St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1890-12-28

The frauds have been committed by
the consuls and consular agents of the
United States in Canada and by the ex-
porters of Canadian goods to the United
States. Some twenty consulS out OF
about seventy. the larger number sta
n in the province of On
tario, are implicated IN the charges
which are under investigation. The
process of fraud has consisted in the
appropriation of illegal fees and the
differentiation of exports by the eX-
porterS. Consular certificates in blank,
signed by the consuls and consular
agents, have been sold for a nominal
sum for the use or exporters in making
false returns of value on goods sent to
the United States. The evidence is not
complete as yet as to the percentages
allowed by exporters for the privileges
OF under-valuation, but enough is
known to show that a systematic scheme
OF petty Swindling has been carried on
by means of the consular certificates.
The law regulating fees authorizes COR
Suiar agents, who receive no standard
salary, to reserve from the fees
received a certain sum, usu-
penSation. The conSuls also receive a
certain proportion of the fees received
by the consular agents in their districts.
They receive for themselves no part of
h fees received for officicial duties at
their own offices because they are paid
by salary. Anumber of the conSulS. M
ludln several whose names are quite
well known, were quick 10 appreciate
the point that there was more money
Tor them in having exports presented
for certitication at the consular agencies
In the outlying towns than at the con-
sulate itself. They accordingly made
terms with the exporters by which the
latter, in violation of law, carried goods
from right under the nose of the con-
suls before whom they should have been
certified to smaller towns where con-
sular agents were ON duty. These con-
sular agents were in the pool. and
promptly accepted the certificates
a discount in bank, and which
were filed with false and insufficient
values. These certificates recite that
the exporter appears personally before
the consul or consular agent and makes
oath to the correctness of the facts set
forth. The very nature of the certiti-
Gates precludes their being signed in
advance without palpabie and inten-
tlonal fraud. They have been diStrib-
uted, however, in great numbers and
the autographs of certain consular Of
tcerS upon these documents will 500
be in the possession of Secretary Blaine.
The estimate of 81. 600, 600 as the aggre-
gate of the loss to the government is
nothing more than an estimate. Further
investigation may show that the loss is
many times 81, 600, COO and that there are
even more guilty parties than have yet
been discovered. The accounts of a
number of cOnSuls in Canada are now
held up at the treasury department to
await the results of the investigation,
and some of the gentry, if they ever
sign a receipt for the salary which they
now claim to be due them, will have TO
sign it in blank.
Secretary Window said tonight that
if the charges were proved, the guilty
would be punished if there was any
power in the law to do it. 1t is eX-
pected that the reports OF those cor
nected with the investigation will be
submitted next week.