The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-09-04
INTERNAL REVENUE AFFAIRS.


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The Charge Against Revenue OmciaIs-Inves-
tigation at the Aston House Yestertiay--Com.
municati0ns from Commissioner Rollins
The Examination to be Continued To-Day.
Yesterday afternoon Commissioner Guttnan re-
sumed the investigation of the charges which had
been preferred against Mr.. Thomas Z. Smith, eX
Collector Of Internal Revenue in the Eighth district,
and Daniel Murray, formerly distiller in Twenty
fourth street, both OF whom are accused of having
cOnspred, in connection with Commissioner Rollins
and Deputy Commissioner Harlan, to defraud the
government of the tax on whlskey. The fact
that the highest revenue official was among
the accused parties invested the proceedings with
more than ordinary interest, and che Astor House,
where the examination took place, was visited by
large number Of revenue officials and distillers-al
of whom appeared to labor under the impression
that the great dignitares Of Washington who have
control Of the tax on whskey would be present.
Such, however, was not the fact. Private letters
were received in this city yesterday morning from
Mr. Rollins stating that the investigation merely
aconspiracy OF certain parties to secure his removal
and that he would not attend the examination.
The hour set apart for the investigation was one
O'Clock; but long before that time Mr.. Buckley the
Solicitor Of Internal Revenue, WHO has special charge
OF the prosecution, was making preparation for the
reception OF evidence against the defendants
John ID. McHenry, the infolmer, on whose afii-
davits the arrests Of Sluitn and Murray
were made, present. The substance OF MS
affidavit is that DANIEL Murray VINO was dong
business with one Haggerty, as disters. in Twenty
fourth street. had frequently admitted to HIM that
ne had paid to Mr.. Smith sums OF money vita
out any considerations except to influence him IN his
Official duty IA collector OF the Eighth district, and
that he had also givea various amounts to Mr. Rol-
Inns, the Commissioner OF Internal Revenue, for
like object the sums being as high az 81, 900 week.
and that Murray had also stated TO him that his di
tilery had not paid cent tax to the government or
a certain period covering over three months. on
the ilist DAY OF the examination (luesdayI these
anidavis formed the basis of the examination OF the
normer: but, it is said, he gave no evidence add
tional to that embodied In his original statement.
The examination yesterday took place IA a small
paror NO. 1861 on the second story OF the southern
taken to prevent the admission of the press and
to effect this object two officers acted as
sentnels at the doors. Shortly before two 0 clock,
however, 1t was decided that the in
vestgation should be conducted in public
AZ that hour the case was resumed by
Mr.. Buckley, who said the proceedings were con-
Quoted on the first day at the instance Of the de-
fence. lie wished ihat fact to be placed on the
record
ray replied that he believed there was no occasion
Tor sucn proceeding as the SESSIONS could be public
now.
Mr. Bnckley said he was not opposed to any
course the defence might adopt in the matter but lie
wished IL To be understood that he was not RESPONSE
bic Tor the privacy which had marked the last ex-
animation. f
Mr.. Courtney believed the proceedings should not
be conducted in private. EveIybody Interested IN
Gals should nave opportunity TO hear or read the
evidence which might be presented IN the case.
Hereafter then, sessions should not be held in the
Astor House, but In some court ROOM 1t was due to
the and " all involved III II That the fullest,
1reest largest publicity should be given TO the testi-
mony.
Mr.. Binckley--I have never been opposed to any
degree of publicity In the matter.
Mr.. White, counsel for Mr.. Smith, explained That
the the defence did not want to make the pro-
ceedings public on the first day was because they
were necessarily p0Ie, but we desire to give
the fullest publicity to the testimony. Besides there
Is no IN adopting privacy IN the case. as the
news about the charges has come from Washington
Mr.. Patterson would respectfully ask that the III
vestigatlon OF the charges against his client, Mr..
Murray be postponed, AZ he had no time to prepare
for his defence the case having only been committed
to his hands that day. Besides he wanted an oppor
tunity TO see the papers, which had not yet been
given 10 him.
were charged with conspiracy, making their case one
so far testimony was concerned.
Mr.. White, while ready 10 proceed, would not OBJ
ject 20 a postponelnent OF the case under the circum
stances. lie was. however, anxious TO go on, and
he would show, when an opportunity presented IT.
self, thai II was consparicy OF whishey thieves TO
ruin honest men.
Mr.. Patterson repeated his application for an ad-
journmen Of the examination against his client.
lie did not know how two defendants were affected
towards each other and as he mad not seen the
papers he could not possibly go on.
Mr.. Courtney SAID the status OF the defendants was
important. Two were before the COURT two were
not and the latter were beyond the jurisdiction OF
the court. When ne inst heard OF the charges ne
ternal Revenue OF the fact, and suggested the pro-
prety OF his coming TO this city to attend the nves
CATION. That course was necessary IN view Of the
hign character and position OF the gentlemen. He
had, however. received communication from him
that morning In which he declined To appear before
the Commissioner. The case however, might 20
on. lie had choice In the matter; but If the coun
sci should agree, lei 1t proceed. AS the charge how
ever was one Of conspiracy the cases OF the defend
ants should go on together.
Mr. White remarked that the reason Mr.. Rollins did
not appear was because he knew the whole thing
was conspiracy against him and that the charges
were false. lie had received a letter from Mr. Roll
Inns that morning In which he stated that he looked
on the accusations against him with Indignation and
contempt and that they were OF such silly and evil
IDENTIFY groundless character that he was forced at
times to laugh at them. That added the COUNSEL is
the reason he did not come here. Why, the principal
witness for the prosecution, who was under exaIni-
nation on Tuesday admittedly failed 90 substantiate
any Of the charges which have been made. We defy
the prosecution 10 prove their charges.
Mr.. Binckley-The character OF the evidence Is q
question for the Court to determine
Mr.. WILHELM Rollins perfectly aware OF the
fact that this is conspiracy against him. and he
was bold enough not To come.
Mr.. Binckley--Bold enoughS
Mr.. White-I see by the newspapers that the Presi
dent and the Secretary OF the treasury have disa-
vowed any connection or onlcial knowledge OF the
proceedings so that If that Is the case IL IA difficult TO
know by what authority the solicitor Is acting the
case.
Mr.. Binckley-DoI understand you, sir, to question
matterf
Mr.. White replied In the negative, remarking that
the fact he had adduced was merely derived from
new paper reports.
Mr.. Blnckley-Ihe question Is now one of post
ponement would prefer to proceed with the case
to-day, as have onerous duties TO perform In my
once at washington.
Mr.. Courtney remarked that the diriculty was,
that as the charge against both the defendants was
one OF conspiracy they should proceed together.
MI. Patterson was perfectly willing to 20 on with
the investigation omorrow morning.
Mr.. Bnckley-t appears to be the will of all parties
TO have the case postponed, and will accordingly
consent.
The Commissioner then adjourned the examina-
ton till tomorrow at r. NJ when IL will be held
In the United states District Court room In Cham
bers street.
Both the defendants are now out on bail. No
notices TO appear before the court have yet been
served on Commissioner Rollins.
Important TO Tobacco Manufacturer.