The sun., 1909-05-05
FOUR SMUGGLING ARRESTS
CUSTOMS INSPECTOR WRONGLY
SUSPECTED TURNS SLEUTH.
Burke Not Only vindicates Himself But
Is Instrumental IN the Arrest OF
Two Importers and Dressmaker.
Bes.des an Ex.Inspcotor OF Customs.


Is Instrumental IN the Arrest OF
Two Importers and Dressmaker,
Besides an Ex.Inapcotor OF Customs.
A two years investigation OF a smug-
Cling case by the United States District
Attorneys Office resulted yesterday in
the arrest OF two silk importers, dress
maker and a former United States GUS
toms inspector on indictments charging
them with conspiracy to defraud the
United States Government
These arrests we're being made by
Marshal Henkel just about the time that
Judge Hough In the United States Circuit
Court was declaring forfeited the $50, 900
worth of Partisan gowns that were re-
Gently found by the customs authorities
in the so-called sleeper" trunks. The
contents of the trunks had been adver-
tsed for fifteen days, but nobody ap-
peared to claim ownership and they will
accordingly he sold next week at auction.
The District Attorneys Office has no
evidence that the persons arrested yes
tarday we're in any way concerned in the
recent sleeper operations. As matter
Of fact the methods employed in the two
cases were entirely different although
both apparently needed the help Of some
body on the inside
George CT White. who has a dress
makers supply store at Fifth avenue and
Forty fifth street; his former partner.
W. H. Kilgann on; Kilgannon's wife.
Elizabeth. who formerly ran a dress
making establishment under the name OF
Mime. Loran, and Loren B, Walker. at
one time connected with the customs SER
vice. were the persons arraigned before
Judge Hough yesterday. Walker was
already in the Tombs under indictment
in connection with the smuggling done
by Austen F. Montanye. the aged silk
importer who served a term Of four
months in the penitentiary for it. 1t is
beloved that Walker testified against
White and the Kilgannons before the
Grand Jury in hope OF saving his own skin.
He pleaded guilty when arraigned before
Judge Hough.
The method alleged to have been used
by the White-Kilgannon-Walker COM
bination il known as the false label
method The indictments set forth
that Kilgannon and his wife sailed for
France by La Lorraine on January 81.
1907. and returned on the Kaiser wilhelm
H. on March 8. They subscribed to a
baggage declaration, but falsely omitted.
so il is charged. to declare three trunks
filed with women's wearing apparel.
George c. White, who was then in part
nership with Kiigannon in the silk i'm
porting business. met the couple at the
North German Lloyd pier in Hoboken.
To each OF these trunks Walker. it is
charged. affixed false customs label
which made it possible to have the trunks
removed without inspection.
The United States District Attorney
has disclosed only the outline Of his case.
but apparently this is the way Walker
worked. Persons with whom he had an
understanding made regular baggage
declaration Of personal effects and nom
dutiable goods on some OF their trunks.
emitting from the list the trunks that
contained dutiable fnery. The baggage
regularly declared was inspected, tagged
with an inspectors g. passed label in the
usual way and then rushed on the pier.
The labels on the non-dutiabie trunks
were then washed of and Walk er saun-
tered back onto the pier. sat down on the
other trunks one at time and Sc
cretly tagged them with the washed labels.
Walker at that time WAS no longer In the
customs service. but he was readily ad-
mitted to the steamship piers. 1t develops
now that he was in the employ of the
old convicted importer. Montanye. when
this smuggling was going on. So far as
the indictment discloses the three falsely
labelled trunks that came IN on the Kaiser
Wilhelm II. got by the customs officials
On August 3 OF the same year White
sailed for France and returned to this
country on La Lorraine on August ~.
He omitted two large black trunks from
his declaration. and on one OF these
Walker is alleged to have slapped
washed" label
The Kilgannons crossed over again
in the same month and came back on
La Savoie on September q. Again,
according to the indictment. they failed
to include three trunks in their declara-
ton Walker, it is alleged. failed to appear
OIL this occasion with his washed labels.
whereupon the Kilgannons declared the
trunks, explaining their failure to do SO
in the first instance as an ight.
These trunks are said to have contained
SIS 900 worth Of dutiable goods
Several OF the labels Walker used had
been o K'd by Customs Inspector E. r.
Burke. Walkers plea o! guilty yesterday
frees Burke from an unpleasant situation
When tags bearing Burke's signature
were discovered on several trunks that
had not been inspected he was called
upon to explain. hut having absolutely
no idea Of how they came to be on the
pieces OF baggage he couldn't He was
finally "let OUT simply because he
couldn't account for this circumstance.
But Burke WAS a -stayer." and he didn't
propose to retire from the service under
a cloud. So he set to work sleuthing.
His suspicious were finally directed to
Walker. At his own expense he made a
trip to Canada collecting evidence. Then
he appeared before the Collector Of the
Port and demanded TO be reinstated.
The evidence was such that he was imme-
diately taken back and assigned TO n
post in the public stores. Walkers plea
of guilty substantiates what Burke dis
covered.
Al It,. L.. =. 4