The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-12-15
TIE DRAWBACK FRAUDS.
The Case in the Canadian COurts-pr0-
ceedings at Montreal on the Arrest OF
II. Il. CaldwelI-lmportant Judicial
Construction on the Extradit,on
Treaty and the Statute Passed
for Its Enforcement.

ments IN the internal revenue drawback eases VIII bc
stl fresh in the minds OF the people, and the names
or Richard b. Caldwell and John s. Caldwell. who
were members OF the firm OF r.. b. Caldwell 81 Co.,
on Fear street. IN THIS city, cannot yet be 1or2otten
They did business as internal revenue and Custom
House brokers' and initiated system oil frauds upon
the Treasury that may well be called unprecedented
IN the history OF swinaling they obtained The GER
lhcate OF revenue olector that the United States
excise tax upon q certain manufactured article Of
tobacco, petroleum. boots and even manufactures
OF IRON and steel had been paid. With this
IN their possession they searched Tor the
name OF vessel which lett tins country for foreign
pore her captain date OF sailing and place OF destl-
nation ana having obtained that they got up q lasse
andayit to the effect that the goods named III the
collectors certificate were shipped on this vessel,
and that the amount Of excise tax paid was due az
q drawback on the export confederate OF theirs
In the Custom House cerIlied that he had examined
the outward bound manifest OF the SHIP. on lille IN
the proper bureau OF the Custom House, and found
the articles mentioned entered thereon and
orresoondlng in marks, quantity and value.
as stated In the alidavlt and certificate.
The 1rm also had o confederate IN the
Internal Revenue Bureau at Washington,
who pretended to examine the records OF the
bureau, and on his certificate that all was correct
the money was Forthcoming, amounting III SOME
cases to over S5,000 bus ranging IN the majority Of
these fraudulent drawback applications between
$1,000 and $3 900. In TINS way some 100000 or
$500 900 mad been distracted from The Treasury by
false, forged anu fraudulent atidavts and ccrtiii-
cales the bulk OF this money 1t IS alleged, going to
r. b. Caldwell and lew or his associates When
these frauds were detected, about the month OF
January OF this year, number OF those implicated
were arrested, among them James caldwell, VINO
W. At 20 nd q n a
ton; William j. Korn, A. J. Wilson ana A. Relsen-
berger, VINO turned States evidence; F. A. How
ard OF Washington; William II. Whmster
and others, VINO are still held In heavy bail
Tor their appearance for trial. Richard u.
Caldwell, Jonn ). Caldwell and Joseph $. WILDWOOD,
the latter acting at the time as DoOEkeeper Tor the
firm, escaped TO Canada AS the investigation pro.
ceedcd it was ascertained that samuel T. Batcniord
was also Implicated in the frauds who on nearing
OF thls also TOOK sudden leave and went across the
me 10 the Dominion OF Canada From reliable i.lor
nation received, and By order Of Mr.. Il. G. BanGeid,
Solcitor OF the treasury at Washington colonel
Whitley, Chle the Secret Service Of the treasury
Department, proceeded to Canada fortified VITA tue
necessary documents, aiiidaylts and lecogni,ions,
and he succeeded In fnding Mr.. Blatchlord ut the
Ottawa Hotei. The voluntary return OF Mr.. Batch.
lord, his arrangement before United states ConlLs-
sionsr Osborn, VINO neio MN To BAN lii The SUN VI
detailed III these Columns Ut the tune.
ARREST OF X. b. CALDWELL.
Colonel Whitley, having been so successful In
tracing and bringing back MI. Biafcniorl, had also
applied, aiued py tue United states VICE Consul
NrelIeral IN Canada, MIR. WILSON, 10 Mr. Justice .ol-
toi, III Canada, Tor warrant TO arrest hlcialu Is.
and j0nn >. Caidwel and Joseph 4. Wildwood. Tae
latter two mad, however, expected sucn move
against them and escaped. hiclard Is. Caldwell
was captured In his house at Prescott city. III Inc
Province OF ontario. He lived tnere In easy
culustances, nad purchased sawmill anu q une
residence, aud passed his days seemingly uncon-
cSrueu about the serious charges brought against
hln, tue indictments louud aud the warrant issued
IN this city Tor his arres. his picny
III these frauds. On the Gin Of december La.uweii
Was brought before Nj. Justice Coursol, VII UT.
