The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-09-10
INTERNAL REVENUE


The gigantic revenue frauds which from time to time
have been coming to hight in the Third district have
kept certain official circles in this city and Brooklyn in
constant state Of agitation. The indications Of another
dtnouemet was published exclusively In Washing
ton correspondence which appeared last Saturdays
issue Of the HERALD Since then there has been little
else but "bubble bubble, toll and troubls;" but 10
was only yesterday that the rumors assumed
the shape Of stern facts, 90 far ~ i'm
pcations are concerned. Frauds OF very
extensive character we're discovered during the term
Of Henry O. Bowens' management Of the Third
district, which extended over the terms Of Messrs.
Pratt and Mclaughlin, and for completely in which
Messrs !. O. Tilton, F. Tappan and John Devlin are
now under indictment and awaiting trial.
Foremost among those whom IL is alleged have been
discoyerediin .fagrans dilicu stands the name Of
COLLECTOR T. G. cALLIoorr,
who, Il will be remembered received the democratic
nomination, and elected to represent the Third
district in the Assembly The story curren. that he
disposed Of the speakershp OF that body to the repub
lcans, few years since, for slight consideration
Through the endorsement OF Horace Greeley
and several others OF the leading republicans,
he sought reelection during the follow.
ing year, but defeated. This dlsappont-
ment was, however, greatly smoothed In a
most modifying to the feelings OF politicians OF
effected by Mr.. Callicott's appointment government
cotton agent. He subsequently, through tho influence
se tSa oosaned ns posuon no
II was confidently hoped that matters would progress
quietly and In good faith so soon as Mr. Callicott
entered upon hrs official duties For time all went
WE'LL but rumors OF threatening character
set aaoa. These at length assumed serious and
grave an aspect that it was deemed advisable by
the authorities to institute an investigation into he
affairs OF the collector and his deputy, which,
however, failed to establish any fact, pro or con-
n mi
fresh fuel TO the flames, for the rumors referred
to spread with increased force until at last Dis
trict Attorney Tracey considered IL his duty to take
steps Ia the matter which would or later
suit in charges being preferred against the collector
personally or his subordinates. The result was, that
CHARGE or FRAUD
was soon made out against Hr Callcot and others. This
set forth that some 2l barrels OF whiskey which were
ordered to be stored in Wilson's warehouse had in some
unaccounabe manner disappeared least the liquor
portion-tarels filed with water remaining in their
stead. At meeting Of the Metropolitan Revenue Board
Mr.. Caicott was cited to appear. Here he
froned by Mr. Tracey with several aflavits made toy
Messrs. Tracey, Cocheu and Fletchcr-the Two last
named inspectors After presenting tho charge Mr.
Tracey promptly urged the arrest Of Mr. Cailicott,
and deputy made by the collector, was after
q lengthy consideration duly ordered be made out.
The warrant was issued by Commissioner Neston OF
Brooklyn during the middle OF last week, but it
handed over to the United States Marshal for service
until Saturday. Besides Theophus c. Callicott, colec
others have also been implicated and mentioned In
the arrest warrant. AS Mr. Caicott left his hotel in
papers, il considered probable that, having become
cognizant of the turn affairs had taken, he has pro-
statement Of the Whole mater before the sovenment
THE ARREST or DEPUTY COLLECTOR ALLEN
was effected yesterday morning between ten aud eleven
O'Clock. He proceeded, In company with Deputy Mar.
shall James W. Higgins, TO the office OF Commissioner
Newton, where bail was fixed at $50 600 and even
until to morrow 10 furnish the proper surc,ies for that
amount Those Of the other parties alleged to be I'M
plicated- Augustus Dayton storokeeper; Alexander
Cunningham and Louis Fancher-sre also held IN the
sum OF $50, 600 each.
II is but just TO state that throughout the entire case
both Mr. taicott and his deputy have evnced tho ut,
confdeD: of coming through the ordeal sans reproche
ARFIDAvIIs CASE
Tho following are two oil the afidavits upon which
the warrants for the arrest OF oil the accused were
issued -
F. Tracy being duly sworn, deposes says that
about the 23d day OF April last he was informed by Mr.
