The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-07-13
THE WHIsKEY RING.
Further Interesting Developments--Legai Pro.
ceedings instituted.

In tie Following correspondence and documents
VIII be found interesting particulars concerning the
alleged conspiracy on the part OF certain members
OF the whiskey ring for the purpose of eecting the
removal Of Collector Bailey
UNITED STATES INTERNAL REVENUE,
COLLECTORS OFFICE, FOURTH DISTRICT,
NEW YORK, July g. 1868.
SIR respectfully ask your consideration OF the
following statement Of facts:--
IL came 10 my knowledge several weeks ago that
certain persons among whom were one Alvah Bais-
and now under indictment ON proceedings instituted
by mel Bernard Hess, an Inspector .of internal
the Internal Revenue oce ana sundry 'f other
disreputable characters, whose names will appear
IN inc course OF this report, were engaged in
to base charges against me; Blaisdell making his
neadquarters at the room OF Special Agent Belknap
II Broadway. P0weson and Hess are reported TO
have been engaged for long time In raising funds
from dstillers In the Ninth district and from rec
Hers and whiskey dealers In the Thirty second dis
trict, and IN Brooklyn who nave suffered through
my official action, for the purpose Of melting veXa
tious and defamatory proceedings against me.
set forth in that report, to procure one DAVIS to
make charge OF perjury against me- the conclusion
and e me to great
dered Davis under arrest for perjury, ON bis own
testimony at the conclusion OF the hearing without
taking any time for consideration, ut the same time
honorably discharging me.
Hess Ut the conclusion Of that proceeding gave out
that he and Powelson and others would soon have
other proceedings against me; but although heard
lntlmatlons OF the connection Of certain treasury
0mcers with such scheme, there was nothing def
mite enough TO warrant any action on my part. The
first Of last week, however, I was approached and
told that warrants would be got out against me BY
speclal agent Belkhap. Finding at last responsible
head for the proceedings 80 long threatened / con.
sldered 1t time to take measures to protect myself
from REPETITION OF the scandal which had attached
TO the Davis movement.
therefore requested Captain F. O. Tapley. on July
g to trace out the connections Of the conspiracy for
such knew it to- 10 from various Indications to 90
over all OF which would make this report too long.
without going into full detail of the steps and the
the following was aScertained-
The persons acting as outside operators In this
scheme are those already named. together with one
Harry Jenness, a notorious bogus bond broker, one
Noyes and one Sower and another person who has
furnished money and who Is connected with the
by the testimony. In connection with these opera.
tons there are also other persons, whose names l
do not think it well to mention now.
will state here that Messrs. Brown Hall Il Van
derpOel have been retained by me for the prosecu-
ton Of these and that the statements made by
me In this report are only Of facts, which, after
careful examination, can be sustained in court by
competent testimony, as advised by my counsel.
The parts played by the individuals above named
were as folows:-Jenness. Sewer, Powelson and
Noyes acted as outside runners, concocting the
stories TO be sworn to by the Witnesses fixing on the
dell and Belknap and paying them the sums agreed
on for swearing. When taken TO Baisdell and Bel
the story was gone over with them. Then lawyer
was called In to draw the affidavit and special agent
Belknap administered the, oath: All this has been
and have now In my possession the money paid to
one OF the witnesses by Jenness and that paid to
OF the agents named above for procuring the witness
Yesterday Special Treasury Agent beknap, Dr.