Kerr, instructed by VICE Consul General
Wiison, applied Tor q continuance OF tue
case Til ast Monday, on account OF the absence
or material witnesses In New York, aud also
Tor lime send to Washington for papers forged by
Caldwell. The motion was resisted ny al Desil,
behalf OF Tie prisoner, Who stated That his CiienL
VINO was freebooter IN o Heighboring province Dy
some mysterious process mad been arrested in the
dead q nignt on sunday and brough. to idontreal
ON rowing warrant from another jurisdiction, IN
wnlcn he should DC tried II Tried At Oil, alu thls
extraordinary proceeding would be matter for
inquiry hereafter. lie wls surprised that the Court
was asked 10 lncarcerHte man for seven days Vita
out even The ming OF aifdavlt that material Mit-
ncsses absent, anu that ne had no knowledge
that they existed OF ever would he here.
Mr. Kerr, Gu nehaI OF the Uniled states, replied,
ana Judge Counsel deciled that 1t was matter
wlthIn ms discretion, and that where there were
several prisoners 10 be appreaended wnlcn would
employ tne attention OF the United states officers III
be unreasonable TO expect them 10 be ready " pro-
ceed III SO important Case without some little time
Tor PREPARATION aud he therefore continued the
hearing Of the case nntll last FRIDAY, at noon. Tne
prisoner was then removed TO jail.
THE WRIT OF HABEAs CORPUS.
The counsel for Caldwell were not idle and shortly
after the proceedings before Judge C0ufsvl they APP
pied to MIR. Justice Aondeiet and procured tie
issuance OF a writ of hapeas corpus to inquire into
the legality OF the prisoners detention rus matIen
was brought Up be. ore Judge Moadeiet on Thursday,
and quite an array OF prominent members OF cue
10 a. ~
IL, cameron and D. Deydn appeared for the prisoner
aud I. K. hamsay &c, and v. II. Kerr represented
the United States Mr.. ramsay onected 10 tue Ju-
rIsdlction OF the court but objection was over
ruled. MIR. Kerr asked Tor an ad ournment IN order
to examine the nndavit on wncn the writ OF hsoeas
CORPUS was Issued; but this was also denied. rms
oner's counsel proposed TO show That Lie AFFIDAVIT
on which the original warrant OF arrest issued was
insufficient; but the Judge held that Sle prisoner
must at once show a special case OF hardship, and
that he could not then LOOK ut the AFFIDAVIT
Mr.. Carter, Tor the prisoner then proceeded TO
arr ne that the arrest was illegal ana tnat 4 there
no jurisdiction OF the magistrate III the place
where the arrest was made the prisoner should be
discharged, although The prisoner was under remand
OF magistrate having jurisdiction. In tho second
place That the remand snould be as full rs q Oil of
indictment and not sucn \ one as would aulce
now under our short forms, but that 1t should set
up by WHOM, the Forged order was signed ana who
was TO DC defranded by IT. thirdly, that the juuge
could not amend the commitment In extradltiOn
case
bir. Ramsay for the United States, replied at
length TO Mr. Carters Arguments, his answer being
chiefly based acts OF Parliament and decisions III
English and Car adam courts, maintaining that even
ii the arrest bad Deen illegal, 1t mad nothing TO 40
win the Jurisdiction OF the magistrate row tDat tue
accused was within his jurisdiction. MIR. Kerr, on
the same side, followed insisting that the principle
had oeen hed In all the courts that commitment on
remand was not susceptible OF being brought up
Tor writ of habeas corpus. There WAS no case on
record IN which tnaG principle had been disrcgalaed
lie said the case mad been 30 well covered by
Mr. Ramssy's arguments that there was little more
to say. HIS learned friends on the other side
had mixed civil and cE)mlnal law. lie maintained
That the case where tue prisoner mad been brought
from Prussia to Canada had nothing do with TINS
matter. In the case Of the Cornwall robbery the
porsof escaped 10 the States and was brought
BACK without any warrant under the Extradition
treaty by those very people OF Ontario whose
heartbs and homes his learned friends were now 50
very ANXIOUS to protect. Hc referred the Court 10
Hard on Habeas Corpus PIP. 263-277. With reference
TO the act giving special power under the Extradi
ton treaty, 1t was perfectly clear all the officials
NO. Ind uaIXers Ineir iurIaliclan