The sun. [volume] (New York [N.Y.]) 1833-1916, 1902-11-25
HOUSE INQUIRY IN SILK CASES
JCDICTiRf COMMITTEE no LOOK
INTO the PROCEDlRE.
a. =. Rosen'hsi a. TO-. Prosecuted b,
special Deputy tttorne, .Gcncrai
, AFTER ENoneratiOn by Constituted
: Officials, Lay u To Business Rivals.

is.
The Judiciary Committee Of the House
OF Rcpresen ativcs j. TO he asked. through
q pc ition to the House which /, is undcr-
stood viii ne regarded. 10 make an invcsti-
CATION in Decembcr or January Of the
methods emuloycd In New York city to
prosecute 4. \. Rosenthal & Co. for alleged
fraud IN The importations of Japanese
silks. Tie Judiciary Committee is not To
inquire into the guilt or innocence of the
hrm. hut Is 10 make an investigation of
an alleged violation OF legal procedure
This Rosenthal case has been driving
along for nearly two wears. II was the
subject Of controversy when George x.
Bidw"ll was Collector Of the Port and vii
bur + Wakeman Appraiser The charge
against the firm was that he weights of
tho silks imported by them were stated in
correctly in their invoices. and that on the
weighing Of these silks in the Appraisers
department "A greater weight was found
than that stated in the invoice The men,
hers of the firm, Abrp ham :. Eoscnthal
and Martin l.. Cohn. are now under arrest
charged with an attempt 10 dcfraud tho
Government by collision with a Govern
ment employee. Commissioner Shields iS-
sued the warrants against Rosenthal and
Cohn. The United States Grand Jury is
now in session and the case may come up
before the United States Circuit Court in
December.
Mr.. Wakeman, when appraiser. charged
tile firm with underweghing their silks.
Mr. Bidwell. when Collector, dismissed the
charge on the ground that there was no
evidence to sustain it. The dispute be-
came so intense that Lyman J. Gage, then
Secretary of the Treasury, directed the
United States District Attorney. Henry L.
Burnett, 70 make an exhaustive inve-ti-
cation and report to the Secretary of the
Treasury. Gen. Burnett in n long report
20 Secretary Gage cAon"rated the firm.
Secretary Gage on Dec. ). 1891, wr' - to
the firm as follows:
No evidence of couson between YOUR
selves and the employees Of the Appraiser
has reached the Department, and there
seems TO be no good ground for insttuting
any further inquiry touching your In
portation.
Appraiser Wakeman was not sati- fled with
The decisions of Secretary Gage Gen. Bur
nett and Collector Bdwell He induced
President Roosevelt to appoint W WicK-
ham Smith. attorney for the Merchants
Association of New York. to make an in
vestigatinn. Mr.. Smith acted H. tire ca
Tacity of a special Treasury agent. His
report was adverse 10 A :. RpSenthal 4
that the firm had defraudcd the Govern
ment. 10y underweighrg their silks. Here
WIS an odd situation. The Secretary OF
the Treasury and the United States Dis
trict Attorney and the Collector had de-
clared tho firm 10 hc in occnt Mr. Smith
pronounced them guilty and III view Of that
situation how was the Government 10 prose-
cutei That is just where the House Jul
dietary Committee is to start It's inyestiga-
ton
The official prosecutor for the Govern.
ment, Gen. Burnett could not undertake
Proceedings before the Grand Jury or
before The United States Circuit Court be-
cause lie had officially declared the firm
10 be innocent. The House Committee
is TO investigate how the present prosecu-
ton against the firm was brought about
il is being conducted before the United
States Grand jury by Mr.. Smith, who was
appointed a Deputy Attorney-Gereral by |
Attorney General Knox The House Com
mittee is 10 inquire into allegations that |
Leroy Dresser, President of the Merchants |
Association, who trades in the same class |
Of Japanese silks a. Rosenthal Co.. with |
Mr.. Wakeman secured n reopening Of the |
case and secured the appointment of Mr.. |
Smitn n, al torney for the Merchants Assoc
citation. to be a Deputy Acknowledgement |
90 prosecute Roserthal & Go.
There Is no fund a Washington with |
which to paw Mr.. Smith .or his services |
as Deputy Attorney-General lie is to be
paid from a fund which, IL is alleged, has |
been raised by the business rivals Of A. =
Rosenthal Go. Mr.. Smith docs not deny |
this state nent and neither do the officers |
of the Ne. chants Association. The House |
Judiciary Committee is 10 investigate an |
allcgat ion that this fund was raised by |
Harry y. Lockwood Of the Merchants |
Association with the knowledge Of Mr. |
Dresser and William r. Corwine. at that |
time secretary Of the Merchants Assoc
claton
A. :. Rosenthal 4 Co. make the following
statement:
The public, from exaggerated reports,
has not been made aware Of the fact that |
every dollar c' duty was paid in due time |
on the three cases Of japanese silks on
which We were arraigned before Com
missioner Shields The Governmen, has |
not suffered any injury whatever, assuming
that the mistakes IN the statements Of |
weight ~ these invoices were intentional,
but there was not a particle of evidence
presented before the Commissioner that
there was any intent on the part Of anV
one 70 make such nisst a, oments, and the
fact Is, there was no such intent. and the
case rested on the laid fact that there was
such a discrepancy. Why them are We being
Prosecuted when the Government has not |
lost cent and wear after all payments
have been madeI The fact tina, Mr. Wick
ham Smith IL receiving his pay. concedodly
not from the Government, but from private
parties, many of them our rivals in business,
may account for this. We nave n list of |
from forty 10 FIFTY names 81 leading impor-
tcrs in this city whose weights were wrongly |
n ed in the invoices with more frequency
and to greater degree in many inst ancee
than the miss atcmentS in the Rosentha
invoices IN not one of these cases did Mr. |
Wakeman make n report that fraud was
Intended. Mr.. Smith, on a hearing before
him. admitted that he had in his possession
an official list showing the discrepancies
OF such other merchants, but no attempt |
has been made 10 investigate or prosecute
them. We are informed tha some of these
merchants are his clients"
The House Judiciary Committee, how
ever, is not TO take up the guilt or innocence
OF Rosenthal x Co. II is TO make an ex-
haustive inquiry as TO the alleged violation
OF legal procedure in the appointment of
Mr.. Smith TO be a Deputy Attorney.General
when he Is paid, not by the Government,
but by business rivals of the firm he il
nrosac,uinp |