The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-05-24
EXPERIENCES OF TWO DETECTIVES.
Goods Sent from Montreal to New York
Without Duty or Freight.
MILLIONS LOST 10 THE GOVERNMENT.
Modus Operandi Of the Very Profitable
Operations.
FROM OUR REGULAR CORES poN0ENr.

WASHINGTON April rs, 1877.
sMUGoIlNG OPERATIONS ALONG THE CANADIAN
TtRpER.
Important discoveries have been made recently by
be detective agents of tho Treasury Department
the means and methods by which the smugglcrs on
the Canaoian border OF New York and Vermont have
been able to carry on their operations 10 the
10 rrcat detriment OF the government revenue.
Tho subject OF rspressing these operations was
taken up in the days OF Secretary Morrill, and his
sanction for the plan proposed for accomplishing the
undertaking was among the last acts OF his ohicia
life This was no less than to send couple Of United
States special agents detectives to Canada to buy
goods in Montreal elsewhere and bargain for their
shipment TO New York free OF duty charges at the
border. The sum OF S. 900, not munGcent one, IL
is true. but enough il was thought TO experiment with,
was put al the disposal OF the detectives and they went
to work They proceeded TO Montreal and entered one
or tho largest Wholesale stores, where they made
purchase oil some leather goods, for which they
maid cash. They ordered the goods sent 10 New
York and by the display OF some mysterious
Signs intimatcd their wish that the goods
should 90 across the border without undergoing
the inspection OF Uncle Sans customs officers In
THIS case IL appears that the "wink good as
ooi to a blind horse The goods we're sent as re-
,uss,cd went through the lines upmolested and we're
received at the other side "reht side up with care
or course the detectives had set out TO learn how il
vas done They suspected already that many
millions OF dollars worth OF merchandise
had come every year into the United States
duty free by the same road. Tho robbery
oil the government Of millions OF revenue every year
BY the bo7dcr smugslers sore fact, only loo vel!
known at the Treasury Department The secret was
COW revealed The Two detectives pat the merchan.
disc they bought under the strictcst surveillance
luey saw it eavs tine store OF the Moh-
;resl merchants and pass TO she charge OF
drayman the same any other lot of
merchandise would do nut they next discovered that
IL vac suddenly converted into wearing apparel and
packed IN trunks Then these trunks we're conveyed
20 the railway station; there brass checks were can
destiney attached to them BY the baggage masters
no did their work II they had been long practiccd
III it. No passenger tickets required to be shown
The baggage agents had evident understanding
With the draymcn fastened tho checks without
recurring the exhibition Of tickets and handed over
the brass duplicates all the If the transaction
were 10 the regular and ordinary OF things
The ssunks we're thus Of undisturbed passage
10 The destination specified the checks II no inter
ruplion had from the Custom House in
spectcrs a. the un,tcd States line. hut this
co1tinsency had been provided for. A casual
or careless search OF ono two honest trunks was
made the magic chalk mark was affixed and tho cargo
Of smugged merchandise went through without mo-
lestas,on or detention. Thus the nodu oJerandi
revealed to the detectives. They went back to Mon
lrea and pursued their Investigations further Tho
5000 was soon expended but they ingratiated
themselves into tho confidence OF one firm that they
came near getting bill OF $4,000 worth OF
goods consigned to them credit, a bit OF reprisa
on The smuggling fraternity which they fancicd would
have been a source OF considerable satisfaction to
Uncle Sam IL they could succeeded in eHccting it,
but for some the firm took the alarm and the
goods not shipped. Az result OF this investga-
Non they found that the smuggling business was
regusrly arranged enterprise, headed BY man
canned McClcnahan, who had gang OF concderates TO
assist him conveying the goods to the border in
,riblng and corrupting the railway and Custom
dousc inspectors For his compensation he got FIVE
,er cent of the profits OF the work, but it has
cot trapspired in what way tho Ave per cent is
assessed. II is supposed to DO computed upon
siher tho invoced value Of the goods or the
:asiem duty tboy would have have TO pay were they
subjccled 10 such duty.
The detectives In possession Of the names or
most OF tho gang and their confederacs all OF whom
will be arrested when the proofs clcar and hcy
put themselves within tho jurisdiction OF the United
States. Tho firms IN Montreal, rrivy TO the SNUG
Cling operation, are among the weathicst in
canada One house with which tho detectives
aid business reputed TO he worth million dollars.
The goods we're shipped to New York, tho Hudson
eivor Railroad, and Er. vanderbit's establishment
very great when be learned from tho detectives oil The
use which his baggage cars had boon put OF course
The Struggled trunks never paid cent Of freight.
:hey wore put the passengers baggage with
Trough checks, aud came through to New York
without costing the smuasers penny for transporta-
IN q a a rcio
10 Mr.. Vanderbilt and the proprietors Of all railway
lines with Canadian INJECTIONS. whose carrying fa
cilt,cs the smuggcrs have been using without cost to
themselves. The detectives havo secured hity checks
tor trunks which camo across the border in
his way, having been dishonesty attached BY the
baggage agents II the trunks were accompanying
passengers who had paid for and exhibited their tick.
cts 10 the usual wav.
So far rs the detectives have investigated this branch
OF the smuggling business has been coniued to tho
railway lines which offered naturally tho best facilities
for their dishonest enterprise Nothing been done
about tho whiskey and vino smuggling business which
Is also carried on upon grand scale by the water
ways connecting the states and Canada. One OF tho
detectives learned casually that cargo OF $40 900
worth OF liquor shipped from Montreal in the hold
OF caua boat and covered with bulk Grain. The boat
went through the lines and by lake and caaal tAe
Hudson River and shencc to the wharf at New York
city unmocstod Tho cargo was then broken and the
liquor carried away and sold at Broad street store
only block or 50 In the rear OF tho Custom House
In this case too the snueslcrs had 10 urbc tho rcvc
nue. officials on tho border. Canal boats arc
inspected with = long IRON shod pole, winch is
showed down through tho grain, TO detect bot
ties or barrels or other commodities likely
10 DO concealed under the gran but "Trip" OF few
dollars Is sufficient is charged. to Induce the in
h. A, rod criv
into the load Of grain.
The above is only outline Of tho revelations which
a n promscd will DO mado q few days by the Treas.
n.y. epaYtmcpt or as soon as their publication will
Iosxer defeat the ends Of justice.
GENERAL WASHINGTON DISPATCHES.