The midland journal. (Rising Sun, Md.) 1885-1947, 1909-11-26
GOVERNMENT IS
LOSING MILLIONS
False Bottoms in Trunks To
Evade Duties.
MANY SLEEPER TRUNK FRAUDS.


Washington, D. C. Especially
Institution of criminal prosecutions
against perpetrators Of sleeper
trunk customs frauds with ramifi-
cations in all parts of the country;
the pressing of existing indictments
to avoid lapscs under the statute
of limitations and the customs in
vestigation generally were discussed
at conference at the Treasury De-
partment. Secretary OF the Treas
ury MacVeagh, Attorney General
Wickersham, Collector Loeb, OF the
port of New York, and United States
District Attorney Henry A. Wise. of
the Southern District of New York,
participated
incidentally Secretary MacVeagh
announced that the 100000 which
the American Sugar Refining Com
pany had paid over to the govern
ment on account of evasion of duties
was regarded by the government as
a complete settlement for all its I'M
derweighing frauds, but that amount
affected no other evasions of duty
and in nowise figured as to any 9TH
er matters, and that the government
purposed to recover much more mon
ey as the result of the frauds the
socalled trust has committed.
The conference lasted over two
and half hours. At the conclusion
Secretary MacVeagh smilingly refer
red to the sugar frauds overshadow-
ing in interest one of the most i'm
portant phases of the whole investi-
cation, the commission of frauds by
importers bringing in the trunks with
false bottoms, involving losses to the
government of millions of dollars.
Collector Loeb explained that where
this had been possible in the past,
rules had been adopted under the
present regime which would pre-
clude any such frauds in the future.
The sleeper trunk frauds, where
by goods are brought into this coun-
try in trunks with false bottoms to
deceive the inspectors, stretch to
many parts OF the United States.
though passing only through the port
of New York in the cases about to
be prosecuted.
Beyond the generalization of mill
lions of dollars nobody officially can
estimate the amount of taxes thus
evaded. Most of the violators of
law in this respect are dressmakers.
The government has good deal of
evidence along this line, and the pro-
secutions for this foNm of wholesale
dishonesty promises to be of SEN
sational character.
Collector Loeb expressed the opin-
ion that the sleeper trunk frauds
could no longer be carried on sue
cessfully under the rules he has
adopted These provide for new
stamp arrangement for trunks and
a limitation Of tho hours trunk
may remain on the docks, instead of
being permitted to stay there long
enough to be whisked away after
nightfall. Instead the government
will stow away the trunks in a place
safe from possibility of smuggling
on the docks in the darkness An
honest standard for all steamship
employees will be bnttressed by the
Collectors efforts. This will be eff
fected through the companies by dis
missal of men guilty Of abetting
frauds. Some cases already have de-
veloped in which the Collector COM
planned, and, the companies acted
promptly. District Attorney Wise
especially discussed the sleeper ques-
ton at the conference.
Secretary MacVcagh indicated that
he was not disposed to take up i'm
mediately the question of remunera-
ton.