The New York Herald Newspaper, April 1, 1872, Page 3

ASTOUNTING i The National Treasury Robbed One Hundred and Sixty Millions of Dollars How Andrew Johnson Admin- istered the Government. How the Treasury Was Cheated Out ofthe Taxes Upon Whis- key and Tobacco. ternal Revenne Offierrs, Legal Officers of the Govriment and a Member of the Cabinet Implicated. The Most Appailing Conspi- racy of the ge. ge. President Grant Directs a Stern Prose- cution of the Offenders. The United Stetes Grand Jury at Work. Seven Hundred Persons Pre- sented for Inquiry. | One Hundred and Seven Indictments Found ond Presented on Saturday. Ex-District Attorney Courtney and | Marshal Murray Indicted on Wednesday. Their Cases Withdrawn by Some Mysterious Influence. “Let Justice Be Done Though the Heavens Fal''” Exposures of gigantic and startling ‘rau been the order of the day within the pas! months, not only in this city, but ail over the cou try, and it Aeems to be the mission 0! the Jo alist to act as the detective, and to Mim the public Ik t \ debted for the iniormation thus galie.!. CORRUPTIOW IN EVERY BRANCH of government—national, State and man’ | a even spread its venality into commer ow trial circles; 80 that the diseass \iax and nothing fort of a revolat purge suclety Of 80 vile an Inouye The facts of the most starting © petrated, and by which sie natu ‘ bas bein swindled out of wiouey a" York alone to pay ONE-SIXTEENTH OF THF ® * will create the liveliest feusa\: eran public, It has become thc ORK HERALD to become the e»; L won as tw other cases of corruption La Might. Much nas been gar) aii wr .alew years past of THE its power, Influenv« raw Oongres- sloual committees bh who held day and nourly + 8 for + & cost of tnousands of d 8 nt, These gentiemen lived 01: (i » and, alter spoiling reams sous idence, and ‘when public onir aem to make @report, the “whew brought into Tequisition, and « ‘ shtened on the subject atissuc on 2 scale, Pubite opinion had beou wrath of the people appeased, old 0 sinners forgiven and culprits told to ¢ po more, This bappened under THE OLe Laws of 1864, 4 yogwne unt 40, 1868, when the present wath aicen in and_adaitions, went into ef 8d lb Qe Hoar ot as enactments can a 80 successfully car- ney edmloistrauon and its ind every branch of busi- c demoralized. New York vectncts the shrewdest as : Dulous adventurers, who og and undertook everything to be made and obtatned.—no matter at w ans tose expense. The loosely wh revenue aWs8 ppertaining to the collection of ‘aX On Whiskey amd tobaccu were at once pounced apo: as of Jing w |ARGIN FOR EVASION, ‘The profits hetog !. fe-and the risks very slight, the feta tho or f peculation became a source of fabalous ir snd proportions, Any one who Was able to command a few hundred doll ra set up @ distillery, and in @ few weeks became wealtny. ‘The rapid transit from poverty to affluence, how- ever, Was not coniined solely to the producers of whiskey. The officers charged with the collection of taxes very s00n found out the rich placer to be Worked in this mine of weaith, and not only took advantage of the oppo~\unity taus offered, but even outstripped the evaders of the law in defrauding the government, ana insisted upon ana received THE LION’S SHARE OF THE SPOILS. Instead of preventing frauds and bringing the offenders to justice Andy Jonnson’s revenue of- cials, with few exceptions, aided and abetted the delinquents, and hounded them on to more exten- sive peculations in order to reap a larger personal «meome, RETRINUTION. But the volcano has begun to labor, and the lava about being emitted will snow up the most foul and Systematic mass of corraption to which the pecca. \, ditioes of the Tammany king, the Erte Ring, the “ episode of Black Friday compare as garbage does to new mown hay. itis hardiy necessary to offer any proof at this time of the fact that in 18967 and part of 1868 THE GOVERNMENT WAS DEFRAUDED Out of at least ninety per cent due on distilled Spirits, saying nothing of the tobacco tax, and all by the connivance of revenue officials, high and low. Since General Grant's inauguration reform mea- sures have been introduced into every branch of the departments, Evidence has been collected in thou- sands Oo: cases, few of which only nave been tried and convictions had. THE WORK OF FERRETING OUT THESE FRAUDS as been going on for the past three years, until ‘barrels fuil of proof have accumulated. ‘Ihe time has arrived for the o Teuders to be brought to justice. A guarantee that THE ADMINISTRAT IN IS IN TERRIBLE EARNEST may be found in t ) following, waich was issued rom the Aitorney General's otice last fatl:— RPATRUMENT O1 UsTIe <4 Wastixaton, D. Gy Get, 6 1ettef The Secretary of ihe Treasury has fererred to tals depart- ment a lettor (rom ihe Commissioner of Internal. Revenue, dated September 27, 18/1, wherein it ia staved that there are now pending in the several Circuit and District Courts of the United States more than one thousand suits, Instituted under the internal revenue laws, any of which have been in the hand of attorneys for years,” The Commissioner further 1 win satasiied that the offcers of the United States Courts re if too Many instunces lay m the adntoistraul n of therr nities, the resnit or whick iq (nat immunity for offences indt the internal revenue jaws ia too xenoral a fact. This Wo Greate Miarespect tyr we Jaws, agure upon ornevs prepan regard uinost ment of the Uni happens that a feat to the govervment, i chiety upon “alstrict ‘attorney deficient — preparation and canes to walen the govermment ia a partys primarliy responsible (or the salinre to. bring speedy trial. ai clerks neclect their duties, district have their remedy betore the courts, If marshals