Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1909-11-23
Government Loses Millions Annually
Through False Bottoms in Trunks.
STILL AFTER SUGAR COMBINE
Other Devices Besides False W Is
Used to Evade Duti uz
SHIPPING COMPANIES e
pIoyes who Assist ImpOrte
Smuggling - Payment
Rewards VIII GO over.

WASHINGTON, Nov. 22-Institut .Ur
criminal prosecutions against perpetrators
OF sleeper trunk customs frauds with
ramificauons in al, parts OF the country
the pressing of existing indictments TO
avoid lapses under the statute Of limita-
tions, and the customs investigation gener-
ally were discussed at a conference at the
Treasury department today. Secretary Of
the Treasury MacVeagh, Attorney General
Wickersham, Collector Loeb Of the port Of
New York and United states District At
) torney Henry A. Wise Of New York par
ticipated
Incidentally Secretary Macveagh an
nounced that the 100000 odd which the
American Sugar Refining company had
paid over to the government on account Of
evasion of duties was regarded by the gov
ernment as a complete settlement for al,
Its underweghing frauds but that amount
in no wise figured as to any other matters
and that the government purposed to re-
cover much more money as the result Of
the frauds the so-called trust had COM
mitted
False Bottom Trunks.
At the conclusion OF the conference Sec
retary MacVeagh smilingly referred to the
sugar frauds overshadowing in interest one
Of the most important phases OF the whole
investigation. the commission Of frauds by
importers bri ging in the trunks with false
bottoms involving losses to the government
OF millions of dollars. The sleeper trunk
frauds by which goods are brought into
this country in trunks with false bottoms
TO deceive the inspectors stretch to many
parts of the United States, though passing
only through the port Of New York in the
cases about to be prosecuted.
Beyond the generalization OF millions OF
dollars nobody officially can estimate the
amount Of taxes thus evaded Most of the
violators of the law in this respect are
dressmakers. The government has a good
deal Of evidence along this line and the
prosecutions for this form Of wholesale dis
honesty promise to be Of a sensational
character.
New Rules stop Practice.
Collector Loeb expressed the opinion to-
day that the sleeper trunk frauds could
no longer be carried on successfully under
the rules he has adopted. These provide
for a new stamp arrangement for trunks
and a Limitation OF hours trunk may re-
main on the docks instead OF being per-
mitted to stay there long enough to be
whisked away after nightfall. Instead, the
government will stow away the trunks in
a place safe from possibility OF smuggling
off the docks in the dark An honest
standard for all steamship employees will
be buttressed by the collectors efforts
This will be effective through the COM
psnies by dismissal OF men guilty Of abet-
ting frauds. Some cases already have de-
veoped on which the collector complained
ana the companies acted promptly.
Payment of Rewards.
Secretary MacVeagh declared today that
had no knowledge OF the reported
6fer made Of $4,000 and $500 900
respectively by Independent sugar refining
companies to the government to drop cases
against them. Mr.. Loeb will remain over
tC morrow continuing the conferences here.
Secretary MacVeagh indicated today that
he was not disposed to take up Immediately
the question of remuneration for the first
information Of the frauds.
Edwin /. Robinson former employe OF
the American Sugar Refining company,
who has made a claim on the Treasury de-
partment for compensation for the data
he gave the department, called with his
counsel, Francis Dyruff of New York.
They talked with Secretary MacVeagh a
few minutes and asked to see the papers
OF Surveyor Richard Parr. who has also
filed a claim with the department
PARIS claim was refused by Assistant
Secretary Reynolds a couple OF years ago,
OF rule prohibiting customs employees
from receiving any bonus. Mr.. MacVeagh
declined to allow them to see the papers
on the ground that he saw no good reason
why they should demand II.