Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1874-03-01
M0IETIES.
How People are Robbed i'm the
Name of Law.

The Special Agents Of the Treasury
Department and Their Highland
ed PrOeeduresNHOw They Are En-
riehed by PIunderinS Merchants
with Government Sanction and Sup
From the New York Herald
WASHINGTON, Feb. 25.-The recent
exposures of the manner of spying out
and settlement of suits, judgments or
claims in behalf of the United States
for violation of the revenue laws has
opened an investigation into the whole
detective and secret and special agent
system of the Treasury Department.
The curious circumstances connected
with some of the transactions IN mole
ties have suggested the necessity of
more defined and responsible method
of enforcing the revenue laws, and one
which would open less opportunity for
collision between officials. The Treas
ury agencies grew out of the Sub Treas
ury law of 1916, their duty being TO ex-
anime accounts. From one step to an
other their duties were enlarged, though
without warrant of law, till they were
assigned to all sorts of work, and their
operations extended beyond the limits
of the United States. The Office of
Treasury Agent afforded an excellent
opportunity for rewarding fayorItes,
and shortly after became source of
great extravaganza In sending parties
abroad on pleasure excursions and
on various errands of no SER
vice whatever to the govern
ment. This abuse became 80 noto-
rious that the act of 1870 was passed
limiting the number of special agents
to fifty-three and dividing them into
three classes, with compensation vary
ing from S. to so day and the pay
ment of expenses. The duties of these
officers were to examine the accounts
and business Of collectors and officers
of customs, and ''to be employed gen.
orally for the prevention and detection
of frauds, under the deirection of the
Secretary of the Treasury" This lat
itude allowed the Secretary, it has been
found, has not been of much benefit to
the service, though 1t has succeeded IN
enabling q few men to realize large
sums out of importers. Now that the
subject has been brought TO the atten-
ton of the whole country numerous
complaints are sent to members of
Congress exposing the high-handed
proceedings Of these sharks under the
auspices Of the Treasury Department
let loose upon business communities.
1t is claimed by leading members from
New York and other importing cities
that, though the government has re-
allied largely from these reported vio-
lations of the law, it is by no means
certain that Justice has always been
done, the officers Of the department
following up a case with the same ra-
pacious and hot headed zeal of the in
former or special agent. For the pur-
pose Of systematically carrying on this
business the various collection
districts are grouped under sixteen
districts, with a special agent in charge
of each. The operations of Bing-
ham, in charge of the Boston, and
Frank Howe; Of the NeU York district,
and their asSistants-Kimbau, Hines,
Chalker and others-foOt up hundreds
OF thousands of dollars in their pockets.
1t Is believed that, in many cases, there
was no intention of wrong, but that the
unfortunate victims had their goods
seized upon the most trivial grounds,
the word of an informer, for some rea-
son, being superior to the oath of a
merchant. The heaviest operations are
those of Jayne, who was the favored
one of the set, and enjoyed a sort of
rowing privilege under a special assign
ment of the department, which covers
New York and other ports. Jayne's
share in the spoils of an exceedingly
lively campaign reach over $500, 1000
out of Phelps, Dodge & Co. alone real
izing SIS, 900, and out of another firm
$4,000. The operations of the year
show 161 civil and "a criminal suits in
stituted at the instance of special
agents Those an perSoRdHa were insti-
tuted for over S3,000,000. The aggre-
gate salaries and expenses Of the SER
vice cost the government Sl62,O
year. The Committee of Ways and
Means will shortly report bill to cor
rect this summary process of levying
upon imported goods. They think it
is rather unjust for the government to
be at the expense Of 100000 a year to
enable a number of special agents to
enrich themselves at the expense of i'm
porting merchants.