The evening times. [volume] (Washington, D.C.) 1895-1902, 1902-06-10
Outcome Of investigation
by Treasury Officials.
NEW YORK FIRMS INVOLVED
Secretary Shaw Appears to Have lad d
Hand in Ferreting Out the Ends Of
the Case-Hearing Postponed When
the Accused Are Arraigned.

. =
IRoseRthaI and Martin L. Coin. members
OF the firm Of a. s Rosenthal & Co. at
No. - Greene Street. were arrested yes
teTday afternoon by United States Mar
shat HenkeI and arraigned before United
/ States Commissioner Shields I7he ar
RESTS were made on a warrant procured
BY ". ,Wickham Smith. special deputy
attorney general of the United States.
who was appointed some months ago to
investigate the alleged silk frauds. Mr.
Smith and \. J DittenhoefeT. counsel
for the prisoners. were in Commissioner
Shields Office at the time of the ar
raignment-
The Examination Postponed.
An adjournment Of the examination
was agreed to. but Mr.. Smith asked to
have the prisoners held under S75. 500
/ bail each. or S25. GOO on each OF three
| complaints, while Mr. DitteThoefer con
tended that such bail would be excess
/ i've IN a case in which the amount al
! legged 70 have been lost to the Govern
ment did not exceed $4,000 After an
argument Commissioner Shields fixed
/
/ cepted Leo Schlessinger as their bonds
man. with the understanding that The
/ bail should be renewed by TWO SuTeties
today The TWO defendants seemed TO
/ treat their arrest as a joke until they
/ discovered that some newspaper artists
we're making sketches of them. Then
/ they covered their faces, and appealed
| to Commissioner Shields, who said that
| they need not feel alarmed, as they
never would be recognized by the
/ sketches
Nature of the Complaints.
The three complaints on which the
/ charge Of fraud is based mention three
shipments of silk to the firm in this
city One shipment was by G. Good
/ chaux & Co., at Lyons. France, invoiced
at $50 pounds, although the real weight
/ is alleged to have been AZ pounds. The
other two shipments we're made from
the branch house of J.. :. Rosenthal q
! Co.. at Yokohama. Japan. one inyoieed
at 3139 POUNDS, real weight ais
! pounds. and the other invoiced
at 1852 pounds and weighing ass
pounds 8 the last mentioned snip
ment it is alleged, the Government was
! cheated out OF 5000 in duties, on ac-
count o. ~ discrepancy in weight.
/ Mr. Smith saiG late in the afternoon
I that IN August Of last year Appraiser
Wakenan made charges against A. S.
! RosepthaI q Co, requesting the seizure
1 OF some CT the silks imported By the
/ firm. In the investigation that followed
/ Charles c. Browne, an appraiser of silks
+ in the public stores. was suspended
Ordered Goods Returned.
TDcn reDc-ts made bv General Bur
nett, United states district attorney, and
/ CoIec OF BidweT. Secretary Gage, in
I October, ordered the return of the
goods to the firm, and it was decided
that there was not sufficient evidence on
which 10 base Il prosecution Of the firm.
Mr.. Wakemar shc the Merchants Asso-
citation q y y York were persistent in
the demant - an Investigation. how
ever. and y Smith was appointed TO
make an investigation Nh Wakemap
3Ir. Smith satd, had aided in the investi-
cation. Tie Invoices Of thc firm for
many months were examined. and Mr.
Conn. - the firm. was called before Mr.
Smith and questioned IN the presence
Of his counsel On this. subject Mr.
Smith said:
q discovered to my own satisfaction
that this was net case Of mistake, but
that the defendants had conceived and
carried out az elaborate scheme to de-
fraud the revenues that they had been
carving il on for a lang period and
that the Government had lost large sums
Of money by reason Of these practices
there can be no doubt I viii lot under
take TO say how much tie Government
has lost but IL viii be found 10 be a
very large sum. The revenue was de-
frauded of sums ranging from $3.50 20
IS 600 on each shipment. and this firm
received at least one shipment a week
for the last three years.
The explanation offered by Mr.. COIN
to me would insult the intelligence of a
child. Mr.. RoseuthaI never appeared
before me. AID I never saw him before
today. but Mr.. COIN declared that the
mistakes had been made by japanese
employees OF theirs in Yokohama who
we're not familiar with jouC standard of
weights The explanation offered by him
as 10 the constant errors in the weight
and always underestimate, Mr.. Cohn
said. he could not understand himself"
The Evidence in the Case.
Did Collector Bidwen have before
him. or vas he able to get, the evidence
on which you have based your complaints
at the time he recommended the return
of the seized silks OF Rosenthal & Co.
and also recommended that the defend
ants be restored TO good standing in the
custom house, was asked.
Yes. he had access 10 the bulk Of it, -
was thu reply.
Does this proceeding practically vim
dictate former Appraiser Wakeman?''
There can be no doubt that the ap-
praiser's complaints were based upon
feet
When asked If the Government contem-
plated other arrests. Mr.. Smith declined
to answer. M. Ditdenhoefer said:
These charges are Unfounded. and to
say the least. are is-iviaL. We will ex-
plain 10 the satisfaC non Of everyone. as
we did to Secretary Gage and other
Treasury officials Including Mr.. O'Con-
nell. solicitor of the Treasury, and Gen
erai Burnett. that there is nothing in
the z. Sc TIE amount involved is small. |
OH. > GOO in one case. $50 and $3.50 in
the otter two.
1.-THE case" said General Burnett, ''is
entirely in the hands of Mr.. Smith. who |
has not only made the complaint. but
viii himself prCs--,te the defendants |
when they come u. TOR final hearing. I !
recommended last all that the charges |
eainst the deseHdaPts be dismissed. On /
the evidence Sci tied TO me at thar |
time il would have been impossible TO |