New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-09-06
REVENUE INVESTIGATIONS.
LOOKING INTO METHODS AND FRAUDS.


IMPORTANCE OF THE DISCOVERIES IN REGARD TO
SUGAR FRAUDs-NR. WOOD HAS ANOTHER SOIL
TARY SESSION.
Custom House officials assert that the discoveries
of fraud in the sugar trade are important and in
volye some firms of high reputation. They say the
Government has been cheated of millions of dol
lars annually. The examination in the methods OF
the Custom House was conducted by Fernando
Wood alone yesterday. The deputy collectors at
tachcd to the Fourth and Fifth Divisions, and the
chief clerk in the latter division explained the rou
tine IN their Offices, and offered suggestions for I'M
proyement.
THE SUGAR FRAUDS VERY EXTENSIVE.
CUSTOM HOUSE OFFICIALS DECLARE THAT SOME
FIRMS or HIGH POSITION ARE IMPLICATED
MILLIONS OF DOLLARS LOST TO THE GOVERN
MENT YEARLY.
The investigations into the alleged sugar
frauds expected result in arrests and
seizures which will DO followed by suits for cOndemna
ton and heavy penalties Tho customs officials claim to
have ample evidence prove the allegations OF fraud
in securing improper weights by YOungs Co. and
others General Curtis while declining to furnish
information at present about tho that he has
gone into the investigation of the sugar frauds without
any prejudice but with desire to discharge his full
duty. both 20 the Government and the importers. He
claims that when Seizure is made, the evidence will be
90 conclusive as TO admit Of doubt Of success in
court
prominent customs Official said yesterday "The
investigation has already revealed alarming state OF
affairs is longer question Of doubt that for
years there has been systematic movement among GER
tain importers and rehners of sugar deaud the
nue. aud that the losses to the have amounted
to over 50 0OO,O 900 per Many Tefpers aud i'm
pOrteTs refused to into this combination, have
been driven of business and honest sue
cessuly compete with the combination. These facts
have often been brought to the knowledge Of
officials, but nothing done until Gem al Merritt be-
came Collector, when he at one. Issued an
order TO have each branch Of the sugar
trade examined thoroughly. that prompt
and decisive action could be taken against the offenders
1t became evident that these frauds could not DO
successfully carried unless there collision with
Weghers and samplers and large number of suspected
cargOes sugar ordered to be reweghed special
experts being employed for the purpose II was
believed that the suspected persons would attempt to
their sugars frauds discovered and pre-
cautions taken keep all information from them.
Tho special wegheTs we're sworn, and instructed
not to disturb the marks OF the previous weighing, but
enter private book the weights and to report
each cargo completed For this importers
who knew that their csrgoes being reweighed,
supposed the fraud had not been discovered,
because the old weights passed 1t discovered
that in most instances weights marked
the hOgsheads and boxes while the weighers return
book from 20 to 100 pounds per hoghead box would
be dropped making difference OF 5000 10 81 900 IN
the revenue a cargo. Sometimes there would be an
equal division Of spOs with the weghers and at other
times they would get from $25 800 The
results thus have shown specific cases by which the
Government has been defrauded out Of nearly
Sl,OOOOOO
The case against YOungs & Co.'S sugars is com
plete, ana in few days there Will be
other seizures OF cRrgoes on which there have
been frauds in weights These seizures will
affect firms that have always stood very high in the
mercantile community. The Government is in earnest
in checking these frauds and in punshng the offenders,
and no compromises will be made"
SPECIAL Agents Chamberlain and Ayres, aided by Gov
eminent chemists are making thorough investigation
into the alleged frauds in exported sugars. Several OF
the analyses already submitted 1t is claimed. show
the presence In large quantities OF glucose and
sulphur in refined sugars, which drawbacks
collected for what to ne
pure sugars made from specified lmDoriatlOns. Re
consular agents abroad the precise character OF
eXpOIleu rom Ihls c0uny ana ~ rs stated mat Wlth
the evidence Is cOEnpeteuJs VIII be brought Tor ian &c
amounts against certain exporters recover the draw
backs illegally obtained from the Government Ii Is also
nmated that several arrests Tor alleged conspiracy In
connection with the sugar frauds viii be made. II Is
admitted that confessions have been made by some Of
the suspected Telehers and samplers.
United states Distrct-AttOmey Tenney of Brook
Ign, yesterday caused the arrest OF Daniel
c. Pentz, cooper, Of No. Gouverneur-
10 deiraud the Government lt Is alleged that Peniz
Brooklyn ia February last the bark CiOde aud that
by means of the sugar or oversating the
of money. Bail In $1,000 Will be required OF Pentz.
An action has been begun in the United states Court
in Brooklyn for the forfeiture OF cargo of sugar owned
by YOungs Co., which brought to Brooklyn III the
brig George Burnham There are so hogsheads i'm the
under section 1854 Of tie Revised Statutes. Gross
frauds in the weighing are alleged.