execute promptly processes in their hands or to make pro} return thereof, district attorneys are expected and required to report such neziect to tls department. Sor does the duty of a cistrict ‘attorney end with the trial of a case in waich the govern:nent obtains judgment. He is expectes to fee that final process ix issued whea due, ans that it ia re- evived and exsouted by the marabat and dus return made by that ofticer. Relying with contidence upon your earnest operation in tne determination of ‘this department to bring about prompt a edicieat execution 0 the laws of the United states, I am, very respectfully, Free B.'H. BRISTOW, Solicitor General and Acting Attorney General. Under this order proceedings were instituted at Baltimore, October 7, 1871, and EIGHT sNDICTMENTS FOUND against dealers in and producers of illicit whiskey, and more are in prospect, lu this city the work of prosecution has com- menced in earnest, The Uaned States District Attorney, General Davis, has been tnstructed by We Secretary of the Treasury and jue Solicitor of the ‘Treasury to commence proceedings forthwith, and up to this time upwards of SEVEN, HUNDRED CASES WERE FILED, and are being investigated by the Grand Jury, In- dictments against some of the most prominent gov- ernment oficials and dealers have already been foaua, which, of course, could not as yet be made public for reasons tuo obvious to mention, When all the facts, however, become known, THERS WILL BE CONSIDERALLE FLUTTERING among those mostly interested, and some of the Implicated delinquents would gladly take a pleasure tour abroad or Join the aelectable Collector Joshua F, Batley in his rural retreat in South America, where no extradition treaty exisis with the United States. * BEFORE GOING INTO DRTAILS, and naming cases and persous about to be summarily | cull with, it wiil not be amiss to give g little secret hisvory matter} were managed py revenue | odious in this erty Under the law of June 30, 1864, ed “An act (o provide internal revenue to sup- av. Ge BOovernine It CO pay Interest on the public | tens anc for ovner purposes,” &c., the Secretary of ' roas}ty was ompowered to appoint Tes REVENUR AGENTS fc © Univ States, One of these officials was oto’ in tus cy, to Waom @ndmber of revenue | re lac \o report, ‘The duties of these reve- nts were to ald in the prevention, aeiection ht poursonenat ef frauds upon the internal reve- ' she eniorcement of the collection | col, & che first agent in this city was Mr. \iexan » Lewis, who was succeeded early in gov, bY (cccr@: Wililai 8, Hillyer, wno held office at the sue Was aboushed by act of Congress in abd song thé reigu of the revenue agents THE WHISKEY RING » by ho Means exlensive, altaough a great many ere perpetrated upou the goverament. | becre ary Mevulloca, of the ‘Treasury, and E. A, | ‘ollins, Commissioner of Internai Revenue, finding | now mv (ters stood In New York, which was certainly v4 (OdAeCO, Fesoived to seud One of the deputy missioners here to 100K alter the interests uf government. Colonel isauc i, Messinore was ecied lor Unis special service, ana he lovated in uetropoiis, THE FRAUDS AND PECULATIONS | became more apparent and glaring every day, and | Secretary McCulluch was compelled by ‘pubic | opmon to adopt some oiner course. eparluunent establishing ‘TUE METROPOLITAN REVENUE BOARD, with powers over a territory comprising the first nine and ‘Toirty-secoad Coliection atstwicts oc New York, ana the fturd, Four.h aud Fifth districts of New Jersey. ‘Tue Revenue Board cousisted vl H. 8, Van Dyke, Assistant United states ‘treasurer, New ora, Chiitinag; isauc E. Mess- more, Deputy Commissioner, Secretary; Samuel G. Courtuey, Unied States Southern District of kew YoR; Meajema &. Tracy, United States District Attoracy o: Brookiyn, N.Y. Q, A. Keasvey, United states District Aiworuey, New Jersey. ‘The composiuon of tas Commission ex- isted unt Octover 4, 1607, aud this period was We heyday of tue Whiskey Ring. MBSSMORE WAS BR on this date, and George arue)i, another Deputy Comumus-iouer, sent irom Washington Lo replace ium, Paraeli was wish Lhe Koard irom Octover 15, 1867, to December 17, 1367. not noted for any orilhancy either, and ne was Withdrawn to maxe room Jor Pomas Harland, we Deputy Commissioner, WhO TOOK MIB seal In the Board December 25, iss7. F ry 23, 1868, was Uke last session beld vy the Metropolitan Revenue Board, when the records were ail trausmitted to Wasuungtou, and shortly afier THE COMMISSION CEASED TO EXIST, With the estadlishineni of the Metropoiian icevenue Buard came a norde of newly appointed revenue inspectors, Who, on a salary of $4 a day and about ninety-iive cents daily ior expenses, could afford 10 uve In first class fiviels, drive their fast horses and Sport tne finest diamonas and jewelry. THB DISTILLGRS WERE MADE VICTIMS, as a watier of course, und whoever couid not “bleed” heavily was closed up and venarrea from working, i Bay person nad influence suilicient with some member of Congress to ootatn a com istrict Attorney, MOVED mission ax revenue imspector for thirty days he would at once cume to New York, make a round of the distillers effectually scare them lato paying wim a “weekiy allowance, ? 