Cleveland morning leader. [volume] (Cleveland [Ohio]) 1854-1865, 1864-02-02
The .. 8. Grand Jury and the U. 5.


closed its labors, has made report Of its
doings which find published in the Herald
Of Friday evening. A large proportion Of
the report is devoted to the examination Of
the settlements of sundry cases made by
U. S. Collector for violations Of the Reye-
nue. Law, which the Jury insinuste were
made without the authority of law; and they
at great length, call the attention of the
Court to the subject, in order that the Court
may take take such steps as in its wisdom it
may deem best, to remedy the evil.
That no mistake may be made by the pub
lie, I desire to say that the Grand Jury aIIu-
ded to settlements made by the undersigned,
in pursuance Of what he supposed to be his
Legitimate and official duty.
Aside from all personal considerations, no
one regrets more than do, that the Grand
Jury, composed as it was of highly rsspecta-
BILE gentlemen, should have been SO negi-
gent of their proper duties as to make such
a report without first informing themselves
at least upon the subject under considera-
ton. I can only suppose that the Jury were
nisled by the very party whose business 1t
was to give them the law, aid snd counsel.
The Jury say, that owing to the absence
of the Collector, the Jury have been unable
to enquire of him the high and extraordinary
authority exercised by him in the settlement
and disposition Of these cases." 1t is true
was absent and unable to attend the Court,
by reason of an accident that nearly cost me
nv life, which was we'll understood: but I
submit that with my address fully known
where & letter could reach me in 8 single
day-iftrlah was the object sought in the in
vsstigation which the District Attorney
thought fit to bring before the Jury, that let
ter oHgkt to haze been soritten. Nothing there
fore, IS left me but to mako to the public
that explanation which was denied me by
the Jury, in order that they may fully un-
derstand the merits Of the question.
And now let me cay that have no apollo
gies to make, no excuses to offer, and no de-
sire to explain to the Court any Of the inuen-
does made by the Grand Jury. With these
acts neither the Grand Jury or Court had any
business, nor can have any business. They
were all committed by me with full power,
under the direct sanction Of the Department,
in accordance with full and complete instrue-
tions, acting under the highest sense of per-
sonal responsibility, and at the same time
with the most humane and generous feelings
towards the parties, who Voluntarily paid
the penalties of the Law, rather than subject
themselves to an open trial in Court.
In the eighteen months that have been
Collector, there have been only four cases
settled or commuted." 1t has been my
single purpose in the administration of this
law, to make it fall as lightly as possible up
on the people, and to avoid in every possible
case the infiction of penalties, or the max
ing of costs. In this object, to a great ex
tent, 1 think have succeeded.
In two of the above cases I received only
Gone quarter" of the penalties, and in the
other two not even that. They were given
to the Assessor and persons who furnished
him with the proper proof in the cases.
But to refer to the report. The first casa
was that of TObacconist, who was, after the
detection of the fraud, called before the Col
lectOr, and required to pay 8 fine of $500,
and the tax on the article omitted" 1 am
informed that the Grand Jury had the proof
before them, that this case was settled by
the Assessor, in the absence of the Collector,
and that he absolutely knew nothing Of the
transaction until long after the whole matter
was concluded. It is Of no consequence,
however, as fully endorsed the settlement
upon an examination of the facts and the
case was immediately reported to the Com
missioner of Internal Revenue, who wrote
most complimentary letter to the Assessor,
ratifying the settlement, but directing him
thereafter to take all such cases to the Col
lector of the District, who only had the power
to commute in such cases and receive the
money.
This letter was on file at our cfice could
have been had for the asking.
"The second case was that of the violation
of the Income Tax" The party charged
was gentleman of responsibility, who said
he had fallen into a gross error, but prefer
red paying the highest penalty the law ex
acted, than to incur the odium of public
prosecution. As the Government could get
- =, i
see no object in taking the case into the
United States Court, as did not believe the
party intended to commit Wilful or corrupt
perjury.
The two other parties were butchers who
had rendered false reports. They appeared,
to explain their returns by attornies. One
of them was represented by Hon. F. 7.
Backus and John @. Grsnnis, Esq, and
upon their earnest advice to their client, he
voluntarily paid the lowest penalty I felt
authorized to receive.
The law gives the Collector one half Of all
finds collected for violation of the law when he
is the informcr. I did not make this law,
and whether wise or unWise, could have had
no control over it. But submit, that it is
neither honorable or just unless it be clearly
shown that I have abused this right, for
grave body of men sitting as Grand Jury,
to insinuate what they do not openly pre-
sumo to make as a charge. In conclusion
desire to say, that the settlements made In
the above four cases have been by me submit
ted to the Commissioner of Internal Revenue,
and have been fully approved by himl
As to the general power of Collectors over
cases of this kind, which the Grand Jury say
F." they understand to be claimed under some
circular" submit the following positive in
struotions, which lay upon the table of the
Grand Jury during its entire session, and
which had been personally shown by me to
the District Attorney;
TREAsURY DEPARTMENT, WASHINGTON,
April 1, 1868. J
sIR;-@ 4 = = "Upon mature consid-
Grafton it is held that the government must
control its own business, and is not obliged to
proceed with prosecutions simply because
complaint have been made.
"0n the opposite assumption, the govern
ment might be involved in q multitude of
prosecutions, and be taxed with
heavy bills Of cost.
"When, therefore, complaint is made to
they must exercise their discretion
commence prosecutions or not, and
they are also authorized to discontinue pro-
at any stage of the proceedings,
when they may judge that the interests of
the government will be served by so doing.
"When penalty has been recovered by
the judgment Of the Court, or e1acted on
the informer will Of course be
entitled to his moiety."
= CT. ESTER,
Acting Commissioner.
Very respectfully,