New-York tribune., 1910-01-23
MORE AUTO FRAUDS
CUSTOMS MEN MAKE
SECOND ARREST.
Cars O7cned by Well Knozrn
Men Among Those I'm
derUdJued.

III their investigation Of the onera
tlons OF Joseph P McGrath. who is in
'iie Iomos on a charge of having altered
'iie value OF an imported automobile on
d certncate of appraisement, thereby
oerraudfng the government out of about
s1oo in duties customs officers an
hounced yesterday that an extensive list
oI VloIations of the customs laws had in
this way been discovered.
owners of automobiles purchase
ABROAD paid full duties to employees of an
importing agent and, ii was said. the
ehlployes altered the papers and paid on
'lie changed valuation. and in this way
made thousands of dollars.
Henry Clews owned the automobile
which figured in the McGrath transac
tion Mr.. Clews paid 10 per cent duty
on the appraised valuation of s.. $50. or
about $3.50. McGrath is charged with
having altered the figures s.. $50 to $3.50
10 have collected the full duty from Mr..
Clews and then to have paid duty on
$3.50, or 1886.
Inc investigators have found that
William K. Vanderbilt, William Astor
Chanler, Ogden Goelet and naanv others
who had an importing agent handle
their automobiles when shipped to this
port had paid duty on the full appraise-
ment and that the papers had then been
altered and large sums withheld from
the government. Only one importing
agents employees have figured in the
frauds, according to government officials
There was another arrest late last
evening, and Secret Service agents are
hunting high and low for another per
son, who is much wanted by the United
States Attorney. It was said Yesterday
that he would be able to clear up the
whole situation.
Collector Loeb, in order to enable per-
sons TO get their automobiles as quickly
as possible, permitted the issuing of GER
tiicates of appraise1nent to be used in
place of invoices. Since the arrest of
McGrath this permit has been revoked.
The certificate in which Mr. Clews's
automobile was appraised contained the
correct valuation upon which the duty
was 10 be paid. It was clear enough
when the paper was taken away from
NAiS app 1ISci . SbOI6S anu Wien SHOWN
10 Mr. Clews. But before the certificate
was handed in at the Custom House the
figure - of the $3.50 had been re-
moved with a chemical and the cen
in the written amount eighteen" had
been erased in the same way
1t was said at the Custom House that
this scheme to defraud the government
was discovered by accident. Another
investigation was under way. when sew
eral certificates were examined. A close
inspection showed that figures and let
ters had been erased. Secret Service
men were at once put on the trail and
McGrath's arrest followed
1t did not require much further ex-
animation of papers and other docu-
ments to show that many well known
Americans who had imported automo-
biles had unconsciously contributed to
the possessions of persons not in the
employ of the government for the pur-
pose of collecting duties.
The complaint upon which McGrath
was arrested was sworn to by Edward
Barnes, the chief clerk of the Law Di-
vision Of the Custom House. The com
plant upon which the other arrest was
made was issued at the Federal Building
on complaint of the United States Attor-
ney. The federal grand jury will take
up the case tomorrow.