Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-07-20
TARIFF DECLARED
AID TO SMUGGLING
Government ReIinquiSheS
"Ring" Theory in Combat
ing Diamond Runners.
Special Dispatch to The Star.


NEW YORK, July 19 (C.P.A).--A
high tariff wall seems to boom the
smuggling business. Diamond snug
glers for years have lived on the 20 pei
cent tariff, with customs officials in
Sisting that only the abolition OF the
tariff would put them out of business
and now, with tariffs still further
heightened, an army of 5000 customs
men here is battling against an tnVao-
ing horde of smugglers.
Alvin NICK. Sylvester, assistant Unitec
States attorney, who has been proSecut-
ing smugglers for years, and Gregory
O'Keefe, special agent of the Treasury
Department, charge that crooked Gus
toms employees, in collision with Amer
lean importers and European conspira-
tors, defraud the Government of mil
lions of dollars every year by admitting
smuggled goods. Philip Citing, col
lector of the port, and F. j. II. kracKe
United States appraiser, Indignantly
deny this and insist that, with the eX-
ception of few trifling cases, theil
men are rigidly and honestly enforcing
the law.
Watch Tariff Brings Protest.
The raise in the watch tariff brought
a howl of protest in Switzerland ano
Immediately thereafter comes the con-
fession of Samuel Stansf1eld and VIII
liam F. Gilroy, customs examiners
that they have defrauded the Govern
ment out of $350,000 in duties, by ad'
hitting watches valued at more than
81 900, 900. Replying to questions by
Federal Judge Goddard, Stansfield ano
Gilroy asserted there was considerable
corruption in the customs service.
Ramifications of the case brought
other changes, throwing the spotlight
on the new intensity of the tight OF the
customs force against the snl1tng
| varied and resourceful campaigns OF
smugglers of jewelry, diamonds, orug'
and other small-volume contraband-
| to say nothing of the perennial run
war.
Until the last year or two the Gov
eminent worked on the theory that INT
J various smugglers were parts OF vast IN
! ternational conspiracies, some OF then
with headquarters in the Rue de Pelican
| in Antwerp. American sleuths lurkeC
in every by-way in Europe, hoping u
/ find the tap root of some vast conspir
acy. They never found it, and Gov
eminent officials now admit that 1t Il
guerrilla warfare which the Government
/ carries on against the Smugglers.
Giant Rings RumOred.
The arrest of Florent Lamont thre,
years ago with consignment OF dla
monds in the heel of his shoe had al
the makings of an Edgar Wallace melo
| drama In the offing was a SlnlSte
ring of diamond smugglers, with head
quarters in Amsterdam, doing an DIN
cial business of $50,000,00 year. Thi
cave of the smugglers was never found
| Similarly, when a year and half ag
John T. Mcintyre, the handsome police
man, and william Ballyn, the singing
waiter, were arrested bringing in dia
monds, there was "$10,000,000 Euro
pean jewel-smuggling ring in the back
ground-and it is still there.
When a short time later Albert K. c
Lahaye, petty officer of the Red Sta
liner Belgenland, and Leo Ginsbers
| New York jeWeler, were arrested, tn
Government for the first time aban
doned the theory that jewel smuggl<nl
was large-scale international business
John Roberts, head of the diamond uni
of the United States Treasury Depart
ment, said 1t no longer appeared tina
any great world conspiracy existed, but
rather, that smuggling was carried OF
by small. shifting, isolated groups ant
individuals. Attorney Sylvester SAT-
"the most vigorous police work in tn
world is made ineffective by the in
Vulnerable ways of concealing q Jewel.
Bribery of steamship employees and
according to the recent New York testi
mony, customs employees, seems to b
the main dependence of the smugglers
In past instances these allies of the con
spirators have received only from $40
to 5000 for bringing in consignment
worth $4,000. The higher the tarif
the larger the split all around. but witt
many persons participating in a singh
deal, officials wonder how the foreigl
exporters can find dependable allies 70
such small compensation.
| (Copyright. 1907