THE CASE OF L. STEVENSON AND SONS, MELBOURNE.

Evening Star, Issue 4099, 17 April 1876, Page 2

THE CASE OF L. STEVENSON AND SONS, MELBOURNE.

The Melbourne papers contain fall accounts of the extraordinary case of alleged fraud upon the revenue by Messrs 1. Stevenson and Sons, of which telegraphic notices have already been published. In order that our readers may fully understand the matter, we may explain that on certain classes of goods imported by the firm, Customs duties are payable on their valuer and that value is assessed by the revenue officers upon the invoice price at Home. The alleged fraud is that by arrangement with merchants at Home Messrs Stevens on have had a set of invoices made out f«or shewing to the Custom officers, representing the goods to be worth considerably less than their actual value, in order to paws thena into consumption at a lower rate of duty than ought to be paid. We are indebted to the Melbourne ‘Age ’ for an account of this extraordinary affair, of which the following is a summary:— About four weeks ago certain information was given to the Customs authorities to the effect that L. Stevenson and Sons had, for i a of years, passed false and undervalued invoices through the Customs, in order to avoid the full payment of the ad valorem duties ; that there were two sets of invoices, the one being prepared aud uhdtsrvalued for passage through the Custom House, while the other set was prepared i for the use of the firm, aud showed the true value of the goods imported j and that there i were several persons in the employment of the firm who were cognisant of these facts, i The Collector of Customs at once took action, and was met by Mr Stevenson in an apparently frank and candid manner, • he expressing his willingness to give [ the authorities every facility to sift the charges to the bottom. In the ffrst instance the firm denied most dintinctly that there were two sets of invoices in use, it being affirmed that tihe Customs invoices were used by the firm. The officer in charge of the case, under the immej diate superintendence of Mr Guthrie, projceeded to grope his way to the best of his ability in the assessment of the vaMe of goods in bond, and in the warehouse, avnd in examining the various documents supplied by the firm. This examination ended in comparatively barren results. The ave rage values set on goods assessed by the experts employed by the department showed tha.t in some cases there was a variation, and tl'iat the goods, as passed through the Customs, were m some cases undervalued to fcbe extent of from 2 to 7 per cent. But this was only in some cases, and the discrepancy was not sufficiently large to justify the assumption of fraud, as no two sets of experts, except in well-known lines, will agree precisely in the values they set on goods. Another interview was held, in which it was pointed out to Mr Stevenson fCbat it was strange and unusual for a firm ho only have one set of invoices. Mr Stevensoiotnen admitted that there were two sets «of invoices, and that he had made a mistake when he had denied the fact. A large nuun- ~~ invoices were then handed ove rto the Customs authorities, and on examination they proved to be mere duplicates of th ose passed through the Customs. So far tihe inquiry appeared to be entirely at fault. Several persons in the employ of the firm were then examined on oath at the Customhouse, and it was on the evidence given by them that all the subsequent proceeding, b were taken by the authorities. The substance of the evidence given is as follows; ftx out of eight witnesses deposed that the invoices handed to them (those supplied b\r the firm after it was admitted that then# were two sets) were not the invoice* used by the firm in marking off this Sis, and that the invoices used by the were sometimes, excepting in certain, lines, of higher value than those passed through the Customs. They were also examined as to ledger entries. In the book placed at the disposal of the department only lump sums of shipment were entered. The witnesses were then asked if the invoice* were not transcribed into Some other book, and after considerable pressure they admitted v • v ere was a transfer of imports book, in which the full details were entered. It was also stated in evidence that one clerk at present in the firm’s employment was engaged for a number of years in transcribing thede-. tailed invoices of imports and reducing the 1 percentages as he went on. The department' now had some apparently tangible ground to actoorn r and, having consulted the Crown Law officers, it was determined to take further proceedings. A demand was then made for the production of documents termed recapitulatory invoices, and the transfer of imports hook. This demand was flatly refused, audit is to theae documents the letter that appeared in our Saturday’s ?, 8 * P ur Port. therefore, mil now be thoroughly comprehended. It must be understood that up to the present not one fnrml? VOlC f b Y the Customs’ in. and be could prove his case, has been produced. It was also elicited at the inquiry on oath than one ot the employees, subsequent to the initiation of proceedings, was asked to deliver up a quantity of the “recapitulatory invoices * in fcs possession. He did so, and had never seen them since. Armed with these asse verataons, the authorities said it was necessary that they should see the documents above at Pointed out to the firm that the documents would only be seen bva sworn officer, and that if they would show him the books and documents named he Si 88 ? them bimselt and that no one else would ever knowiTlLeof .100 made that two officers of tho 4emit> ment should be present when theses)* o ?t2e off£ oorrespondence were broken. That refused. On Eridav last, therefore, Mr Guthrie went™ wn to

