Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1909-11-13
hACV[ACHS BROOM
SWEEP CLEAN
HEAD OF TREASURY DEPART.
MENT AROUSED BY CUSTOMS
HOUSE FRAUDS,
WILL PROBE TO BOTTOM
SUGAR TRUST puPLlcITY
Secretary Declares He Will Take the
Responsibility and Renovate Entire
Customs serviee-Extensive Frauds
Also unearthed at San Francisco and
EIswhsrs.


Also Unearthed at San Francisco and
EIswhere.
Washington, Nov. 13.-Secretary Of
the Treasury MacVeagh has come out
with a statement that not only will he
probe to the bottom the scandal growing
out of frauds in the New York customs
house by the so-called sugar trust and
Its agents. but he proposes to renovate
the entire service He declares he will,
shoulder all responsibility for such
campaign and that the investigation
will be thorough and vigorous.
Thru verbal report rendered to
Secretary of the Treasury Macveagh
by Marion De vries of the board of
general appraisers, and D. Frank Lloyd,
deputy assistant attorney general for
the new customs court, it was learned
that the United States government has
been getting the worst of it in the mat
ter of customs revenue at the leading
ports of entry on both oceans To the
story of corruption and improper ad-
ministration at New York, which have
caused the government to lose millions
of dollars, is now added story of un-
dervaluation affecting imports enter
ing at San Francisco, the losses from
which are tremendous, altho no actual
figures have been given.
MacVeagh Is Aroused.
With the latest knowledge gai. II re-
garding great losses suffered by he
treasury on goods coming into the
country from both sides, Secretary
MacVeagh is aroused more than ever
to the necessity for a thorough house
cleaning with respect to the whole
customs service. There is to be an
overhauling of affairs in every custom
house in the country; those on the in
land lakes to be delved into as we'll as
those located at ports on the seaboard
When the house cleaning is completed,
which will be as soon as possible con-
sistent with thoroughness, Uncle Sam
viii add annually to his strong box mill
lions OF dollars that heretofore have
been kept from him by dishonesty, lax
methods and differentiation
A distinction is to be made between
the undervaluation and other frauds
that have been and still are being un-
earthed at New York and the UNDER
valuation reported upon by experts
from the general appraisers boards
who went to San Francisco during the
summer to look into matters pertain
ing to the customs service there The
differentiation which they reported on
yesterday as having cheated the gov
ernment out of large amounts of rev.
enue for perhaps many years does not
involve corruption as in some Of the
cases brought to light in New York.
In other words, it has not been the re-
suit Of connivance between importers
and dishonest employees of the govern
ment
In revising the administrative feat
ures Of the customs laws in connection
with the framing of the Payne tariff
act, the object was to provide methods
which would prevent opportunities for
undervaluation, thus remedying glar-
ing defects under the old system, aid
ed by various decisions of the courts
1t was stated by Senator Aldrich, dur
ing the debate over the tariff measure
last spring, that the anual loss by rea-
son Of differentiation as made posi-
BILE by the defective machinery of ad-
ministration amounted to S5,000,000 q
year. Another senator-Mr. Dolliver, il
memory be correct-estimated the to.
tai loss sustained by the government te
have been $25o,o0o,oo0.
Frisco Fraud Great.
Apparently the conditions at the por
of San Francisco have been particular.
ly depressing. It is reported that III,
undervaluation discovered to hav
been prevailing has affected vast quan
titles Of oriental goods, which are O
q character, 1t Is explained, that rem
ders them peculiarly susceptible of be-
ing passed at less than their real worth
The most interesting question tha
arises, however, is: If fraud and laxit,
and all that may be implied in under
valuation show almost simultaneous,
immense losses in revenue thru tn
leading ports on each ocean, how Wide
spread is the disease, and how virulen
is It all the way up and down III
coasts and thruout the inland ports?
That is exactly what Secretary Mae
veagh intends to find out. AS he lie
scribed it today. house cleaning is a
essential to the public as to privat
business, and person is liable to fo.,
get how time flies 1t may seem to hi;-
that he cleaned house year previous
". when, thinking 1t over. it will b
found the soap and water had not bee
applied for possibly five years. That
the trouble now. 1t seems. There ma
been no house cleaning these man
years. There is to be one right away
and one that will remove all the dir
If such thing be possible
Secretary MacVeagh does not antici
pate that the application Of mop an
broom will uncover many such mes,
Of rattlesnakes," as 1t is termed, a
have been found already in New Yorl
but where there is rottenness it is tn
determination to cut 1t out, and wher
there 10 inefficiency it Is to be rem
4, edied to the fullest possible extent 1t
felt by the secretary of the treasnr
that the most important work, speak
Ing generally. incifent to the complei
Rehabilitation Of the customs servic
us to be performed in connection wit
the special agents, whose duties, wit
respect to the various custom house
are similar in character to those {
e national bank examiners with respet
&c :Ae banks