Savannah morning news. [volume] (Savannah) 1868-1887, 1886-04-09
CUSTOM HOUSE poDGEs.
some WAYS in which Uncle sam Has
Lost Revenues,

From tha Neto York Graphic.
WASHINGTON, Aprn 5.-Recent partial
Treasury investigations of practices that
have prevailed in Importing warehouses
under previous administrations indicate
that before long there may be disclosures
OF great interest to honest importers and
to all taxpayers. Civil service obstruc-
ton has made the process Of change in
methods very slow for the reason that 1t
is extremely difficult TO force a new
system upon men long habituated to work
under an old one, especially if they de-
rive personal benefits through the old
methods.
During the reign of the Whisky Ring in
the 'halcyOn aud vOciierOuS DAYS" OF
Republican fraud ii was the custom OF
INSCRIPTIONS manipulators TO cheat the
government by placing IN internal reve-
nue. bonded warehouses the cheapest kind
of spirits as substitute for valuable goods
for which there was demand and profit
able sale. In this way worthless stuff
took the place of pure goods, gallon Tor
gallon, the government account was Kept
balanced, the pure goods were taken out
Of bond at the expense only Of the
cost OF the cheap CONFERENCE.-The
not over 15c. per gallon-instead of the ~
due the government for tax. The same
scheme has for years been worked sue
cessfully in customs warehouses in eva
sion ofa valorem duties. The govern
ment sampler or some one else, through
his cOnniVance or carelessness. samples
package of cheap goods and duly brands
it as a sample package Of a lOi of dearer
goods, which go out upon the market
after paying a small duty of say 30 per
cent, instead OF a larger duty of say 20
per cent. The sham sample package may
90 with the lot. and Of course the impor-
ter will not complain, but more frequently
the ''Old soger' remains 10 do duty over
and over again as one Of successive lots
of more valuable packages with which it
is mixed up in the adroitly played game
OF substitution. IN certain classes of
impOrtatiOns, like sugars, for example, in
which the difference between dutiable
grades are determined 10y delicate expert
tests, it is extremely difficult to prevent
such frauds where there is either careless
ness or criminal completely on the part OF
the Governments officer. Tits now, although
still an official secret a matter of common
nOtOriety among the well-informed that
the loss to the United States through
these frauds bv substitution in warehouse
amounts t0milljons annually. The facts,
figures and proof of crimes committed,
to back up in fullest detail the outline
now sent, will shortly be forthcoming.
The details have been developed by long
and carefully guarded inquiries Of new
officials, and the inculpated employees can
not hope to escape the punishment that is
sure to follow. 1t is well Undersl God that
Secretary Manning's illness has only de-
layed for a brief period a reorganization
Of the service by which the future occur
renee of frauds by substitution in the case
of ad valorem duties, and frauds by false
tare in the case Of specific or mixed duties
will be prevented. TOmake the renrgani-
cation effective will necessarily involve
very extensive change in subordinate
offices and in WarehOusemen and their
emDlOVes.