24 AUGUST 1844, Page 12

CORRUPT STATE OF THE CUSTOMS DEPARTMENT. nix Report of the

Commissioners of Revenue Inquiry is calculated to strengthen some of the worst suspicions as to the general cor- ruption of the Customs department, and also to suggest the further suspicion that Government have no intention of enforcing efficient purification.* With nothing distinct and conclusive about it, it is a mystification of contradictory impressions. The tales repeated in the Report might make one believe that the entire department

was a combination of defrauders and swindlers : those tales are con- tradicted, in many instances by the parties accused, but not always in a manner pronounced " satisfactory" ; yet the Commissioners abstain from pushing home the investigation. One pretext for that forbearance is, that legal measures were in progress against officers of the service : but the investigators surely forgot, that their duty was less to advance or decide charges against individuals as such, than to detect the state of the whole department with regard to the due protection of the revenue. The two kinds of duty are very often confounded; and in a court of law they unite ; because the accused is, before the bench, the personation of the wrongdoing, and his punishment is the example to all his kind. But in the case of a Government inquiry it is quite opposite : it matters little to the ends of that scrutiny whether a BURNEY or a Downixo is convicted or acquitted ; but it matters much that we should know what is amiss, in order that the evil may be thoroughly amended. The Commissioners halt before they have discovered all : they accept the assurance of parties accused, with corroborative testimony in defence—or without ; they enter into refinements of criticism on the probable motives and trustworthiness of the witnesses in ac- cusation; they begin with astonishment at the spread and depth of the corruption, but forbear to probe it to the bottom. The gist of their Report might be put thus—There appears to be endless fraud; there is certainly a great deal of laxity ; the heads of the depart. merit have, however, surely been no worse than rather indiscreet at times ; the informers (accomplices) are very equivocating fel- lows; and so we hope things are not so bad as they seem. Speak- ing generally, with scarcely more than a single exception it may be said that none of the charges are met by disproof: except as to the single assertion that bills bearing the names of certain Com- missioners of Customs and their subordinates had been discounted by particular persons, we do not remember that such a thing as direct disproof was offered; and even in that instance there is no certainty that the evidence was exhausted. The substitutes for disproof are, we say, the assurances of the accused, and a critical analysis of the inculpatory evidence by the accused or by the In- quiry Commissioners. If the Inquiry Commissioners had been frightened at the universal corruption and the perilous task of rooting it out, that would haveabeen an apter-looking motive for checking their own investigation than the punctilio about law- proceedings elsewhere.

The inquiry seems to have been rendered unavoidable by long papers published in the Times, and written by a Mr. ROPER, partly on the information of Mr. Jona! POOLE. This Mr. Pooem, a land- ing-waiter, and one of the parties accused, was dismissed; and in dudgeon he made sweeping incriminations of others, which are thus classified by the Commissioners-

" 1st. The employment of Mr. Poole, by Commissioners and other officers of the Customs, in purchasing goods of all sorts, and in small quantities, at wholesale prices, averaging 30 to 35 per cent less than the retail pnces. "2d. The obtaining for a Commissioner silk goods, from twelve to seventeen yards, according to the quality, by inducing the importer to cut them off the whole pieces, whilst they were under examination at the Customhouse, and to charge the invoice-price for them. "3d. The improper release, by Commissioners, of passengers' baggage, when seized for attempts at evasion of duty by concealment of goods, and for other irregularities, particularly in the case of Madame Persiani, Mrs. Brennan', and Madame Dfivy.

