Carson daily appeal. [volume] (Carson City, Nev.) 1873-1877, 1876-03-16
The Alleged Frauds In the San Fran
cisco Custom House.

cisco Custom H0Uss.
! From the San Francisco Chronicle o.
March Il, we copy the following state
ment of an interview between a reporte,
for that paper and Collector Shannon:
! Reporter suppose you have observ.
ed, Mr.. Shannon. the statement OF Mr..
! Phillips concerning Custom-house mat
tiers. What was his official position and
wha: do you know of him?
t Mr.. Shannon-Phillips is undoubted-
| " on TIE Secret Service payroll at
| Washington. ostensibly to look after sup
posed frauds on the revenue, but his
real object, as claimed by him. was to
| bring an invalid son to this coast for his
| heath He pretended that the Govern
| men, paid him a salary therefor, and to
| mitigate tie fraud on the Treasury he
was cU:u pallcd to SANDER officials in his
sport.
PHILLIPS AUTHORITY.
Rsporter-Did he have any authority
. investigate the Custom-house?
NJ. Shaanon-He did not show any
authority. nor did he investigate the
Customs Department except in the fol-
lowing manner: He held a star chamber
inquiry at his private room. he sent for
men who had been for one reason and
another removed from the Cusiom-house
aud asked each of them VIVA. they knew
about the Custom-house frauds. etc. He
was kind enough TO tell one of them that
he was not compelled to eliminate him
self, and in order 10 impress him with
his Phillips great official importance
he told the e1-Custom-house officer that
rs was backed BY the United States Az
tornsy-Genersl, the Secretary of the
Treasury and Solicitor Wilson. and that
he could remove every son-of-a-guu in
Office on this coast over Sargent's head.
WHAT WAS INVESTIGATED.
Reporter-Did he give you, as Collec-
tor. an opportunity 10 be heard in his
invest cation?
Dir. Shanuon-No, he did not. |
heard through Major Norris tia. lie was
looking up an old matter which had been
some time since a sUbjec. of correspond
ence with the Department. At my re-
quest Norris ASKED him 10 call at my
office and he would be shown the cores
pondence. but be never came.
PHILLIPS OBJECT.
Reporter-What is your opinion IS 20
Phillips purpose in making such who's
sal. charges?
Dir. ShanuoI-IRrn Of the opinion that
his talk of frauds on the Government
and corrupt officials is intended only for
the public eye. That his real point of
attack under cover is to break down sud
destroy Senator Sargent's influence as q
legislator.
Repo.ter-Then you think that poll
tics is at the bottom Of Mr.. Phillips sc-
tons and statemeuts2 Do you think
that any person or company is employ
ing him?
Mr. Shannon-I think his prime OBJ
ject is 20 iplure Sargent.
"A FOOL AND A KNAvE."
Reportsr-Iou don't seem TO have
high opinion Of Phillips?
Mr.. Shannon-Any man who acts as
he has done, if be has said what the
papers state. is both fool and knaye.
Reporter Mills. the special agent,
says he has found many irregularities in
the Custom-house. What does he mean
by that statement? Does he refer to
or TO mere infraction OF the
rules?
Mr.. Shannon-No; the term "irregu-
lar" simply means in that sense prac- |
;ice at variance with the Custom-houss |
II Mills had been explicit |
and frank, he would have added that in |
three cases out of four Of the Irregular |
ties referred to and submitted By him to |
the Department, the same being returned |
for my views, l have been e. tanned. |
Bat few days since / received letter |
from the Department approving the !
practice of receiving goods in bond con- |
trary to regulation. This Is simply be- |
cause, in this respect,
The REGULATIONS ARE ABSURD.
For instance: A special agent must
write once or mora week. If ne has |
nothing to offer he must write anyhow,
and not long since Mills found great
rresularity IL the matter Of who should
lawfully enter an invoice. On hearing !
both sides tie Department decided that
IA the Collector. and not the Govern
nent,, was responsible to the Ieall or |
legal owner OF tbs merchandise, the Col
ector must use his own discretion. But
he practical common sense of the De-
partment lifts the chat from the wheat
If Special Agent Mills.
Thanking Mr.. Shannon for his infor-
nation the reporter went in search of
he Supervisor of Internal Revenue
dawley. who. having been declared one
II a ring with Phillips and Clark, was
to know something about the
orIner.