The New York herald., 1869-02-12
IMPORTANT INTERNAL REVENUE CASE n
TRENTON.
Action Against Sureties-Over 100000 In.
vOlyed.

Action Against Sureties-Ovcr 100000 In.
vOlved.
In the United States District Court at Trenton yes
teray the trial Of the Of the United States VS..
George w. Thorne and others was commenced.
This action Is brought by the United States against
the suretics Of George w. Thorne, Collector OF In
ternal Revenue for the Fifth district for breach OF
bond, involving sum Of 100000 United States
District Attorney Keasbey said 1t was an important
and interesting case. II is one which challenges
sympathy as 1t Is an endeavor to hold men liable for
the actions OF another 1t is civil action against
sureties in q common contract. 1t appears that in
October, 1865, George W. Thorne received an
appointment as Collector OF Internal Revenue
for New Jersey, and that Edgar B. Wakeman,
R. Mclaughlin, Samuel NJ. Prentice, wnliam
s. Gilbert and William Keeney became severally
bound in the sum OF 100000 for the faithful dis
charge Of the duties OF that Office by George w.
Thorne. When Tnorne entered ON his duties it Is
charged tnat application was made to him for the
removal from two bonded warehouses; in Jersey City
OF nearly 600 gallons OF whlskey for transportation
TO California. According 10 an act OF Congress 1t
cants for transportation bonds representing double
the amount Of taxes to be imposed on the distilled
spirits 10 be removed, but 1t L. averred that
he did frauduently and negligeatiy permit
applicants to remove said sptrlts from the bonded
warehouses IN Jersey City without paving the spe.
cial tax, and did accept five certain fraudulent
spurious and worthless bonds In lieu OF such. Plain
tits further Charge that the whiskey never reached
California nor any place known to them and conse-
quently the tax the So 900 gallons OF wnSkey
never paid to the government, which Is therefore q
loser to the amount OF SlO0o0 None OF the sureties
who signed the bonds beng found and neither their
residences nor names in full being written Jhe.eon,
IL y maintained by the government that Thorne was
guilty OF fraud IN connection with the removal or
this whiskey, ana the parties who guaranteed the
proper discharge OF his duties are now sued to
cover the loss the government sustained
- Ilastead. OF Newark testified to hts having
read the condition OF the bond 70 the parties who
signed 1t IN q saloon in Jersey City, and saw them
attach their signatures thereto. They seemed TO un-
derStand the liab Titles imposed.
- Gardener being sworn said-T was bond clerk
under Mr. Th0rne at Jersey City the practice OF JUS
tircation was IN force; there was no bonded wniskey
IN the warehouses In Jersey City known as class b.
only during Mr.. Thornes incumDency; the whiskey
covered by the five TRANSPORTATION bonds was not
known to have been seized; 1t was privately sold ia
New York, government detective named stag hav-
Ing di5Cove ed traces OF IL; no cancellation papers
were received from California rsifying tile arrival
OF the whskey there UP 10 the expiration OF the usual
no recollection OF taking the bonds. or signing the
permits Tor the removal OF the spirits: Mr.. ThoTne
wanted all the clerks TO describe the mode OF trans
acting business for the information OF the authori-
ties at Washington.
Alexander Il. Wallace being sworn, Saddle
was Collector OF 1aternal revenue for the Fiftn
district iom 1865 10 1906 spoke 60 Mr.. Thorne on
his 10 office or the caution necessary in
dealing with transportation bonds; Thorne had
beel storekeeper under witness. had no whlsSey
In bond during witness administration; as store
keeper 1horne performed his duties well.
Mr. Weari, being sworn, sad-I am Collector of
Internal Revenue for the Fifth district; never
had the cancellation bonds from California;; the
amount OF tax on the whiskey has never beel
paid; was notified BY the Department at Washing
ton to take the sum OF my books; have never re-
ceived any Information OF ang OF the parties to
those transportation bonds since January. 1865 no
wblssey Ia DJn1 has been allowed 10 be removed.
took bonds for transportation OF oil; never took
fraudulent ones.
The court then adjourned tai ten O'Clock this
morning. The case Ii expected 10 DO concluded
to-day.