The New York herald., 1869-02-13

exporter IN tne papers, Designating the vessel IN
and the port TO which they were exported. T'he
regulatione also required that the exporter should
give bond TO the Collector OF Internal Revenue In
charge OF exports that the goods should not be
bonded'in the United States Having given such
bond and having presented at the Custom House
the blanks constituting claim for drawback regu-
larry filed up, TO which the Collectors receipt was
always attached, and having obtained these papers
properly certified at the Custom House. they are for
warded to the Commissioner OF Internal Revenue ut
washington, where they are examined, and Ii they
appear s 70 ne re- resuar on their face certificate M
been hled IN his onice the evidence re-
anired BY the regulations Of the Secretary Of
duties had been paid on the property mentioned in
the papers. That certificate Is presented the Fifth
audred and drait isirawn on the Treasury for the
amount claimed. The certificates, think the evi-
dence viii disclose, which these parties obtained
r0m the collectors of internal revenue were, Ia the
majority OF cases, genuine certificates. Your Honor
VIII perceive how easy 1t IL for persons thus to OBJ
had been manufactured and the manufacturer had
paid the internal revenue tax thereon, and the Col
iector, when applied TO- had nothing more TO do
The frauds consist in having made up claim for
drawback and obtained q certificate from the Gus
the United States. whereas they had been consumed
IN TINS country, and on which, OF course no draw
was dTe nna no @ ea.ed 70 @ ca ma
tom House OF the city OF New York s the real pivot
on which this fraud has turned, because without Q
have been impossible for this fraud to have been
committed. Now, 1t win transpire as this evidence
proceeds that these certificates from The Custom
House are all false They are not only false in fact
but they are utterly fictitious. 1t will transplre, as
am informed, that the papers from the Custom
House which certify, for instance, that certain art
cles OF merchandise were exported by Charles II.
Marshall. Of the city OF New York. on board
the. bark Fanny Elsler, OF which one Perkins
was master, to the port OF Havana, and
which s certified by the Custom House Of
New York to be an extract from the outward mani.
foaf NJ oh wi hcb p1a fba (tJSf
ON a certain day for Havana, n utterly false and
fictitious In the next place the name Of Charles II.
Marshall to the paper Is q forgery. Mr.. Marshall
never exported any such goods. On the contrary,
his name entirely familiar to us all as one OF the
iarges. sniPpns merchants ;I ID New iSsk out not an
toned in what purporrs to be an abstract Of the
manifest OF that bark were not entered on that
manifest at ALL And the officer Of the Custom
House whose duty it was to compare it with the
original manifest on file II he complied at all with
ns to be an Abstract Of that @ utterly
false;. and he. he compared the goods.
must have known that they were not on the original
papers In the Custom House. OF course, 90 through
certain routine, and the officer or clerk whose
business it was to make the comparisons was one
Thertot 1t Will appear from the evidence think
that he placed his certificate upon these papers
without ever having made any examination at all,
and has continued to certify papers OF this descrip
tion for now nearly three years--at least for two
years and half-from day to day In amounts reach
ing we think from the examinations we have thus
far been enabled TO make, the enormous sum of
nearly s7oo GOO which have been regularly presented
at the Treasury Department ahd have been paid as
valid CLAIMS These papers were also signed
having the certificate Of the Deputy Collector, the
Collector OF the Custom House and the Collectors
papers presented at the Internal Revenue Bureau
at Washington they to be regular and authentic
we are not thus far informed that there Is any re-
lectors In the Custom House, because, as under
stand the course OF business there although pro-
fess to know very little upon that point the deputy
collector signs certificate 10 the eect that he has
compared the abstract Of the manifest presented
with the original manifest on die. After The sigma
ture Of the deputy collector has been obtained then
the paper presented 10 the person in charge OF the
Custom House seal and the seal Is attached. so tne
stand, is entirely exempt from all responsibility
These papers also purport TO have the check OF the
means means only, as am informed, that that the % bundle OF
papers have been presented to the cashier
aud the twenty cents, or whatever Is the the
cashier makes no examination OF the pa
pers. 1t. Is not in the line Of his duty.
Such has been in general the course OF proceeding
for the perpetration Of the fraud in question The
parties who have taken part In this fraud, so far as
we M are informed are frst person by the name Of
young man who was acting as clerk few years
ago TO q Custom House broker, boy eighteen or
twenty years OF age, at salary Of ten dollars A
week. Having learned in the course OF his employ
mcnt. the course Of business ana, perhaps having
having seen something OF the profits that were
realized by his employers he conceived the idea that
he also could carry on the same business himself
very pro1taby. lie seems to have taken into his
counsel one Risenberger, OF the city OF New York,
one Wilson, one Laidlaw and Dickinson. think
there are other parties also implicated, perhaps, who
have not as yet been arrested; therefore, 1t does
not become necessary to speak OF the particular
part that those not under arrest have played In
these frauds Korn and Risenbergcr seem TO have
acted as principals more or less, with others In the
presentation OF these claims and the receipt OF
has been In receipt OF large sums OF money and "a
the owner OF one or two houses. and hiss Invested In
other real estate IN This city from sse proceeds Of
the parties who procured these certificates FROM the
collectors, employing Dickinson also for that pur-
pose. They went around 70 the various collectors
obtained from them certificates that the manufac-
turers named in these certificates paid duties the
particular goods also mentioned. Then they applied
Second Collection district OF New York.
for certificate that the fictitious exporter, whom
goods, had iled with him q bond that the goods
should not be re!anded In the United States. Mr.
this description as deputy collector. Hts name ap
pears suppose, on about $50 bonds that purport to
have been given him for that purpose. These bonds
are all fraudulent or fictitious and most OF them
signed by persons entirely irresponsible or signed
wte fcttio0s names or the forgery OF real names.
Ladlaw knew that these bonds were fraudulent,
knew that these certificates were given upon fraudu.
lent bonds, knew Of the fraud took money us the con-
sideration OF making these certificates from lne 20
time ofthc parties engaged in the frauds and
them on. korn having acted as a Custom House
broker, being familiar with the business obtained
own handwriting, forged the name OF the exporter
To them, made up all the papers ana presented them
TO Therot who signed them and signed them with
out any investigation whatever; even going outside
into the shops OF these brokers and making certl6-
Gates there, not even complying with the necessary
form, but made them wherever II was convenient Tor
him to make these certincates. The evidence,
Think against the parties already arrested VIII be
entirely conclusive OF fiieir guilty participation IN
the transactions which have resulted IN tns fraud.
TESTIMONY IN THE CASE.
Samuel ). BlafchfOrd was sworn and examined
nv Mr. Traev md el "a ku,a
collector In the Custom House and have been
since December l, 1867; was In the Custom House In
the AUDITORS Department FOR ten years previous:
the Export Statistical Bureau Is In that department.
know q. y. Thcriot; he was an oficor OF the Gus
tom House In 1867; he had been there year or egh.
teen months: he was one OF the clerks OF the Ex-
port Statistical Bureau; az outward msniesfs OF
goods going 10 foreign ports are placed Ia that
bureau Tor the purpose OF Keeping q record or the
exports OF the port OF New York: know rhesiot's
handwriting. (The Fifth Auditors report No.
57,5s3, purporting to be claim for drawback or
5000 IS on account Of Zeus s. Cozzens, was shown
witness.) have examined the port OF
the paper In the manifest; there Is no