The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1842-05-09

4
understanding or CONNECTION bet,ceen Ae Collector and
the n!aaIcri,rtrs Of ,roorns 10 ca,ry rfo egoet ire
system 'chic' cGs attercards tg dsu,oggd II tkrou-
| ing eR69yrdssmcats III the way of til regular i'm
| portatlons OF woollens from abroad, and thereby
giving to the domestic fabric the entire control OF
| the market. ~.
old POins on the .SPqils Of 0Ger-,Fm Picti,.gs o.,
| Bntier AID Host--Cd Poins al has Clear Coi{
jfai@ asain-Each Of the importers who re-
tired to Montreal left in the city of New York an
attorney IN fact, regularly appointed according to
| the laws OF the United States, with full authority 10
eater al the customhousc all their goods IN store,
| and such as might subsequently arrive. These At
torneys II fact made frequent application TO the
Collector 10 enter The goods belonging 10 the prnci
pals taen " store, and for the entry Of such goods
as arrived from time 10 time consigned 10 them or
held as their own property But Mr.. Hoyt, in di-
rect violation of the laws of the United states,
aud the uniform practice al the caston house, de-
MED TO them the uadoubted right which they had
TO enter such goods and pay the duties thereon
Shortly afterwards, Mr. Hoyt opened correspond
ence with these attorneys IN fact Of the absent m-
porers, Tor the purpose OF compromising the threat
ened prosecutions against them, on the payment of
certain Sums OF money which the collector demand
ed, and the payment Of which he enforced by the
exercise OF the arbitrary power oretusing to permit
their goods TO entry, knowing that to detan Them
in store for any length OF time would be destructive
70 the interests OF the importers, and in some cases
would involve them in utter ruin and bankruptcy
The only alternative left 10 them was, to incur
these inevitable and heavy losses, or submit TO any
terms which the collector might dictate. The his
tory of these transactions may be found in The de-
positions of G. w Dayton, Jonathan Miller, George
shaw, John iarri: John Taylor, jr, and other wit
nesses, who testified on this subject before the
commissioners. The negotiations resulted in the
payment to Mr.. Hoyt and the District Attorney
Benz F.. Butler, OF the following sums, by the per-
sons with whom these forced compromises were
made, TO wit
John Tailor s,5 ooo
Counsel fee to b 7. Butler, per receipt =. . SEQ
Counsel fec b. T. Butler, as per receipt. -'0 So
su,c zee TO D. Butler o per receipt l25
Counsel fec to b. F. Butler, as per receipt so
Samuel Bradbury. .............. 7.500
Counsel fee to B. r. Butler. as per receipt roo
| Henry Dixon ............ 60O0
Iouiseiiee 10 u. +. Butter, as per receipt. 80
Making the grand total Of ss6,s7s
Old Potas on Jesse Hoyi's Stock Cp9aions--T Terri
Ole Om6iugf Of Honesty ard Patri0iism-- old Poins
| q mo- Bursting w;ts In!ignaioa-AI cold Jyoter
sna Nini--What could justify or paliate the an.
prorriation of the public money by MIR. Hoyt TO
stock speculations, for his account, and benefit
Certainly nothing short OF permission, express OF
implied to do So from the Executive Government al
| Washington. Bat more especially may it be asked.
under whose sanction the collector deposited ii
specie nearly one million OF dollars within very
| sho.t period, iii the vaults of a failing bank the
| stock ofwhich was animated or depressed accord
ing TO the amount and frequency of these depcstese
| Mr. Hoyt himself, being large Spectator in this
! stock, through the agency of certain brokers in
WaIi street, held The dcstinics of the bank in hi.
