The New Orleans Democrat. (New Orleans, La.) 1875-1876, 1876-05-19
TELEGKAPHIC.
WASHINGTON.
CUSTOMHOUSE SINUOSITlES.
The Investigation Continues Ferguson
Makes Statement.
The Cigar Ring Dillingham;, gerwig,
Crawford and Ong.
How the Government Dues are Settled
For In Private WAY.
special to The N. o. Democrat

WASHINGTON, May ls.--G. A. Ferguson.
clerk in the cigar depiotmentiof the New
Orleans Customhouse, testified how
eighrs were smuggled rs guava jelly,
and in what manner duties on cigars
were evaded and tho profits divided be
tween the members Of the cigar ring in
the Cnstomhouse, composed OF Herwig,
deputy collector, Dillingham;, naval
officer, Crawford. entry clerk, and
Thomas Ong.
He said that he WAS employed as q
clerk in the cigar room OF the Custom
house in 1873, and in one circumstance
twelve cnses which were invoieed from
Havana us guava jelly were received by
the department consigned to n party
named RI. Huard. One OF the cases was
opened before the witness and was, in
tact, guava jelly. The clerks were then
told they could GO Witness went with
the others, but returned unnoticed, and
found dut tbat the balance OF the cases
eleven in alD contained cigars. The
cases were taken to the store OF Mr..
Massich from Herwig' warehouse.
They contained 10000 cigars. The
fraud consists in entering the cigars g"
jelly, thereby saving the difference on
the duty. Cigars pay 81 80 per pound,
twenty-five per cent ad valorem, and
the internal revenue stamps. The wit
ness said the duty on jelly was ten per
cent.
| Ferguson testified further that he saw
Jose Domingo pay Thomas Obg 5000 on
one invoice Of cigars. This was in Feb
ruary, 1876. He knew it was not for
duty, because that is paid in
gold before the goods are de
livered. Ong received this money in
greenbacks. The agreement was to
pay the ring twenty dollars per thou
sand on all invoices over six thousand
cigars. Ong, who was paymaster Of the
ring, was removed because he failed 10
divide fairly with his pals.
Ferguson heard Jose Domingo state
very often that he was defrauding the
Government through the aid OF the ring.
Massich was large importer of cigars
and smuggled great quantities in part
nership with the ring. On one occasion
/ ne SHluDRlft " btRt lphs pht ~ WOO 'f@J
tured by Mr. Kinsella, special agent ot
the Treasury Department, in Balley's
vinegar establishment, and afterwards
sold by Packard. The share Of the
officials was not paid by Massich on nc
count Of the failure OF the ring to pro
tect him in the smuggling.
Witness related how an invoice OF
lac, 900 cigars was made for 10000 only,
and the cigars delivered TO Mr.. McCarty,
cigar dealer, upon paying duty only on
that number.
Ex-senator Matt Carpenter expresses
great disgust at brotherin-law Dilling-
ham on account OF his crookedness
being exposed. and will turn bis back
upon him II the thing Is proved.
Ferguson 8 testimony is considered by
Republicans here as conclusive evidence
Of corrupt conduct and management OF
the Customhouse by Casey and Herwig.
Casey has employed Judge Wilson TO
represent him before the Committee.
. Morey made no appearance in the
committee room to-day. The Repub-
lican journals pronounce him guilty ot
the charges proffered by Seelye. 1t u
said he has concluded to remove his
domiciIe from Louisiana. BfjoU.