New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-07-10
CUSTOM HOUSE FRAUDS.
LEHMAIER & co. ACCUSED OF CHEATING
THE GOVERNMENT
THE CASE WILL BE BROUGHT TO TRIAL SOON
Is THERE A GENERAL UNDERvALUA


Is THERE GENERAL UNDEsvALUA-
T1oN OF DRESS GooDsT
The case of LehmaieC Co.. importers Of dress GOODS
and yvoollens at Nos % and 80 GTeenest" who arc
accused of having cheated the Government out OF
large sums OF money by means of undervaluatlons WI"
come up for trial IN the United States Court as soon as
Nathaniel Myers, Lehmaier & CO.'S assignee returns
from his vacation In the seven months that inter
vened between the time that the present Customs Al
mnStation act took effect and the date OF the hrs
failure il Is said that Lehmaer Co. imported dutiabe
goods worth about 100000 which they oclrauuen
the Government out of more than $4,000 In duues.
In December. 1890, tho agents OF the treasury DC
partment in Europe sent word that Lshmaier d 20
were systematically undertaking their goods. The
matter was placed IN the hands Of Special Treasury
Agent Wilbur for investigation. Mr.. Wilbur soon be
came convinced that the Information received ron
Europe was correct He reported what he had learned
TO the Appraisers Department, but no action was
taken.
1t might have been difficult 70 get to the bottom OF
the affair, had not Lehmaier Co. about
this time March 10, 1891, made an assign
ment 20 Nathaniel Myers. The firms
schedules showed liabilities OF nearly 100000
and assets 10 the same amount. Inc irm' WHO"
consisted Of Ludwig Lehmaer and Sgmund Herzog'
was an old one and enjoyed good credit lts 1aliuie
was surprise to the trade. and the offers maze 10
creditors were so unsatisfactory 10 some of them that
suits were brought attacking the assignment as haudu-
lent Ii was found that the January statement OF inc
firm, on which 1t secured credit had been false, ana
that its books had also been falSifed. The books
showed not only that wrongful entries had been mahe
for the purpose of showing SURPLUS but also that
The goods invoiced TO the firm from France and Ger
many had been constantly undervalued. Inc cost
prices of the goods appeared in one column, While IN
another we're shown the prices at which the goodS
wero invOced. on an average theIe was a difference
of about IL per cent between the two columns
Mr. Wilbur. the special agent of the Treasury De.
partment was allowed 10 see the books He repor'ed
ordered to lay the matter before Collector Erhard
The result was that, after consultation between Mr.
Wilbur and Dudley F. Phelps, the law ofhcer OF inc
Custom House. the United States DlstlictAttorney was
called in and suit was begun for the recovery OF tho
value Of the goods imported. and for the nnlcu0h Oh
the legal penalties.
Although the case is practically ready for trial. there
are some points yet to be worked up and the ohcers
who have the matter in charge expressed much annoy
Ance Yesterday that the story should have been maze
public before they had completed their work Deputy
EOector Phelps and Mr.. Wilbur have the memoranda
and inv Oces In their possession and the original sam
pies submitted at the appraisers stores. $500
The officials at the Appraisers stores asa not seem
10 think yesterday that the undervauations could be-
as large reported. They say that they nave az
yaIfOns times raised the valuations OF Lenmaler 20,
hut not TO any great extent Other importers arc
bringing in similar goods all the time, ana unless Se
whole trade Is making the undervaluatons that
1ehuaer & Co. are alleged n nave maze, tle OHclas
at the stores not how invoices in THIS case couid
have been wrong.