80 that at the expirauion of bis commission ae could retire wiih a tew tuousand doilars obtained without very hard work. But, strange to say, most of the ilgotien gains of Wiese ex-revenue omlcuus nas melted away, like dew vefore tne mormng uu, and the great majority of them are now POUR AND PRNNILESS. Of the Metropolitan Revenue Board nearly ali the members thereoi are enjoying a cumpetencs, Mr. H. H. Van Dyke, the first President, paid very littic atteniion to the duties appertaining to that oitice, and Was content to ieave everyining to Colonel Messmore. ‘Tue iast vamed gentieman is somewn: Out in Michigan engaged as presiuent of a rauroad company. Mr, 5. G, Courtuey 18 8 practising attorney in this city, has large influence with the Apolo Hail Democratic General Committee, aud lives in tine style in West Tuiriy-iourth streei. dar. Benjamin F. Tracey ts suil United States Dis- trict Attorney for the Kasiern District of New York, and Is said to be very wealthy. His residence oa Montague street,. Brookiya, is oue of whe vest im thai city. He hkewise ‘enjoys a iarge legal pracace, Mr. Q. A. Keasbey still holds the office o: United Siates Iistrict Attorney for New Jersey; resides at Newark. Ex-Deputy Commissioner George Parnell, another Member of the Metropoutan Kevenue soaru, 18 Wita Secreiary of tie interior Columbus Deiano in Washington. Thomas Harland, ex-Deputy Commissioner, and ‘With the ‘‘poard,” at iis collapse, remains in this city, practising law in partnership with Daniel Rollins, @ iate Assistant District Atwrney with Mr. Courtney. THE MAGNITUDE OF THE FRAUDS committed by distiliers, rectitiers and dealers in spirits against tae government nas beea followed Up With the utmost perseverance wna assiduity by anex-oillcer of the Internal Revenue, and the re- Suit of 18 investigations shows the most compiete and Ingemously devised plans of operation ever de- vised lor the commission of Iraad. Tne investiga tor 1s a highly eaucated gentleman, a Sounerner, and seems to have been imbued witil the instincts of the bioodhouna ot nis native country, tor ie has demonstrated the utmost persistency in his r search, Not only has this detective paid his re aspects to the distilling interest, but he likewise hounds the ex-oflicers, Wao ave la a measure more to blame for the frauds at which they winked and connived taan the accused producers and dealers, in order to give A MORE ACCURATE IDEA we reproduce his own story, He says:—The nooks Of the Distillers and Rectiflers’,Association of the ment agent in this city, Who is prosecuting the malefaciors) Show the uames oi ali the members comprising said association, which appear in ar other column. The resolutions and orvers made And approved at their meetings show further tne object of the organization to have been primarily TO STOP ILLICIT DISTILLING mm New York and Brooklyn, as well as prevent whiskey being sipped Irom tae West to New York city, and thus evade payment of the government tax. In order to do this detectives were employed, a3 1s also shown by suid books; and tnis systein of working would have been enurely successitil but for UNLAWFUL INTERFERENCE OP GOVE - CIAL in New York city. The storekeepers, inspectors, sangers, Astessors and collectors of internal reve nue ia Many districts in New York demanded of suid distillers the payment of large sums of money to them tn Weekiy instalments, or else undergo seizure and rain. ‘the aisuilers wm first determined NMENT OFFI- not to countenance or hgve anything to ao with such fraudulent aemands, were. fially com. pelied either to retsquisi business or accede, This they did, a3 is proved by the president of said AssOCIAtION, OY Checks NOW IM Possession of tue gov- ernment prosecuting agent, and by a STATEMENT AND MEMORANDA mado ch by said President at ainceting held Septem. ber 22, 1867, at which the names of parties paying suid amounts and to whom given is (ally stated, ag Woll as other aiidavits of most respectable men aac portners in Jarge distilleries, confirming, and more iuan confirming, tne averment here made, ‘There are likewise aMdavits On fle [rom an internal revenue inspector, which sfow Liat BRIWGS HAVE BERN GIVEN id, consequently, , to and agcepted by the late Ugited States Djstrict caguarters of all the contrabaudisis tn spirits | on the zist of | | June, 1867, an order Was issued irom the ‘treasury | His admiuiscration was | city of New York (now In possession of the govern | | to near! $500; caine trom same was settle Internal Kevenue ON PAYING pIXTY-Bi without the consent of the or District Attorney Pierrepoiug commenced a suit. inere ure ils on tie arom partners in disihert worthy men—to (he effect that movey W oiticials, and particuiarly vo, te etn Revenue Board, At one Ume one Of ae Depew Comuussiouers, and a member of Uns board, re ceived $10,000 from one party for THE PRIVILESE OF MAKING AND SELLING WHISKEY without paying WX. Ailidavils are on fle cuncern- ng the seizure O. a disullery mM Base euty-iourta street, in Uns city, by Tooinas Harlanu, Deputy commissioner aud tea a member of the Metre po- tan Kevenue Board, and tue then United Siates Marslial Look possession of NINE THOUSAND BUSHELS OF GRAIN, and several hundred parrels of whiskey, awountins y lorty thousand dol.ars, .0r no we- s ever rendered either Wo the government rhe compiler of THESE STUPANDOUS FRAUDS has spent three years in their tavestigatio during bis research over fity distiileries Have Come under his surveillance, aud THE COMBINED STRALINGS Of these Institutions amounis io Lue enormous sum Of 30,000,000, add to which the peniities, would make a total Of $160,000,.00, aud even at Laid Late day the government, 4vaich 18 cuergeticaily ab work prosecuting these Irauds, will ve able ty coslect Muluons Of Ihe ill-gotten gains. THE ORIGIN OF THK INVESTIGATION count W or the o On the {8th ot April, 1808, Simon Frank, who clauned said spirtts, or Was interested te 1, Was | | ormed oy Louriney that said spirits could) be ri tnt Sten, ington "Wy sums above i persons. Sworn to befor JOUN HAYes, Notary CASE NO, 1—AGAIN' On the 6th Of September Collec.or vf the Fourth aistrihe 0: disulied spirits, beloaging t bon Cor Courtite. commen tue states On the lta of Ap . sioner of Internal