New-York tribune., 1909-11-11
MACPE4GH DECLARES
VAR ON Frauds.
Campaign To BE Especially
rigorous at Custom
House Here.
IFrom The Tribune Bureau

This is the keynote Of the policy of the
Secretary Of the Treasury for enforcing
the customs laws. and means that in the
next few months a broad and aggressive
campaign will be conducted against the
rascals inside and outside the govern
ment service who have built up a system
of fraud against the national Treasury.
Secretary MacVeagh. who returned 10
Washington last night from his summer
home at Dublin. y. H. was at his desk
I'm the Treasury Department to-day. He
made IL absolutely plain that the depart
ment is prepared 10 back up Collector
Loeb and other customs officials. Moth
ing will be spared 10 place the customs
service on a business basis, and both the
high and the low who are found guilty
OF fraud will be punished. These prose-
cutions will not be confined TO any class,
but viii include importers. exporters.
government officials or anybody else who
can be shown TO have been engaged in
robbing the government.
ESPECIAL VIGOR HERE.
Naturally, the campaign will be con-
Quoted with special vigor at the New
York Custom House. for il is there that
the bulk Of impOrtations arrive, and IL
is there. also. that the most extensive
frauds have been committed Every port
will be subjected. TO searching inyestl-
CATION, however. To ascertain IL the sys-
TEN which was so successfully developed
in New York by the sO-called customs
crooks is in operation elsewhere. Mr.
MacVeagh to-day made known his deter
mination to subject the Appraisers and
the Surveyors offices TO as rigid an over
hauling as the New York Collectors Of
fee has undergone.
Mr.. MacVeagh is not familiar with all
the details OF Collector Loeb's campaign
70 reform the customs service, but he has
confidence in the ability and high pur-
poses of the New York Collector. and in
his forthcoming annual report will let it
be known that the Treasury Department
Is unreservedly back of Mr.. Loeb
we are all single minded on this mat
ter" said Mr.. MacVeagh to-day. Col
Iector Loeb and the other officials at
New York are working in harmony to
one END. That end is the rehabilitation
OF the customs service at that port
APPR 1yrF 1ER,s- METHODS
1t is the belief OF the Secretary of the
Treasury that much of the criticism
against Mr.. Loeb's methods has been
without basis. 1t is not the policy of the
Treasury Department TO grant immunity
to every government Official who comes
forward with evidence 20 sustain con-
victiOns; nor does the government desire
that honest officials in the customs ser
vice shall be compelled 10 associate with
rascals who have turned states evidence
70 save their own places.
In every step that Collector Loeb has
taken to get testimony from customs
officials on which 20 base convictions OF
men higher up" he has been in close
touch with the law officers OF the gov
ernment. He has been fighting against
what the Treasury officials regard as
''intrenched fraud" and they are con-
WINGED that il was necessary for him TO
adopt unusual and heroic methods 10 get
results. They believe that II the critics
81 Mr.. Loeb will suspend Judgment of
his course they will realize ultimately
that he is engaged in task which re-
quires the greatest courage and the
greatest diplomacy, and that he ought 10
be applauded instead OF censured for sue
cess in solving problem which is as old
as tariff laws
Mr.. MacFeagh regards the New York
prosecutions as a mere incident 10 the
rehabilitation and reorganization of the
customs service OF the United States so
that repetition Of the frauds may be pre-
vented in the future He slIrmises that
the government is hot enough after the
guilty 10 prevent much thieving going on
at present. but he is anxious that the
whole system by which inspectors. i'm
porters and exporters co-operated to de-
fraud the government shall be rooted out
and a new one substituted with honesty
as its basis.
LEAVES DETAILS TO OTHERS.
II will be the policy of the department
not to interfere with the details of the
campaign to purge the customs service
Mr.. MacVeagh takes the position that
the officials OF his department and the
Department OF Justice who are on the
ground know better what 70 do in a
given case than any one in Washington.
and that efforts To direct them from the
az partment here would only hamper
their efforts TO attain results He thinks
that IL the whole truth as TO smuggling
at New York is laid bare an important
advance viii have been made toward a
nearly perfect administration Of the Gus
toms laws.
As has been pointed out in these dis
patches from time 10 time the Secretary
OF the Treasury has no present purpose
OF issuing certificates Of Indebtedness
The increased revenues are taking care
of expenses and by careful conduct of
national finances the necessity for max
ing any loan may be avoided Nothing
short Of absolute necessity will lead Mr.
MacVeagh 10 authorize an issue Of
Treasury certificates.
There will be no issue 0f Panama
bonds until Congress equalizes the cir
culation tax between the = per cent and
3 per cent bonds. Under existing law
the tax on circulation secured By per
cent bonds is per cent. while = per cent
l. the tax on circulation secured bv
DER cent bonds Mr.. MacNeagh feels
that the = per cent bonds ,uld have thu.
protection OF a parity, and in his annual
report wiz recommend that the rireu.a-
tion tax be readjusted.
DEwEY-s AMERICAN WINE HOUSE
Only enr i.ock isnm fii.is.li i'i alii-s.i .