The evening world., 1895-08-30
BROKERS TABOOEO.
Des Brisay & Allen to L Sc
Custom-House Business.
Accused Of Making Fictitious
Claims for Drawbacks.
One Of Uncle Sans Clerks Said tt
BE Involved.

Collector Kilbreth said to-day he
would debar the firm Of Des Brsay &
Allen, the Custom House brokers, who
are charged with making fictitious
claims for drawbacks, from transactine
business in the Custom-H House after this
years license expired on Sept s.
Col. Phelps, Of the Law Division OF
the Custom House, believes still greater
figures than those already published
will be shown before the investigation
IS concluded.
I'VE have no doubt Of the firm s
guilt" he said. THE altered entries and
the changes recorded in the Custom
House books clearly show collusion be-
tween the brokerage firm and some
clerk In the Custom ouse We already
know who that clerk Is. but Will not
make his name public until the investi-
cation is over. The firm making the fic-
titious claim will be prosecuted cr!mi-
nally."
Mr.. Harrie s. Des Brisay. head Of the
accused firm, made the following state
ment to-day:
"A preliminary entry is required to
be filed at the Custom House six hours,
dt ltdst, pcIoic soouS arc ldueII oll al
exporting Vessel. The statement that
this entry must be filed forty-eight
hours previous to landing is erroneous.
A preliminary entry is practically value
less. except as a means of notifying the
Custom-House that a shipment Is In
tended to be made on which drawback
may be claimed. Money is not paid on
preliminary entry. 1t is not until the
shipment has been made and proof sub
mitted of the shipper being entitled
to drawback that the Govern
ment pays the claim. In the vast ma
jority of cases It is absolutely impossi-
BILE to state definitely at the time the
export Is intended to be made just the
amount and number Of packages in
tended to be claimed on.
New York has such large shipping
interests and business is done on such
short notice. that the advantages OF
the preliminary system are ap-
preciated by all who are famil-
lar with the details OF exporting
business. No regulations OF a depart
ment, of course, can control the con-
struction Of any act Of Congress when
its meaning is plain. Preliminary en-
tries are passed merely under regula-
tions Of the Secretary Of the Treasury;
therefore they are not the law.
1.-The law on the subject Of drawbacks,
section % of the Tariff act Of Aug. %.
1894. distinctively defines this point. 1t
says, in the closing paragraph, that
drawback shall be paid under such reg
ulations as the Secretary of the Treas
ury shall prescribe. One Of these pre-
scrlptions is the use of preliminary en-
tries
toms officials here say no blame can at
tach to the Collector or Naval officer.
as the papers would look regular, and
they could have no means Of knowing
that the brokers had subsequent access
to the preliminary entry papers. AS a
would be due il the preliminary entry
had been so made that, as one Of the
Treasury officials expressed it, the Gov
ernment has lost nothing except the
pretext to keep money in the Treasury"
But the irregularities, of course, are
punishable w. Witzel, Acting Chief of
the Customs Division, says fraud In
connection with the drawback system
Is exceedingly rare, as the system Is
hedged about very carefully.