Reveuue, by tetters addressed td him, authorized Courtney to release a portion of Fad SHS OB The payIEAs gL Flo,Q00 aNd Lhe warehduse charges. ‘This Is shown by the record, oiling, Com » Jeased on the payment lo Courtuey of 324,073 1 and that he wished the checks ior tie’ mone drawn as foilows:—Oae check ‘or $19,900, Ninth and Tenth avent Finley, Norman M., Frank & Doobin, | Finsshner, street. cen Herrman & emanated trou the Secretary of tue treasury, who airecied District Attorney Pierrepomt to give the furtherance of ihe plan his concurrence and ald, Which the agent received unut Octover, 1869, when Joshua F. Bailey, M. B. Kieid und Jonn V. Gridiey, Collectors of We ‘Thirty-second, Sixin and Kignin districts, REPRESENTED TO JUDGE PIERREPOINT to the Commissioner of Internal Revenue, the Sec- retary aud Solicitor of the Treasury, ‘shat said agents invesigation would bo greatly detrimental to the public interest and that it sould be stop- ped, Previous to that time Collector Bailey, wno had plenary powers ut the city of New Yorx in coa- nection with the laternal revenue, uad procured we arrest and indictment Oi every man Who had taken & prominent part in THE INVESIIGATION AND EXPOSURE OF FRAUD upon the internal reveoue in this city, and espe- cially those committed by goveramen; gificials, Said Bailey tried to procure the urres; and Indictment of the party making pubic these facts, in order to put @ stop tO his lavestiganons, Judge Pierrepont re- Iused, however, Lo graat @ Warrabt for nis arrest, for the reason that the agent had taken the precau- Don to deposits SVERY ORIGINAL AFFIDAVIT and paper taken vy him with said Pierrepont, as District Attorney of the United States, and exact copies Witt KE. C. Banfield, Solicitor of the Treasury at Washington, so that be hud no papers wii waich to vlackimail aby one, had he even been so disposed. ‘The origuials of said papers In the Dis- trict Attorney's ofice were not kept under lock and key, as should nave been the case, but were open to the iaxpection of the partes accused, Conse. queutly # number thereot were stvieu. As soon as THE AGENT POUND OUT THESE FACTS und also that tere was nO probability of any of the accused parties veing brought to trial, ne at once withdrew the orginal papers irom tae Districy At- torney, and Wey are NOW in the possession ol a secr special agent 01 the yeneral government,a genueman irom Buston, who 18 sentun to New Yor ior whe speciae purpose of PROSECUTING ALL THR CLAIMS, both civil aud crsminai. ‘The comes, nowever, are suilat Washington. ‘ue wWorker-up of tuese Gases hus devoted three years of his Lime, and upwards of $20,000 OL bis OWN money, In the iMvestigation of these Irauds, aud the making up and PREFARAT‘ON OF ‘THE PROOFS, for which he has uot received oue Guar from the gOvernmeni, All he sks is vaat A VIGOROUS PROSECUTION of — cages be made and Wie OLenders brought to Justice, he saine party has now in his possession a aum- ber oi ieiters (rou very YROMINENT DEMOCRATIC OFFICIAL 1n ths State, received during iast 0 vember, Seexiug LO get possesion O1 Lt documents In order lo aistra%’ poolic atiention by tuelr pubucation (rom tne ecpose of the Tamanany Riag swiadies, then creating so maca exenement Inthe daily journals. Attnough large amounts were ollered the proposal was decuned. NAMES OF THE GKAND JURORS. T lullowing named gentiemen composea the Graud dury:— Unarles A. Macy, foreman, banke 122 Kast Seventeen sireci. George W, Arnuiu, secretary street; ziz Buse Forly-tirst street, Wiliam «. Albro, grocer, corner Bond Bowery. Aired Oneraey, Carinine streets. Henry Hariourt, 11 West Twentieth street. Lucién 8. Jacquin, jeweller, $69 roadway. Joun Macieaa, presideat, 889 Cauai street; 44 Mortou . Jawes A. Nelson, T, 30 Wall street; engraver. 14 Ann ireet and snoes, corner of Bleecker and chandler, 192 West street, \W | chester. 1 | of the Grand Jur’ ueorge L. Nevias, merchant, 11 South street, James A. Quinu, confectioner, 102 Chatham stret; 07 Bleecker stre Adoiplus Swedverg, treasurer, 48 Exchange place. M, Seigman, importer, 46 Leonard street, Joseph Stuart, ourker, 33 Nassau st.eet. James L, stewart, pre ol, o2 Wastungton Mar- ket. Robert H. 1 Win. 4. Taver, Church sureets. Rovert W. Lailer, importer, 35 Beaver street. B, u. B. JTask, Jr, merchant, 7s Kroad street, Chauncey Vibvara, inerchant, 40 Broadway. Kovert Warnock, nats, 619 Beoauway; ‘Tarrytown, Augustus 1. White, books, 704 broadway. Jaoson Wills, lz West 12sta street. dobu Wheeler, geniieman, 54 West Forty-seventn street. SCENES AROUND THB UNITED STATES COURT ROOMS. ‘Tue face of the adjournment ot the United states Grand Jory on saturday being generally known Uroughout the city a Vast assemvlage of the ex- frauds congregated Mm and avout the vestibule of the court buildings. To a gentieman unusued to the rough eiemeut of New York one would imawine Ubat Ure purieus of whe Stace Prison were emptied O1 Its Inhabitants, WhO came today homage to the United staies District Attoraey. ‘The mutierings of of tals crowd soanded more like inw upon a theatrical siage Luan a hum of vot ver, 50 Heekman street, importer, corner of Duane and human THE IMPRECATIONS UTTERED by this cheeriui crowd (/) dennaciatory of the goy- ernment officials we Ww say Lhe east, demoniac, and caiculated io Shake nerves stronyer than those of General Davis. Why such a multitude 18 per mittea to fold revel in the ouildings of the Unt Staves government is @& marvel to ali well- thinking men, aud the District Attorney is censur- able tor Countenancing such a thing. As We stated beiu most unscrupulous men were engaged in th tb tradic of whisk Nearly, it nut all, the roughs Laklag up the roo the United States Court builuings were of