The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-01-03
CUSTOM HOUSE FRAUDS.

ALLEGED IRREGULARITIES AT RICHMOND AND
NonFoLK-TuE ANTARCTIC EsorzzLEMrNT-
GOVERNMENT MONEY USED TO PAY PRIVATE
DEBTs-DETAILs OF THE EXPOSURE.
RICHMOND. Va, Doc 20, 1877.
For soms months past II has been known that grave
irregularities had been discovered to exist In the
tom houses at Richmond and Norfolk, but more par.
ticuarIy at the latter place. and the concern
ing them have boon many and contradictory Every
effort has been made arrive at the true nwardness
of these cases. but the reicence of tho government
officers who alone to be informed MS
to tho particulars, has heretofore made 1t
impossible. Indictments were found against
tho First Deputy at Richmond. and also
against the First Deputy and the cashier at Norfolk,
but "a these merely set forth the embellishments
charged In technical language and without PARTICULARS
Nothing interesting could be gathered from them, ana
Is therefore only at this lato day that have como
into possession OF facts which think INTEREST
ing, rs illustrating how easily under the present
system OF inspection, or certainly under that which
existed up to Juno last, The government could DO
defrauded and for what length Of time such irrogu-
larities could 60 unnoticcd
TIKI GOVERNMENT SYSTEM.
The moneys collected at the custom houses are
from four sources, viz, duties imports tonnage
dues marine hospital dues and foes; and all items,
from whatever source they arise are under tho law
to be first entered in the "day cash register" and
thence transferred to other books IN which the
counts of receipts from zach source arc kept sepa
ratoly.
In cases where collections OF duties were made q
copy of tho duty which shows upon its face the
amount and collection OF the entry was required to be
forwarded 10 the Commissioner Of Customs, and the
original filed in the Collectors oce for all other
collections simple receipts only were given. All COL
lec,ons however, were required to accounted for
from timo 70 time.
HOW TIE FRAUDS WERE DISCOVERED.
The attention Of the government first called to
these frauds by a discovery that the disbursement
account OF John s. Braxton, Collector at Norfolk,
was short, and examination It found
that some $500 had been checked out by Charles
E. Ge,tslick Deputy Collector for sone
purpose unknown. An agent OF the Treasury was
sent down, and TO him Gettslick ard the cashier,
Henry Miller. confessed that they had checked OUT
this money and used 1t to pay the salary OF light
house keepers duo from Luther Lee, J, the late Col
lector. whom Major Braxton had succeeded Some
to the taking o otner sums fr ON the drawer amount
ing 70 aggregate OF some 900 IN ALL which they
claimed 10 have used Tor the same or similar purposes
This deficit was promptly made good by Major Brax-
ION, aud IL night well have happened that further
Investigation would have followed, but for singular
circumstance.
THE ANTARCTIC EMREzzLEMExr
In December, 1879, tho bark Antarctic having on
board cargo OF salt and bound for Norfolk put into
the Savannah Rivcr under stress of weather. Having
remained there sufficient time to subject her 10 that
regulation sho required by tho COL
leetor OF Customs at savannah to give
bond Tor tho discharge and payment of ner
cargo nj Norfolk which bond she gave She was duly
entered tnsrc and discharged and paid duties
cargo, upon which IL was Inc duty Of the Collector at
which had besa forwarded to himj to the Collector al
savannah cancelled BY some oversight this was ut
hrst neglected and perhaps for another reason con-
md I'M ad nj
tor ut Savannah appealed 70 the Treasury
Department. TO order the return OF tho
vestisation. Upon examination OF the books at Nor
ioik II was found that the Antarctic entered ms
the dutics-sofnc $780, gold-were totally
counted Tor. On further searcn however, the mani
feet OF the Antarctic showing her cargo was found
slowed away III ar out OF tho way corner. Upon this
investigation OF the accounts OF Luther Lee,
had been Collector from 1870 until his death IN Feb
ruary. lS71 was ordered, and by great labor and In
dustry tue fact was developed That that officer
shor IN mis- accounts some $li 700, which was indis
criminately plundered from The moneys collected
IRON ali sources moro than one'half Of H. however,
being customs
PROCESS OF SUPPRESSION
This dcfalcation was concealed by tue simple proc.
Of suppressng the entries where the
money IRON duties, aud in that vol all
other failing to enter The receipt OF the money
upon The daily Cash register" Charles E. Gettsiich
was put on trial for enbezzIng two OF these items
anu was convicted, and since mis- conviction he
plains the transaction as follows:-Whon Loo came
into the office in 1870 Gctslicg, who had been seat
TO reorganize tho Norfolk Custom House. was made
fsi ana special deputy. Leo Al that time owed some
81 800, wncn hc proceeded 10 pay out OF the govern
ment money, and his accounts were short by
that amount Henry Miller, the cushion, whose
demonstrated win Lee several times about his
accounts aud finally rendered their designations AZ
his Leo burst INTO tears aud taking pistol from his
drawer threatened 10 commit suicide then there,
bat SAID that no could get nolp from OF his rels-
tives IN short time Geltsch and Miller, already,
ny their aiiuro to report these dealcations, impi-
Gated 10 an extent that would torieit their Offices If
not subject them 10 criminal prosecution, instead OF
insisting tue pianoo OF their resi- UNDER
took TO neip hem out He accordingly made his
for The amount oil tho deuciL which was indorsed by
Gettsiloh Miner put upon the market, whereof
shaved at about three per cent per month. Whom
~ came due IL paid out OF the money of the
United states in tho Custom House, and the new do
holt covered by the dIscouating OF n note A
suicient amount Of foes were pockctcd aud kept out
oithe books TO pay Tho hares aud hus in the course
Of some sis, OO0 while Lutncr Lee's accounts
their face appeared TO be- and were perfectly regular
aud exactly balanced II was the necessity oil carry
Ing thss system INTO the administration oil Leafs
ce.sor that caused the lrst investigation, as the
money cent down by Tho government 10 pay salaries
o. lighthouse keepers had been appropriated TO pay
Que oi those notos. and 10 was necessary 10 meet
checks gwen 10 these men In Lees time ana out Of
lhe funds sent ny the government 10 Major Braxton
fnr tno purposc Ihis deficit they hoped
make up n ths old way w " tho tino when discov
cred.
How nearly true this account Is It Is impossible to
say. but is probably exactly with the exception
thst part OF the money nos accounted tor can DO
traced private OF one certainly, aud proba.
Dly TO that OF both OF these men. The statement Of
settsich was voluntary. AMI aitcr he know that the
goscrIment was possessed VI the main facts, and Il
,ailiss as TO amounts the manner oil concealns tho
deacaiions, &c with the evidence and theory Of tho
persecution lie could have motive Tor conccallng
an. Thug except personal appropriation oil money by
himself aud hrs confederate.
RICHMOND ENnfzzLxMExr.
About the that the shOt nred that brought
Sctsiicn and AiiIer at Norfolk nu,tcr heard
ia tie * Richmond cgstym Louse, then also being
yesttgated. which caused ny the confession Ut
Charles H. laacn the SPECIAL deputy at this per, that
lac had poe ketcd something upwards OF tlUU tho
courfe 81 eighteen months. HIS method wcro
essentially tlc ssose poye ny the Norfolk
doiaaitcF. Two or more indlctnlents were found
against him az tLe october Term oi the Circuit Court
bat nsithef has been - yot tried
All OF tno.s parties have hitherto been In good
standing 0stislich has been In the customs service
al liatiuore as1 ia thiz state nearly quarter vi "a
century aud sl~ays regarded az an honest and
cal.br oc.f Miller A. lloin the North hat bns heel