New-York tribune., 1902-06-10
TWO SILK MEN ARRESTED
WA KE.NAN ACCUSED THEM OF
FRAUD LAST AUGUST.
" WICKHAM SMITH DECLARES GOV
FRNMENT HAS LOST LARGE SUN
IN IMPoRTATIONS FROM JAPAN.

On the charge Of defrauding the government
in the importation of Japanese silks, Abraham
6 Rosentfal and Martin I. Cohn, members of
the firm of A. S. Rosenthal & Co, at No. 10
Greene-st were arrested yesterday afternoon
nv United States Marshal Henkel and arralgned
before United States Commissioner Shields The
arrests were made on a warrant procured by w.
wickham Smith, Special Deputy Attorney Gen
eral of the United States. who was appointed
some months ago to investigate the alleged silk
frauds Mr. Smith and a. ]. Dittenhoefer, coun-
-.l sor the prisoners were in Commissioner
cb,elds's office at the time of the arraignnent
An adjournment Of the examination was
ov-eed TO- hut Mr.. Smith asked to have the
Dris7ners held under $4,000 bail each. or $4,000
on each of three complaints. while Mr.. Ditten-
,,oafar contended that such bail would be ex-
,essiye in a case in which the amount alleged to
have been lost 10 the government did not ex-
coed $4,000 After argument Commissioner
Shields fixed bail for each prisoner in $4,000
He accepted Leo Schlessinger as their bonds
man with the understanding that the bail
eho5,Id be renewed by two sureties to-day The
+wo defendants seemed to treat their arrest as
= ioke until they discovered that some news
naper artists were 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 recog-
nzed by the sketches.
The three complaints on which the charge OF
-raud is based mention three shipments of silk to
the firm in this city. One shipment was by e.
C;oudchaux & Co., at Lyons, France. invoiced at
$50 pounds, although the real weight is alleged
10 have been AT pounds The other two ship
r1ents were made from the branch house of A
: Rosenthai & Co, at Yokohama. Japan, one
invoiced ar 3139 pounds real weight 3,716
rounds. and the other invoiced at 3,552 pounds
and weighing 4,52S pounds By the last men
toned shipment it is alleged. the government
Was cheated out C $1,000 in duties, on account
OF the discrepancy in weight
Mr. Smith said late in the afternoon that in
August Of last year Appraiser Wakeman made
charges against A S. Rosenthal & Co. request
ing the seizure Of some Of the silks imported by
the firm In the investigation that followed
Charles c. Browne, appraiser Of silks in the
Puhlic Stores was suspended Upon reports
made bv General Burnett. United States District
Attorney and Collector BidweIl Secretary Gage
In October ordered the return Of the goods 10
the firm. and it was decided that there was not
sufficient evidence on which to base prosecution
Of the firm Mr. Wakeman and the Merchants
Association of New-York were persistent in the
demand for an Investigation, however, and MI
smith was appointed to make the investigation
Mr. Wakernan, MI Smith said, had aided in the
rnoufbs were examined. and Mr- Cohn. of the
firm WAS called before Mr.. Smith and ques-
toned in the presence Of his counsel. On this
subject Mr.. Smith said:
discovered 10 my ction that this was
ro csse of mistake, but that the defendants had
Conceived and carried out elaborate scheme TO
5efrsud The revenues: that they had been carrying
II an for long period and that the government had
LOST large sums money by reason OF these prac-
rir1s there can doubt viii not undertake
n sav how much the government has lost but Il
RfIl he found he a very large sum Inc reFSIlus
defrauded OF sums ranging from SZoe 70 Sovoo
on each shprneut and this firm received at least
me shiprnert a week for the last three years. -
The exclamation offered by MIR. Conn TO me Woulo
insult the Intelligence Of child MI RoSenthaI
never sDpeared before me, and / never saw him
before to-day. Mr. Cohn declared that the mis-.
theirs in Yokohama who not familiar with
cur standard Of weights The explanation offered
ns him as to the constant errors IN the weight,
nd always underestimated, Mr.. Cohn saio he could
NOT understand himself.
Did Collector Bidwen have before him, or was
he able to get the evidence on which you have
based your complaints at the time he recon-
rnended the return of the seized silks of Rosen-
thai G. Co, and also recommended that the de-
PENDANTS be restored to good standing in the
Custom House, was asked
Yes he had access TO the bulk of it. - was the
reply
Does this proceeding practically vindicate
former Appraiser Waken12n?"
There can be doubt that the Appraisers
complaints were based upon fact