this class, ‘These peopie had an idea that upon tne ADJOURNMENT OF THE GRAND JURY facts suMicient would be Known to indicate who the imdicted parties are, It was oot taken mio con. sideranion that presentwents are kept back until warrants of arrest are issued, ‘Tae evident purpose of ime congregaied crowd was to coerce or intimi- date tne authorities into whatever they pleased. How they succeeded may be judged irom the record One hundred and scoen mdi mens were found, and (he warrants sor the arrest Oy the accused are out now, and the parties will soon ve brought up lo plead. A MILLIONNAIRE DISTILLER and dealer, who iearned that mdictments were fyand against him, voluntarily came to the District Attorney's office and gave vonds to the amount of $40,000 Tor his appearance Wien wanted. In the presentment of proof against the accused, betore the Grand Jury, Captain’ Sydney De hay, tne ett cient Assistant District Attorney, lavored most ar- duousiy, and itis owing to is Tact and legal abutty that the Grand July Was enabled to acmeve saca IMPORTANT RESULTS. ‘The evidence in all the cases in which indict ments were 1ound by tie Grand Jury nas never ve- Jore Ocen Used, tne assertions of some Of the press to tne contrary notwitusianding. None of the cases ‘were ever berore the Courts bere. ‘The collation of PROUF AGAINST DISTILLERS, rectifiers and dealers in Wiiskey, also suspected ex- officers of the internal Revenue, against whom in- dictmeats were found by the Grand Jury, 18 due vo @ gentieman from Boston, A TRUSTED SECRET AG of Secretary Bout weil and Solicitor o Banfield, and Mrt Wiilam A, Simmons, Super- visor of Internal Revenue of New Kngland. Mr. Silas B. Dutcher, Supervisor of the Southern District ot New York, not only ient his valuable aid, but gave his personal services to such an oxtent ‘tnat matters Were greatly expeaitea. Mr. Dutcher nas I this, a8 In all bts fransaetions, proved himself an eficient and trustworthy officer of the government. Whe giving due cred to the gentlemen just named, We must by no means omit to menuon we fact that the Treasury ‘THIS IMPORTANT CASE, although strictly belonging to the Internal Revenue Departinent, has, by order of the Secretary of tne Treasary, been put into the hands of the Supervising Special Agenis’ Department at Wastingvon, Tue chiel of this vureau, COLONEL 0, D MADOR, Gelegaved (by special order) the NeW Engiaud Spe | ved thunder | $7,000, and one for $6,073 15, Mr, Frank procul (ne checks of H. B. Claflin & Co lor $23,0 drawa as requested py satd Courtney, and paid i checks to Courtney, suppostg tue | » Suut Was required bY and Was to be paid to the government, ‘The $10,000 check was paid 400 Court, and the $7,000 Cheek’ was paid for storaze charges, ‘Tims is Shown vy the record. Nearly 35,000 Was pad out oi the $l0,0v0 for tae Luformer’ jee ani other expenses, leaving ouly a ‘Iilue over $6,000 for the government. ‘fae $0,073 1S was not paid to the government, nor is 1 found ior the record or in aby Way accounted for on the record, Whe payment ol the $23,073 10 to Mr, Courtaey 1s proved by the aflidavit of Simon trank, who paid ihe money, aud by the checks of H. B, Clafiin & Oo. IL rema\ns for Mr, Courtney to show What became of the £8,073 16. CASE NO. 2, AGAINST SAMUEL G, COURTNEY. On or about the urd of November, 167, the Forty.i{th street Distillery, velonging to Blaisdell & Eckel, was seized byJoshua FP. Bailey, Collector of me Fourty district, and soon therealter proceed. ings were instituted’ by Conriney to obtain a de- cree of condemnation. Filty-baree barrels of spirits Were seized in Lhe distiliery and recthying houses, and 263 barrels at 66 Broadway, making 206 barreis, | This is shown by the record. ‘Onty 196 barrels of | Said 406 barrels are acconuted for by tne | record, leaving 200 barrels unaccounted tor, | worth $20,000, for which “Cocriney should | account. Te sale of the cistilery is retnrued at $5,700, and the spirits sold ac $6,665 01, making $12,363 12 Only $5,244 29 of this SUM Were patd fate Court, $4,121 80 having been retaiued, as stated in the record, lor ihe Marsual’s tees, and’ $2 | are aedacted frou the $5,244 20 pald into Court, | | making the expenses $6,354 92, and leaving only | $6ull 20 for the governine The disuhiery, | | thoagh returned at $5,700, Was bid off by a pariy Jor the owners at 36,200, and that sum was paid iato the Marshal’s hands and a reease ootained in March, 1868, snowing 500 received and not accounted tor, There is an abuadance of prov! of Us iach. | CASF NO. 3, AGAINST COURTNEY. } in the month of May, 1863, the Forty-fifth street | Distillery, tueu bemg operated vy Letpsinger and Barringer lor Englehirt & Co., Was seized, and in | formation therev! nied with the istrict Attorney. No condemnation of tie distillery Look phice Wil In dune, 1s Alter Bladeli, ui swher of said distil- lery, had veen sent to Smg sing. On tne 6th of April. 