"4th. The determination, by tossing up, on the part of the Messrs. Penning' and Gray, then landing-surveyors, whether a duty of 20s. or 27s. 6d. per pound should be charged on certain silk goods ; that is, whether they should be deemed gauzes or foulards

"5th. The knowledge by a then surveyor-general, Mr. Manning, of the loss of a blue-book, in which goods had been entered, and of the fabrication of another, by means of taking the quantities of the goods from the merchants' books, about 1837 or 1838, and the participation of Mr. Fennings, now a sur- veyor-general, but then a landing-surveyor, in this transaction. "6th. The corrupt intimacy of Mr. Dowding, a surveyor-general, with Mr. Burnby, and Mr. Dowding's communication to Mr. Burnby of confidential in- formation given by Mr. Poole to the Secretary of the Board, relative to attempts at smuggling by Mr. Burnby in the early part of 1840. "7th. The habitual practice of most of the Commissioners, and of officers of every grade in the Customs department, of making purchases at the Cus- tomhouse sales, and of Mr. Poole's frequent employment by some of the Com- missioners, the Secretary, the Solicitor, the Surveyor-General, and others, to buy goods for them at these sales in a fictitious name, when to him chiefly had been intrusted the lotting and pricing of the goods previous to their being offered for sale, and when, as auctioneer, he VMS engaged in selling them on the part of the Crown."

Upon the whole, it may be said of these charges, that there ap- pears to be gross exaggeration mixed up with them ; some come to almost nothing ; and often there is some ground which is not satia- * We have the more right to make such an inference seeing who the Com- missioners are—all members of the Government, and not all subordinate mem- bers: they are, Lord GRANVILLE SOMERSET, Mr. GLADSTONE, Mr. BENG- RAN BA.RING, Mr. MILNES GASKELL, and Mr. ALExarana Paraerz.

factonly removed. But our business is not so much with the charges, as with the Commissioners method of conducting the in- quiry. Let us take the paragraph respecting Mr.DOWDING. The witness for the defence is Mr. DOWDING himself. The Commis- sioners are "not disposed to attach much credit to the long and intricate narration" by Mr. Poole ; for" not only does Mr. Dowding deny its truth, but the statement of Mr. Poole is so confused, if not so contradictory, that it is impossible to place reliance on it" : but they "regret to be obliged to add, that on some points—not in- deed the most material, but by no means unimportant—the evi- dence of Mr. Poole was borne out by the admissions of Mr. Dowd- ing." "The main charges against Mr. Dowding are, that he had a corrupt intimacy with Mr. Burnby; that he always reported Mr. Burnby's innocence whenever anything was alleged against him ; and that on one occasion, when Mr. Dowding had heard from Mr. Scovell, Secretary to the Board of Customs, that some cases

of silk goods were to be passed at an unfair valuation, he immedi- ately conveyed this information to Mr. Burnby." Mr. DOWDING denies all these things- " Now, although Mr. Dowding's denial that he ever investigated charges against Mr. Burnby is entitled, we think, to credit, and although we see no reason to suspect him of any participation in his guilt, we are bound to say

that the explanations contained in Mr. Dowding's own statement respecting his relations with Mr. Burnby are far from being satisfactory. Mr. Dowding admits that at one period he was upon terms of social intimacy with Mr. Burnby; and it appears that the good opinion he wailed to form of him during lin residence in Ireland, not only induced him to cultivate his acquaintance in that country, but that it had also no immaterial and no imperceptible effect on the discharge of his public duties, where circumstances connected with Mr. Burnby's conduct were brought under his consideration. "He admits, too, that upon one occasion, when Mr. Scovell had sent for him in the morning, and acquainted him that he had received information that Mr. Burnby had of late been frequently crossing over to the Continent, inquiring at the same time whether he knew that such was the fact,' he (Mr. Dowding) asked Mr. Burnby if the intelligence was correct ; and being satisfied with Mr.

Burnby's own disclaimer on that point, made no investigation into the charge. The reason which he assigns for this omission is, 'that he then believed him far above doing what it had since been proved he was guilty of." This took place in 1840 or 1841; at which time, he says, Mr. Burnby's character had not been impeached.

