New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-04-14
GREAT FRAUDS ON
CUSTOMS FOUND
Sweeping Criminal Prosecutions
Undertaken by the Ad-
minIstratIon.
MAY STARTlE COUNTRY
President Taft Instructs Stim-
son to Obtain Indictments
Wherever Possible-Reor-
ganization in View.
tFrom me tribune Bureau !

From The Tribune Buresu1
Washington. April f3.-Criminal pros-
ecutions Of a most sensational character
for violation Of the customs laws have
been undertaken by this administration.
and there is reason To believe that within
the next two weeks the federal grand
jury will return indictments which will
startle the country.
Evidence has been discovered which
leads to the belief that these frauds
have not been confined TO the importers
Of sugar. but that their ramifcations are
far more extensive in character than has
hitherto been supposed. Indictments
against practically all the officials of the
Sugar Trust have been returned, and the
indications are that many others will be
forthcoming
So important are the recent disclosures
that after a recent evening conference
at the White House in which the AZ
tcrney General. the Secretary OF the
Treasury. Senator AIdrich and others
took part IL was determined to call col
Iector Loeb and Henry L. Stimson. spe-
ciaI attorney for the government, To
Washington for further conference
This was held at the White House to-
day. with the President. the Attorney
General the Secretary OF the Treasury
and Assistant Secretary Curtis present
The President asserted his determine
ton to prosecute all violators Of the law.
without regard 20 their standing or in
hac
to New York with instructions TO obtain
indictments wherever possible.
Wide Scope Of Frauds.
Until the indictments are obtained and
warrants served. the administration will
preserve an attitude of the utmost Sc
crecy. but d further phase Of the confer
ence dealt with a general reorganization
of the customs service. with a view 70
the prevention of further frauds. which.
il is found have been practised TO An
almost incredible extent under the pres
ent system.
Under the direction Of Secretary Mac
Veagh a wholesale investigation has been
conducted by the special agents of the
Treasury Department but ii is even now
impossible 10 set limit TO the ramifi-
cations of the frauds. Some idea of the
importance of the steps authorized by
the President may be gained from the
remark of member of the administra-
ton, that the Developments Of the next
two weeks would. if made public. operate
more powerfully 70 arouse popular sp-
prevail of this administration than any
thing else which has occurred since
President Taft's inauguration.
The assumption that tO-dayS confer
ence had 10 do with the proposed inves-
tigation of the Sugar Trust by Congress
is without foundation. although such an
Investigation is discountenanced by the
administration. for the reason. as told
in these dispatches yesterday morning.
that the Attorney General has obtained
valuable information on which To base a
prosecution of the trust for violation Ot
the sherman law. and il is appreciated
that an investigation by Congress would
serve no useful purpose and would prob
ably result in an immunity bath for
the members Of the trust.
President Taft's Statement
Al the close of to-day's conference ths
following statement. which was dictated
bv Mr. Taft himself. was given out.
Mr.. Stinnson. who mas charge OF ths
prosecution Of the customs frauds IN tbs
weiqhers' department m New York, ard
Mr. Loeb. the Collector Of the Port, wers
summoned TO Washington for the pur-
pose OF conferring with the President.
the Secretary of the Treasury, the Attor-
ney General and Mr.. Curtis. the Assist
ant Secretary of the Treasury. m eharss
Of customs, with reference TO the prog
ress OF the investigation into tne Gus
toms frauds and their prosecution.
The conference related not only 70 tn-
criminal prosecutions and investigations
before the grand Jury. but also 70 the *
scutive inspection which has been cor-
duct-d by the Treasury Depart uert sr1
GENERAL objects developed = result ~
the investigation. The conference dis-
closed the fact that the criminal prcss.
eutions were being vigorously eonductst
and that the examinations BY the Treas
urv Department were waking sstIsFso-
tory hesdwsy.
No answer has been received frcrf
senator Wainwright. % whom the post %
Surveyor of the Port Of New York has
beer offered Mr. Wainwright has RS
turned 10 Albany where hs IS expected -
reach n decision about the last Of this
week n is sincerely hoped that he WI
see his way clear 90 accept as ~ - BE-
Heved he could do excellent team work
With collector Loeb. especially IN t-s
contemplated reorganization of the SER
vice.