1369, Samuel G. Courcney presented an afida Vit apd in: pe eNtalieus to We Court that Lic property s iisttiiery vuiiding Was perisuadle, (ne building msecure, and the property subject 6) the weatuer, rast und decay id Upon sitld Leore: seutatious oblaied a decree of Court to sell said | property om turee days’ notice. ‘this is shown by | ine record. ‘The sale took piace on the ninth of April, 1869, atter publication in one paper. Only the Veouty | Marshal, the purchaser, and the keeper Were present the sale, Waica took piace in the disulle with | tne doors locked. This can ve proved vy several withesses, ‘Tue property was sirack off to the one | purchaser for $5,050, though the record and other | evidence show $50,000 had been offered tor we | properly, aud that sum woud have beer paid lor it, | tie on the day of sale, nad the sale veen & Dablic OL | | ‘Tue sale, Such as 1b Was, Was ever revurned to tas | Court, and the $3,060 received tuerelor 18 not | suown by the record to have ever been | paid into Court, In this case the Zovernment was | deivanded of $50,000, The record and ai | | dance o! testimony show that ine statement 1 | by Couriney to the Court, upon which tie de Hi On three Ways’ nouce Was obttined, was, ry respect, iaise; ihat said proj erishable; thal tae butlding Was nor inseoure; | Mat it did Not jeak; chat tue property was not ex- posed to wei, rust or decay; aud taat the building Was so close and suosuantial as 0b Lo admit even a ray of light when the windsy, Shutters and doors were closed. CASE NO. 4 AGAINST COURT: About the last of Gctover, 1867, A. W. Lewis, an Internal revenue officer, with seizing powers, seizeu | the Puty-fourth street distillery—s4 barrels of spiris in che receiving cisierus aud rectitymy house, 12 tubs ol mash, Of 432 1 run of, 4 pounds of | of rye meal, 22.244 pounds o1 293 pusuels Of ait and im iy was ‘not | yushels of grain each, ready to | corn ineal, 14,907 pounds groand 6 barley muit, bushels of cora. Tis graln and meal are shown to have been iu the | distillery at the tune of the seizure by the | cerubedtes of the weigher of the grain, | on the Ist of November, 186 Also, by tue testimony of seven witut worked at the distillery, An inventory 0! sald prope was | liled with the District Atworney and the case turned over to him previous to the 6th of Nuvember, and on the 6th of November pruceedings were insututed by Courtney for the condemuation of the property, ‘There 14 positive proof Wat the inventory was given by Lewis to courtney at the time me case was | turned over to hum; out said inventory and many | ocher papers have disappeared froin’ the revord. | ‘ihe record shows the sale of the distillery and fx- wires for $6,000, aud tue ninety-(our barrels of Spitlts seized at the distillery tor $ 44, making $12,124 44, and nv other sale. No account 13 ren. | dered of the proceeds 01 the twelve tuos of mash, equal vo 18,144 gallons of proot spirits; of the bushels of corn, equal to 12,749 gallons of proot spirits; of the 108,800 pounds Oi coru, rye and var- ley meal, equal to 7,800 gallons of proof spirits, or Of the 295 vusaels of bariey malt, equal to 1,025 gal- loos uf proo: spirits, making in ail 49,25 gallons of | proot spirits, which, ac $2 per gallon, is $75,586, Of | which the government was defrauded, As the record gives no account of the disposition | of tuis large quantity of grain and meat which was | seized and p.aced in the Marshal's hands, it is | | proper to inquire what became of it and way the | proceecs were not paid over w te gov- } ernment. This inquiry is answered as foi- | lows:—While tne distilery and property were in the hauds of the Marshal, under seizure, and while the Marshal's keeper, James Martin, Was in charge thereof, the disullery was fun ac might, with the Knowiedge of the Marshal and of Courtucy, aud en employed torun the engins and make we mash by James Martin, the keeper. Walle thus running, under seizure, the tweive tubs of masn, | the 2,667 bushels of corn, the 103,905 pounds of meat and the 298 busheis of ’ barley malt were run into spirits, making between SIX and seven hnadred barrels of proot spirits, Which paid no tax. tnis | accounts for the disappearance of the inventory of | the propersy and for tue fact that no return is found | in the recoré of the disposition of all this property. | 1tis not unreagouable Lo require Mr. Courtney to ac- count for committing this fraud upon the govern | ment or for permitting others to commitit Tie running o1 the cistuiery under seizure is proved by nine witnesses and by the tact that, alter Lie distil lery and property were condemned to the govern- | iment, Joshua ¥, Baviey, Collector of tue Fourta district, seized the distulery for running while in the Hands oi the Marshal, under seimure, and | retained tne same foc some ten days, alter which he delivered 1% pack ito the hands the Marshal. The seizure by Bailey for said cause can be proved by twenty witnesses. It 1s proved wat poth Samuel G Courtaey and Robers Murray wer at the distillery while 16 was ranniog uuder seizure, and were nut, thereiore, norant ot the fact that it was so running. This can be proved by several Witnesses. That Courtney 18 guilty in this case 1s evident (rom tne following facts:— First—Lewis turned over tne filed the inventory with Courtney. Second—tne record contains a bill of $175 paid for weighing th y grain and meat whica are not accounted f Tiivd.—On the 30th of April, 1868, Courtney, as | the record shows, gave Wrilien imstructions to Mur- ray (0 release to le owners the corn at that tune in the distiliery, stating as @ reason why leave of Court need not be obtained to release the corn tat said corn tad arrived aiter Ue seizure and had not been seized. Tals order, therefore, does not include any of the grain or meal on hand at the ume of the seizure, which were seized, and does not account Jor any portion thereot, Fourth—The owners of the Fifty-fourth street distillery had detranded the government out of nun dreds of thousands of dollars, as Courtney and Murray well knew, and the order of Vourtaey to to and property release to them the corn which had arrived atter the the time of writing the order seizure, abd Was at ip the distillery building, 18 itself @ fraud upon the governijent, to tue extent of the vaine of said corn. di ae in bai HOY pep seized wy tue Wane Als, | mons' | section of the act of Hartman, Charles, 393 Righth street | Hanon, Marcus, 305 avenue A. Hamburger, Bernard, %03 West Thirfy-eiguth r, John A., 46 Elizanath atreet, Hayes, 'B. B. W., 31 Elizabeth street, Herdelberger, M., 164 Hast Forte-eightn strect. Haywood. J. 