New-York tribune., 1921-09-08
Diamond Plot
Uncovered by
100000 Haul
Customs Guard Seizes Pur-
ser on Liner Zeeland's
Pier With 4,547 Uncut
Stones in His Pockets
Dealers Here Involved
Former Belgian Soldier Ad-
mits Bringing in Other
Packages, Officials State

The first Of several arrests which
Federal officials declare will be made
as result of diamond smuggling oper-
'ations discovered here was made yes
terday when Ernest Potvin, twenty
three-year-old assistant purser of the
steamship iceland, of the Red Star
Line, was remanded to the Tombs in
default of $4,000 bail pending a fur
ther hearing on September ID. Potvin
was taken before United States Com
missioner Hitchcock to explain his
possession of two packages contain
ing 4,547 uncut diamonds, valued at
close to 100000, which he had in his
pockets when he attempted to leave
the vessel on its arrival here last
Sunday night.
Investigation begun early this week
as result of information supplied
by the youthful ship officer, it was
said yesterday, probably would in
criminate several New York diamond
merchants and lead to the exposure of
the local end of an extensive gem
smuggling system.
John W. Ryan, Assistant United
States Attorney assigned to the case,
said he had no doubt that a number
of men we're engaged in this case
both here and on the other side He
said thorough investigation was in
progress.
Former Belgian Soldier
Potvin, who is a Belgian ex-soldier
was taken into custody at Pier 61
North River, by Samuel Schermer, a
customs guard. The assistant purser, it
was said, had just left the Iceland
slight bulge in his pockets was noted
and the customs man investigated. In
stead of finding liquor, as he at first
surmised, the contents of the mans
pockets proved to be two rather bulky
packages.
Asked by the guard what they con-
tanned, Potvin is said to have told him
they were bonds and legal documents
Not satisfied, the inspector insisted on
looking. One package, addressed to a
diamond cutter on Fulton Street, Man
haitian, was found to contain 1894 da-
monds, while the other contained 1858
stones and was addressed to a mer-
chant on Montauk Avenue, Brooklyn.
man in Antwerp, with whom he
had been on friendly terms, so Potvin
is said to have told officials, gave him
the packages to deliver to the New
York addresses, paying him $25 for the
trouble. He denied having knowledge
of the contents or that he was being
used as an agent in smuggling opera
tions. He admitted that he had brought
similar packages over on other trips in
the last two months, according to the
customs men
search warrant had been obtained
and the premises of the local dealers
searched, it was said, but no evidence
of smuggling was found.
Total May Be S250,O0O
In statements made to Surveyor
Thomas Whipple, Potvn is alleged to
have given information causing the
officials to believe that more than
$3.50, 900 worth of the gems had reached
this country through him, though with
out his specific knowledge. From
sources not indicated, the Surveyors
department asserted they knew that
two. previous packages intrusted to the
assistant purser had each contained
consignments of gems much larger
than the last.
The officials declared, however, that
though they believed Potvin's story and
thought him innocent of participation.
they were compelled to hold him in
bail as a Witness