New-York tribune., 1902-01-09
BIG LOSER
DEFRA UDED OF MILLIONS BY
CONGRATULATIONS HERE.
WAKEMAN TO ASSIST IN
PROSECUTION OF JAPANESE
SILK CASES.

/ An idea Of the stupendous sums of money that
| ae government has lost for some years by false
invoices in the customs service was obtained
yesterday. And il is thought that every one Of
( hese false invoices was wilfully made. 1t has
i been rumored from time 10 time that these
| frauds had cost the government a small fortune
each year but il did not become publicly known
/ unt.l yesterday that the government has been
defrauded in this manner for some years Of
shout 81, $4,000 a year. At least that is what
he facts in hand indicate. and IT is thought
nat a thorough examination Of the subject may
well the sum considerably. The prosecution Of
& case relating to the differentiation of Japan
ss SILKS IS about to-be begun.
WAKEMAN TO AID. PROSECUTION
Wilbur F. Wakeman. ex-Appraiser Of the
Port, returned to this city yesterday from Wash
hgton. While in Washington he visited the
White House at the Presidents invitation, and
bad talk with Mr.. Roosevelt about the prose-
udon Of the japanese silk fraud cases. At
rney General Knox was present. AS result
this conference Mr.. Wakeman was asked TO
Esst in prosecuting the cases. He said he
EOud willingly give his services gratuitousy.
as will. therefore, take part in the prosecution.
Nr Wakeman was asked yesterday at his
lone here for details Of the case to be prosecuted.
]
I'm TO talk on the subject for publication. as
AEas 10 assist the representatives of the gov
sHmsnt so far as he was able. When asked
Ehst the government had lost through certain
haEis discovered IN the customs service Mr.
Eaksman said. with much emphasis: In my
Adgment the government has been defrauded
I Of al least 100000 a year in connection
Fa lie Importation of japanese silks, and in
will of sfTr1iIa cl7ar
Oaltinent, including silk hatbands. etc, the
sosrnant has been defrauded of nearly $780,
@syar"
The JAPANESE SILK FRAUDS.
twas learned that the frauds in the mporta-
japanese silks extended over a period Of
ssst ten years and that the total sum the
's'nment had lost IN duties this line of
@s was more than ss,0G0O0O, and perhaps
= as many million dollars on goods Of similar
-iacter from the Continent
Hcklam Smith, an expert on customs
NA ard S. Cristy Mead. assistant secretary of
Aerehants' Association. left this city yester-
a'ernoon 10 go to Washington. where they
-'aaVe a talk with Attorney General Knox
Sn-th was seen by Tribune reporter as he
about 70 start for Washington. When
N. why ne was going to Washington ne
49, few days ago the Merchants
~laaon received Il communication from
esy General Knox in reply to
r-Nenqauon laid before him by that
he asked that Mr.. Mead and
A5,.si uested to visit him in regard TO an in
s,7Ioh OF alleged irregularities in the i'm
rsI oi japanese silks. ! have received no
an word on the subject but / am told that
~ c c@ De Appointed a special assistant Attor-
II III - - al 10 prosecute the matter The visit
i rs-.i,n ~ regard 70 a specific case, and not to
i Yase an investigation to learn the condition
A,esaoas IONS service at this port Should l be
II - s,e :" undertake sUcn an investigation /
len rsc.he. While acting counsel for the
ts~us Association in certain matters nv
ss- ss-s,sas was called to alleged frauds in the
sfb.Vhs Of Japanes. silks. At that time
A.s.r,ner Investigation
ne,.sssssecution Of the cases will be based on
M se' eTFaluations, wrong classification and
k1s neiehts One of the examiners con-
@arges. - uuS iS
FRAUDS WE'RE DISCOVERED.
fsuds in the iraportations of japanese
h ~ discovered 10y suddenly changing the
~ outies OF certain men in the customs
esr mere was suspicion that their work
kas A'hestly performed. and Mr. wakeman
So -. transferred. Invoices which had come
r+sa,z 4. notice were found TO be false. For
y sr4sI many cases where the invoices said
4 bUnss boxes contained about one hum
~ Evss ~ VI Six, a greater quantity was
x 10 ~ me me grade Of the goods was often
% e higher than indicated by the in
M 4> ais term Of Office as Appraiser
ssstsd ~. ~ .akernan discovered evidence which
kstied in IN otner stupendous frauds had been
be - connection with certain silk goods
assens sIsshent nshent. such as hat bands. etc
k<sored oa oa Selling some goods not proper-
hsaSNd a. referred 10 Collector BidwelI.
tsSy ruling from the solicitor of the
d. sncs.. a. tihent District Attorney Bur
sssssed ~ ~ this ruling and ths "a Sc vas
>*e and pas case is one Of those now to be
III Prosecuted ~
s5.. FLoRrn. -,--------