Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-02-21
Jersey POTTERS
Losers BY FRAUD
SO It's Charged in House ResO-
luton Against Tariff
Swindles.
MILLIONS INVOLVED IN
FAKE CHINA IMPORTATION
Attorney-General Started Grim
inal Prosecutions, but Dis
continued Them Suddenly.
BY HERMAN b. WALKER.


WASHINGTON, Feb. 21.-Gigantic
frauds, alleged to run into many mill
lions of dollars, in the import Of
Limoges china, are the subject of a
resolution introduced in the House of
Representatives yesterday by Repre-
sentative Webb, of North Carolina.
Pottery manufacturers in New Jersey
and elsewhere in this country are
taking a live interest in the Webb
resolution and its purpose for the
reason that the alleged frauds in inn
portation Of French china are said to
have largely destroyed the tariff pro-
lection enjoyed by the New Jersey
potters, on high-grade decorated
tableware
The duty on undecorated china is
30 per cent. On decorated ware the
duty is so per cent. There has been
q controversy for years over the
methods of valuing importations of
Limoges ware. In 1903 a United
States commission went to France
and agreed with the Limoges manu-
facturers on a schedule of values.
This schedule held for two years,
and was then brought under so much
criticism that it was rejected by the
treasury department. The Limoges
people objected, and in 1911 another
treasury commission, composed of e.
r. Wakefield, George c. Davis and
Fred Achenbach, was sent to Limo
ses to make an investigation. The
Investigation made in France by this
commission is said to have unearthed
reasons for continuing it in this coun-
try last year, with the effect of dis
closing gross frauds that had been
going on for years by which the gov
eminent was defrauded of immense
sums in tariff revenues, and domestic
manufacturers of china lost a large
part of the benefit of the protection
given them by the tariff schedule.
Criminal Prosecution.
As result of the disclosures made
in this INVESTIGATION and upon the
basis of the report of this commission
to the secretary of the treasury the
Aepartment of Justice began criminal
for the prosecution of a
of large importers of Lounges
ware. A few weeks go the attorney
generals department began producing
evidence before a federal grand jury
in New York. with a view to obtain
ing indictments. Then, without ex-
PLANTATION the grand jury proceedings
we're suddenly stopped by order of
|zeprney- General Wiekersham who
directed that civil. instead of crimi-
nal proceedings, should be brought
against the accused importers. While
The same evidence would be produced
and necessary to establish case
under civil proceedings a fine would |
be the heaviest punishment possible, |
while under criminal proceedings
those who have been guilty of the
differentiation frauds could also be
sent to Jail for violation of the crimi-
nal laws of the country.
Concerning the case that was under
.presentment to the grand jury when
the encouragement ordered the pro-
eeedings discontinued Representative
Webb said today;
Accounts Faisif1ed
THE accounts of this firm were
audited by public accountants. The
audit shows that the invoices and
customs huse entries stated the
cost of the goods to be below the
true cost, and that sums of money
in excess Of the sums stated as the