New-York tribune., 1909-11-15
FOUND MUCH FRAUD
UNDERWEIGHT GEN
ERAL, SAYS SHAW.
"Pr1ct,ces Just as Bad IN
Philadelphia and Horse
IN Boston"
IN Boston.
[sy Telegraph 70 rhs Tribune ]

Thy Telegraph 20 The Tribune
Philadelphia. Nov. 14.-Direct from
one who has held the position of Secre-
tary of the Treasury--Leslie NJ. Shaw.
who was in the first Roosevelt Cabinet
came the declaration to-day that the
gross fraud against the government IN
the Weighing of dutiable sugar was only
one instance of a general practice.
II was explicitly stated by Mr.. Shaw
that on nearly every commodity, and In
every port. including Philadelphia, there
was differentiation and underwetghing
which defrauded the government OF
millions OF dollars annually. Mr.. Shaw
said that he had heard the amount OF
this loss. estimated as high as SlOo'-
100000 per annum. though he believed
this TO be an exaggeration. However.
he said. while an estimate of the fraud
vas impossible. that it was great was
certain.
1T is impossible" said MIR. Shaw. ito
estimate the loss TO the government tnat
results from underweighing and under
valuation. / have heard it stated that
the government loses Sloo.oco.oco
year in this way.
But let me say that these practices
ere not confined to New York. They
are relatively just as bad in Philadelphia,
and worse in Boston. II is bad now' and
always will be. II is like any other tax
system-you make tax lodging capital
offence, and still people will evade taxes
There is a very marked difference
between evidence that will satisfy the
individual that frauds are being per-
petrated and proofs on which a eonvic-
ton can be secured. I was convinced
very early in the game that not only
sugar but nearly everything else on
which duty by weight was levied was
being underweighed. and that many
things on which ad valorem duties were
levied were being undervalued.
II put a new man to work on the docks
and artichokes and many other smaller
importations. We could see where we
saved the government. as result, az
least 100000 per annum.
In another case we put a detective az
work, and though we did not discover
fraud We very probably did prevent IT,
There were. however, many cases in
which We did proceed. though we did not
get the necessary evidence in the sugar
cases"
Mr.. Shaw was led 10 speak OF Special
Agent Parr. who unearthed the sugar
frauds.
Il remember he said, that I ap-
pointed Mr.. Parr on Mr. Loebs recon-
mendation. The department sent him
TO a port where. il had been said, goods
were being smuggled. The agents con-
cealed themselves anC watched a barge
load OF wool brought in at midnight
which was never entered 'at the custom
house. -----.-
Then the friends of the importers cir
culated all sorts of stories. calculated to
discredit that told by the agents, and
though there was a prosecution there
was no conviction. Yet that was the
most glaring case of smuggling of which
We had knowledge when / was in the
department
Parr is now making the mistake of
thinking that because he wasn't origi-
nally assigned to the sugar cases there
was a disposition 10 favor the sugar
people. He says that he asked for the
sugar cases. but they We're not given 10
him. II he had been assigned to sugar
and not TO wool, and had subsequently
found that wool was being smuggled. he
might think that the delay was designed
to favor the wool men,
Mr.. Shaw spoke of the difficulties in
the way OF securing convictions against
offenders. 1T is seldom" he said that
a government employe is crooked. but
they live in an atmosphere that is I'M
friendly to the strict enforcement Of thu
law"