New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-04-21
PART II.
PAGES TO ia.
CUSTOMS FRAUD DETECTED.
A BROKER AND HIS CLERK ARRESTED.
THEY ARE CHARGED WITH BRIBING AN ASSIST
ANT wEIGHER-THE GUILT 3AID TO

ANT wEIGHER-THE GUILT 3AID TO
DE WIDESPREAD.
Deputy marshas made another arrest yesterday IN
the OF alleged bribery Of an assistant weigher
In the Customs service ON Tuesday afternoon John
Fortman, clerk for Carl Pustau d Co.. Custom
House brokers' at No. l34 peast. and No. 100 Water
St. arrested and yesterday morning otto Schneider
\ member Of the firm. was taken In CUSTODY by Deputy
Marshas Cooper and McCod when he came to MS
Office. Both men arragncd before Commissioner
Shields who fixed bail at 5000 each. This was given
by william A. Brown, a Custom-House broker at No.
ia Pearl-st The examination In each case was bxes
for next Tuesday at p. M
The ailidays on which the warrants were issued BY
Commits soncr Shields were made by special Treasury
Agent George W. Whitehead They charge that Oh
December 3D. 1891, FOrtman paid Edward W. Simonds
assistant weigher In the Customs service, Sl3o 70
uEderweIgh quantity OF fireworks imported from
Iiong Kong on November 81, 1891. Schneider II u
alleged, directed Fortman to pay the money The
clerk and simOnds made statements duplicating
Schneider and Fortman merely to have been
his employers agent. 1t Is said that stll another
warrant has been issued In connection with the same
transaction.
The fireworks which 1t is alleged smonds under
weighed consisted Of 6jG4 packages OF hrecrackers,
packed with eight boxes OF average weight OF hfty
pounds in each package. The invoice was valued ct
seel 900 Won pIstau e Co. entered the merchandise
for storage In bonded warehouse Firrrackers are
subject TO specific duty Of cents pound, ana the
charge made against the firm IS that they sought to
deffaud the Government by bIibinG Sim0nds to enter
the packages at average Of three pounds less than
actual weight. The loss 10 the Government on the
total importation would be about $l,5OO. To &C
ccmpl.sh their purpose, It is alleged, Won Pusau 81
Co., through Tortman, their shipping and bill clerk,
paid brides simonds amounting to 800. The only
pay men specified In the complaint that Oh $3.50,
made On December 23, 1851. The other 200 Is said
| TO have been paid shortly plior to that date.
No loss can result to the Government in this case
because about only onetbd OF total importation has
been withdrawn from the warehouse for consumption.
and the rest. 400 packages Lns been seized and
Is now in the Collectors possession.
l.. w. Slmonds. the weSher appointed to the
custom, service on April 13. 1852, and had always
given satisfaction In his work until recently. When
the under valuation and underweghlng frauds OF which
William Cutaiar accused about three months ago
came 10 light Collector Hendricks ordered that IN In
vestgation be made OF the actions and work OF the
weigerS and caugers generally and Tie Tribune ana
other papers have from time TO time noted the progress
Of at investigation aud published the names OF a
large number OF customs employees who have been dis
charged from the service in consequence.
enonds was among those VINO were dismissed lnsS
month the charge against him being the differentiation
OF several imp0rtaticns OF macaroni. At that time
the officials did not know Of his connection with tho
fraud, attempted by Won PIlstnu Coz their hav
Ing been worked up within the last week by Special
Agent Whitehead and colonel storey.
TIE detailed results Of the general investigation
which has been going have not been made public
BY tie Collector has formal report been sub
mlttcd TO the authorities at Washington. because the
work 4, not yet completed. The work has been de.
layed by the absence from the city OF United states
Judge Benedict. before whom such II Is pro-
posed to prosecute must Judge Benedict returned
TO New-York yesterday II IS probable that the In
vestgation Will be pushed rapidly forward and
the culprits brought 10 Justice
The case OF Plstap II Co. side ISSUE and not
a pars OF tue main investigation.
While the authorities do not admit such to be The
case, 1t likely that the appointment; Of Collector
Hendricks. surveyor Lyon. Naval Officer Wills, Ap-
praiser Cooper. and special Agent Whitehead as u
commission study into the sub ect Of perectlng
me autonomy OF the customs service at this post *
the direct result OF the disclosures made in the course
Of the plesent examination. The fact that Ii l. pos
slbl FOR fraud, the Mind discovered be carried
on M all would 10 indicate That there Is some
thing wrong with the system now in vogue. Tho
ton and organization on Monday next. IL IS though:
that special attention will be- paid 10 the workings 81
the entry division. and TO the supervision exercised
the work " guaeers, Weshels, examiners anu
appraisers.