The New York herald., 1868-09-05
INTERNAL REVENUE INVESTIGATIONS.
The Charges Against Revenue Omcials-Th,
Investigation Resumed-Dlscussion ON III,
LegaIity Of the Prosecution.


Investigation Resumed-Dlscussi0n on the
Legality Of the Prosecution.
The investigation Of the charges preferred against
Mr.. Thomas e. Smith, ex-Colector of Internal Reve.
nue. in the Eighth district and Daniel Murray, for.
merly distller in Twenty-fourth street, both Of
whom are accused OF having conspired, In cOnnece
ton with Commissioner Rollins and Deputy COM
missioner Harlan to defraud the government Of the
tax on whiskey resumed yesterday in the United
States District Court, before Commissioner Guttmam
Considerable time was taken up with discussion az
to the legality OF the prosecution. Mr.. Courtney and
Mr. Binckley appeared ON behalf OF the prosecution
and Mr.. White and Mr.. Patterson for the defendants.
Mr. Patterson, on behalf Of Mr.. Murray, moved
that the charge preferred against him be dismissed,
contending that the affidavit OF Mr. MeHenry ald not
scription. The information referred to ohcers OF
the United States revenue but nasmuch as Mr.. Muir
ray was not an officer he (cOunseI moved for tie
dismissal OF the complaint against him.
Mr.. White next moved for the discharge Of Col
that Mr. Buckley no right to appear against his
superior officer. He cOntended that Mr. Buckley "a
subordinate, had no legal right to prosecute his
After considerable discussion on this point and
several happy interchanges,
The Court decided that Mr.. Binckey had a right TO
appear in the case.
Mr.. Courtney rose to make an explanation regard.
Ing his status IN the prosecution He said he knew
nothing about the case and was not any way
suited respecting the aildavis uDon which the war
previous to the issue of these warrants Certain very
extraordinary statements had appeared he said, i'll
the papers respecting his and MIR. Binckeys
ton with the matter. Some Of the morning papers
concurred in saying that the Secretary Of the
Treasury, whom he (Mr. Courtney had no hesitation
| in saying was, according to his view OF the
| law. the superior officer Of Mr.. Buckley, felt
very indignani"-that was the expression-ab0ut
| the conduct of Mr. Buckley in the premises. The
papers further concurred in saying the President Of
the United States discaimed all connection with
appreciation of Mr.. Binckley's conduct. AS an an
to these anmadversions he would read the cor
respondence he had had with the department on the
| Mr.. Courtney then read the correspondence which
passed between himself and the Secretary Of the
| Treasury relative to the matter. Mr. McCulloch
law OF 1889 1t seemed to him that he mr. Courtney
should take charge of the case In view Of that des
patch, and in view of his duty under that law, LIE
now appeared and proposed to proceed
| VIM. Wheaton, on being examined by Mr. Court
Se ws er me Ms the ne was engaged
| last year as special agent; Mr. Thomas r.. smith
Collector Of the Eighth district in the fall OF 1867
| knew OF dstilleries owned by Haggerty Ray and
Eggles, all IN the Eighth district; had examined all
three of those dstlllerles in his official capacity.
AT this point Mr.. Patterson objected to all evidence
| not referring to his Client Mr.. Murray. Mr.. White
objected that the evidence sought to be ELECTED from
| examination of Wheaton was altogether irrelevant.
| Mr.. Courtney said he desired fair candid and
open investigation. He cited the charges against
the defendants the efectithat they combined and
cOnfederated and entered into conspiracy for the
purpose Of detrauding the revenue OF the United
| States OF the tax upon certain whiskey The test
1
| those dstillerles
| After several objections from Messrs. White and
Patterson the examination OF the witness was pro-
ceeded with. At the time he visited the distileres
they were in full operation. He made several eX-
aminatons for the purpose OF seeing their capacity
1 The witness not being able to remember The exact
dates on which he examined the distilleries Mr..
White suggested that he be allowed time to examine
| his memoranda.
| Cross-examined by Mr.. White-I examined great
| many disierles and made reports to the Board;
| sometimes the Collector sent for me ana made re-
| ports: the Metropolitan Board was composed Of Mr..
Parnell Mr. Tracey, Mr.. Courtney and Mr. Ksbey;
made several reports to Mr.. Pinckney.
The other witnesses for the prOsecuron-GrOpf and
Mcflenry upon whom subpGnas had been served to
! appear at the AstOr House for examnati0n-not
being forthcoming, ana the District Attorney falling
TO show grounds 1Or the issue OF attachment against
| them, Mr. Patterson and Mr. White moved Tor dis
| missal OF the case.
The District Attorney asked that the case be ad-
jOurned until to-day, and on the Commissioner In
quiring OF the counsel for the defence II they had any
| objections to the proposed adjournment Messrs.
Patterson and White made very fOrcble objections
and demanded that their respective clients be dis
charged on the ground that no evidence had been
| adduced to implicae them; that the prosecution,
bound to produce the witnesses who were now alb
sent had failed, ana that unfair to compel ui-
| necessary attendance from day to day.
Mr.. Courtney, in reply, commended at length that
1 the circumstances required posponement and that
/ full investigation OF the charges was necessary.
| After some discussion the Commissioner adjourned
1 the case Till Mon ay next al one O'Clock.