The evening world., 1893-12-21
k|lBRETH DENIES FRAUDS,
He Says the Story of Tobacco Re-
bate Steal Is Visionary,
Only S7,17s.48 Has Been Refunded
by the Custom-House.

at IL entirely visionary" Ia the name
In which Collector Kilbreth charactcrizes
the announcement from Washington OF
the unearthing of a million dollar fraud
in the Custom-House here. The announce
mcnt was to the effect that "A special
agent from the Treasury Department had
been working here for some time. and in
his detailed report showed that the Gov
m had been defraudcd out OF 81 ,000,-
900 in the refunding OF tobacco rebates.
1t alsa charged the New York Customs
officials with gross negligence. The pc
riod covered extended from 1885 to the
present time.
The news was n shock at the Custom
House. This finally gave way to indig-
nation.
Charles Crawford. the refund clerk.
who has been at the head of the bureau
for the past twenty-five years, went over
his books He showed that the amount re-
funded on tobacco rebates during the
last twenty years, was exactly N,l7s.i6.
This had all been paid since June ~, 1898.
Under the old law all baled tobacco
was regarded as a unit. IL the contents
OF a bale averaged 30 per cent. OF pure
tobacco. a duty Of 10 per cent. was paid.
" the average was less, the duty was set
at IS per cent.
In 1855 the Secretary Of the Treasury
decided that pro rata duty SHOULD be col,
lected. The importers protested and
carried the matter TO the courts. In de.
Gliding the Blumlein case the Court Of
Appeals ruled against the Government.
out by the Department June y, 1898.
WHAT rebates have been allowed were
based upon this decision.
Rebates on hat trimmings were sus-
npndph nv Sarratnry Enatpr
The story OF the alleged frauds evil
IDENTIFY arose from the fact that a clerk
named koehler, from the Customs
days ago TO gather Information concern
Ing the system adopted at the Custom
House here In tobacco rebates. No re-
principle laid down in the decision in
the Schlestnger case, as yet. What this
decision amounts to Is not even known
by the officials in this city.
Deputy Collector Phelps, head of the
Ninth Division, better known as the law
division. wrote the Secretary OF the
treasury a week x concerning the
Schlesinger decision. but has received no
The statement that | have been in
correspondence with the Department at
Washington concerning any fraud in the
rebates OF tobacco is absolutely false"
World" reporter. I'VE are In CORE,
spondence with the Department daily on
NJ lllh u SuDJttlf, Dut t1lS ms never
been one OF them"
The system adopted in refunding rc-
bates In all cases compels the filing OF a
Custom-House to the Naval Office,
then to Washington. The figures are
gone over carefully Mt cach office. and a
check for the gross amount Is sent to
the Collector.
II any fraud existed the chances are
IN favor OF II being detected before the
payment by the Collector.
United States District-Attorney Mitchell
emphatically denied that he had been
in correspondence with the Treasury
frauds.
WASHINGTON. d. c.. Dec. 2l.-A
prominent official OF the Treasury De-
partment to-day in speaking Of the al
legged Irregularities In the refunds Of
duty in the, New York Custom-House.
that although. there was suspicion enter,
tanned that fraud had been committed
that such was the case.
II has been found. he said. that the
practice of the New York Cupstom- House
In making certified statements OF refund
had been loose and unsatisfactory and
that the doors were open for frauds to
be committed.
This loose system had been discovered
by a clerk In the Treasury Department.
who had long experience in handling these
classes OF matter, and as a result OF his
statements he had been sent to New
York to make a thorough examination.
His report on the subject was now be-
fore the Department. and a thorough in
~vestigation was In progress.