, 1879-07-23
Tobacco Frauds unearthed by the
Authorities at New Or.
leans.
Tho McGarrn],nn Case Once More
Before tho Supreme
Court.
Cotton Has Assumed q Second
Place In Our Export
Trade.
A Marked Deorease In tho Number Of
Email Treasury Notes Out
standing.
TOBACCO FRAUDS
IN NNW ORLEANS.

IN NHW ORLEANS.
6rsefai DispdseA 10 Tae tribune
WASHINGTON, D. G., July 2a-Democratic
correspondents last night sent special dispatches
from this city announcing tho existence Of n
ring Of tobacco-dcalcrs In New Orleans. and
making various charges nganst the Ercs!deat,
Secretary of tho Treasury, Commissioner VI In
tcrnal Revenue, and Senator Kellogg. Refer-
ring to this general subject, Commissioner Raum
says some OF the statements arc partially truc
but the Interpretation given to them Is unwar-
ranlcd. "some tian ago." said be, II became
satislied from information from various SOURCES
TINT large frauds in the manufacture and sale Of
tobacco wero being pcroetratcd 10 Now Orleans
anu sent Rovcnue-ARent E. D. Webster to fer
ret Out tho frauds, with full instructions
Tho Instructions were not made known to Col
1ector Marks, and for time they were work.
Ing ut cross .purposes. The Agent, however,
succeeded In bis mission In so far rs to. CT
pose
RING OF TOBACCO DEALERS
who were operating In eolluson with some ono
In the Collectors Office. 1t was at this 1unctuEe
that the man Fe1ozes, for the purpose Of having
hlmsolf, turned States evidence, and made q
sworn statement TO tho Revenue Agent, md,
the Ring being fully exposed, for n time auspt-
cfon necessarily attached 10 the responsible
head Of the office, an1 during further inyeatt-
CATIONS Secretary Sherman empl!atIrally ex-
pressed to tho Commissioner Of Internal REV.
enue hts determination to remove the Col.
lcclor OF my subordinate against wtpnl
there should be found cqldcnce sufficient
10 establish a1T connection whatever with the
frauds. No evidence WAS discovered, or Inns yet
been presented" said Commissioner Raun,
Il tending to implfcate Collector Marks, The
investigation, however, led strongly to tho bB-
lief tllat tho First Deputy Collector, an official
who served in the office many years beforo Mir.
Marks was appointed, and who was originally
appointed
UNDER DEMOCRATIC ADMINISTRATION,
was sharcr In tho profits OF the Ring, and by
order Of The Commissioner be was .summarily
dismissed"
Had tho Collector been guilty, the Commits.
sioncr believes Ills deputy would not have SUBJ
mtttcd 10 being tsisrharg u without at tPaBt
exposing the oit1cRl who discharged hin.
Tho Ring was broken I'D. md upon tho rccun-
mCndAtion Ut tic Commissioner thelr cases were
compromised by the payment OF sums varying
from 1,O00 to SIC, 600 to tue Government.
The Commissioner says TINT the result Is d.
rccttv cEcditable 10 tho Agents Of tue internal
Reyenue Bureau, aud that the attempt to make
1t appear that tho exposure and breaking up vi
the Ring was The work OF its members who lad
determined to reform Is as untrue as 1t L. ah-
Gurd.
The Commissioner further said that so far
FROM trying to shield tho ronspfrators, United
States Attorney Leonard cH.Dperated cheorful.y
md vigorously With tho utllccrs OF the Covert.
meDs III exposing the fraud