Year: 1869

Another Discovery of Frauds at the Custom


House, differentiation Of Sngur-The In


ternal Revenue Department Defrnnded


Extensive Scnle-An Order stopping


the Withdrawal Of Sugar from the Bonded


Warehouses.


There have doubtless always been system upon
system OF frand perpetrated at the custom House In
spite Of all the vigilance the government might dis
play. At last, however, 1t seems that strenuous and
successful efforts are being made to bring these
fraudulent transactions to light. The Blachford
excitement has not yet subsidized when


WHOLESALE FRAUDS IN TIE BONDING or SUGAR
have just been discovered-a system which has been
in such general operation that now its discovery,
1t has been found necessary to order the retention or
all the sugar now In bond until thorough mvestiga-
ton shall succeed the examination which led to The
discovery that system OF differentiation Of I'm.
ported sugar has been carried on To an alarming
extent, the officials thereby enriching themselves
and importers by whom they we're brbea.


DISCOVERY or THE FRAUD.


As far back as last July Colonel Frank Il. Howe,
specia agent here OF the Treasury Department, re.
ceved instructions from the secretary or the Irei-
sury TO re-examine and reweigh all the sugar i'm
ported and bonded IN the various United States
bonded warehouses In this city, as the department
had reason to believe that great Irregularities existed
lp making the VALUATIONS at The !ipe q the original
importation and bonding OF the sugar. Colonel
Howe accordingly made these denominations, anu
reported the result to the Secretary Washington.
AN ORDER TO STOP TIE WITHDRAWAL FROM BOND
at once followed. This brdcr compelled all mer.
chants desiring TO withdraw sugar from the United
States bonded warehouses OF this city to first pro-
cure from General George W. Palmer Appraiser OF
the Fort, order to the effect that the sugar IN
tended TO be Withdrawn had been nc. examined.


The discrepancies between the valuation mace of
the sugar at the time OF bonding ana It's real value
are very great and extend throughout all varieties
OF the article. SO extensively has this mode OF de-
frauding the government been CARED on that the


IMPLICATION OF MANY PROMINENT IMPORTERS
has been discovered beyond doubt while guilt has
been at the same time brought home to several
Custom House officials. Extensive as have been the
frauds, 1t Is not at present the intention OF the
authorities to impede the sugar trade by any ex-
treme measures against the culpable parties Many
importers Will have TO pay large Increase OF duty
before their sugar will be recessed iroin
bond The average increase viii be about
two cents a pound, and, considering the enor.
nous extent to which the fraud has been
carried on and the immense quantity OF sugar now
in bond the Increase to the internal revenue will
very great. In many the sugar viii be raised
as much as three cents pound, ana many lots
entered at the lower rates will be advanced to the
higher rates. Colonel Howe has in his custody a
large number OF vias containing samples OF the
various lots OF sugar re-eXamned and sealed by
himself in the presence OF Witnesses These samples
Will III case OF necessity 90 used as evidence
against the importers. Colonel Howe and General
Palmer have instituted and conducted with great
skill this movement TO prevent this enormous fraud
on the revenue department.