The New York herald., 1921-02-03
HUGE FRAUD Barred
IN CUSTOMS HERE;
CHIEFS INVOLVED
Collector of Port UncOvers
Worst Scandal i'm Ser
vice for Years.
Al INSPECTORS TO GO
Arrests Expected in Move
for General Cleanup
in New York.
ILLICIT LIQUOR TRAFFIC
Newton in Washington on
Case - Action Of High
Officials Coming Soon.
ILLICIT LIQUOR TRAFFIC
Special Despatch to THE New YORK HERALD.

Special Despatch to THE New YORK HERALD.
New York Herald Bureau,
Washington, ID. c., Feb. 2.
The most farreaching scandal in
the customs service in recent years
has been uncovered in New York by
Byron r. Newton, Collector of the
Port. Two score employees and a
number of high officials are involved.
Six customs inspectors have been dis
missed from the service and at least
thirty-five others are to be dismissed.
Criminal action in some cases is possi-
BILE.
Sensational developments in the
cases are expected within the near
future. Treasury officials refused to
discuss the case or to go into detail
with regard to the charges. Collector
Newton, it is known, has been in
Washington several days in confer
ence with officials. When seen before
leaving for New York tonight he re-
fused to comment or give the details.
He said:
'Tt is true that special agents Of the
customs service have placed in my
hands certain information about condi-
tions in New York which have dis
cussed with the Treasury Department.
An investigation is in progress and |
shall push it through 10 finish. That
IS all can say at this time"
The Collector would not give any de-
tails nor confirm statements made in
regard to dismissal and charges of brib-
cry on the piers in New York. 1t was
learned from official sources here. how
ever. that there will be general clean
some arrests.
The scandal, II Is emphatically stated.
is in no way related to or connected with
reports of sensational disclosures with
regard to prohibition enforcement in
Kew York city and State. but liquor is
largely at the bottom of II. It is known
that some of the charges on which dis
missals are to be made and have been
made have to do with the Illicit bringing
ir.to the country of contraband whiskey
from Europe and countries of the West
ern Hemisphere. The matter Is much
more farreaching than this. however.
Treasury officials are reluctant to
discuss the affair because they say it
will interfere with the investigation.
which may run over several months.
While two score employees and officials
are now involved, there are many 9TH
ers who are under suspicion. and II was
hoped TO clear up the case before it
gained any publicity.
Despite the general secrecy IL is ap-
parent however. that the scandal is the
greatest uncovered since the famed sugar
frauds that attracted nationwide atten-
ton during the Roosevelt Administra-
ton.
Complete data on the situation was
brought to Washington by Mr.. Newton.
He conferred while here with Secretary
Houston, officials OF the customs SER
vice and n number of special agents. II
was learned through the customs service
that action in regard to the higher ups"
is impending and that it was this phase
OF the matter that brought Collector
Newton to Washington on a three day
visit.
SO far as could be learned from Off
cials here the scandal Is confined to the
New York district. though there are re-
ports Of summary action to be taken in
the cases of employees and certain minor
officials at a number of other ports