Blaisdel and Powelson appeared at a United States
Commissioners office to bring up their witnesses
to swear but the witnesses could not be
got TO go up stairs, most OF them being
familiar with the premises and Old recollec-
tons lettering them from going voluntarily
into the presence Of magistrate An arrangement
was then made by which the Commissioner was to
ti,raA ID tn nnfVp Of inI pot
KNAPP at II Broadway to take the aflldavts, and at
that hour DR.. Blaisdell called for HIM and took him
ever, could be procured to swear-one II. Shaw, who
swore under the assumed name OF John Lamartne
giving also fictitious residence. On this perjured
affidavit, procured by the payment OF Sl5 to Shaw
and OF other sums to the agents and runners en-.
ployed, special agent Belknap applied for and OBJ
tanned from Commissioner Osborn warrant for my
arrest although at the time II issued Shaw was al.
ready lying in jail under warrant issued for the
crime OF perjury, OF the commission OF winch had
complete evidence and OF which he had already made
full confession.
would say here that had in advance the real
and the false names and residences OF all the per-
sons swearing before special agent Belknap, and that
all witnesses swOre under assumed names.
Another witness, John Halle, who had sworn be-
fore agent Belknap. under representations made by
Jenness that swearing before that oicer was no
oath, declined TO swear before the United States
Commissioner While this was going on affidayits
were made on my behah before Commissioner Still
WELL who issued his warrant for the arrest OF Lamar
tine. lie was taken quietly last night and Is now In
Ludlow street jail, pnd has made full confession.
Arrangements were made by Beknap and Dlasdell
last night TO have Commissioner Osborn 20 20 II
Broadway NJ eleven A. NJ to-day TO swear the rest
Of the Witnesses. Only one could be brought up TO
swear, and warrant Is already out for his arrest,
while others Will be arrested for subornaon OF per-
jury and proceedings will be taken against still!
Others OF them as soon as the hearing Is had before
the United states Commissioner.
have evidence in my possession showing that this
Is only one move In q concerted scheme Tor black
mailing entered into months ago by various parties
the mention OF whose names now would Tend to
defeat the ends OF justice, but all OF which Will be
fully exposed III these proceedings. tw be shown
that the parties TO this scheme were fully aware of
the character Of the agents they were employing
and OF the means used and OF the character OF the
evidence that they were aiding in concocting; and
that the persons engaged In the conspiracy were
active IL the various ways set forth above.
beg 10 make acknowledgment here OF the energy
Northern district of New York. Mr.. Tapey hap
pened 90 come In town at the time this conspiracy
came definitely tony knowledge, and on my request
he undertook. TO investigate II. lie has followed 1t
day and night, and has shown degree of acute
ness and zeal and fidelity that entities him to the
highest regard and confidence. Captain Tapey
has the full confidence Of Colonel Wood the chief OF
the secret service division; and II was by Colonel
Wood that Mr.. Tapley was directed to report 20 me
last spring, and to render 10 mo any assistance
which might be In need OF. In working up this
matter nc has been unatied by any other officer and
he has done u IN such manner That there Is nothing
LEFT TO he desired
have to- request that be formally authorized to
: retain Messrs. Brown. Hall and vanderpoe as my
attorneys to prosecute the confederation OF Treasury
agents, secret service men, cX-bounty jumpers.
bogus bond makers, counterfeiter5, perjurcr5, IN
dicted dstillers and professional thieves whom
now have In position where they can be brought 10
Justice for the crimes OF perjury subornation Of per-
jury and conspiracy. ask this with the more con.
ldence since the magnity which prompts these
attacks ON my good name and Official position and
conduct Is inspired by the services, however
humble, which " has been nv desire and
fortune to render TO the department, to
my Official superi0rs and TO the government.
Moreover, this confederation OF rascals IL at this
moment, rs | am advised. backed up In their
assaults on the local officers OF New York by speciat
counsel authorized TO he employed for these prose
cutions by the Treasury Department itself. desire
TO be understood as In no way rejecting on the de.
partment In this statement, as am fully aware that
it was Tor other purposes than those here exposed
that this action was authorized by the honorable
Secretary.
II Is proper 70 say that the complaints OF these
parties never were presented TO the District Attor.
new but were taken TO the United States Commits
sioner IN the first instance which Is unusual, and
out OF the ordinary course OF business
on The occasion o. we Davis affair, the District