The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1872-02-03
The CUSTOM HOUSE ABUSES.
Startling Exposure of Official
Corruption.
THE NIGHT WATCHMEN AND INSPECTORS.
Testimony of e. G. Johnson and
Inspector ]. H. Young.

Yesterday was the twenty fourth day OF the nves-
tigauon by the Senate Committee, now sitting at
the Fifth Avenue HOTEL The first witness called
was Edward c. Johnson, warehouseman who stated
that he was IN the general order business under
Redheld, and afterwards under Barney: had IL for
while under Collector Smythe, but lost it, al
though no complaint had ever been lodged against
him; the only reason he could ever assign for this
was that he did not pay for the privilege OF con-
Quoting 1t; afterwards secured small portion OF
the business for which paid SIS. 600 per annum:
offered to give S40,O q year for the whole; the
business has doubled since that time; offered Mr..
Leet the other day $4,000 year for 1t under the
same privileges that he now enjoys; In my time 1
charged only the Chamber OF Commerce rates;
charged for dry goods fifty cents for storage; there
Is large profit on carriage; some packages are
so small that fifty be placed upon q cart;
the cartman will be paid perhaps five dollars for
his work and the merchant will be charged twenty
five dOllars there is also an immense profit on
storage, because. a months storage IS paid upon
goods which remain only few days; their places
are then taken up by others, which another
months storage is paid, and until a loft In
the general order store makes for Its owner i've
ana Six months storage In One never heard OF so
much pilfering in the general order departments
or carriage, &c. as there has been since Leet and
ana Stocking have had the monopoly of this bust
ness; all the control Of charges is vested In the
Collector of the Port; he the power to shut up
every Custom House and general order store IL he
Iees so disposed suggested to Mr.. Murphy that he
should correct the terrible abuses growing out OF
the present general order system, representing to
him the damage they were doing to the republican
party; told him mat merchants were complaining
on every hand Il come IN contact with five hundred
daily, and that he must do something to alleviate
the burdens. Mr.. Murphy replied, Notwithstanding
his well known control over the stores III general,
that he had not the power and could not interfere
with this part of the general order business Speak
ing OF the Custom House, the officers the witness
stated that they are assessed for political purposes;
they are also appointed to control and cheat at
primary elections; there are large numbers OF them
still IN the service who are ignorant and incOmpet
ent, such men as no merchant would place In his
onlce k low that there twenty five thousand
men in federal offices now whose only recommen-
dalton to the posts their ability manipulate the
rascals who control primary elections; the greater
the scOundrel, in my opinion, the better his chance
OF good appointment
James II. Young sworn:-I was appointed lnspec-
tor Of Customs IN 1869; have been actively en-
ployed as dischargng officer during that time; 1
have given much attention to the gen eral order
business and regard It's condition at present rs
very inimical to pubic interests; we have been
more Intimately connected with the general order
business than any other Custom House officials; my
experience leads to believe that ghlhs Of
the goods That go into general order would not be per-
mtted 10 II the eight hour law were put IN practice
because merchants could get their entries through
to keep their hatches sealed until the proper time
had expired; there Is nothing TO prevent The mer-
chant getting his goods direct from The dock under
such system; 1t Is understood that when The
steamship, which Is put under general order when
she arrives ut Quarantine. begins TO discharge, the
cartman appointed by the Collector STANDS ready
take the goods of to general order; this Is done for
| and not Tor the merchants: knew Inspector Wood
when he was an inspectors soon after Mr.. Grlnnell
came into once a clrcumSi ance occurred q
Cunard boat and Mr.. Wood was removed from the
| service, and he became dock CLERK on pier AZ; a
there, aud gong thlther became of opinion that
there were very grave abuses on That Dock soon
with 1870 bottles OF brandy we found that there was
asteamshi ring on the dock. by which arrangements
were made with the merchant or his CLERK to
| which In this instance they were dong success
fully; this KIND OF thing can be done without the
| knowledge OF the Inspector; In my opinion the
steamship companies are too strong Tor the inspec
| tors and, indeed, Tor the Custom House; pracuce
has existed Tor years whereby the steamship COM
panes pay the inspector ''house moneys" goods are
| discharged and rushed to the dock for which
tneV say ut night the inspector has mass OF per-
mts and orders which he takes home; in the morn
ing IT would be some hours before he could get his
books IN such shape as TO allow the steamer to go
on TO discharges he must therefore, get books in
order at night, for winch the steamship company
pay him; 1t is called "nouse money;'' the National
Line pays SIS; Imam, 500 or $685. Cunard, sl2;
German, 500 liquors are served at the rate of
kirk gets the same allowance put up for him for
each vessel, and having been Chlef OF the Barge
stock on hand; there are sixteen European steam
crs week; on the Cunard dock there are ratons
with decanter OF liquor to the inspectors Of
fee at eleven O'Clock every day; this brings crowd
OF good-lor nothing fellows to the dock, which is
| very hurtul; the Anchor Line pays each Inspector
| $25 "house mOney;' an investigation was had in
this system OF payment by Mr.. Grnnell, and 1t was
lnnn hn ntnhfn nnlVy
determined to discharge IN their present manner. the
| men must work at night and take "house money!
afterward with the consent OF Mr. Grinnell, tried
the plan OF merely discharging the steamship Dem
mark according to law-that IS, we would not work
alter shutdown, and OF course she was delayed; we
tried the same with The Queen, OF the same line,
but the company just put out her cargo as fast
MI. Hurst and Mr.. Grab6, Of the company told me-
that they would not obey my orders nor let the
steyedore desist; after conversation with Mr. Grim
vessel; then was called aside by Mr.. Grabb and
asked what wanted from the company 70 settle
that would seal the vessel up until the dock was
cleared or; finally carried my point; speaking Of
don,t know anything very special in the matter; but
can very well understand how a man may be III.
PASS HIS HAND CAREFULLY
under lot OF fine linen IN trunk without disturb
ing anything; for this care the gentleman accom-
panying ladies' may pay the inspector douceur;
J. P. Davis. Custom House broker, has been
in the habit q obtaining just such passage Of pas
sengers' goods and paying for them; remember au
instance when number OF ladies' came ashore at
Quarantine IN the Doctors boat, and afterwards ex-
nibited q large quantity OF diamonds and
jewelry. which they, said had been passed
the steamer which was then lying In quarantine
there ~ q very easy way OF doing the business of
smuggling; gentleman gong to Europe takes the
measure OF several lady irlends for wardrobes on
his return with them, the ladies for whom he has
made the purchases come down to the pier when the
steamer arrives; the gentleman then declares that
the ten or twelve trunks which he Is landing con-
tain the wearing apparel OF these ladies, whom he
represents as passengers; MIR. Terwilllger when he
TOOK upon himself the right to come down to the
docks and grant permits to individuals to come on
the pier when vessel arrived ruled then that
tickets OF admission to the pier gave persons the
privilege oil going on board the steamer when the
gangplank was put out, thereby afordlng snug