own hands. could purchase stock at depression and
sell out, at The moment o, making his own depositea
IT large advance, tor no other purpose than 10 pro
mote his interest, at a time when this insiiitl-
ton in bad credit, and its certificates oil depo-
sites on .rne selling IN the market at per cent per
month, and, N winch no prudent, merchant would
deposiie dollar, actually loaned TO it. nearly one
million of dollars, in gold and silver, or their equva-
lent, while the Treasury was empty, and The Go
verament compelled to issue its own notes to meet
| Il
acts were perpeirated by the late collector, IIoyt
Is undcniable; that they were rknown to and ap-
proved by the Secretary of the Treasury. is under
stood and believed whore the transactions took
| place but IT IS remarkable fact heretofore noticed
that not one word can be found in relation TO hess
speculations and deposites in tho official correspond
encc OF the collector with the Treasury department,
1t appears that Mr. lioyt made sweeping business
| of the public money at the Gu tom-house In New
York. He paid old debts denlt largely in the stock
loaned moueyto sustain. sinking bank, TO say no.
thing Of elections and rewards TO lavoites and pa-
tLans; and all these high-handed interpretations On
| the constitutions and laws and the practice OF the
| Government IL existed in lis primitive purify
Were done and committed in the face of the Ameii-
can people. and. IT not fully approved by the Execi-
! tive, passed without rcbukc, ultl they resulted q
might have been expected, iii the dcfalcation of Mr.
| floyt .oa very large amount, knowledge ofwhch,
| by Congress, arrested his career and drove him
| from Office.
Old Poias Oh S'rariicon's Defdcaiioas-Gr Grand
| Discovery that S600,00 disapperci aad uobody has
| u. .lOHS triese Il 1rTni.-toi amount II SregT-
ng-Phiips, the dssistGnt Cashier, S0cqrs thai he has
| az aot-SUdr,r0ut socays-OM P0inS s,,'cars- Eveyy
body S,rsdyS.ln relation TO the manner Of conduct
ing business nj thc customhousc, between the years
| 1920 and 1857, willie Mr. SWartwout was collector
and to his alleged defalceiion at the time he retired
from that Office, the conmlslonersdid not deem il
necessary toientef mmutely INTO these mt tiers The
elaborate report made on these subjects by com
nntee of the House OF Representatives.. in January
1899, and the evidence taken by the committee hav-
ing been printed in volume for the OF Congress,
| 1t would have been waste OF time, and having IN
! cured useless expenditure. II the commissioners
| had entered at large into re-cxamnaton OF the
witnesses who testified before the committee Of the
| House of Representatives, and whose depositlons
were already in the possession OF the Government.
Some additional facts have been elected by the In
vestigation OF the commissioners. the return
of Mr.. Swarwout TO the United States, OF which il
may be proper 10 present summary III this report.
II appears that a large SUM was received by The
cashier and assistant cashier Of the ctstom-holisc,
on bonds deposited with these officers for collection,
after the Suspension OF specie payments by the banks
III 1887. The amount OF these bonds, AS stated by
the auditor, is secs. 525, n, the whole Of which i;
appears i'll evidence, was received by the cashier
and hls assistant. Mr. Phillips, the assistant cashier
in his deposition, taken by the committee of the
House OF Representatives, admits that all these
bonds paid at the cashiers Office but charges
that the sums received were paid over to Mr.
Swartwout. as collector. This allegation Nh .sirr'-
,co1t has denied or oath, before The commissioners: and
he further stntes that he neither received the whole,
posted with the cashier. nor did ne at any time
give any order respecting the entry of these sums on
the cash book. nor any other order TO n subordinate
officer oi the customhouse to violate his duty, or 10
omit the performance oil such duty as required by
law
Neither the cashier or his assistant can produce
any evidence that this large sum was received by
Mr.. Swartwout on his drafts or checks, or that II
was paid 10 any other person by hs authority. Inc
fact, then being admitted that the money was re-
ccved at the Office of the cashier, II would seem to
be requisite the part of that officer OF his assistant,
TO show in what manner il disposed of and, if
paid TO Mr. Swarwout, an entry should have been
made at the time in the cash book with the initials
attached of the person usually entrusted by the col
lecior 10 receive such payments. In the absence of
all such testimony, the question arises whether the
responsibility devolves on the collector or the cash
Ter and his assistant toe account for and make good
TO the Government tins large amount of money