully another
week before they concluded
In conversation with parties reliable and wen
posted am enabled To furnish the HERALD with an
idea OF the enormous extent 10 which smuggling has
been carried on between New York, Boston and the
British provinces during the past few years. Several
prominent officials connected with the frauds,
and their names are now made public for the first
time, although there appears no good reason
why they should have been heretofore sup.
pressed. The official who has been chiefly
instrumental In ferreting out the smuggers
III question IS N W. Bingham special agent Of the
Treasury Department in the First district (Which
comprises all the New England States except Con-
necticutJ In his Investigations ne constantly
annoyed by government officials whom he entrusted
with his secrets, and who were In league with the
smuggers themselves and sharing largely In their
plentiful and fraudulent profits. 1t Is about year
and half since, with his assistants he undertook
to discover the parties Implicated In the now
under consideration. He found out at the begin
ming that liquors ana spices in enormous quantities
were constantly being brought into New York and
Boston free OF duty, and he very soon became
aware that Custom House officers at botn ports
pretty certainly knowing to the facts. For very
long time all efforts TO discover the ingenious and
active rascals were In VAIN. All plans looking to
their apprehension were almost instantly made
known to the smugglers themselves, and Mr. Bng-
ham was at once convinced that some OF the detec-
tlves VINO were working with him were treacherous
Among those with whom he was at this time assO-
ciated were Cyrus Graves special inspector OF the
Boston custom House, and T. B W. Kestleaux, also
detective. The special agent OF the Treasury
pected one day that these were not true to him,
and on another DAY he had his suspicious confirmed
SO far az Restieaux was concerned MIR. Graves,
however, he found TO be one Of those specimens
OF an honest government Official which are 80 sell
dom found nowadays, and when he mad been
vinced OF this he found his services invaluable In
with considerable difficulty Mr.. Bingham now be-
gan TO penetrate the skilul and systematic planning
OF the smugglers, and they were no longer apprised
In turn OF his movements In The direction Of their
apprehension. He found out that the smuggling
was done entirely by coastlng vessels plying be-
tween New York. Boston and the various ports IN
the British provinces. This class Of VESSELS IL should
be stated, sailed under what Is termed a coasting
the Custom House ofiicers. Tne next chapter
OF Information disclosed the fact that the
taken pn heae yeses ~ tb
Turket Islands, near Yarmouth, N s., and as these
lslan0s were not Inhabited except by single fam
lily all articles OF merchandise could be brought
there and put aboard the vessels with the utmost
impunlty. The vessel, when loaded, would then,
ft hprifu ~ stin a
Tectly to either Boston or New York, ner cargo be-
ing Of course disguised as to conceal its true
character. She would sail boldly up to one OF the
principal wharves and discharge her iliegitmate
cargo In broad daylight. the same as II everything
was all right and Il there was an at al
Official who was ADVISED OF her coming and who
was himself party to the smuggling. II, however,an
officer not in the 'ring' happened around, he found
everything apparently all right. The liquor II In
barrels, would bear the proper internal revenue
stamps, which had been fraudulently procured from
fathess internal revenue officers; or, If In cases. 1t
would bear false and forged stencil brands similar
to those which appear on regularly imported pack
large quantities. nutmegs aud cloves, packed In nour
ana d 0Ges some 81 sea we're be
articles. packed In fish boxes, with solitary
sn on top were also smuggIed r,r IN I'm. i
there had been fraudulently run In and discharged
at TINS port single cargo OF over thirty tens of
nutmegs, the duties upon which alone would have
been upwards OF thirty thousand dollars In gold;
also that there had been brought In over eight nun
u
hundred barrels Of castor OIL $4,000 worth OF cloves
and pepper, and large quantities or woollen SOCKS,
hay aud other dutlaDe articles, the entire amount
OF which, If it had passed properly through the
Custom House, would have enriched the govern
ment to the amount OF upwards Of two hundred
Thousand dollars. IL was further discovered that
ten ul cargoes oflquors, spices and oil were SNUG
ged into Boston between April and December l.
1869, and nine full cargoes into New York during
the same period
sunicent evidence having been, gathered to sus.
Atan these startling the next step to arrest
the parties concerned and this was done some tour
months ago. They were arraigned before the United
~ we're found against them by the Grand Jury. The
men thus indicted were Samuel G. Gaf1ed, formerly
distiller IN Brooklyn, n y; Dexter T. Mills samuel
surveyor in the Boston Custom House, e. b. w. Res
tleaux. Milo b. Skeele, George Underwood, John I.
portion OF those indicted are now on trial here.
Those who are the most prominent IN the commu-
In the aristocracy Of Union Park, and
Mr.. Lund, who reJoiced In the luxury OF .
Is man OF heretofore high standing, AID among
his influential friends are some OF the most eminent
connected with the United states government. Mr..
Gateld, the Brooklyn distier has before stated,
fed to Canada. and il now probably enjoying him
self as much as possible under the circumstances.
at Hogan's ST. Lawrence Hall. One important wit
ness also In Canada Is said to have received 600
for abscnng himself and Others have retired to the
Dominion on very handsome pensions, and attempts
have also been made to "hx' some Of the Jurymen
now listening to the trial.
These disclosures Of smuggling are but fraction
OF what Is constantly gong at all Of the principal
American ports not TOO remote from the British
provinces. Probably millions and millions of dol
lars' worth Of goods are brought INTO New YORK
and Boston annually by these coasing ves-
sels and rs the customs officers 40 not
make practice OF examining them the establishment
OF an independent department for this exclusive
business seems to be the only remedy for the prOtec
ton OF the government. Goods smugged into New
York are usually shipped to this city for sale, and
those run in at this port are sent to New York.
Another system OF fraud which Is largely and sue
cessfully practised by these coasters IL in taking
bonded goods out for export. They represent tnai
they are Tor some small port In the provinces and
then run them boldly INTO some American port. One
coaster took out several hundred chests OF bonded
tea and large cargo OF brandy the other day for an
island in Nova Scotia, and after he had cleared 1t
was ascertalned that there only about thirty
inhabitants the island all told The inference Is
that they are heavy on tea and brandy.
ROMANTIC STORY OF A "GrRLNEws BoY:'-A