The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1875-05-16
THE SILK FRAUDS.

COLLECTOR ARTHUR DENIES HE GAVE Mr.
cLAFLN PERMISSION TO BUY sAfUaGLED
GOODS EXCEPT AT PUBLIC AUCTION.
A HERALD reporter yesterday called on Collector
Arthur at the Custom House. with Q view to as
certainlng exactly the extent OF mis- sanction to
Mr.. H. B. Claim In the purchasing OF Struggled
silks and laces. In an interview with q HERALD
reporter the previous DAY, Mr. Claim stated
that the Collector had SAID he could see no reason
why Mr.. Clanin should not purchase these goods.
The Collector stated yesterday that Mr.. Olaf
Inns answer TO the reporter was not sufficiently
comprehensive OF the entire conversation between
them the subject OF the smuggling. The con-
versation between himself and Mr.. Claim
mainly relative 70 the necessity there for the
detection OF the guilty parties, Mr.. Claim CON-
planning bitterly of losses he sustaining IN
consequence OF the illegal trafic, The discussion
between them touched naturally upon
the auction sales or these goods, then
being extensively advertised, and on Mr.. CIanin
asking the question, What was he to do about itf''
the Collector replied that he could see nothing
wrong At that time In Mr.. Claim making pur-
chases at the public auction sales. The Collector
further stated to the reporter that he had then
no knowledge whatever or any private sales OF
such goods. nor had he any suspicion that sales or
struggled goods we're being made to any merchant
In the city other than those made at public auc-
ton. Tue idea OF his violating his duty Collector
OF the Port by assuming to give Mr.. Claim or any
other merchant the privilege OF purchasing prl-
vately goods smuggied into the port OF New York
was s1mpy prepOsterDus. From the tenor OF the
conversation between himself and Mr.. Claim no
sucn inference could be drawn.
At tue same time Mr.. Claim had promised 10
use MS best endeavors In AIDING la the discovery
OF the smugnlers and he did aid all along. lie
employed tue same ofiicer As was employed by the
Custom House, aud worked zealously TO uneartn
the fraud. 1ne whole matter was now almost en-
TREY IN the hands OF the Dstri CT Attorney.
A LEGAL OPINION.
Yesterday afternoon q HERALD reporter called
upon Mr.. Ethan Allen. formerly United states AS
sistant DlsIrct Attorney TO obtain his views with
reference to the colossal silk frauds perpetrated
OF late on the revenue Of the government. The
following Is that gentleman's statement:-
II think that these frauds are Directly traceable
co the action OF Congress In their reformatory
measures known as tue repeal OF the Moiety laws,
passed In 1874 me sllI fraud Is PROBABLY only
one of many, but ~ the only one discovered.
have been informed bv prominent merchants that
the Dlleht upon the mercantile community by the
fraudulent Importation OF goods 10 consequence
OF the so-caled reiormatory laws Is greater than
all the disasters OF tue recent monetary
IR act thai few so-calied reforme Ts
claiming great importance and responsibility as
ested press behind them-I except tne HeRALD-
that d-moralIzed Congress and swept away every
safeguard against illegal importations.
SEIZURE or BOOKS AND PAPERS.
"ln my opinion the oldlaw permitting the seizure
ment and would have been tolerated, even
under such a despotc rule that Of Russia.
Il That law should have been repeated or modified.
ana as counsel for merchants nave for years
fought against II. IL was a mistake however TO
repeal at ne same time all Interest and m0ieties
70 Informefs for the detection OF frauds or course
the nformer IS a contemplate wretch, usually
aud deseryedly placed beyond the paIe or decent
the de ectlye In municipal societies; but as bota
VI these are essential, though their calling De
mean. so Is the Iniormer IN commercial matters
absolutely necessary and despicaDle. Com.
mercial interests VIII not menu nor rauds
cease TIL those laws giving interests to those
Il who are willing 10 expose frauds are re-esiao-
lished Such interests are already given In cases
4 ofsmugglIng but TINS bears bat small percentage
to the amount OF goods illegally imported Ia otner
ways than " the smugglers.
LAwRRScE's oFFENcE.
"Lawrence's case, as understand ~ the papers,
Is a mlsdescrlptlon Of merchandise, which forelts
the goods and MAKES MIN liable for delraudinR the
revenue II convicted, but the dn1culty is IN
sucn cases that the goods are disposed OF
and can't be forfeited and IL IA almost
impossible to prove when the tracks are
well concealed, az Is usual In SUCH cases. So
long as merchants ana men OF standing will seek
- egislating directly In the interest OF the com
mercal swlnder, ana telling hlm In plain
language, Import and cheat oil you can, for we
nave removed all means OF punishment as
paws his duties honestly aud fairly-so long viii
Inese frauds continue, and but lew Will De dis
RuMoRs OK THE SUBJECT.
The cause Of the frauds being made public 10
alleged 10 Dc Through Lawrence and Gran refusing
/ TO divide fairly their shares Of the spois. Inc
! headquarters or the alleged gang 0f revenue
deirauGers was az certain saloon Ia warren
street.
The news or what was going on Is alleged TO
have been brought to the custom House author.
ties by 10 lorrner residing near sIxteth street.
who otaims inc credit o. sxposnEt the whole aiialr'