Los Angeles herald., 1909-11-23
tRy Associated Press.l

WASHINGTON, Nov. 22.-Collector
Loeb of the port of New York con-
ferred with the administration officials
here today regarding the customs
frauds.
Replying to inquiries, Mr.. Loeb said
that so far as the house cleaning in
the New York customs house was con-
cerned it was virtually at an end, but
surveillance and closer watch over con-
ditions would be kept up.
He intimated that the amount of
money received from the American
Sugar Refining company was by no
means all that would be recovered
eventually.
United States District Attorney
Henry A. Wise of New York held a
short conference with Attorney Gem
eral Wickersham and the two ALMOST
Immediately afterward left Tor the
treasury department where they were
soon closeted with Secretary MacVeagh
and Collector Loeb.
Institution of criminal prosecution
against perpetrators of sleeper trunk "
customs frauds with ramifications in
all parts of the country, the pressing of
existing indictments to avoid lapses
under the statute of limitations and
the customs investigation generally
were discussed at a conference in the
treasury department today. Secretary
of the Treasury MacVeagh, Attorney
General Wickersham, Collector Loeb
of the port of New York and United
States District Attorney Wise of the
southern New York district partici-
pated.
Secretary MacVeagh announced that
hA xuh A
Sugar Refining company had paid over
to the government on account of
evasion of duties was regarded by the
government as a complete settlement
for all of its underweighing frauds. butt
that that amount affected no other
evasions of duty and the government
purposed to recover much more money
as the result of frauds the so-called
trust had committed.
After the conference Secretary Mac
Veagh smilingly referred to the sugar
frauds overshadowing in interest one
of the most important phases of the
whole nVestigation-the commission
of frauds by importers bringing in
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
regime, which would preclude any such
frauds in the future.
The sleeper trunk frauds whereby
goods are brought into this country in
trunks with false bottoms stretch to
many parts of the United States,
though passing only through the port
of New York in cases about to be pros
ecuted.
Beyond the generalization of millions
of dollars nobody officially can esti-
mate the amount of taxes thus evaded.
Most violators of the law in this re"
spect are dressmakers. The govern
ment has much evidence and the pros
ecution promises to be sensational.
Sleeper Trunk Frauds
Collector Loeb said today that the
sleeper trunk frauds could no longer
be carried on successfully under rules
he has adopted.
These provide for a new stamp ar
rangement for trunks and limit to
the time a trunk may remain on the
docks, Henceforth the trunks cannot
stay there long enough to be whisked
away after nightfall. Instead, the gov
ernment will stow the trunks away.
An honest standard for all steam
ship employees will be fixed. This will
be effected through the companies by
dismissal Of men guilty Of abettinS
frauds. Some cases already have de-
veloped in which the collector COM
planned and the companies acted
promptly.
Secretary MacVeagh declared today
he had no knowledge of reported offers
of $500, 900 and $5OO,OOO respectively, by
independent sugar refining companies,
to the government to drop cases
against them.
Edwin 1. Anderson, a former en-
ploye Of the American Sugar Refining
company, who has made a claim on the
treasury department for compensation
for data he gave the government,
called with his counsel. They talked
with Secretary MacVeagh few min
utes and asked to see the papers of
Surveyor Richard Parr, who also has
filed a claim. PARIS claim was refused
by Assistant Secretary Reynolds two
years ago on a ruling prohibiting GUS
toms employees from receiving any
bonus
Mr.. MacVeagh declined to allow An
derson to see the papers.