The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1892-03-04
LET OFF With A fine.
Bernard Reiss Pays a Five Thou.
sand Dollar Fine.
Everybody, but Reuben A. Lloyd, Pleads 70,
Nercy-"Th Government Don't Pros
ecure Large Frauds"

Bernard Reiss pleaded guilty yesterday in
the United States District Court To the
charges of fraud made in an Indictment re-
| turned by Federal Grand Jury, and he
was sentenced to pay fne of S5000-the
| maximum pecuniary penalty.
The case has become notorious on &C
| count Of the extent of the frauds perpe-
trated. aud as the connivance of some Off
cial in the Custom-house was absolutely
| necessary to insure them success; also on
account of the negotiations for compromise
carried on between Reiss and the Treasury
Department. Rciss is partner in the firm
OF Neuberger, Reiss s. Co., and it was this
hrm that imported silks, velvets and WOOL
ems invoiced as crash, cotton goods, etc.
Last October the discovery was acct
| dentally made by the falling aud br eaking
| open OF case that goods consigned to Neu-
berger, Reiss d Co. were improperly in
voiced and that the mistake" was decid-
| ediy In favor OF the importer. That con-
Segment was seized as, were also the goods
! IN store at tile firms place of business on
Market street. As the Custom-house
searchers probed deeper into the consign-
| ments the number Of frauds increased
rapidly. For several weeks
THERE WERE LARGE CoNsIGNMENTS
Arriving by water and rail, and all were
duly held and examined. Most showed
frauds by which in each case the Govern
ment would have lost thousands of dollars
! IN the way OF duties.
linen Relss sent his lawyer to Washing
ton TO negotiate compromise. and after
the case had been hanging fire for
weeks and being evidently hard fought,
the amount agreed upon was in
c creased from $4,000. the first offer, TO
| $4,000. This amount was held in escro w
| pending the decision of the court Latteriy
the merchants and importers have made an
/ EFFORT 10 have Reiss tried criminally as well
as eiVilty, and it was by some expected that
Judge Morrow would sentence him TO i'm
prls2nmtnt as we'll as tihe him.
when Reiss appeared in court yesterday
!. was with henry Ach, of the law firm of
| Rothschlld 81 Ach, while the Government
was represented by United States District
Attorney Garter aud special counsel Reuben
A. Lloyd. Reiss, with the permission of
the court, was pat on the stand. and, in
response to questions he declared he had
| been III AIDED for some time, had suffered
| great mental anxiety, and was the father of
SIX mother!ess children, who depended
wholly upon him.
MIR. GARTER PRESENTED HIS SIDE
VI the case and asked the court to be lenient
! producing telegram from the Treas
ury Deia rtment and Attorney Gener al
| Miller making the same requests, OH the
around that the Government is satisfied with
/ OucftJ, anu tlat 1CelSS mas
| placed certain valuable information in the
hands Of the Treasury Department that is
| almost certain TO lead to other revelations.
Reuben A. Lloyd scored Reiss unmerci-
! fully and the Government more so, saying
| that ACKNOWLEDGEMENT Miller and other off,
| Gals are the creations of law and have not
| the power to condOne otfenses where in
| tended fraud is shown. He characterized
the $4,000 as part payment for the frauds
| perpetrated and sad that if the Govern
ment were to be fully paid the amount that
would change hands would reach up into the
| hundreds OF thousands. lie also scored
| Reiss for violating his oath when swearing
/ to invoices.
| Mir. Acb, in his clients defense. said that
| he had searched the government records
| thoroughly and found it never prosecuted
| where large frauds are found out, and that
only the small ones are prosecuted, the
others being compromised. Then ne added ::
| Don't those six mutheIiess children appeal
| to him (Mr. Lloyd? Dou't this mans
present condition appeal TO him? Has he
no understanding, no comprehension of
the awful suffering Mr.. Reiss has been
| thr0ugh?'
Judge Morrow, in a few well-chosen
| words, said that he ignored the fact of an
| open compromise, but he could not say that
of the preferred information. and that he
| thought il best for Justice that Reiss be not
| imprisoned. He then fined him 5000 and
costs. The money was soon paid.