The sun. [volume] (New York [N.Y.]) 1833-1916, 1893-12-21
CUSTOM HOUSE FRAUDS.
ILLEGAL T0B4CCO REFUNDS HERE
AMOUNTING TO sf,0OO,O00.
trimming Cases to the Amount, u IL said,
of Many Hundred Thon-snds OF Dollars.


Fraudulent Refunds Also Made In the Hat
trimming Casrs to the Amount, it IL said,
OF Many Hundred Thousands OF Dollars.
WASHINGTON. Dec. 20.-Gross Irregularities
amounting to millions are stated to have been
discovered in the New York Custom House by
special agent OF the department recently do
tailed to mako an investigation. His report,
which is elaborate as TO detail. has
been laid before Secretary Carlisle. and was
to-day the subject OF several hours discus
sion between him and ssistantS retary Ham,
lin. In charge OF customs matters In the Treas
ury Department The report refers princi-
pally to tobacco refunds, In which the irregu-
larities nro alleged to havo occurred. The
amount involved is stated hs hilh as u .UCO.-
900. and gross negligence or worse Is charged
against New York Custom House officials.
The period covered by the alleged fraudu-
lent refund on tobacco importatlons is from
1888 to the present time. The principles laid
down in the case OF the United States agt.
Schlesng ger as 10 tobacco refund have been
the basis on which all proper refunds have
been made. These principles it is sad have
been departed from and refunds allowed. ille-
gally and wronelully.
While the report deals specifically with the
tobacco refund. it also touches upon refunds
is alleged that refunds amounting to
many hundred thousands OF dollars
have beon illegally and connivingy
made. These cases have recently been
the subject OF correspondence between
the Treasury Department and Collector
Kibreth at New York. and United States Dis
trict Attorney Mitchell Of New York. The
matter Is deemed Of the utmost importance In
the Treasury Department. and close reticence
has been observed In regard to it.
Secretary Carlisle and Assistant Secretary
Hamlin late this evening declined to discuss
the matter. but as a result OF this special re-
port it is assorted at the Treasury Depart
ment that there will DO an immediate and
York Custom House.
Collector Kilhreth has already selzcd forty
three bales Of Havana toll acco on the charge
that tho importers classified 1t as filters. which
are dutlahle at thirty-flve cents a pound,
whereas. on investigetlrn. the tobacco turned
The N en- S ers u The FaiTehiid custom House
investigating commission. have performed
testimony Of the tobacco frauds
=. There has been some criticism hero in New
York over The dilatory stepSS on the part 81 the
frauds were part Of the burdens OF Daniel Ma
gone when he was Collector of the Port He
who were charged with collision. and they
we're removed, only to be rcappointed on
the advfnt e the Harrison aamnt
disturbed since the advent OF the pres
ent Treasury officials 10 charge Of the
department One or two have boon trans
ferred from place to place in the Appraisers
Stores, and tho comment il daily heard that
they should not have been so charitably dealt
with. but should have been hummnrily dis
missed on their records during Mr.. Nngones
time All these frauds. including the hat
trim ming refunds. are exhaustivsy dealt with
in tina report that the Fairchild CommissiU
has inst forwarded tn WASHINGTON.
Ii was the universal com ment OF Custom
House people last night that the Treasury De-
par.insnt officials In Washiug ton have shot
ahead In the right direction since the retire.
ment of \. H.. Jingle. chief II tho Treasury
agents Mr.. Tingle went out Of the ser
vice on saturday, and tho customs officials
said last night TINT many thing s that had been
hung up for months were now In n fair way TO
be unravelled. Indeed. it was added. Coll
lector Kiltreth has already heen requested to
take steps toward untanrlinG many things
that have been pigeonholed in the office OF the
Treasury agents in Washington.