Evening star., 1909-05-04
OFFENSE is NOT RECENT
One Prisoner Is Head of Dressmak-
ers' Supply Establishment.
INSPECTOR WALKER GUILTY
Jointly Charged, He Admits Crime.
Others Deny-All Held in
$4,000 Bail.

NEW YORK, May 4.-Three new ar
rests were made by the United States
marshal this morning following the re-
cent disclosures showing up the con
traband express which is said to have
shipped goods amounting possibly to mil
lions of dollars through the New York
custom house.
George c. White has a dressmakers'
street W. ii. kilgannon. formerly en-
ployed as salesman for George f.
klowrey, of 36 West 34th street, and
Elizabeth Kilgannon. his wife. are the
other prisoners.
With them is held Loren 3. Walker,
already a prisoner under other indict-
ments, who was formerly customs in
spector.
The three were arraigned before JUS
tice Hough in the United States circuit
court on a charge of smuggling. The
papers in the case complained of law
breaking that occurred considerably be-
fore the time of the recent disclosures.
The particular transactions charged in
the complaints took place in the spring
and autumn of 1907 Nothing as yet
revealed by the prosecution connects the
prisoners with the parties guilty of the
big smuggling during the present sea-
son.
Walker Pleads Guilty.
When all three prisoners had pleaded
not guilty. Judge Hough held them. in
$1,000 bail. Loren b. Walker pleaded
guilty and was remanded for week.
At the time of the customs disclos-
ures. two weeks ago, it was expected
that arrests would soon follow. No
names were mentioned at that time.
There was a report, however, that the
upon 5th avenue dress goods importer
and on persons who had been connected
with the custom house.
The cOntraband express. as the con-
spiracy now under investigation was de-
scribed, turned out to be one of the most
ingenious and extensive schemes to beat
the duty ever put into practice at this
port. The contr1vers of the scheme, it Is
said, did rushing business, and actually
ran an Office for the purpose, under an
other ostensible designation, in Paris.
Their line of enterprise included not
only smuggling for their own account, it
is said. but Slipping in imporations for
a long list of clients. They did business,
according to the best information, for
dress goods firms for dressmakers in half
a dozen cities, and even for some women
of means who bought themselves expen-
sive wear abroad.
Charge for smuggling.
The commission charge for the service
of smuggling clients importations
through the government barriers is saio
to have been IL per cent on the valuation.
The means employed is understood to
have been the use of make-believe left
over trunks.
When Americans return from abroad
their trunks often are delayed. and fol-
low on the next trip. 1t has been the
way of inspectors to pay somewhat less
attention To these trunks than to those
coming with their owners.
The smugglers used on their trunks in
some instances a tag Identical with that
employed by the inspectors to mark
trunks already examined. 1t was discov-
cred recently that a large number of
these tags had been stolen and were in
unknown hands.
The contraband express concern gath
cred its clients goods in its Paris Office
sewed in initials or distinguishing marks
on them and packed them all together
In big trunks similar to those of trav-
elers. The goods were unpacked and re-
distributed at the concerns New York
office
The enterprise, the customs authorities
suspect. has been going on for some sea-
sons. Efforts are being made TO find out
whether the later smuggling ard the
earlier known cases were the work OF the
same parties.
Offer of Settlement.
1t was these recent disclosures that led
to the surprising offer of S2G0.ueo made
In Collector Loeb by unknown parties
two weeks ago. TO avert prosecution. Tn
Ill that offer was made even the authori-
ties did not suspect the extent of the en-
terprise
The offer was not bribe and was made
openly. 1t was an overture at settlement
in full of criminal liabilities for SNUG
Cling on counts on which, so the guilty
parties feared. the United States district
attorney might prefer charges. The re-
markable offer was considerably in ex-
cess of the value of the goods involved
In the particular customs seizure In aues.
ton.
Within a week of the making Of the
$4,000 offer the head of the United
States customs service in Paris took his
life, owing IL was said. to mental ailment
About the same time number of en-
ployes were dropped from the customs
reason. il was stated. that the appropria-
tion for their maintenance had stopped
hilgannon. who arraigned today
had recently formed a partnership with
White. under the firm name of White A
kilSannon. for the importation OF silks
Mrs. ki.annon iS in business. roo. as "A
dresSmaker, under tn" name of Nine Lo-