Evening star., 1894-03-06
OPPORTUNITIES FOR FRAUD
In the Present Loose Way of Auditing
Custom Accounts
Reasons by the Dockery Commission
Tor Aboltshing the Customs Bureau
of the Treasury Department.

Ihe Forthcoming report of the Dockery
JOINT commission recommending the aboli-
ton or the office and bureau of tie COM
missioner OF customs will show that op-
portunitfes have existed for extensive Gus
toms frauds. The commission has con-
cluded that the customs bureau is a fifth
Wheel of the treasury, as its work of
auditing customs accounts is a duplica tion
of the same auditing by other branches Of
the treasury And yet il has been found
that with this duplication of work and this
fifth Wheel the customs accounts of Chi
cago, Cleveland, Buffalo, Detroit, Calves
ton. Ell Paso and other border points have
failed to be properly audited. In the ag-
gregate the customs receipts Of these cities
amount to many millions, those of Chicago
alone amounting TO over 5000 900 annuaIIy
But these accounts have never been passed
upon by an auditor in the manner large
accounts are usually scrutinized. There
has been nothing further than the Integrity
or the collectors of customs at these point IS
TO insure the government in receiving full
returns or all sums collected from cus-
.oins. Inc commission has not found that
any actual Irregularities have occurred as
result of these loose laws, but they will
report that the opportunity exists for ey
IRENE irregularities This opportunity has
eAisteu Ai" Ior years SO that the honesty of
collectors OF customs at Chicago and else
where is the only guaranty that the gov,
eminent has received all it was entitled "a
Loose Manner of Doing business.
The loose manner of doing business has
not been due to any inattention in the
Treasury Department, but is the re.ul, ~
the existing laws governing the audit of
customs accounts. These have established
an auditing officer technically known as
naval officer of the port" at Boston New
iork' Philadelphia, Baltimore, New Or
Ernn
had no naval duties. but has been charged
with carefully auditing the customs re-
celpts OF these large ports 1t has insured
con eonpiete protection to the government in
tne accounts from these sources. But the
law has confined these auditing officers "a
the SIX ports mentioned, and no provision
mas ever been made for a like auditing OF
reports from Chicago and the MANY oYbor
customs ports outside of the six Designated
As result of this omission the customs
collectors at Chicago and other border norris
nave forwarded their reports and collec-
tions to the Treasury Department with
copies of the papers in each account. rhe
treasury officials passed on the papers as
the collectors submitted them. There was
no means OF checking them with the oriyi-
nal papers. The word of the collector had
to be taken that the papers were regular r
His return that 81 900 wa, collected on |,
particular import of goods had 10 be sc.
cepted without an examination which would
disclose conclusively that 81, loo was the
amount collected. 1t was readily within
the power OF INSCRIPTIONS employees to fall
sify the papers sent to Washington and
yet no means has ever existed here for de-
tecting or even suspecting these falsifica.
tions, IL any ever existed. The accounts OF
these ports. covering many years, stand as
they were first submitted, without any
means of establishing their correctness
The Change Proposed.
The Dockery commission will now propose
change Of the law by which the commits
sioner Of customs will pass out of existence
and the first auditor of the treasury will
hereafter audit all customs accounts. Chi
cago and other cities will thereafter be
brought into the system by which each col
lection is audited and verified from the
original papers. No additional naval officers
will be authorized, but the customs collec-
tors will be required hereafter to submit
the original papers, invoices, etc. I'm order
that the treasury may audit from Original Is
instead of from copies. Considering the
vast sums which have gone unaudited for
years the loose manner OF accounting is a
matter of much surprise to veteran govern
ment accountants.