Robinson, keeper OF the bonded warehouse OF John VIII
in said city Of Brooklyn that tao hundred barrels
Of spirits had been removed from SAID bonded
that made IL probable that sad removal irnadgiops
that deponent thereupon ordered tho detention q said
spirits for investigation that subsequently transrred
that said spirits had b on removed upon fraa4lcct
bonds and they were condemned as forfeteato
ernment; that soon aiior IL became kresa ,.as saii
Robinson had given ~ deponent the inornatcn wtrh
led to the detention OF said spirits. aud DAYS
after T. c. eallicott had taken possession q the
Office OF. Collector OF the Third district OF New
YORK, deponent informed that rad Robinson
had been removed from the position OF sorckccper aud
Q man by the name OF A. j. DAYTON who also y
sorekecper ASSIGNEE to the sad In bis place.
tat deponent, supposDg that said Robinson had been
removed by the predecessor OF Caicot made call
said Caco:t, and informed him that IL was said
Robinson, who had given TO the depoDent tue uiorma-
ton OF The removal OF two bundled barrels o. spirits
which had previously been the subject of versaion
between deponent and said Cacott and the sait cal
hco thereupon informed deponent that he had removed
said Robinson not knowing he was deponents inform
ant, and desired the place for a infnd, whom he
named, but whose name deponent has now for
got,en that he had removed him to appoint
the person aforesaid in his place; and deponent
Inereupon said to said CalicoIt that he understood
the said Dayton Lad been assigned TO his pluce, to
which the said Caiicott replied assignment
only temporary until the sppontec could take
the poson and deponen replied TO said Calcot That
he pleased to learn that faci be bad been
formed That said Day ton belonged 10 the rDg. o. and It
supposed that he had been sent there acI'tae
the fraudulent removal OF the spirits In said warehouses;
said Caicott replied that said Dayton would remain In
charge Of the warehouse but a day or two. And de.
ponent her says that the morning OF the 10Th u
May there carts, IN the streets Of tie city
OF Brooklyn, by Inspectors Hambri1bt and Cocheu,
distilled BY john wilson, ihat said carts we're driven
n trout OF the United Sta CO Court Rooms,
in Montague street, and renamed there until alter
three o. clock +. NJ claimant appearing; that about
that time deponept eit his oicc returned about ave
NJ, when 10 learned Of the release OF the sad spirits,
detailed in afidav Of J. j. Aleu- dcpDnsnts assis-
tant that the evening Of that day person called at
the house OF deponcnt and made statement Of facts
watch led deponen TO suspect that the spifs had been
fraudulendy removed aud the release irauduenty OBJ
tanned by one Alexander Cunning CHAM and said Caicot;
that On Tuesday morning following, deponent, having
been confirmed in his impressions directed the said
Allen 10 20 TO the olcs OF said Calcott and obtain
sight, and possible copy Of the order les ed BY SAID
Caliicott directing the removal Of said spirits from
bonded warehouse Glass A TO bonded warehouse
Class u, that oeponcnt might ascertain whether
said spirits had actually been reupved TO the warchousc
said order that said All returned with the answer
stated In his affidavit hereto annexed was sent again
"Wednesday and Thursday and Friday to obtain sgh
Of order but faed thursday deponen obtained
permission frvm Ialicott for revenue officer 10
examine the bonded warehouses Of his district, but this
order afterwards revoked; on Tnursday even
ing May 80, dcponent ordered tho seizure Of reciify
ing establishment owned BY one Braun and In which
Cunningham ipcrested, in which were secreed
some seventy 1--we barrels OF spirits, supposed 10 be
part OF the All barrels removed from Wilson'S bonded
Warehouse Friday dcponen renewed tho effort 10 get
perm officer examine the warehouses; but
did not succeed obta ming II that day Friday evening"
de ponent left for Washington and obtained an order
from the Commissioner of Internal Revenue directing
fek oLicer 70 exAmine the bonded accounts and