The Providence news. (Providence [R.I.]) 1891-1906, 1902-06-11
FRAUDS WERE
EXTENSIVE.
II Is Claimed the Government
Was Cheated Out Of Millions.
ARREST OF SILK DEALERS.
ills Alleged Deception Was Due 10 FaIss
Weights In the Invoice
Returns.
ARREST OF SILK DEALERS.

New York June u.--Abraham S. Rosen-
thai and Martin l.. Cohn. of the firm of
"A. S. Rosenthal & Co, OF Nos. 43 and 40
Greene street, the most extensive impor-
ters of Japanese silks In America, were
arrested yesterday afternoon, charged
with having made fraudulent entries OF
silk and cotton goods.
This came as a climax 10 the investi-
cation which has been in progress for
several years. W. Wickham Smith. spe-
cial assistant attorney general. appointed
for the work OF investigating charges of
frauds, caused the warrants to be issued.
The men were taken before Commissioner
Shields In the postoffice building. accom-
panied by their counsel, ex-Judge Often
hoefer. and Leo Schlessinger. president of
the Traders and Importers bank They
were arraigned on three specific COM
plants. each sworn to by Mr.. Smith.
BAIL $4,000 EACH.
Ex-Judge Dittenhoefer said he was not
ready FOR an immediate hearing and ask
ed that bail be fixed. Lawyer Smith said
the bal ought TO be $4,000 on each Of the
three charges. Lawyer Dittenhoefer said
mat sum was excessive. Commissioners
Shields finally fixed the bail at $4,000 on
each OF the charges. making a total OF
$4,000 for each man. Mr. Schlessinger
gave the bonds and the men were lib
Grated. The bonds must be renewed with
on additional surety.
Mr.. Rosenthal saw that he was being
sketehed by newspaper artist. and he
ana Mr.. Cohn protested loudly. Commits
sioner Shields said his court room was a
public place, and he could not prevent the
artist from doing his work. AS the de-
PENDANTS left the court room they held
handkerchiefs to their faces, hoping to
foil the artists.
FRAUDS ON THE GOVERNMENT.
The three charges against the defend
ants are:
First-That on July l6, 1901. fifteen cases
OF Japanese silks were received by the
firm OF A. 5. Rosenthal * Co. from Yo-
kohama invoiced at 3S0,O24 mommes, or
SlSs pounds. while the real weight was
37l6 pounds.
second-That the firm received from G..
Goudchaux. OF Lyons, France, three cases
OF Japanese silks recorded at 1928 hlo.
grams, or $50 pounds, while the real
weight was Az pounds.
Third-TPat thirty-four cases of silk
known as Kaikis were received from Yo-
kohama by the firm recorded as weigh
Ing S952 pounds. while the real weight
"rhese are only n bagatelle," said Spe-
cial Assistant Attorney General Smith
My investigation has proved TO me that
tho invoic ~ OF this firm alone will SHOW
that the government has been defrauded
out OF hundreds OF thouse nds OF dollars
during the past three years. These men
asked Tor nearing Defore me ana
granted It, They admitted that there was
a discrepancy In the weights, but said
that IL must have been due 10 a mistake
made by the Japanese shippers. / con-
tinued my investigation and found that
the goods had been shipped by the firm 3
own branch office at Yokohama Then
they offered excuses which would insult
the intelligence of a child"
CHARGE OF LONG STANDING.
The charge against the firm of A. s.
Rosenthal a. Co is not new one. APP
praiser Wakeman made II year ago.
Nothing came OF Il at the time. although
Appraiser Wakeman brought charges
against Examaner G. G. Browne. whose
duty II was 10 inspect the receipts Of silk
goods and gee that the weights tailed
with the weighs recorded in the invoices,
Examiner Browne was SUSPENDED, aud hi :
fate viii be decided by the outcome of
the special investigation of Mr.. Smith.
II will not attempt 10 say how much
has been stolen from the government by
these silk frauds" said Special Assistant
Attorney General Smith yesterday. but
know from the invoices have examined
that tho amounts run from $3.50 TO $1,000 on
each shipment. and the shipments were
being made once week. A. s. Rosen-
thai e. Co.'S imrortations OF japanese
silks amount 10 millions n year"