The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-12-08
NEW YORK CITY.
IRE C0iRTs.
rwITfu STATES CIRCUIT CuusT.
The Watson, Crary g. Pike Whiskey Cnsc.
~ before Judge Blatchford.


~ Before Judge Blstchford.
TAa rrn,ted states as. ThiyfD-eigit Hundred Cal
,ons or yoirits--This Is one Of the many whiskey
rino cases which the Internal Revenue authorities
have on their books for prosecution and submission
IN the Emitted States Courts OF this district for adudi-
cation the prosecuting officers in this case seek
se forfeiture OF $500 gallons OF distilled Spirits the
claimants for which are Messrs. Watson, Cfary 4
Pike recying distillers. This property was seized
ut the premises Nos. III. 173 and 175 Christopher
street. early in the month of February, 1868; these
premises composed the rectifying establishment Of
the above named claimants, and were seized by the
orders OF Collector Joshua F. Bailey, OF the Fourth
COLLECTION district Ia this city, Tor an alleged viola
sion or the Internal Revenue act.
dence were stated briefly and incidly by General
Hubbard, associate counsel with the District Attor
ney for the prosecution Counsel Ia order TO enable
explained that in 1862 Congress imposed OF two
dollars gallon on all distilled spirits. This Tax was
@anaiacturers having permission Sy the law 10 send
che SPIRITS manufactured by them 10 recilyng dis
tnlery, 10 be there prepared for market. II was
compulsory, however, the dstiller To keep book
setting forth the quantity manufactured by him, the
designation OF the place 10 which 1t was removed,
30 that the government could at any time ana in
every instance trace the spirits TO wherever removed
and TO give to the government security for the pay
ment OF tne tax az tae pace ., sae Inc lecsier
books setting forth the quantity, rom whom pur-
chased or received. The spirits must be inspected
and branded before going 10 the rectfying place;
when recu6ed the law requires that the identical
spirits shall be returned to the bonded warehouse
and renspeoed for the purpose Of ascertaning that
the proper amount or quantity was so returned the
section under which the spirits in question were
seized provides that every recti1er OF whole
daily in books kept by him for that PURPOSE under
such rules and regulations "a the Commissioner
OF Internal Revenue may have prescribed, the num-
Der of proof gallons purchased or received the names
OF the parties from whom purchased or received or
the number OF proof gallons sold delivered The
twenty section, providing for the forfeiture Of
goods seized for violation OF the twenty-slXth sec
tion, also read TO the jury. Counsel closed by
stating that in February, 1868, Watson, Crazy Pike
carried business in Christopher street. at the num-
bers designated that they die not enter In the books
repaired by the law, the spirits received and
titled by them, the dates atWhich the spirits were
received or the names Of the parties from whom re-
ceived; that the spirits seized had not paid the tax
other property OF whatever KIND found the prem
Uses. Counsel then proceeded with The examination
OF witnesses.
The first witness called was
Hampden Wadron-In FeMuary, 1868, was D the
employment OF Collector Joshua i. Bailey; was en-
poyed by Mr. Bailey as keeper on several occasions;
remembered the seizure OF the rectifying premises
III, 1T3 and 175 CHRISTOPHER street; was placed in
charge with two other officers OF the premises after
the seizures the property given in charge were the
premises In question and their contents consisting
OF some fifteen or twenty barrels OF wine, large
number OF empty barrels considerable number OF
which had brands on them boilers an engine and
al the appurtenances Of rectiyng dlstlery as far
Q. Were there any books seized there, or given TO
you In charger A. No, sir.
the witness was cross examined, but nothing i'm
James II. Sowder examined-witness took an in.
yent0ry OF the goods seized In the rectyfyng pre-
misses referred to. Inventory handed TO witness.)
This was objected TO by Mr.. Clinton, counsel for
the claimants, unless the inventory was first put in
evidence.
Counsel for the prosecution withdrew the paper.
and witness answered from his memory.
