The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1891-12-20
UNCLE SAM
COMPROMISED.
Seventy Thousand Dollars Paid
Into the Treasury.
Neuberger, Reiss & Co. Pay Dearly for
Their TransactiOns-History of a
Prosecution.

That the derelict firm of Neuburger.
helss q 20. has succeeded in making soma
sort oil compromise with the Goyerpment
Tor the extensive smuggling ii carried ON Is
no longer matter of speculation, but
fact, as the books Of the Treasury Depart
ment would show if investigated.
The amount paid to the Treasury Depart-
ment is 10000, but the persons to wbom
the figures were made known were not an
prised of the extent of the compromise on
tie part Of the Government. 1t is not
known whether the $4,000 was paid to stop
the criminal or civil proceedings OF both.
1t was during September that a case Of
one Of the Neuberger, Reiss & Co.'s con-
signmentS fell from a dray, and in breaking
revealed smuggled goods. 1t and the rest Of
the consignment were seized, as were sew
eral subsequent consignments. all but one
or two of which proved falsely invoiced.
The investigation that followed showed
cOncluslvely that some one in the employ of
tina Government was in collision with the
smuggling firm. Suspicion settled dark and
heavy upon d. Nj. Cashin, Deputy COL
lectOr.
CAsHIN ASKED TO EXPLAIN.
1t was shown that in the year prlor to the
discovery Neuberger, Reiss 81 Co. had re-
eelved seventy invoices, all but one of which
had been marked Tor admittance and inspec-
ton by Cashin. With this array of figures
Cashln was asked to explain how so much
SIX had passed him as woolens, crash, tow
cling and linens, and why he had been tile
only Deputy Collector to pass the goods in
seventy consecutive consignments when they
were clearly falsely inyuiced.
Deputy Cashin said he would investigate
and explain all within month and he was
given leave OF absence for that time. His
leaYe, however, took the definite form of
DISMISSAL couple OF days afterward. So
lar as Cashn is concerned it cannot b. said
that he has turned a stone in his efforts to
Vindicate his name, and the Custom house
has not been visited by him since October
9Th, When he LETT his desk.
FERRETING OUT THE CRIME
Unaided by the only man the Government
was confident knew the true inwardness of
the great smuggling plot, the work of fer
retlng the crimes to the fullest has been
an onerous task. which has been compica-
ted by the efforts OF the firm to com promise.
AS the attorney OF several extensive whole
sale dealers in the same line as Neuberger,
Relss ~ Co., Reuben IL. Lloyd offered his
services to the Government
Ihey were accepted on the recommends
ton OF Collector PM clips, who saw from the
first the persistent effort sure to be made by
the defendant firm, and Mr.. Lloyd was de-
elared special counsel to aid United States
District Attorney Charles A. Garter. But
ABOUT this time there arose question of
procedure IN the prosecution.
In the decision of Judge Ross, rendered
on October 2, 1890, i'll the case of the United
States VS.. one distillery, it was held that
when civil suit had been instituted, q
criminal one in rem could not follow. COL
lector Phelps in this saw the possibility that
unly one suit could be Instituted, and in a
letter to the department said that If such
were the fact he would recommend that the
suit be brought on the criminal charge
alone, as it would be the greater punish
menG,
BACKED BY A COMPROMISE.
In reply lie received a letter from the
department stating that both the criminal
and civil suits could be brought and main
tanned and that they should. The depart
ment also stated that United States District
Attorney Garter, who had arrived at the
same conclusion as Collector Phelps on
Judge Ross decision, could, If he had any
doubt of the departments decision, place
himself in communi LEGATION for instructions.
THIS statement has been turned against the
Government aId Mr.. Garter several times
by his enemies.
Bernard Reiss was indicted for smugg ling,
and his bonds were placed al SIS, 600, which
he Immediately furnished. Since then the
firm has had an agent in Washington work
ing for compromise. The local Govern
ment officials opposed this in every way,
but the Government seems to have thought
a compromise on the basis of S70,000 a sufi-
cient punishment for the firms offense, as
that SUN has been accepted by the Treasury
Department.