The morning call., 1891-10-08
FERRETING FRAUDS.
Strange Tale of the Nenberger,
Reiss & Co. Invoices.
There Must Have Been Collusion-sp Special
Counsel Appointed to Locate the
Parties to the Smuggling.

Collector of the Port T. G. Phelps re-
celved telegram yesterday from Washing
ton announcing the appointment of Reuben
ii. Lloyd as special Assistant U ted States
District Attorney to aid District Attorney
Garter in his prosecution of the Neuberger,
Reiss & Co. frauds.
This means business on the part of the
Government and augurs i'll for the snug
CLING firm, who have employed some of the
best legal talent in their behalf. The ap-
p0ntment of Mr.. Lloyd was made at the
request of Collector Phelps. who has been
fully aware for some time that such meas
ure would have to be adopted.
The status of the case against the firm is
just as it has. been for two weeks. though
the extent of the frauds is becoming more
apparent eyerytwo or three days with the
arrival of constgnments.
Since the discovery of the frauds four
consignments have been received and
opened. each revealing struggled goods ar
ranged so systematically that the collision
of some Deputy Collector would be abso-
lutely necessary for the goods to be landed
without discovery.
TIGHTER IN THE TOLLS.
The four consgnments have not been
entered, however, by Neuberger, Reiss IL
Co., fact that will save them from crimi-
nal prosecution in these four cases. But the
discovery of the system of consigning
goods only makes the tolls tighter about
the Deputy Collector who has passed them
and made the allotment of certain cases
for the Appraisers store for examination.
Yesterday four cases, invOced as crash"
and consignet to Neuberger, ReisS 81 Co.,
were opened. To show the method of en-
terng goods these eases are good example.
One was found to contain crash, and it was
this one that, had no discovery been made,
would have been destined to go to the APP
plaser's store for examination. For this
case to have been selected 1t would have
been necessary for the Deputy Collector
passing it to make mistake, which might
happen occasionally, or be in collision with
the importers or their broker. This case
once sent to the Appraisers store the three
others would have been delivered into the
hands of the importers, who should have
taken them away and kept them unopened
at least six days. This they never did.
STILL ANOTHER swINDLE.
Had this lot been so passed upon, had
that one single case of crash gone TO
the Appraisers store for examination and
the others gotten into the importers hands,
the Government would have been swindled
as 1t has been for d year oil more by the
same method. On examination yesterday
the three remaining cases were found to be
improperly invoiced, for two contained
wOolens and cassimeres and the other con-
tanned costly silks and velyets. The frauds
would have amounted to more than a
thousand dollars.
How these gigantic frauds could have
been perpetrated for year or more is the
question Collector Phelps and the special
agency of the Treasury are trying to find
solution for, and the Collector is growing
impatient at the delay in bringing the work
of detection to head. He has had men at
work on the invoices to obtain a clew, and
their researches will be ended by to-day.
While the statistics of their examination
are not yet ready for the public. enough has
been learned to indicate some astonishing
differences. During the year Neuberger,
Reiss & Co. have averaged six to eight con-
signments a month, most of which were
crash" or cotton" This would make
fifty eonsignments in the year at least.