"But this statement seems hardly borne out by the fact ; for it appears that, four or five years previously, Mr. Dowding's attention had been called to certain alleged malpractices of Mr. Burnby ; and that he had received the instructions of Mr. Dean, the Chairman of the Board of Customs, to search his lodgings for smuggled goods. Mr. Dowding's narrative of this transaction is as follows. • In 1836, the Chairman sent for me, and put into my hands an anonymous letter, which stated that Burnby and Hastings, at that time living together in Soho Square, were in the constant practice of bringing out of the docks sample- bottles of wine and spirits, and taking them home : the Chairman asked me if I believed it : I said, decidedly not ; that I had met them both in highly re- spectable society, that I admitted Mr. Burnby as a visiter to my house, and I did not believe either of the parties capable of such conduct. The Chairman

• replied, that he did not wish to put the letter into the hands of an inferior officer with directions to search the house ; for if it turned out to be false, it interfered with subordination, and lessened a superior in the eyes of an inferior; but he must take some notice of it.

" I then said, if the Chairman would give the letter to me, though a most unpleasant errand, I would go and search the lodgings myself. On the same day, I went to the London Docks jest before four o'clock, and at the gate I saw Mr. Burnby's cab; Mr. Burnby shortly appeared, and I asked if he would give me a cast to the West end of the town : to this he readily assented. In the course of the drive, be asked where I would be set down ; and I told him I was going into his neighbourhood, and would go home with him ; which I did. On my entering his lodgings, I then, and not till then, told him the object -of my visit, and that I had an order to search his lodgings. The first floor was occupied by some gentlemen, Burnby and Hastings occupying the second floor. Mr. Burnby instantly, and without the least hesitation, opened all the cup- boards, and presses, and drawers in the joint sitting-room, and took me into the respective bedrooms of himself and Mr. Hastings, where he made a similar ex- posure of every thing in the rooms; and there was not anything therein which in the least degree confirmed the information contained in the anonymous letter. Mr. Burnby then took me down to the basement, where he unlocked the cellar; and there again every thing appeared as cellars usually do, and I found nothing which would justify the suspicion that smuggled goods were in the house.'"

The Commissioners justly say, that this explanation is not 4' satisfactory." It is indeed most ugly in its aspect. Here we see

a customhouse-officer accused of smuggling : his friend volunteers to scrutinize : that friend, the accused being his guide, is shown three rooms, and there is nothing suspicious " therein ": he is taken to a cellar, which appears "as cellars usually do." [How is that ?] But it does not appear to have occurred to him, that it would be as well to look for himself whether there was not some fourth room under lock and key ; or to ask others, say even "some gentlemen," whether goods were admitted in a strange manner or at strange hours. The Commissioners acquit Mr. DOWDING of connivance,

but not of negligence, remissness, imprudence, and want of dis- cernment: they say, with extraordinary sagacity—" It seems to us to argue but little insight into character, that upon the simple affirmation of Mr. Burnby, Mr. Dowding should have been prepared

to answer for his honesty." Why, what are the Commissioners

themselves about with Mr. DOWDING and the simple negation of Mr. DOWDING ? We may observe, that we regard the case against

that gentleman as being by no means made out ; but the mischief is, that the Commissioners, with their delicate, nonchalant, dandy way of probing the affair, do not settle it either one way or the other. They aver that it has been their "earnest wish not to conceal any thing" : but there was no need to "conceal" what they failed to search out.

In the absence of any conclusive decision, the chief effect of this Report will be the impression created by the vague, uncon- rmed, undisproved stories of the general corruption—uncon- firmed except by a few very striking collateral facts. The extent of the corruption is not at all ascertained. That it was most .alarming, might have been guessed by the number of persons pub-