tit© ware lJtlso Mr Gordon and four other and intimated Ha intention to Dr Jjute a. search. It was then mutually Ringed that five of the Customs officers md five of the firm’s employees should remain in possession. In the meantime Stevenson and Sons applied for an order of prohibition against the authorities, and it would have been argued, probably, on Monday. So matters stood on Friday night. Between Friday night and Saturday morning Messrs L, Stevenson and Sons obtained the advice of counsel, including Mersrs Williams, Holroyd, and Adamson, and were advised that the authorities were not legally in possession, and that it would be justifiable m law on the part of the firm to eject them. Accordingly, on Saturday morning the Customs officers observed that, by slow degrees, there was a large augmentation of the number of men in the ware house, whose exterior was somewhat rougher than that of those usually engaged in the handling of linen and woollen stuffs. About one o’clock the officers were suddenly informed that they must take their departure, and on venturing to remonstrate, they were assisted in accellerating their departure by a little gentle pressure by hands placed on their shoulders. But no violence was employed. Being again in full possession, the doors were closed and barricaded by a largo number of bales of linen goods which were piled up behind them. A notice was also posted on the front entrance stating that having been advised that Mr Guthrie’s proceedings were illegal, and that forcible resistance would be justifiable, all attempts to take and hold possession of the warehouse by the revenue officers would he resisted to and proceedings taken against them; and, further, that an action for damages had been commenced in the Supreme Court against Mr Guthrie. In the meantime the Customs authorities were not idle. They applied for and obtained a writ of assistance from the Supreme Court, and on that authority secured the aid of a strong posse of police, who arrived in waggonettes from the barracks. As each vehicle arrived and discharged its files the police were loudly cheered. When the force assembled was deemed of sufficient strength, they were ranged in the form of a semicircle in front of the main entrance to the warehouse by Inspector Ryall, who was in charge. On a signal being given a number of the police bundled off about a dozen roughs employed by the firm to guard the door. These fellows showed just enough resistance to enable them to claim their money, but judiciously refrained from any demonstration beyond passive resistance. The doorway being cleared the Customs authorities, headed by Mr Guthrie, demanded and were refused admittance, though the Collector’s warrant and the writ of assistance, were shown to tne head of the firm through the iron railings of the first floor window. A long parley then ensued, in which Inspector Ryall was conspicuous by his good-natured and conciliatory manner. After a long delay, the Collector of Customs gave the parties in possession five minutes to admit him and his officers. At the expiry of the time Mr Stevenson asked for five minutes more, in order that he might send for and consult his solicitor, Mr Riggall. On his arriving he gained admission by a back entrance, and after a consultation with bis clients he came to the barred window in company with Mr Stevenson and held a conversation with Mr Guthrie. Mr .Riggall asked if the warrant authorising -the entry was the same as that before produced, and Mr Guthrie replied in the affirmative. Mr Riggall then asked if Mr Guthrie had received the firm’s protest and refusal to admit the authorities. Mr Guthrie replied that he had received a document signed by the firm, and Mr Riggall said that was all the reply they had to make. Whatever the authorities did after that would be at their own risk. Mr Guthrie ; “ That is not the question. Do you refuse to admit me and my officers?” Mr Riggall: “We have no other answer to make than that contained in the document given to you. ” Mr Guthrie then directed an attack on the door, taking personally a large and active part in the assault, in which the axe and crowbar were used with great vigor. The pine wood door so n yielded to the sharp new axe employed in the military engineering, but it was found that the siege would last a long time if entrance was to be effected in that way, for although the lock was cut out and the hoards of the door split np, it became evident that it would have to he splintered away by inches before the large bales of linen goods piled up as a barricade at the hack could be got out. A ladder was then obtained, and the large sheet of plate-glass over the door was broken to fragments by one blow of the axe, used by one of the Customs officers. On looking through the aperture the officer discovered that there were several men perched on the bales ready to defend the entrance, and on their making hostile demonstrations he got down. Mr Guthne at once mounted the ladder in a very plucky manner, and on getting to the summit he asked Mr Wilkinson and others whom he knew to be connected with the firm if they intended to resist his entry. They replied in the affirmative, and Mr Guthrie then attempted to affect an entrance, but was pushed back by one rn.in and struck over the head with a billet of wood by another, the blow drawing blood. He (Mr Guthrie) then seized a billet of wood and struck out vigorously at his assailants, but as an attempt was made to throw him down he had to use his hands to hold on by, as he was in imminent risk of being dashed to the pavement. At the same time Mr Willdnson seized him by the head, and as Mr Guthrie was descending the ladder Wilkinson struck him with his fist several times. For this assault Wilkinson was subsequently arrested, and on being taken to the lock-up was bailed out. When Mr Guthrie descended to the ground it was found that he had received a severe scalp wound on the crown of the head, from which the blood flowed profusely. He was soon advised to seek medical assistance, and went to the hospital, where his wound was dressed. On ms way to the hospital in a buggy a large pool of blood collected at the back of the seat, having flowed from the wound. As soon as he took his seat in the hospital he swooned, owing to loss of blood. As Mr Guthrie was in the act of descending the ladder the parties in possession of the window over the door violently knocked out the remaining and jagged fragments of the plate glass, and by some of tbe spectators it was supposed that some of tbe . sharp-edged fragments cut Mr Guthrie’s head. But such is not the case. The blow struck by the piece of wood caused tbe wound ; Mr Guthrie escaped tbe glass. After he went away a short cessation of hostilities ensued, and an observant spectator pointed out to one of the officers present that the proper way to effect an entrance was by the underground window, and said that if he were allowed he would make a breach in three minutes. This volunteer was taken into the service, and the axe handed over to him. He went to the iron-barred window on the western side of the door and with a few well delivered blows shattered the cast iron windowr-guard to fragments, smashed the window to pieces, and battered down tbe sash. This made a large opening, and a number of Customs officers at once effected an entrance with very little trouble. A number of police followed, headed by Inspector Ryall, who, after a short parley wi th M‘r Stevenson, were allowed to enter peayceabjy into possession. Subsequently

an arrangement was made by the Cos* toms authorities and the firm that fire Customs officers and fire employes of the firm should remain in possession. So the matter rests for the present. During all the contention for possession by the authorities an immense crowd was assembled in the narrow street, many taking their stand on a low roofed building opposite. Those who were collected together took an active interest in the proceedings, and cheered and hissed as their sympathies and feelings dictated. The officers of the department were in charge last night, apparently prosecuting the investigations, as the place was lighted up. There were two police on guard outside.

Mr Guthrie was in a very weak state from extreme loss of blood, but is in a fair way to recover. Every praise is due to him for the determined and energetic manner in which be vindicated the authority of the department.!