The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1909-12-22
LOST A MILLION A YEAR
How Government Was Fleeced by Mil
finers and Dressmakers

New York Dec. 22.-The federal
grand jury has returned 27 indict-
ments against dressmakers, milliners
and importers of lace and silks. who
are charged with conspiracy to de-
fraud the government by smuggling
trunkfuls of fine fabrics. The United
States marshafS men arrested 10
dreSsmakers, or representatives of
dressmaking concerns, and customs
instrumental in slipping trunks
through without payment of duties.
1t was said at the United States
district attorneys office that the
sleeper trunk" conspiracy was SO
successful for five years that it cost
the government about "a million dol
lars a year in stolen duties.
The fraud scheme-~as designed in
1904 by former customs official
named Frank Fawcett, who is now
ice and went to Paris with an idea in
his head. Before he quit New York
he had impressed a good many i'm
porters of dresses and laces and silks
and millinery with the possibilities of
his scheme, and he began to work it
as soon as he got on the other side
According to the United States district
attorneys office, Philip A. PhilipSon,
customs man arrested, was Faw-
cett's agent on this side Philipson
was dl NOIh OI TIE pier Ol lIl6 AIuSIl-
can and Red Star lines, where he
could do the most good
How 1t Was Worked.
Fawcett originated the idea of study
ing the passenger list containing names
of Americans who were returning home
from France. AS soon as he had pick
ed few names. he got togther trunk
fuls oe materials purchased by his
dressmakirg clients in New York, la
beled them with the names of the per-
sons he had selected from the steam
ship lists and got them to the French
piers after the persons had sailed for
New York or Boston. The trunks were
then considered as left overs" that
is, trunks that had been forgotten or
mislaid by their owners in the con-
fusion of sailing. They were sent here
on the next steamship usually.
On this side, Philipson and two en-
ployes of the American and Red Star
Line pier. Robert Schwartz and Thorn
as Murphy, according to the govern,
ment prosecutors, attended to the final
details of getting the trunksful of
smuggled fabrics safely by the customs
guards. Schwartz and Murphy are &C
cused of having devised a trolley, by
which the trunks were shot from the
steamships that brought them to the
end of an adjoining pier, where there
were no customs inspectors on duty. 1t
was Philipson's business then. accord
ing to the district attorney, to hustle
the trunks luIO NdSOHS IOT ueANCly
to the dressmakers that were expect
ing them.
Agents Got Half.
One trunk case of this kind came
to light when it was discovered that
two trunks bearing the name of Mrs
Nellie Grant Sartoris were not Mrs.
Sartoris' at all, but were the property
of smugglerS.
The agents of the conspiracy We're
paid paid so per cent of Mhat the duties
would have been by the dressmakers
and importers, who benefited by the
scheme. Government officials said to-
day that there was no way to tell ex-
actIy how much money the schemers
had made, but they figured that at
least 200 trunksful of fine fabrics had
been smuggled in every year since 1904,
and that the government had lost easily
1 million dollars a year.
The arrests were made in connection
with this kind of smuggling Alfred j.
O'Donovan. Ellen Mcnamara Mar
garet NJ. Smith and John Marlborough
were released on $500 bail.