Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1873-08-12
ALE. DoTEN, Editor and Proprietor,
cusroM-HousE SPY SYSTEM.

ALE. DOTES, . Editor n PROPRIETOR
cusroM-HoUsE SPY SYSTEM.
We have before expressed the opin-
lon that the practice ofthe Treasury De-
partment, In allowing informers n GER
tain percentage of penalties collected
for lnfractious OF the U. s. Revenue
laws, was calculated to work Injustice
to mercantile houses, and to inclte the
avaricious to fraudulent aud disgrace
full conspiracies against importing
houses. That this was done In the
famous case Of Phelps, Dodge S Co..
Il abundantly proven, and the spy sys-
tenn has since then been attaked In
many prominent journals as not only
%demoralizing to the public service but
~dl.gracsful to our Government.
An Instance OF the peculiar oppor-
tunlties this system affords for defraud-
Ing or blackmalling importers, Is given
In the case OF Edward Rorke 6 Co.,
Of New York City, importers Of crock
cry. china and glassware. The facts
In thls case are especially outrageous.
The firm Is said to be one of the Oldest
In the city, having been doing bust
ness there over 40 years, AMI until a
few weeks ago no n had ever im-
pugned Its good name. 1t appears that
until about a year ago m Of the mem-
beers Of the firm had always transacted
the Cu,tom.house business. The In
voices and entrios were sworn to by
him. As customary, slips were eS-
hibited, showing the charges for trans
~portation from Tunstall. England, the
place where most of the goods In
which this house deals are manufac-
tIred. to Liverpool, and from thence
to this port. Nearly a year ago the
members Of this firm went to England
leaving a clerk named Clark In charge
Of the business here. A power Of at
torney was given to 4 Custom-house
broker, named Demaress, to attend to
the Custom.house business. The for
eign invoices aud entries were In
charge Of Clark. These on being for
waIded from Tunstall came, In the ab.
sence Of the firm, into his hands.
1t Is alleged, and will be the defense
of the firm In the suits now pending,
that the charges for transportation
from Tunstall were altered by Clark
TO a sufficient extent to defraud the
Government out Of about $3.50 on 4 to-
tai shipment of $50, 900 worth Of goods,
and these false Invoices were present.
ed at the Custom-house. while the real
charges were entered Ia red Ink In the
invoice book In che store. After a suf-
ficient number Of these entries hrd
been made to make out q good case
against the firm, Clark pretended to
his employers that he had had a diff
Guilty with his wife, and that 1t would
be necessary for him to leave the city.
The firm parted with him with regret,
giving him a present on his departure.
It Is now charged by the firm
that, instead Of leaving New York,
as he said he Intended. Clark
communicated with Special Agent
Jayne, aud obtained from the latter
a written agreement that he was to
receive one.quarter Of the sum OBJ
tained from the firm but the story Of
the "writen agreement" is not gen.
orally credited. Mr.. Jayne, as Is fur
Their alleged, procured one Of his EN-
ployes TO act as informer against the
firm; their books were seized and a
suit begun to o the penalty for
the offense with which the firm was
charged. This statement the firm pro-
fesses to be able TO su~bstantlate If the
case l, ever brought to trial. A care
full examination Of the books OF the
lrln for several years shows no irregu-
larlties Of any kind except during the
period when Clark had charge of the
business.
If this state OF facts should be SUBJ
stantisted at the trial, OF which there
Is hardly a doubt, no more powerful
argument for the abolition Of a system
so absolutely d~emoralizing in It's tend
encies, or opening SO wide a field fol-
profitable treachery aud duplicity, can
be urged. In every case which We
have observed during the past year.
the evidence Oh which It was sought
to convict an importing firm was pro-
cured from some discharged employe.
whose share Of the penalties would
aggregate more than by a legitimate
calling he might hope to amas In a
lifetime. Added to this avaricious
motive was In some cases that Of re.
venge, which is scarcely less d~espicable.
1t seems to us unworthy the Depart
ment under whose instructions these
tools are employed to resort to such
means for information. II Is rare that
an Importing house will risk Its repu-
tatlon, and tho penalty for detection.
by smuggling goods or importing them
on fraudulent invoices, and for such
cases as do occur the special agents
ard detectives employed upon largo
salaries ought to be all sufficient. The
principle of rewarding informers with
= portion Of the penalty is, in our
opinion. wrong and its good results,
II such there be, not commensurate
with the corruption It must infallibly
stimulate. =.
Buffers CHANCES on III WASE.-
within the last fortnight the political