New-York tribune., 1909-05-25
MACVEAGH BACKS LOEB
TALKS OF SUGAR FRAUD.
Praises Collectors York and Depre-
Gates SensatiOndliSm.
From The Tribune Bureau. ]


/ Washington May 24-"Of course, the facts Whlcr
have been unearthed in connection with Inc sugar
smuggling point the cupability OF some one
higher up. but those who looking for the deVei-
! opment Of some startling sensation in the lmme-
diate future likely TO be disappointed NO stone
will be left unturned in the effort to apprehehd
/ those actually responsible for the snugshle' puI
| IL may be time before we know anythlhs lur-
! ther than know now"
/ This statement made by the secretary oi 'ie
Treasury, after conference lasting three hours
with William Loeb. tr., Collector OF the For' Oh
| New York. to-day. 1t would not cause great sU'
! prise to the. government officials IL the uldI VI
the already under indictment revealed the eA-
stence of a secret set of books setting forth the
| illegal gains of the sugar refining company
| Secretary MacVeagh is disposed h"wevef' 70 de-
plore the exploitation of the sensational sue Vi t
| investigation and reorganization being prosecuted
by Collector Loeb He fears that the puohc may
overlook the Importance and farreachng erect OF
reforms which Mr.. Loeb is nstituting' many OF
which in themselves so technical and ihdlViu-
uaIly unImportant that there will naturally ne
tendency to overlook their value In the aggregate.
''Mr. Loeb is doing great work continued MI,
MacVeagh. He IS applying notable energy ana
ability the process Of reorganzing the HletnouS
of the New York Custom House. eliminating 'lle
dead wood, devsing new and efficient metnods anu
inspiring esprit du corps which cannot out make
for the great benefit of the government Ot course
he is prosecuting his Investigations OF the ieaAS
he goes along, but, more than that' ne Is re-
placing antiquated and inefficient methods with
modern and efficient system. The sugar case is
important in itself of course but IT is only an in
dividual case Mr.. Loeb is devisng methods and
perfectng organization which VIII lhuke al
such cases practically impossible.
In this work Mr.. Loeb has not only the support
of the Secretary the Treasury, but OF the Presl
dent as well He entered his present Cfice Win
no embarrassing political obligations and with the
absolute confidence of his superiors, and he VIII
receive complete support of this department IN
10 He
did work
A single instance of the methods which Mr.. Loeb
found In practice will TO illustrate the evils
he is correcting. Under the old system ship
loaded with sugar would arrive at time when the
cCnsignees could not conveniently receive it. IL
would he transferred to lighters. The transfer
would be nominaliy under the supervision Of d
officer. but IT would take place rapidly
that the officer could not possibly make accurate
count of the number Of bags and would in the end
be compelled accept the ships manifest for the
count. Then these lighters would be tOwed up the
river, docked or anchored in creeks No customs
officer would watch over their cargoes. and any
amount might be taken from them without the
knowledge OF the government, l don't say that
any taken, and l cite only sugar as an
example of the system Finally these lighters
would be brought into slip for unloading, and
customs officer would check the bags taken of, and
on them the duty would be paid. The system was
all wrong and under Mr., LOeb's administration
actly what the imports without having to take
the word Of an importer a ships master
COLLECTOR LOEB's REFORMS.
There number OF other reforms which Col
lector Loeb is making For instance, he has dis
covered that certain inspectors have been in the
habit Of soaking of the stamps without which
trunks and other pieces Of luggage cannot leave the
wharves after such luggage has passed outside and
then affiNiug them 20 other pieces the inside To
make this impossible he has ordered that all such
stamps be printed on the thnnest sort Of paper,
known onion skin" which will not yield to
such treatment without tearing. and then, to make
assurance doubly sure. he has caused the stamps
90 be printed with indeiible ink which Will blot II
any attempt is made soak the stamps.
Again, some inspectors have been in the habit OF
obtaining from the chief inspector a number of
these stamps with which stamp boxes of cigars.
each of which requires a stamp. They would then
afix stamp TO the top box IN a package and
retain the others 10 be used pieces of luggage
they wished to pass. To prevent this Mr. Loeb has
caused be prepared IA stamp for cigars different
from that required for other kinds OF luggage.
Mr.. Loeb has further he believes, effectively
checked the admission OF ''sleepers" Sleepers are
trunks which have been brought in without in
spection by the officers. To accomplish
this required collusion the part of some OF the
crew OF a liner who would put tke trunks off the
ship the side opposite To that which the yes
sci being unoaded. Such trunks would be per-
mitted TO remain on the wharf until the ship had
sailed, when ostensibly excited individual
been intended for shipment on the departed ship
This individual would first discuss the advisabiIity
of sending the trunks the ship, and finally
decide they had better be returned" 10 his
hotel or railroad station. The customs officers
supposing that the trunks had never been out Of
the country. would permit them to be taken away |
without inspection. although they We're OF course.
fuu of dutable goods This method Of smuggling
Mr. Loeb believes he has enectualIy checked
Mr.. Loeb talked with the Secretary OF the Treas.
abp and ne m Of
his office and Mr.. MacVeagh was much pleased |
with the information brought by the Collector Mr. !
Loeb expected return to New York tonight hut 1
he remained here until tomorrow. He called at |
the White House. too late to see the Presi-
dent.
Mr. Loeb spent some time with James b. Reynolds
Assistant Secretary of the Treasury but appar-
entity did not take him into his confidence for
Mr.. Reynolds said later:
Mr.. Loebs visit to Washington had nothing
to do with the sugar smuggling case He came
merely 10 talk administrative details There |
is news in his visit. II is a purely routine mat
ter. of interest 10 the public whatever There
Is. Of course, smuggling going all the time and
now and then we find case. While you weed
Ing end OF your garden you likely to find
that the weeds have grown some in the other but
there is nothing surprising I'm that
1t Is known that certain inspectors intimated TO |
he department that there something crooked |
about the collection of duties importatons of |
sugar before Mr. Loeb became collector but 1t is |
eported that these men transferred to other
ields Of usefulness.