New-York tribune., 1922-01-25
800 Fur Manufacturers
Reported Involved in
Conspiracy to Dcfraud
Governments in Returns
Take Ex-Deputv in
II Months Search
Roscnblum Said to Have
Collec,edFcrlune byUsc
of a Counterfeit Stamp

g. .i,crc5 conspiracy which may ~
20 lie between 2eH ~a &'o .nanHiactur-
r. furrcs su cA&lvrr GO cviur an at
ssnu. 90 acfraEd ,ho government Of
ssooo.0o0 in taxes Nas revealed ycstcr-
dsv when Two men said to have been
riaglcaders in the plot we're arrested.
They arc Morris Rosenhlum. OF Park
side Court. BROOKLYN. and herman r.
Schrss. who gave his address as the
A'srdeer Hotel. where he vas taken
into custody. The prisoners were taken
before United States Commissioner s.
H. Hitchcock and released in $4,000
bail each for I hearing February :.
Roscnblum formerly was a deput,
collector IN The Internal Revenue of
Zee here and il is thought that his
s'pNlcdge of TIC workings Of that bu-
iraN Was the foundation of the alleged
pot and tsat he was the brains Of II .
csnsrlr cy. H Was detected in scvcra.
ra..ds while in the government sorv-
ic' and was Gu. on $3.50 bail. await
= sentence. which vas deferred when
! turr.d ilforn1er in case ~ the
FEDERAL District Court two years ago.
" la, pleaded guilty to four indct-
wents a. that time. one of them in
vclNirg an 1000 brbc for making
in,se .ctArns on The taxes owed by the
s-tNsc Warehouse ard other cor
2oraticns, and gave testimony which
icl to the conviction of Morris s. Rach-
nil public accountant, involved in
tie transactions.
Sold False Receipts. Charge
Io-onb.um and Schuss were charged
esterdoy with collecting large sums
ef money from f,srriers in return for
receipts purporting to show that the
manufacturers had Paid their taxes.
assistant United States District At
torney David Y. Cah;ll. who is handling
the case, declared that in most in
stances GO per cent of the tax due was
DEM nded for the forged receipt, ard
hat t1ose false papers had been sun :
cont 20 keep the regular internal
'areaue AGENTS from detecting the al
'og'i fraud a they went over the
ulli"rs' books on their customary
rounds.
Not until leak" was received by
iuln X H. C~im. Special Assistant
'niteN states Attorney General, did the
government become aware Of the al
lr~ed plot This was in February. 1921
orlv one month after the date on which
'Ar alleged conspirators arc said 10
aaFc begun 70 operate. Since then the
,everr. .lot. knowing that a brief ex-
aio;nlticn would cuable it TO collect
$ taxes ~hiol. might be concealed hv
lie forgery. has been bidsng its tlne in
ne nope of making roundup which
wculd break up such operations. For
eleven months AGENTS fror1 The Depart
Aent of Justice and Chief Hugh Nc
Qui'lan's special internal revenue in
telllgence unit have been quietly col
citing evidence.
N3s,o00 Shortage Alleged
IN the last week Inc books of $500
a tie 5000 fur manufacturers here
ave been checked IN, and Chief Nc
Vui.ah said that IN more than one
H1hdred cases frauds had been detect
Cd. Mr.. Cahill declared at t''e arraign-
ner' that q shortage Of S13s 900 was
pad records. The Inauguration OF Grim
mai proceedings against many of the
i1Eriors is expected soon.
Rcsenblum and Schuss we're arrested
? o'c'och yesterday morning by spe-
cial intelligence agents. headed by Will
Lam y. Robinson. a search Of the
srner deputy collectors room placed
Ire detectives in possession of the
counterfeit stamp alleged to have been
.sed Ia carry out the conspiracy. Chief
NcQuilan declared that it was an ex-
"r"srt reprcd ction and would pass
voobscrved in the collectors Office.
Both prisoners have been living in
nNurJ for several months past. accord
~ TO the intelligence unit chief, al
'ourh while employed in the Internal
P Tue service Rosenb!um apparently
.'"sd a,odestiv on his $1,000 year
saa'r aud since then has not been
2oNl % have entered any lucrative
g.,i.nate business. He recently pur-
eaa.rd an expensive automobile, and
bofh ne and Schuss have been staying
a. TIC best hotels ~ the city.