New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1865-03-31

Mr.. Hulburti, from the House Committee on
Public Expenditures, recently made q report Oh
the Custom.IIouse machinery Of our City, sug-
costing many important reforms. We regret
not to find in the report hearty indorsenient
Of the testimony of one Of the most intelligent
| and capable witnesses examined By the Com
mittee (Mr. b. Il. Sherman wine merchant, }
that remedy for many frauds and crying
abuses is to be found in the substitution Of
Specific for Ad Yalorem duties.
But case Of Coniiscation investigated by the
Committee has already attracted considerable
attention. We have waited, before speaking OF
it, TO see what explanation or correction might
he interposed by those implicated, but, none
being offered, we are justified in taking the facts
as they stand in the testimony annexed to the
Report. That testimony We eondense as fol-
lows:
l. Mr.. George p. Nelson, well-known law
yer of our City, called, some two years ago, on
| Mr.. L. Delafeld Smith, U. S. District-Attorney
here, and informed him that Hugh w. Mercer.
then and now Rebel brigadicr, was the owner
of over six hundred shares in the Minnesota
Mining Company, then worth over 100000,
with stock OF considerable value in tho Rock.
land and Quincy Mining Companies. Mr..
Nelson testifes that he gave this information
with intent that the said stock should be confs-
Gated TO the sole use and benefit of the United
States-he not desiring to receive any part OF
the proceeds because of giving the information.
Mr.. District Attorney Smith responded that the
stock could not be con6scatcd-that there was
no law which would reach it--and there Mr.
Nelson let the matter drop. -.Lt
ii. Two or three months thereafter Mr.
Nelson was informed that this property had
just been attached in behalf Of the United
States He thereupon called in Mr.. Smith,
who could recollect nothing of Mr.. Nelson's
former call but, on turning to his books, stated
that the information On which he acted had
been duly given by Mr.. Benz. F. MIDGET. a
Custom-H House officer, about six weeks after Mr..
Nelson's information aforesaid.
III. Mr.. Mudgett testifies that, having casu.
ally learned that Gen. Mercer was owner Of the
stock aforesaid, he Immediately called at the
l(letllCt-hJtOluCg OANct hliu iouuh A|tiiuu
Allen, Assistant to Mr.. Smith, to whom he
gave formal notice that this stock was owned by
an active Rebel, and that it was subject to con.
fscation. He followed this up by sending the
Distrct-Attorney written statement of the
facts by messenger from the Custom-Hou
and kept pushing the matter forward, until the
confscation was legally consummated; one
half the proceeds being awarded by Judge
Belts to the United States, the other half to
Mr.. Mudgett as informer.
w. Mr.. Mudgett's testimony proceeds:
day or two afterward, met the Assistant Dis
trict- Attorney and was informed that they wanted TO
see me at the office. went into the Office and had
some talk first with Mr.. Alen and they thought
should be liberal about the matter. told them was
willing to be liberal far as was conccrned that
never had expected 10 get anything out Of the matter
/ told Allen IL Il put through in good shape and
one half was dccreed 10 me, was willing TO give them
A5 600 which was sufficient TO make them active in the
matter was told thai proportion could not be
tafnsd; that thai not enough asked them what
would he enough and they thought thoy ought TO have
ono half had that conversation with Allen Smith
was not then present. then left. Aftcrward. Smith
wanted to see before anything further was done.
and he requested me TO make written agreement 10
QsY Allen sotns attorney iar me In sstins <his