Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-05-03
backed by 10000 Regular Inspectors,
|e Front Line, Fighting the Craftiest of
Trick to Bring Contraband Across the

cast suspicion upon two three persons ulti-
nlatey enmeshed men and women in practically
every State of the Union. Some of these per-
sons had been innocent victims of the SNUG
Glers.
girl in the New York office of the firm, for
some reason Of her own, furnished the tip that
set the agents to work. Her information was
given to another person, a conscientious AL
though unofficial worker on the case, whose
identity was kept strictly secret by the Gov
eminent. Other tips soon came in thick and
fast from both American and foreign sources.
On January 81 1924, Special Agents E. J.
Lewis and j. w. Robert detailed to the once
of the Southern district, New York, led raid
on the Fifth avenue branch Of the KrauS
establishment. Books and invoice records were
examined, and the entire foreign stock Of the
firm valued at more than 100000, was seized.
Most of it was found not in the shop but IN q
safe next door owned by one Rudolph ODlaCt.
Mediansky taken to the customs house
for questioning. Arraigned before a FEDERAL
grand Jury he waived immunity and made
full confession, including detailed outline OF
the method used in the smuggling operations.
The shop he said, had been opened in
October, 1928 and he had brought in, at That
time. jewels valued at 100000. Other dehv-
cries were alleged to have been made by Mrs.
Ada Kraus, sister of Moritz and Felix Kraus,
M Vienna.
He named Victor Reich in the plot, describing
him as a paid partner, getting 10 per cent ON
each load of jewelry and told how that young
man had brought in one lot concealed in fancy
Viennese pillows. Sometimes Reich accompa-
MED by two confreres, used the Canadian route.
AS result of the Mediansky confession
Ada Kraus Emma Kraus, Felix Kraus,
Victor Reich as well as "Mr. Needy we're
indicted for conspiracy TO smuggle and for
smuggling jewelry and precious stones.
Reich was arrested in Miami, Fla, and re-
leased on SIS, 900 bail for appearance in court
April 2. He left the country, via Canada,
March g. taking the steamship Antonio from
Halifax Mediansky was held on ball. and
none of the Krauses was ever apprehended.
They remained in Vienna, out Of reach OF
the law.
With record books of the New York firm in
their possession, agents began the job OF track
ing down all jewels sold by Mediansky ON
which duty had not been paid. Even though
smuggled articles pass through many hands,
and the owner is entirely ignorant OF their
character, they are liable TO seizure by the
Government and the owner may be held
responsible Scores of minor cases resulted,
but innocent victims were let of with payment
Of the duties owed on each piece.
Most Of the purchasers were entirely willing
TO settle the score, expressed surprise at the
news that they had been brought into the
scandal, and thanked the Government for the
courteous treatment melted out TO them by
the agents.
MANY prominent persons were involved,
among them Alma Chuck Zimbalist, who sent
her check by return mail, accompanied by .
Mortified little note; Peggy Hopkins Joyce,
whose attorney attended to q matter Of about
$500 duty owed Uncle Samuel diamond
and emerald bracelet, and Nine. Margaret
Matzenauer The New York list of victims
read like the social register.
Now information began to pour in from
foreign sources. Two men. whose guilty man
ner suggested completely in the operation OF
the gang. made revelations to the American
Minister in Austria. The treasury attache 40
Vienna, working the foreign end, found that
the Krauses were suspected of defrauding their
own government also. Mediansky himself turned
inforrner.
Under indictment himself his connection
with the Vienna firm discaimed by the
Krauses he played the anomalous role of chief
Government witness and valuable aide. To
customs agents he furnished information
which resulted in recoveries and penalties
from American tourists who had purchased
jewelry from the firm in Vienna and per-
sonally struggled it into the United States
And like other informerS he got his split"
on recoveries resulting from the tips he
supplied.
IRON these non commercial smugglers
caught in the web of evidence and re-
CURED TO pay the heavy penalties which the
Government exacts for such Offences came
information which resulted in jewelry seizures
from still other commercial smuggIers
From door to door, in a score of cities went
the agents, collecting the Governments due
and melting out fines. This is how 1t would
happen:
We'll" the victim would say to the agent
you are pretty smart 10 catch me- guess
But we haven't . whole lot Of money Our
circumstances only moderate, and there's
that rich old MIS- Jones that's got ali kinds