Savannah morning news. [volume] (Savannah) 1868-1887, 1883-02-01
GIGANTIC TREASURY FRAUDS.
The Source of SpreckeIs' Millions.


Mr.. Perry BelmOnt's minority report in
the matter of the Hawaiian Islands treaty
and its abrOgatiOn is document to which
it will be well for Mr.. John Sherman to
give his immediate attention. 1t also
deeply though less seriously concerns
Secretary FOlger. For the practical en-
fOrcement of the treaty and of the law
Of August, 1876, Mr.. Sherman's admin
istration of the Treasury was responsible
from March, 1877, till Mr.. Folger came into
power in 1891. Now we learn from Mr..
Belmont that, according to the testimony
offered before the House Foreign Affairs
Committee, the Treasury was defrauded
between the beginning of Mr.. Sherman's
responsibility and the summer of 1882 of
no less than seven millions of dollars of
duties on sugars imported from the Sand
witch Islands! That certainly is the most
gigantic and stupendous revenue fraud
ever known in the history of our govern
ment. The evidence on which this
charge rests is carefully set forth bv Mr.,
Belmont in report which, if printed in
full, would fill some five columns in the
World. Every sentence of it is essential
to full and minute understanding of the
subject, but the pith of the revelations it
makes we present to-day. The fraud was
accomplished, as the witnesses say. by a
conspiracy between the Hawaiian Gov
ernment or its officers and American
diplomatic, consular and customs officers.
In the face of so starting an accusa-
tion Mr.. Belmont properly advises that all
further consideration of the question
whether or not the treaty shall be abro-
gated shall be postponed till the Presi-
dent can inquire into the facts and report
to Congress. Mr.. Belmont concludes his
report with the suggestion that Joint re-
solution in the form proposed by him shall
be Immediately adopted by Congress, in
place Of the joint resolution re-
questing a revision of the treaty
that had been reported by
majority of the Foreign Affairs Commit
tee. Mr.. Lot NJ. Morrilps administration
of the Treasury is also inculpated by the
testimony before the House Committee,
inasmuch as during his control over Gus
toms affairs the consular oath was formu-
lated which either innOcently suggested
or corruptly protected the beginning
of these startling frauds. Mr.. Hardy,
a member of the House from New York,
appears to have represented to the COM
mlttee that during the five years from
1877 to 1881, inclusive, 241, ,210, 454 pounds
of sugar, worth in the Hawaiian Islands
$16, ,260, 445, had been imported therefrom,
on which the duties, if paid as on other
sugars, would have been SIC, ,160, 1852, and
that two-thirds of the sugars had been
passed by our customs officials duty free in
fraud Oh Jne treaty ana the law. Why did
the Republican majority of the committee,
and especially Mr.. Kasson and Mr.. Hit,
pass over these gigantic frauds in silence.
This the country will insist upon knowing!
Why has the full exposure of that iniquity
been left to Mr.. Belmont, just as the work
was left to him of showing up Mr.. Blaine
and the Landreau claim? Really, Mr..
Blaine and the lobby in Washington must
try again to suppress Mr.. Perry Belmont.
But how? He can neither be bullied Mr..
Blaine tried that) nor bought, and he will
fight. What can the lobby do? In this
Sandwich Islands affair we have had the
Spreckels lobby working on contingent
fees, and the sugar lObby-raw and refined
also working on contingent fees. The
latter lobby, if the World is well
informed, included sundry so-called
free-traders. But now that Mr.. Bel
mont's report is made these lobbyists are
probably endeavOring to borrow money to
take them away from Washington. If
President Arthur will only now do what
Mr.. Belmont urges him to do and shows
him how to do, the riches Of Spreckels
may take wings and fly away as swiftly
as they came. No mOnopolies, gentle
men! No mOnopoliesl But execute your
treaties in good faith before you condemn
them.