New-York tribune., 1910-01-28
MORE FRAUD FOUND
MOSQUITO NETS THE
MEDIUM.
Nezo Orleans Investigation
Points to Similar Operations
Here, 1t Is SAID.

So serious has been the evidence given
before the federal grand jury at New
Orleans regarding customs frauds in the
Importation of mosquito netting that the
Department of Justice has sent a special
s agent. William Connor..to-. .thats.city to
aid the United States Attorney. Charlton
F. Beattie. in his Investigations. 1t was
reported also that while the loss to the
government in the Southern city might
aggregate 100000, an inquiry here
would show irregularities up in the
millions.
A former special agent, who had been
a witness before the grand jury at New
Orleans, was quoted in The Tribune on
Tuesday as saying that the facts which
had been disclosed showed that gross
frauds had been committed, frauds that
had been reported by him while on duty
there and reported to the department at
Washington. He was dismissed from
the service According to the latest ac-
counts, the investigation has shown
worse condition of affairs than was at
first expected.
General T. S. Castleman is the fore
man of the federal grand jury and the
other men on that body are said to be
among the most representative business
men in New Orleans. Rivals of the firms
said to have benefited by the frauds have
been called to testify regarding the i'm
possibility of meeting the competition
under the circumstances existing before
an Appraisers examiner, H. P. Murray,
discovered Irregularities and raised the
valuations TO the correct amounts. Muir
ray was removed from the service
The firms subpenaed to tell of the dis
elimination practised against them are:
Maison Blanche. d. H. Holmes & Co.
limited. B. Cohn & Co. the L. Fellman
Company, Krauss -& Co., limited, and
-Swartz Brothers. They are in the dry
goods business and are representative of
the interests that are determined that
there shall be a housecleaning "a New
Orleans similar to that made here last
year
Up to the present about sixteen en-
ployes and officers of the customs ser
vice at the Southern -:ty have been
called before the grand jury. The col
lector down there is Henry A. Mccall
and the appraiser William P. Luck. Mr..
Luck was in this city last autumn at
the annual meeting of appraisers from
all the ports in this country. He was
the POSTMASTER at the dinner given by
George w. Wanmaker, the appraiser
here.
The valuation of the I -1qL netting,
20 per cent of the Importation of which
is received at New Orleans. is made
according to the number of holes in the
square inch. These goods come from
Nottingham. England. The method of
valuing was a trade secret jealously
guarded, but Murray found 1t out and
equalized 1t. Soon after he went to the
South there was talk about Irregular
tiles, and it was believed that he was re-
sponsible for it. This talk caused the
investigation by the grand jury.
The duty on nettings is 90 per cent ad
valorum. While the bulk of the coarse
or mosquito netting is shipped from
abroad to New Orleans, the fine nettings,
figured and plain. of the highest grades,
such are used for curtains and in
gowns, are mainly sent to this port
The duties on these amount to millions
of dollars year
1t was said yesterday that the federal
authorities here would be asked to have
an investigation made as soon as the
New Orleans grand jury had completed
It's labors. The latter, 1t was said. was
expected to find several indictments
which would be of merchants and gov
eminent officials in that city, in Wash
ington and in New ork City Should
1t not indict, however the matter may
be appealed on presentment TO Wash
ington for action