'L., Fifty-fiita street, velween ‘Tenth | and ileventh avenues, Haggerty, W., 412 ast Twenty-fourth street. Harris & Lehman, Gold and John streets, Brooklyn. lugraham, 8. 2.,Jr., Frankl avenue, Brooklyn. + Jacobson, George, 426 Kast twenty-sixth street. Konn, Jacob, 513 West 'Tairty-sixth street. Kautinan, 5., Filty-sixth stivet aud Seventh ave- nue Keadle & Kenny. Lyons, 5. } Bast Fourth stre Lovy, M., Porty-third street. near Ninth avenue, Low, &., 97 West hirty-tith str Loeb Brothers, Thity-third street und Teath ave. 2 West Forty-second street. | 4 Cherry street. 42 und 44 molt street, zlev, H., ‘wenty-ninth street, } McArdle, Peter, 382 West Se \ MoUormick, stephen, 343 Bust Twenty-eighth street, } Maher, Lawrence 342 Water street. | Marr, Frederick, No. 7 Extra place. Janus, JON, 122 and 124 Front street, Brook- vewman, A. eventh avenu: Noel, Ipnatz, 5eventy-first 81 tand ave Olney, George W., 252 East Eleveatn street, Parpart, Sdward, 18 Eas Rotsenid, s., 44 Mulberry sire | kothield, Charies Ricks, Authon, 73 Orchard stree Ray, F., 363 lenin avenue. Stein, Unaries, wat Kieventn street, : whuyler, J. ky flit Sts 1, Bast River, West Thirty-seventn ue A. Senwartz, B., Colonel, 828 Third avenu Sickle, Joseph, 705 Kast Thirteenta street, Strack, Panip, &8 and 99 Park stree Saaton, P., corner South Furst and Brookiyu, B.D. Seadin, Gustavus, Plermont, N. Y. Shoensvein, B., 22 Kranktort street, Stadecker, J., 18 Front street, ' Simon, M., 196 Pranklin street, | Staney, David D., 296 Henry street, Stern mil, 192 Cedar sir ‘ralman, J. U., Rast Forty + avenue, Vogel, ‘oni streets, Andrew, 2) Bowery. Winterniiz, M, No. 9 ‘Avattulr place, Thirty. ninth street, North tuver Whelea, William, 104 bast Twenty-fith street. James, 130 Cedar Stree: or, Albert, 440 West For 1s only a wonde wX at all during pinth street, thai the governmeut obtained 1866-7-8, judging 0: tne ‘ous Irauds committei. The books of tue various assessors of internal revenue show vat meagre revurns made vy the distillers aud reetitiers. ‘The officials, Where any ol thein were melined co be honest, were hoodwinked vy tne distillers aud made to believe that their a yre conducted on strictly hones? prin rne oniy way lluelt pro- ducuion of spiriis could have vec stopoed was the enactment of good, wholesome and stringent imwes controlling distilleries and appomung eompeven officers, with a salary suficlent to keep them udove temptation. Ol te HUNDREDS OF CASES now on file every one 18 prepired on printed blanks, of which the following Is & copy — any State of New York, City une Cowaty of New York, e.— —— being duly #worn on oath, deposes and sava:—That fa the month of ——, I8—, owned and operated a uistillery —— in the city of New York, anc in anid month made at werd vis tillery —— gallons of proot spirite; that the tax Imposed py Jaw on prool Apiri# at said Une Was 3 on excl prout gui Ion, ani on said — — 3 that the tax’ assessed on epirite said distiilery iu said month was %— tax not assesse was &— (a of alleged tax due). of which the led the said parties owni each all of them coxnyzant of si upon United States and participated therein; that there Was t called a was not said distillery, and belonging thereto, rectifying house, which Was not tnten ‘ed to be used {or rectifying spirits, but as a means of de'rau government; that by some means said cistern room was opened, at night generally, and said spirits run from said receiving | cisterns » said — 80 called rectifying house, by means of a or hose nection between the same; that when said spirits, so run into said rectifying house, were sold, they were taken therefrom in barrels, h were and marked, not by a government olieer, but by interest in said distillery or th aid parties in interest in said dt \ rev ir employes for Liery conspired —— disuiet, 4 the Uniced ory the Lax t said disty ant to mace tue ¢ dt nd sell spirits at bask of tbe said mouth ; wishout the paymet spirits manufactured that io this way and by th nd r means ver: ment was Jed of saidtax; that in thus defranding the United States, said parties owuing and opera’ sali distillery, and each of them, violated the thirty-elvhth July 13, 1906 (page of Iniernal Revenue laws, 44), and are liable under said section of sali et to peusity of doube the amount of the tax oc which the United States were defrauded, and to the other penalties in said section of said act {mposed upon the violators thereo that the amount of which the United States were, in this cane, defrauded being $—, the sum for which said parties in finiterest in said distillery are liable to the United States in $—, double the sum of the tax claime This deponent further says that all the atemen made by him are made upon {uformation and beliet and not {rom his own personal knowledge. HOW DISTILLI MADE RETURNS, Asasainple of honesty, showing how distillers made returns of spirits producea oo Which tax Was paid and on Which the tax was witheid, we pub- lush the following, based upon extracts from the Univoa States Assessors’ Looks. In Lis instance We cite “Slessinver’s distillery,’ Fifty-sixth street, near deventit avenue, =| Anew G | us Tue |Amt. Dale Paid \Tax’ U Stilt Due January, 1407 $2,100! February | 2) ay at Maren 2, 010) April vol May June. 102.409 106,000 November. 