Witness-rhere were quantity OF barrels there
marked and filled with French spirits, two stills,
large rot OF empty barrels, some OF which were
branded, and quantity OF mash tubs and other ar
ncles used in rectifying distilleries
The inventory was then put in.
Cross-examination-This inventory If N my hand
writing; two other parties assisted in taking the in
Nothing important was elected In the cross-exalni-
nation OF the witness.
Peter Nelson-Knew the rectifyng premises in
question; knew the place since January. 1867; car
red ON the business of licensed distiller IN Broad
way between Fifty-fourth and Fifty-ffth streets;
carried the business there from the lst OF Febru-
Ary until May; was In partnership with Mr.. Stewart
who also kept Wholesale liquor store Christie
pher street, opposite the rectifytng distllery.
Q. Did you take any distilled spirits from your
aistiery to Watson, Crary Pixies rectifsng ostab
lshmentY A. did, delivering the iirst lot about
This answer was objected to by counsel for the
claimants, who moved that 1t be ruled out as not
applicable In q case or trial OF ..remn The prese.
cuton, he argued, must confne itself to the charges
and matter specifically set forth. The witness Is
now talking Of spirits moved In February, 1887, and
she seizure OF the spirits In this case was made in
February 1868.
General Hubbard-I propose to show thar witness
delivered the spirits at Watson Crary's place. and
shat no entry was made thereof either a. 10 guam
tty, from whom 1t was received or the time or date
Of tts receipt
Question and answer admitted.
z. What quantity OF spirits did you deliver from
streets at Watson Crary's place A. In the neigh
borhood OF T. 600 gallons.
Q. How did yon convey all this spirits there A.
In covered wagoD-a grocers' wagoncoVered with
q tarpaulin.
Q. How did you deliver it, A. drove IL down in
the covered wagon, and then rolled IL In.
o. What was then done with it, A. il was then
dumped into q receiving cistern in the rectlfying
place; generally took the barrels back with me:
sometimes the barrel5.were branded and sometimes
they were not
q Did you make return OF the quantity OF spirits
delivered by you 10 Watson Co. TO anybody A.
Yes, used 20 tell the bookkeeper at Stewards. over
the way, every day the quantity delivered on each
sold as T Sa, VI
the end they only paid 81 80 gallon.
@ Had you ever any conversation with Crary
about the delivery Of the spiritsf A. Yes, he talked
70 me about Il and said TO me, "You must be care
ful and not he catchcd;- this was one days~hen
was delivering spirits at their place.
q, Had the spirits that you delivered In this way
ever been in bonded warehouse or paid the taxf No,
mr., II never paid tax.
told me Ito be careful and not be catehed, occurred
one morning IN February, between eight and nine
O'Clock; that was the hour usually drove down
with the whiskey; the conversation was not ct the
yectfying place. IL was at Stewards; have seen the
saecss paid Tor the spirits Sy watson ma Csa .i with
Crazy paid him in checks for the spirits delivered
did not remember the amounts paid or the
dates OF payment; witness name did not
appear on any OF these checks; kept book In
which was entered the number OF gallons sold "a
Watson a Crary, and the bookkeeper would also
enter the number OF proof gallons as returned by
watson Crary; no tax was paid on this whskey:
sold some whlskey IN bond; think sold some whskey
IN bond 10 Pike A Co.
q. We're entries made in your book OF what stew.
art sold I'm bondf A. No.
q. Did you keep o distillery books A. Yes; kept
she book.
q. what did you enter In that book A. entered
how much moasses was fermcnicd and how much
vnskey was run or
Mr. Courtney objected 70 the question aud the
answer and they were ruled out by the Court
q. How many gallons per week could YOU dlsil ~
your establishment
objected to.
The Court-rhere be no legitimate objec! FOR
the question. DID counsel wish 10 show the extent
OF frauds committed on the government by this dis
tery independent of ~ transactions with watson
Crazy That however, would have nothing to do
with this case