licly mentioned as suspended from duty on suspicion ; and the Report, speaking of a former inquiry by the Commissioners into the frauds in silk and some other particular articles; says- " Sufficient disclosures had then been made to show that the fraudulent trader had not failed to avail himself of any means of increasing his profit, to the detriment of the revenue, which pre- sented itself, and that officers were easily induced to facilitate such attempts by every mode of deceit and every description of falsehood : indeed, we were forced very early in our inquiries to feel a distrust of the integrity of the officers and of the efficiency of the system. The previous high character and estimation of an officer appeared to be no guarantee for his honour and integrity; and regulations and instructions, which apparently provided the most ample security for the revenue, for the information of the honest and for the detection of the dishonest servants of the public, were shown to be unavailing, by the habitual disobedience to the one and a most imperfect observance of the other." The landing- waiters grew so bold in their laxities, (to adopt the mildest view of the general style of conduct,) that they were in the habit of giving luncheons of a jovial kind, to signalize their prosperous doings. " These luncheons, as described by Cox, Grayson, and Harris, were fre- quently two or three times in each week (almost indeed daily, according to some of the statements) throughout the summer of 1840, partaken of by land- lag-waiters and persons employed in the warehouses or on the quays by the wbarfingers. In some instances the warehouseman defrayed the expenses of the eating, which consisted of fish, beef-steaks, and other substantial fare, with wine, porter, and liquors; in others the expenses were shared. But it may be easily believed, that the warehouseman who provided these luncheons expected repayment from the officers in some way inconsistent with their duty to the public ; and it seems clearly established that the wine was generally had (more especially the claret and champagne, which were very frequently drunk On these occasions) from the stock of wines in the different warehouses, and it was improperly abstracted by the joint roguery of the Customs-officers and of the servants of the wharfingers. These carousals were held in some of the upper warehouses on the quays, but no one of the inferior officers was admitted to them ; and although it is alleged that they commonly lasted from one to two hours, they were never detected by the landing-surveyors, or by any superior officers; and the fact of their existence was unknown to them until, among other matters, these most disgraceful proceedings were revealed in the coarse of this last summer ; at least, all the superior officers, whose duty it was to have watched and to have controlled the conduct of the landing-waiters, pro- fess their entire ignorance of these transactions. After a lapse of three years, it is not easy to determine the precise amount of negligence or of criminality attachable to the surveyors-general, the landing-surveyors, or other., in this case ; but if landing-waiters could absent themselves two or three times a week from their duty, for two hours in the middle of the day, and if such orgies could be carried on without the cognizance of the superintending officers, their inattention must have been so great that no surprise need be felt that the re- venue was systematically plundered, and that frauds should have been perpe- trated on the importation of almost every description of goods."

The origin of these luncheons is characteristic of the spirit that must have prevailed in the department.

"A man of the name of John Wycherley, a weigher, was on duty on the Customhouse Quay in the latter end of May 1840, and was employed, under the direction of Mr. Lang, a landing-waiter, (since dismissed, and on whosecase we stated our opinion to your Lordships in May last,) in opening for examina- tion the outward case of what was apparently an article of furniture. Whilst this was doing, Mr. M'Vicar (a lauding-surveyor) came up, to whom Mr. Lang asserted that there was nothing in this seeming book-case. After the landing- surveyor was gone, the case was opened in Mr. Lang's presence, and by his desire ; and Wycherley believed he saw therein fifteen packages, sixteen or eighteen inches in length, and of proportionate depth and breadth ; and they were sub- sequently placed in five or six baskets with locks. Wycherley watched them until after office-hours ; but he was afraid to seize them without orders front Mr. Lang, although be suspected that there was something wrong. They had disappeared on the following morning, and were never brought to charge. After some little delay, Wycherley communicated this to Mr. Parsons, a land- ing-surveyor, who had bad some previous knowledge of him ; and Mr. Parsons laying the statement before the Board, they directed Mr. Ross, the Surveyor- General, to investigate the case. He did so, and recommended the acquittal of Mr. Lang, and reported unfavourably of Wycherley. The Board coincided in his view of the case, and continued to place confidence in Mr. Lang, but removed Wycherley from where he was a check upon Mr. Lang, and sent hint to the Docks; a removal which was in fact tantamount to a punishment, as the labour is greater, and the business much disliked by the weighers, from its dirt and other discomforts. • • We found from the admission of Mr. Knox, the landing-surveyor, that when before the inquiry the story was mentioned to him Wycherley was sent for and cautioned as to his proceedings, and told that such a course would cause his dismissal from the service, by making barges which he could not prove.' We also perceived that no effort was made by Mr. Ross to elucidate the charge, so far as it bore upon Mr. Lang, either by calling for his books or any other official documents, nor by requiring any ex- planation of the landing-surveyor, Mr. WVicar ; nor by calling upon Mr. Lang to state in what way he had examined the package, or discharged his duty relative to that importation. There was evidently a predetermined ire. pression that Wycherley was sure to be wrong : indeed the whole of the pro- ceedings bear more the character of the trial of Wycherley for misconduct and drunkenness, than an investigation into the accusation that Mr. Lang was concerned in defrauding the revenue. [" This impression," say the Com- missioners in a foot-note, "is said to have been formed upon a sort of ma. nomaniac disposition manifested by Wycherley whilst in the port of Bristol, to fancy, contrary to the fact, that frauds were being committed. We have taken some pains to ascertain the correctness of this imputation. In one instance he was certainly mistaken ; that he was SO in others does not appear clear, although he was in each instance disbelieved. At all events, he received a good character from his superior officers on his transfer from the Bristol to the London establishment ; and, after eighteen months' employment in the Dock business, he was at last promoted to a higher class of weighers."] It has, how-

