The Washington herald., 1912-01-24
CANADIANS LOVE
YANKEE DOLLARS
American Buyers of Furs
Prepay Duty, but Snug
glers Get Busy.
CHIEF WILKES EXPOSE
Alexander Graham Bell Cleverly
COmpels Dealer to Refund
Duty-Sues for Damages.

Special customs agents Of the Treasury
Department, under the direction OF John
E. wiIlkie, supervising agent. have nm
earthed a system OF frauds involving
thousands of dollars by which valuable
furs were smuggIed into this country, and
many Americans, among them Alexander
Graham Bell, who purchased frs in
Canada, have been victimized.
Special agents recently made arrests on
the Canadian border and obtained con-
fessions from persons engaged in smug-
Cling the furs as TO how the system was
operated. Many American visitors pur-
chased furs prepaying the duty with the
understanding that the furs would be
sent by express to their residences in
this country. Instead of paying the duty
on these furs the Canadian Arm smug-
gled them into the United States ana by
this means defrauded the Government of
Its proper revenue and also made an ad-
ditional profit at the expense of the
Americans who paid the duty in advance
Civil Suit Likely.
The smugglers who were arrested have
confessed. and a list of packages with
the names Of the consignees and other
ury Department. For the last month
this investigation has covered the whole
county east Of the Mississippi River, and
lne furs smuggled in have been seized
lor the withheld duty. As the persons
responsible for the frauds reside in Can
aoa they cannot be reached under the
american laws. 1t is understood that the
Americans who have been defrauded are
organizing an association for the purpose
OF bringing a civil suit in the Canadian
courts against the firm responsible for
the alleged frauds.
The stories Of the victims in these
cases practically were Identical" said
Chief John E. Wilkie, who has had
charge Of the matter for this govern
ment They were on a visit to Canada
last summer, and while in Montreal had
their attention called to the establish
ment of Charles Desjardins & Co, promi-
nent dealers I'm furs. They had made
purchases there either for themselves or
as gifts for their friends at prices which
seemed attractive, and in each case as
sert that they were quoted a price which
included the value Of the garment plus
the duty, the agreement in each instance
being that the garment should be deliv-
cred to the purchaser duty paid. The in
vestigations of the customs agents dis
close the fact that in none of the cases
under their observation had the duty been
paid, every package having been SNUG
gled over the line, and the confessions OF
the smuggIers disclosed the fact that they
had received $ for each package brought
Into the United States In this irregular
way.
Ne Bargain" Sales.
IN every case where a seizure was
made by the customs agents and where
the American purchaser was able to pro-
fsFo =
not actually participated in the fraud. the
goods were released upon payment OF a
fine equal to the withhsId duty. In FIX
ing the amount CT duty in many in
stances appraisal of the seized garments
became necessary, and it was occasional
ly disclosed to the American purchaser
that the appraised value of the garment
was very much below the price paid to
Desjardins & Co. for it. There was a
series OF similar cases a year ago in
which some sixty seizures were made by
customs agents Of goods purchased in this
way from Desjardins & Co., Of Mon
treal, upon which the duty had not been
paid.
Unfortunately, Desjardins & Co. are
outside the Jurisdiction of the United
States and are not amenable to the
American customs laws, but It is under
stood that some of those who have been
victimized are organizing an alliance,
having for its object the employment of
counsel and the institution of civil pro-
ceedings against the Canadian firm which
will reimburse them for the amount ex-
acted by the American government, with
such additional sums as may be possible
TO secure as damages. The Treasury De-
partment has secured original receipts
and correspondence between the Montreal
firm and American purchasers which will
have an important bearing on any suits
hat may be instituted
Tip from ''a Friend
"An interesting phase of the case,
which developed shortly after the Gus
toms agents began their active cam
pain, was the receipt by purchasers of