The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1909-10-30
TREASURY CHIEFS
WILL UPHOLD LOEB
0fiicialsStirFed byCriticiSms
of Customs Probe.
BLAME IS NOW SHIFTED
Report of the Proceedings Sent 60
MacVeaEh-HeRds of the Depart
mcnt Exhibit No Sign that They
Intend 10 Recede I'm support OF
CoIIector-E1pInin system of Graft.

From all indications, Treasury officials
are deeply concerned over the criticism
directed at them for sustaining Collector
Loeb In making terms with self-confessed
bribe-takers among employees OF the New
York custom-house, by which they are
to be continued IN the service Of the
government
Franklin MacVeagh, Secretary of the
Treasury. has called for n report OF tho
course pursued oy the department and
Collector Loeb. and it has been sent 10
him at Dublin. y. Il.
This report sustains Mr.. Loeb. and
aims to show the conspiracy between
business men and custom-house en-
ployes to defraud the government could
not have been broken up through sue
cessfuI prosecutions without the promise
Of immunity from legal punishment and
assurances Of retention on the Federal
pay roll made 70 the dishonest weighers-
worry Over Resentment.
But in spite Of their insistence that the
pledge to keep the bribe-taking weighers
In the government service was absolutely
necessary TO break up the customs graft
system. Treasury officials are worrying
over the resentment produced by their
policy in this regard.
They are beginning to realize there
may be something in the proposition that
II was entirely novel to make such lber-
a. terms with men who were willing TO
acknowledge dishonesty. However. there
Is no sign. outside OF the patent evidence
Of concern exhibited at the Treasury De-
partment, that the officials intend 10 re-
cede from their decision TO uphold Mr..
Loeb IN making the immunity arrange
ment
Charles Dyer Norton. Acting Secretary
Of the Treasury. had conferences yester-
day with several Of his subOrdinates
about the New York custon+-house frauds,
and left washington FOR New York In the
afternoon. 1t was given out that Mr..
Nortons trip was for the purpose Of
selecting a summer home on Long Island.
but the admission was made that ne
might also look into the customs service
frauds while he was in New York.
Among those with whom Mr.. Norton
talked before his departure was Chief
Maher, Of tho special agents division.
who has charge OF the work OF detecting
frauds against the customs Another
visitor at the Treasury Department was
Special Agent Chance, fromer chief Of
special agents. who is now stationed in
Philadelphia.
MacVeagh Deeply Interested.
Although Treasury officials have been
instructed not TO furnish any informa-
ton for publication on the subject Of
the New York custom-house scandal It
was learned Secretary NIacVeagh had
shown personal interest IN the situation
and in addition to calling for a report,
had asked for expressions Of opinion as
to the wisdom OF the course pursued by
Mr.. Loeb.
There is some uncertainty as to whether
Mr.. MacVeagh approved in advance of
the proposition that Collector Loeb
should make this radical promise. But II
Mr. MacVeagh did not approve. the Off
Gals who had charge Of the Treasury
Department IN his absence certainly gave
Mr.. Loeb authority TO so ahead.
According to Treasury officials, much OF
the dishonesty at the New York custom
house has been made possible through the
indifference or ignorance Of United States
consuls abroad. They assert IL the con-
sular service were correct the frauds
would have been detected without trouble
4 system Of double Invoicing practiced
for the purpose Of cheating the govern
1nent has been in vogue for a long time.