85,600 Decen 6.00 Jan 65,200 Total hard Add pennities vos Amount of claims 92,435,880 ‘The avove is only a specimen of @ small distillery; it may be Imagmed What a large one must have been. AN ATEEMPLED ASSASSINATION. That the maiefactors whom the government 1s now bringing to justice Wince under the lash, a plied by ine the oat thetr energetic agents at Work ferreting misdeeds, ts no Wonder, bat that wey should stoop so low as to attempt the murder of an oid man who ts doi Dis duty to tis country mantally is a waright and oase act of the meanest cowardice. On Sunday, March 17, at ten o’ciock A. M.. While the expositor of all the frauds was walking in Kast Thireenta street, between Secoud and ‘Third avenues, he was suddenly aitacked by some raiian, wiao dealt lim & powertul blow on te pack of the head wita « sitingshot, whion felied the old man to the ground, where he Was leit for dead. Fortunately for the oid gentioman his hat saved his life, the blow 10 a tended to kill only stunned nim, and beyond litiie bruise he was only slightly injured, li the COTRWIE OF FRAUD AND DECEPTION have the slightest idea that the death of thts old man Wiil help their cause tn the least they are wo fuily mistaken. Even in the event of the disap) ear- ance OL this person the chain of evidence 13 In no manner broken. Every requisive precaution pas been taken against any impending contin and the evidence in about eight hundred a ‘ now safely under lock and key Where none but the | duly auinorized Washington agemt can gala access, | | been dire with de’ only a slight snock and northern California Cerro Gordo | damaged, having several bulidings thro) andone man killed. Lon» Pino appeard tly over the centre of the disturd\ THR KILLED. Among the killed at the latter place was M| aged forty-two yearsand a native of Tex remainder were all Spanish Americans, 4 shock 18 described as resembling @ park of fired directly beneath the town. A NARROW ESC. Colonel Whipple, who Was pA the second story of an adobe house, staves that (he had just tine t | Jump from bed and get to thf doorway whey ti house appeared to crumble U pieces beneat! niny He was burled amoung the rains, but succee tod in extracting himse several severe but not dangérous wounds. A FEARBUL! SOBNE, ‘The scene boggars aescription, populace was buried beneath the rams, f from the févris, having received / Nearly the’ Cries tor help and screams of pain from the wounded ber +» the ruins filled the air, while for those who es¢ trey re were calling ail to ue fathers, 1 The first stock ‘was Over! wives and childrea. by tnree others, hundret distinct shocks were felt between haly in quick succession Ve Ast two o'clock and sunrise; im fact, the earth way constant tremble fur over three hours, A THIRTY-FIVE MILE CMAsM. A chasm Was opened extending thirty-five down thi valley, ranging from three Menes to (vy feet in width; + were tora from thelr places rolled down into the valiey. AT SWANZEA, LONE PINE AND VISALIA Colonel Trega!ios, Swanzea, was killed, aud 5 mong the Imhabitauts of Lone /’ine. A desp, to-day from Visaiia says several shocks werny in th city last night, pu are stil con ig lor the southeast. FURTHER BARTH-RENDING. \ finding immense chasing ve now Persons anticipate the mountaing east of us as soon as the appears enongi to permit of iuvestigauion, A NEW VOLUANO. sano in active overatin vind ‘There are rumors of av uh having been seca from the summit of ¢ south of Visalia, bat 0 18 gor Mountain, sixty mile sidered at least dubious, AN INDIAN STAMPEDE. ‘The Indians ta that vicinity have all loft, fearing ¢ general convulsion of nce of th pashre the recur which, according to tueir traditions, occarted im that region some hundreds of years ago, and ¢ ated what 18 known as Owen's River Valley, © which was before a chain of mountaius THE SUPPE by plied, mainly by people engaged affected we the The section earthquake sparsely in working the silyer-vearing lead mines. (HIRTY KILLED—ONE MUNDRED WOUNDED. Additional advices from Inyo county piace ¥ number killed by the earthquake on tuesday far thirty, besides 100 wounded. VOLCANIC ACTIVITY. In the desert country stretening trom Owen's Lake to the Mexican line are imnumerable craters, not long extinct, bestdes several mud volcanoes, and it is supposed that some of these old ve noes may ve in eruption again, A gentieman trom Inde- idence asserts that smoke and ashes trom a volcano were distinctly seen southwards from thas place, and word has been brought there what LAVA WAS 8) N PLOWING down the mountain, but the report is not autnentt cated. The sbooks continned decreasing in turce up to ‘Tharsday morning, when over one tiousand haa been counted. A LANDSLIDE. At Tibbett’s ranche, fifteen miles above ladepdnd~ ence, forty acres of gronnd sunk seven feet below the surface of the surrounding country. Big Owens Lake has risen tour feet since the first shocks, CURIOUS PHENOMENA, Owen’s River ran over its banks, depositing shuals of fish on the shore; afterward reveded for &@ distance of three or four miles, Througn Lone Pine the earth cracked; one side vematoed stationary, while the other seuk seven or eigut feet, leaving a wail of earth extending over three miles 1n length, where formerly was a level plain, Ionumerabie cracks were made (hroughous the valley. RIVERS RUNNING BACKWARD. iggy ot Op stream leaving neds dry, and finally returned with largely soreasea Rivers turned Kern and Owen's lor several minutes, volume, THE LAST GREAT BARTHQUAKE i There bas deen no parallel to wns earinqy since the year 1812, When the Missions of San Jv Capistrovo and La Puriasima, “0 Of course, the earinquak® in Southern nia, were desiroyed. the matter of common conversation threaghbut Califorma, but creates not the slightest sprrenem sion outside of the district affected. I8 THIS A MURDER? \ Omicer Keler, of the sixteenth precinct, yesren@ay Aiternoon found a portion of we Wunk wind Fens hand of a buman body in the street, im (runt of [aie seventh avenue. ‘The Coroner nas veen noted aud Will lavesticated Uke caNe bodday,’ 4 }