The New York herald., 1878-10-29
SUED BY THE GOVERNMENT.
COLLECTOR MEBRITr CLAIMS ONE HUNDRED
AND, EIGHT THOUSAND DOLLARS FROM AN
IMPORTING HOUSE FOR ALLEGED UNPAID

COLLECTOR MERRITT CLAIMS ONE HUNDRED
AND, EIGHT THOUSAND DOLLARS FROM AN
IMPORTING HOUSE FOR ALLEGED UNPAID
DUTIEs-A TRUSTED AGENT MISSING.
summonses wore issued yesterday by the United
States District Attorney in civil suit brought by
Collector Merritt TO recover from Benkard Hutlon
Importers sos 600 alleged to be due the government
tor unpaid duties The particulars OF the case as
elected In the Custom House, substantially
lows:-On the 18th inst clerk IN the Custom House
told the agent OF Messrs- Bernhard Hutton that on
certain bond, then before him, number Of cases OF
merchandise entered In 1875, did appear to have
been withdrA wn IRON tho warehouse. An investiga-
son begun At once BY the Collector and also by
Mossrs. Bernhard h Hutton. The books and papers Of
the firm were thoroughly examined by the govern
for duty was entered on their books as having
been paid. The young man who represented Mossrs.
Bernhard a Hutton at the Custom House hus not becn
TINS discovery fastened suspicion on the young
agent and Il was a. length concluded that he had for
q long time been robbing them
nUw THE FRAUD WAS PERPETRATBD.
According TO the statement made by the customs
authorities, the manner IN which the fraud vas ac-
compishsd was as foiows:-rne agent would receive
orders from his house to Withdraw from bond cer-
mako out a s.wilhdrawai entry, - compute the duty
and obtain check Tor the amount 10 bo paid nt the
Custom House, notiug tho same on the Withdrawal
entrics He would tnen take one OF tncse entrios TO
the Custom House. whero II passed through the va
rIous departments, apd, alter receiving the cashiers
Endorsement that the duties and ices had been paid,
permit would be issued directing the warehouso
msn 10 deliver the goods Indicated on the permit
After obtaining possession OF this permit nddi-
tionai number ot cases. corresponding to the original
number vi Withdrawals would bo inserted In the per-
NIT by the agent, but tho duties would only be paid
the whose numbers appeared on the original
permit as checked by the oashior and otSer officials.
The entire number Of having oeen delivered TO
tho hrm they would, as mstter OF course, pay tho
duties tho baiaucs also, aud the oinerence be-
tween tho duties ON tho cases passed through the
Custom House and those delivered TO the firm would
be appropriated by the agent
ruE IMPORTERS VERSION.
Messrs. Bernhard Hutton claim that no fraud could
possibly be pcrpelratcd on them without The assist-
ancs OF persons outside their employ. All they know
that thor trusted Custom House agent has mys-
tcrioasly and suddenly disappeared. They have sec
ondcd every effort oil the government TO ascertain tho
ful extent oi thor alleged deficiency anu arc making
every effort to find their missing clerk. They aver
that they have paid their duties IN the regular way, IN
accordancs with the usual mctnods required by the
customs laws and received The permits acknowledging
that tno duties had been paid.
The amount involved is $103. 900, aB stated above
for which the District Attorney has commenced pro-
ceedngs, not only against the principals, but also
against large banking house AS surety Tor the nrn