Evening star. [volume] (Washington, D.C.) 1854-1972, 1894-11-17
TO PREVENT FRAUDS
Annual Report Of the Treasury Chief
Special Agent.
UNDERVALUATION LARGELY CHECKED
Many indictments Secured on Ac.
count of Opium Smuggling.
UNLAWFUL CHINESE ENTRY

Chief Special Agent Crowley has made q
report to Secretary Carlisle in regard to
the operations for the prevention of frauds
upon the revenue during the past fiscal
year. He says that the work of the officers
of the special agents division has resulted
| in the payment into the treasury of a
large amount of money which otherwise
would not have been received 1.-The pres
ence at unexpected times of officers at ex-
posed places on the frontier and on the
coasts" he says, has deferred smugglers
from plying their vocation and has COM
PEELED observance of lawful methods. The
special officer in the performance Of his
duty frequently has obstacles to contend
with, not the least of which is an adverse
public sentiment, particularly noticeable at
many frontier settlements where the per-
petration of frauds upon the revenue is not
looked upon as evidencing any great turpi-
tude. In many instances where seizures
| and arrests have been made, the persons
implicated have escaped merited punish
ment on mere technicalities. In other cases
violations OF the laws reported by special
officers have been compromised on reports
from collectors of customs recommending
such action, and owners of goods have been
permitted to pay fines equal i'll amount to
the duties. 1t is probable that in some in
stances these recommendations have been
made without a thorough and personal in
vestigation Of the facts, and upon repre-
sensations by interested parties. / respect
| fully suggest that collectors be instructed
to examine each case closely before recon-
mending compromise"
Defrauded by CoIIusion.
Mr.. Crowley says that the examination
of customs districts has formed no incon-
siderable portion of the work of the agents
during the year. New officers have been
instructed in the performance Of their
duties. and many irregularities in the ad-
ministration of the customs corrected. In
the examination at one port 1t was discov-
cred that by collision between the store
Keeper and proprietor of a bonded ware
house the government had been defrauded
or large amount of duty Nearly $4,000
were turned into the treasury as a result
of this discovery
lie says that the force of special agents
IN Europe has been strengthened material
ly during the past year and with good
results. They have been &c lively employed
IN IN the Investigation of irregular practices
In the preparation of invoices covering n
great variety of goods shipped to the
United States. AS a result of their labors
the differentiation of merchandise has
been largely checked. n seizure of $4,000
worth of JoWelry was made on information
obtained BY one Of the officers under the
direction of this division. Important in
designations, not yet concluded, were in
correcting fraudulent practices in the Ship
inent TO this country of wooden dress goods
II om Germany and France. The evil re-
suits of the so-called consignment system
by means OF which importations We're in
voiced at the cost to produce ra her than
at the market value. and the revenue
thereby defrauded, have been somewhat
lessencd.
Statements of the business of the CHS
toms ports are submitted, as showing
apuhdans evidence that there is no CON-
mercial necessity for the continuance. Of
custom house establishments at MANY
places. Mr.. Crowley says he is Convince,
that reorganization of the custom sery-
Ice would secure better administration and
effect a considerable reduction in expenses
He says that there Is abundant oppor-
tunity for the preparation of frauds on
the revenue. not only through the irregu-
lar introduction OF opium, but of mer-
chandise of a general character from Mex
ico by reason of the continuance of the
so-cailed IONA Libra. He suggests that
the matter be referred to the Secretary of
State with view to the submission of
the question of its unfriendly effect on
American interests to the Mexican gov
ernment.
Opium Smuggling.
In closing his report he makes the fol-
lowing remarks on the subjects of opium
smuggling and Chinese immigration:
In the latter part of the preceding fiscal
year an investigation of alleged methods OF
smuggling Chinese and opium was begun
by officers of this division in the states of
Oregon and Washington This work was
continued with the result that a special
grand jury was called at Portland, Ore.
July 10, 1893 and on July -, following. in
dlctmentS were found against twenty-seyen
persons, including an eX-colector of GUS
toms and a former officer of this force In
October, 1893, another grand jury found adj
ditional indictments. making a total of
about forty persons charged with con-
spracy to illegally import Chinese laborers
end prepared opium The extent of the
fraud discovered was SO great that 1T was
deemed wise to employ special counsel to
assist the United States attorney, and at
the trials IT was established that over 500
Chinese laborers and 10000 pounds of
opium had been smuggled into Portland
Ore, from British Columbia in a period of
less than twelve months. Seven of the
leading smugglers pleaded guilty and three
others We're convicted. Two of the latter
have appealed their cases to the United
States Supreme Court. The proprietors OF
steamship company We're among the num-
Der, as well as an ex-special agent A de-
cree of forfeiture i'm the case of the steam
ship Haytien Republic was entered, and
II has since been sold by United States
marshal. The action of the officers of this
quent judgment of the grand Juries. trial
jdries and by the court, which has refused
new trials in each case where convictions
were secured.
The Chinese Exclusion Laws.
strenuous efforts have been made during
the year by inspectors appointed to aid in
the enforcement of the exclusion laws TO
prevent the unlawful admission of Chinese
into the country, and to secure the arrest
and deportation of Chinese who may have
come in by fraudulent means.
I'm many instances after weeks of unre-
hitting labor in the effort to convict per-
for So h. 49,, l..r
been discharged from custody on testimony
that they were members of firms OF Chinese
merchants. AS an evidence of the worth
lessness Of such testimony II may be stated
that in one instance firm of so-callcd
merchants has ninety-six members, and the
value of the stock in trade is by no means
commensurate with the size of the firm.
1t is a common practice among the Chinese
laundrymen, who desire to leave the United
States and return thereto, to invest 800,
sometimes less. in the business OF small