ever, been since admitted, we believe, by Mr. Lang himself, that goods were clandestinely introduced with his aid on that occasion ; and Mr. Sidney Harris his near connexion, and then a landing-waiter, though now suspended, told us, among other confessions, that he has no doubt that Wycherley was perfectly correct in his assertion, and right in the main ; and the acquittal of Lang gave

rise to the first luncheon to celebrate it. And Mr. Harris, on being asked, ' whether the general result of this was, that a feeling prevailed in the depart- ment that the landing-waiters might do very much as they pleased, and that there would be very little credence given to accusations against them?' replied, 'Yes, that was the general impression." These were the luncheons that went on so long undetected by superior officers—so safe, that inferior officers dared not or thought not worth while to denounce them. 'Thieves the'spirh that-pre- vailed, when Vigilance was Jared -upon as 'monomania, or less charitably as '" insubordination " and misconduct," meriting dis- ..inissal. This waa the .state of the eystem,-upon:which the-Commis- 'aioners.have no definite judgment.-to -Offer, and 'no remedy but a 'trumpery regulation to set 4' weighers" on the watch 'over the 'landing-waiters! 'Was it not consciousness of the sheer impotency -and futility of this Report, that-made Ministers keep back its-pub- lication till the end of the session, in order -that no rude questions 'might be asked about it ?

We have been requested to reprint the suggestions for the basis of a new system which we published in May last : there is more practical purpose in the few lines than in the seventy and odd folio _pages of the Report.

1. " An account should be taken four times in each year, or at any rate twice, .all goods in the docks and bonded warehouses; and the warehouse-keeper -iihould check the stock by his books. The necessity of this will be obvious to angst practical men ; and the thousands of letters which have been lately sent out demanding duties on goods delivered ten and in some cases fifteen years ago, put it beyond question ; for the irregularities could have been easily de- tected at the time, whereas now all is confusion." • '2. "New books should be made on the let January in each year, of all that 'Sia outstanding. This is the simplest way of preventing a recurrence of the gross negligence which has been made apparent by the issue of these letters." 3. "A list of all licensed agents should be published annually, and also a list .of all docks, legal quays, and bonded warehouses."

4. " All suspensions of either officers or agents should be published, for the ,protection of the public; and no individual who has been once convicted of fraud should be restored to her Majesty's service." 5. "The Board of Customs should be an open board, where any complaint may be stated when petitions have been neglected." 6. "The amount sterling of duties paid, as well as the quantity, should be published daily, with the names of the parties paying." 7. "Above all, personal and individual responsibility should attach both to officers and agents." 8. "No person should be allowed to transact business at the Customhouse who is not known, or who cannot be easily traced in case of suspicion."

9. "When fraud is detected, the punishment should be certain and imme- diate; and whether the delinquent be an agent, officer, or any other person, the first thing to be done, after punishing the offender, should.be to trace out the party who introduced or recommended him. The fraudulent connexion between " the appointer and the appointed will sometimes be apparen.t"