The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-09-25
NEW YORK CITY.
THE COURTS.
UNITED STATES COMMISSIONERS COURT,

THE COURTS.
UNITED STATES COMMISSIONERS COURT,
mo Alleged Internal Rcvenne Frauds and
Conspiracy-The Investigation Fairly Conn
paenced mt Last-sA Roll Of Grcenbacks."
Before Commissioner Guttman
The United States cs. f. A. Rollins, Ontted States
Commissioner or Internal Rerenoe, Deputy Internal
Rerenue Commissioner Hardnd ana er-DeDuty
collector Snith.-The investigation OF this much
procrastinated case, in which the defendants are
charged with conspiring to defraud the internal
enue of the United States and with Matchmaking and
bribery was commenced about noon yesterday before
this court District Attorney Courtney and ex-Judge
Fullerton who has been recently associated with
him in the case, appeared for the prosecution, and
Mr. Sedgwick for the defendant Harland and Mr.
White for the defendant Smith. ...s-@.-
Mr.. Courtney stated that before commencing the
further examination Of the witness McHenry who
was last the stand he desired to make the
ton OF certain misrepresentation which had ap-
peared in some Of the public prints. 1t appeared a
few days ago, through some of these statements that
he Mr Courtney was not connected with this case
and that upon Mr.. Fullerton was devolve the con-
duct OF the prosecution of It, He wished to say
that at his particular request made to the proper a-
thOrties-after certain statements had been made
he desired an associate in this case, and one was
selected by his consent and at his wish. He was
now here to join with him tMr. Fulerton) COR
daily and properly in investigating the case to the
iu! extent, and intended to silt the case to the
Mr.. Courtney then called Mr.. McHenrx to the wit
hess stand.
Dir. sedgwick asked Mr. Courtney to be good
enough TO let him see the dispositions on which the
warrants In this case were Issued.
Mr.. courtney stated that he would first let the
Commissioner see the deposlrons; and that official
after examining them, handed them to Mr.. sedg.
WICK.
Mr.. Sedgwick, after looking at the documents.
said that the aifldavits made by McHenry did not
aiege or charge any crime against the defendants
named IN the warrant, or any OF them nor, indeed,
did 1t charge crime at all. ut merely stated in
general way that there fraud In the distil-
continued for a considerable time, and that
he had reported 1t previously In his official
warrant was hes proper authority n The
them with having In or about the month of Deem.
her, 1861 conspired with other persons evade the
payment Of the internal revenue tax upon distilled
spirits, with procuring themselves to be bribed and
with evying backmaii in their Official capacities.
COMMISSIONER Guttman then handed Mr. SedgWick
another paper, and the latter gentleman proceeded
70 state that this second deposition alleged that these
aelendants win divers other persons unknown,
United states revenue upon distilled spirits by col
fusion and fraud and committed sundry other crimes
against the United States and that the defendants
Rollins, Iiarland and others named did combine and
conspre to procure themselves to be bribed for the
IN the business Of distilling and rectying spirits.
he had no intention OF making any technical OBJ
Commissioner was issued contrary to law Bit his his
dema ana was that the prosecution shall specify what
crime they allege to have been committed by these
Qciendants; what the specific crime charged was; In
what matter 1t was committed; at what time and
with what object In no other way could the de-
PENDANTS have the benefit OF those rights which the
law conferred upon them in defending themselves
and which the law required that they should have.
ing the powers Of United states Commissioners in
the issuance OF warrants and the law and practice
controlling them The second volume OF the Revised
made to any United States magistrate that an
offence has been committed It snail be the
ton thereto under oath, and that II 1t shall appear
from such examination that any criminal offence
issue the proper warrant. Mr. Sedgw1ck then pro-
ceeded to argue at some length that the issuance Of
The warrant in the case was irregular, not being
granted upon evidence, but upon &c pdrte deposit
tons.
All the counsel participated in the discussion Of the
question and Mr. Courtney cited authority from
ton twentysix Of the Internal Revenue act Of March
2, 1897 in reference to maeasance in ONCE, &c to
show that different proceedings from that authorized
At this juncture Mr.. Buckley made his re-entree
and took seat alone In remote part OF the room,
watching the proceedings with great interest.
The Commissioner finally overruled the objection
and Mr. Mcdenry's examination was resumed.
BY Mr.. CCurtney-When took an adjournment
IN the other room, Mr.. Mcilenry, you had stated
Something in regard TO check handed by Mr. Pike
describe. II you please, where Mr. Harland satY A.
lie standing the door leading into the chief
Q. How much time was occupied in passing this
check 10 Mr.. Hariandt "A. The check was handed
TO him by Mr. Pike and he put 1t in his pocket 1t &C.
Cupied perhaps minute.
O. DO you Know what amount of spirits was dis
TILED in the dstllery of T. f. Rea on the 2Sth OF May
Q. Do YOU know what amount OF tax was paid on
or about that tmeS A: ! do not,
q, Do YOU know and II SO state what amount OF
spirits distilled Ia Loeb's distnlery objected
To a imuiaterial.
q. DID YOU Charles Loeb al that distillery.
A. have seen Augustus Loeb there.
q. ANY other of the Loebsl A. have. sir
q What were they doing tlerep (Objected to-ob-
jection overIuled) A. generally saw them there
managing affairs.
q. Did YOU see Charles Loeb in Washington in May
lastl A. es, sir.
q. Where and whenf A. 7 saw him about the
18th OF May, at Wizards hotel.
q. Whereabouts in that hotels In room on the
first second floor OF the Hotel.
Objection was taken 10 the Interrogation OF the
witness concerning ihe Messrs. Loeo; on we ground
that they had not yet been connected with the case.
The Commissioner asked MI. Courtney II he cX-
pected to connect Mr.. Loeb with the case.
Mr.. Courtney stated that he expected to prove by
this witness that that occasion Mr.. Loeb was seen
In that room counting large roll OF money and TO
put IL In paper. That Afterwards he left the hotel
aud walked 10 the corner OF the street. and there met
Mr. l.. A. Rollins and handed him roll OF paper SIM
iar ~ that which the witness had seen him make
Defendants counsel objected to this testimony in
connection with Mr.. Loeb
probably intended to prove their case by crcum-
stances, and this might be Of the links In that
chain OF circumstances SAID he would hear the testi-
mouy.
o. repeated Where was that room located In the
hoteS A. Right IN the main hallway; n was one OF
the private rooms the first or second floor
q. VINO was in tina; rOomf A. Charles Loeb; saw
no one else In the ROOM he was close to the door;
the door was ajar.
q. How large was that roomH A. An ordinary
bedroom.
q. Where were you ut the timep A. was in the
hallway. on my way to see friend or mine that was
In the hotel.
Q. what did you see hin dor A. | saw him count
over some money.
q. state what he did A. lie rolled the money up
ia paper after he had done counting 49, and put II Ia
his pocket.
q. Did you see the billsY A.. saw OF them.
o. What were theyg A. Those I were $500
bills.
O How many OF them did YOU seer A. Enough 10