CUSTOMS FRAUDS.

Dominion, Volume 2, Issue 539, 21 June 1909, Page 7

CUSTOMS FRAUDS.

AMERICAN TARIFF-LIARS GO TO GAOL. (By Telegraph.—Press Association.—Copyright.) Now York, Juno 18. The Customs 'authorities are conducting a drastio campaign against smugglers. The head of a millinery establishment has been sentenced to two years' imprisonment. Another has been sentenced to one year, his wife being fined ono thousand pounds sterling. The authorities estimate that the revenue is robbed to the extent of four millions sterling annually, principally by means of a scheme of dressmakers' agents. THE CASE OF THE SUGAR TRUST.' In a test suit brought by tho Government, the American Sugar Refining Company (or Sugar Trust) was recently found guilty of defrauding the Treasury by a device attached to the scales which determined the weight of the company's imported raw sugar, on which dutiesare paid. The penalty fixed by tho vordict in that suit was 131,116 dols. The Government at once set out to collect from the Sugar Trust about 2,250,000 dels, morel alleging that the Treasury had been defrauded of this sum, at, least, by tho falso weighing of cargoes not involved in the suit which we havo mentioned. On Juno 29, the Sugar Trust practically admitted the justice of the charge, and settled with the Government by paying 2,269,897 dols. in cash .this sum including the 134,116 dols awarded in the suit that was tried. ; . . "This payment (says an Amerioan /paper) was made by adnco of the-Trust's counsel. It appears: from.: the statement of these.: attorneys that there was a prospect that the Government's claim would bo raised to 3,000,000 dols., and that proceedings for forfeiture of thosugar f radulently weighed would have increased greatly the sum to be paid. The Trust abandons its protest and gives up its right to appeal. This settlement has been approved by the Attorney-Gcnoral and the Secretary of'the Treasury. It does not, however, restrain the Government from prosecuting criminally tho officers of the Trust, or the employees, who were guilty of those frauds." . According to a recent cablegram, the Govern, ment did prosecute, but. chose only the■.small fry. The cablegram stated: "Five employees of the American Sugar Refining Company were arrested in connection'-with. I •. Customs frauds, but their share in the proceeds ' was only JE3 weekly." '.' ■ >. ■ ■ • ■