Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1902-06-30
SHAN' 5 CLEAN SWEEP
Dismissing Dishonest Officials
in the Customs Division OF
the Treasury.
New York Importers Permitted
to Evade Duties Held to
Answer.
Assistant Secretary Spaulding
and Thrifty Mr.. Scully Lose
Their Jobs.

New York, June 3O.-A clean SWEEP
in the customs division of the treas
ury department
General o. L. Spaulding, first assist
ant secretary of the treasury, has beer
definitely informed by Secretary Shaw
that he is to retire. He will probabl!
not again exercise the function of al
assistant secretary of the treasury, be
ing at the present time on a leave o.
absence.
4 General Spaulding has been in the
customs service for many years. He
is very expert official, knowing al
the intricate details of tariffs and theil
application.
His position placed him in charge OF
all of the intricate cases of disputed
duties, and he, as the head of the
custom division, opposed Wilbur +,
Wakeman, then appraiser at New
York. who contended that Rosenthal q
Co., importers of japanese silks, had
.
] amount of 100000 a year by means OF
] false invoices and incorrect rates. Cen
eral Spauding sustained the collector
of the port of New York, and was in
turn sustained by the underlings of the
collector, the solicitor of the treasury,
the United States district attorney In
New York, the chief of the special
agents and whole shoal of the smaller
fry.
In consequence of the decision OF
| General Spaulding the importers who
! were engaged in the deception on the
| government went even so far as to de-
mand of President Roosevelt the re-
| moval of Appraiser Wakeman, and
save for the fact that competitors of
the offending firm forced an investiga-
! ton and carried the facts to the presi-
dent entirely independent of the treas
ury officials the whole conspiracy would
have remained unexposed and Mr..
| Wakeman would have appeared in the
light of vexatious meddler.
t The action of the treasury depart
ment in terminating the service of
General Spaulding as assistant secre-
| tary will doubtless be followed by 9TH
err changes. Secretary Shaw has old
fashioned notions as to these matters,
and If the department of justice can
+ not find ground for prosecuting those
who were jointly responsible for what
amounted to almost miscarriage of
| justice, he is likely to endeavor to find
grounds for their removal
! Secretary Shaw is now In Chicago.
He and the president will doubtless
consider these matters, but the secre-
tary has not yet filled General Spauld-
Iing's place. 1t pays only $4,000 year,
so that it is difficult to get high-class
man for the position.
AS a result of the Investigations into
the frauds in Importation of japanese
silks at this port, proceedings may be
begun by the government against other
firms of importers in addition to the
firm of A. S. Rosenthal & Co, the men,
lbers of which are now under 100000 bail
each There was a report yesterday
that other importers are now under
suspicion and that an examination of
their invoices is being made. w. Wich-
am Smith who was appointed special
deputy assistant attorney general for
the purpose of examining and reporting
upon the charges involving the Rosen-
thai firm, admitted that he was extend
ing his examination in other directions.
Il am investigating" he said
"but have found no other evidence of
fraud. What / may find before l have
finished 1 shall not undertake at this
time to say"
There was to have been preliminary
examination of the Rosenthals before
Commissioner Shields yesterday, but it
was postponed until this afternoon at
the request of Judge Dittendorfer, who
was engaged in another case. 1t was
said yesterday that an attempt will be
made by the defense TO prove that the
Rosenthals did only what other i'm
rorters were in the habit Of doing, and
sensational disclosures are expected.
Francis J. Scully, for thirty three
years connected with the money ex-
change department at the immigrant
stations at Ellis Island, was summar-
ily removed by an order from Score
tary Shaw Friday. Mr.. Scully's con-
tract with the government did not ex-
pire until July 1, but after an investiga-
ton by Commissioner of immigration
William Williams, the latter wrote re-
ouest to the secretary that Mr.. Scully
be deposed.
In the statement submitted to the
secretary of the treasury Commissioner
Williams makes three distinct charges
against Mr.. Scully, basing them on the
fact that the contract says the holder
OF the privilege of exchanging immi-
grants foreign money at Ellis Island
agrees to exchange this money at the
rates current in reputable business
houses in New York City, except that
he may charge. in the case of pounds,
soyereigns and marks" u per cent in
excess of such rates; and in the case of
"gulden francs, lire and rubles," l per
cent. Furthermore, he is required to
post here the current rates from day to
day. and also to give to each immigrant
who exchanges money a written state
ment of the transaction.
Commissioner Williams claims that
lie suspected Irregularities in the con-
duct of the privilege, and summoned
Mr.. Scully for an investigation. Steno-
graphic notes We're taken of the testi-4
mony AS the Italian immigrants have
been the most numerous, the lire of that
country was the denomination under
discussion.
In closing his charges which were
sent to the secretary the commissioner
said: "Scully has been giving the i'm
migrants $4.S2 and $3.50 where he
ought to have been paying them $4.S4
and $3.50. 1t follows that he has been
charging more than double the amount
permitted by the contract. The same