The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-12-02
THE DRAWBACK FRAUDS.


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| Proceedings Before Commissioner Osborn
| Yestcrdwy-The Case Against Il. Mulligan
! POstponeG-lhe Charge Against James
Caldwell Dismssed-lMore Warrants Issued
| Keticence of the Olacials.
Yesterday afternoon the examination In the cases
| against r. Mullgan ana James Caldwell was
resumed before Commissioner Osborn Judge Pierre
pont, the United States District Attorney and his
Assistant, Mr.. A. II. Purdy, representing the gov
eminent The charge against these defendants
and several others, +. A. Howard and Samuel
s. Batchford among the rest beng, that they
consplred and confederated together to defraud
the Treasury out OF internal revenue draw
back money by means Of false and fraudulent vouch-
ers How this was done was fully detailed in the
HERALD at the time these charges were Grst pre-
ferred in court, and 1t VIII still be fresh in the men,
DRY OF the reader. At the last hearing, on Wednes-
day, the Gath Of November last, counsel for +. A.
Howard waived any further examination before the
Commissioner The first case called yesterday was
that against
RoMEYN MULLIGAN.
As soon as Commissioner Osborn had announced
his readiness To proceed with the hearlng-t being
IN ORDER Tor Inc dele nee to continue the eXamina-
ton OF wltnesses-Judge QuackenbOss the counsel
morning applied TO the United States District At0r-
ney for his consent TO adjournment He had stated
III TedhOuS 10 tIe Attorney WHICH lQpcIeu
him to ask for this delay, and he hoped he had
lshed him OF tue equity OF this application. lie
almost within his grasp certain facts; that he had
received a Geographic despatch that very morning
which assured him that the developments ne sought
were progre ssing favoraoy, and he believed that If
time be given him he would in less than week be
In position to produce evidence sufficient to induce
the District Attorney to state publicly that Mr. Null
ligan was fully cxcupated from all completely; and
he the District Attorney, may perhaps himself ask
that the defendant GO Of court without the slight
Judge Pierrepont replied that he had told counsel
he would oppose all he could any adjournment to
discharge the Grand Jury early next week, ana he
could not keep them any longer. He did not doubt
the evidence he spoke OF tof Richard u. Caldwell
VINO now lives IN Prescott In the province OF On
taro. Canadal but that 1t Is very probable he Will
Judge Quacksnboss-I shall have 1t by Saturday
next, If GET 1t a. all.
Journnent to later day than next Monday.
The commissioner thereupon adjourned the further
hearing to next Monday, 1t being understood-rhe
District Attorney pressing II earnestly-hat the case
must be closed on that day. The case OF
JAMES CALDWELL
was then taken up. and General William Anthem, the
defendants attorney, called
Dr. J. J. Caldwell as witness He testified that
he resided corner OF Warren and Tenth streets,
Brooklyn; is . physician; Jamea Caldwell 10 his
brother; his other brother, Richard b. CALDWELL
said that James attended only to the ordinary Gus
tom House business at the ONCE; witness the
family physician OF Richard, and when the latter
was sick mad occasion to talk with him OF family
matters; witness said TO nun that James poor,
wnlle Richard was nourlshing and DONG well; why
was this soY Richard replied that James attended
only 70 certain duties and he was paid only for what
he did; James was Door at the time; he lived with
ms parents; ge did not indulge in any yTavaga4fe,
Witness Knew that his brother James did rot get
along very well with Richard, and he heard James
say That he did not agree with his brother and that
he had opportunity to 60 into the Gust IN House
business on ms own account which he did.
Judge Pierrepont declined to cross-examine the
witness. General Anthem tnereupon remarked that
he had other witnesses to the same point another
brother; but as the testimony would only be cumula
| tive he would leave il TO the Commissioner to say
whether 1t was necessary TO call him. Some CONVEX
saton ensued, at the close Of which Mr.. Anthem de-
| cided not TO cali any other witness The Commits
sioner then recalled DR.. Caldwell, who stated, in
| answer to question from the Court, that he had
| never heard James Caldwell say that his brother
Richard did an illegal business This closed the
| animation OF witnesses.
The District Attorney moved that the case be sent
before the Grand Jury. which was opposed by Gene-
raj Anthem, who claimed that his client, Mr., James
Caldwell, was entitled to full discharge
slstlng that nothing duplicating the de-
PENDANT as a party to the conspiracy had
by his endorsing Tor deposit Treasury drafts ia the
| firm name OF X. Is. Caldwell Co.; but tnat on the
contrary, 1t was shown even by the government
| Witness korn, that James Caldwell left the drm
when he discovered the fraudulent character Of the
| business that he was DOOR and hence got none OF
against his guilt that he left the firm poor and Just
| at a time, In August 1856 o, when these drawback
| 1raudS were increasing IN NUMBER ana tlat ne was
not arrested, but had voluntarily surrendered to the
| jurisdiction OF the court.
Judge PieneDont briefly replied, claiming that
| enough had been proven to place Mr. James Cald-
well on his defence before jury, and that he con.
sIdered II hts duty 10 ask OF the Commissioner To
order the case before the Grand Jury.
The Commissioner said that this was q case OF
conspiracy; the fact OF tho conspiracy had been
taollsned ana several parties were proven TO have
been concerned IN 1t. The Commissioner then re-
capltuaded the testimony ana stated that Mr., Janc
caldwell has explained the extent OF his connecuo
with the AFFAIR; MS whole conduct presupposed b
innocence In the frauds; as soon as he mad know !.
edge That warrant was out against him he pre-
sened himself voluntarily to the authorities 10 stand
! his examination, and IN this he has endeayored "a
SHOW ms innocence IN 80 FAR as participating In the
fruits OF the Frauds After some further remarks on
the testimony and the conduct OF the defendant the
defendant, James Caldwell, from arrest and prose
cution.
| MORE WARRANTS ISSUED YESTERDAY.
| Colonel Whitley Chef OF the Detective Service OF
the Treasury Department arrived In this city yester
day, and very soon after his arrival he had lengthy
interview WIN the United States District Attorney
the result OF which was that q number or warrants
against parties not hitherto known TO nave been con
cerned In these and other frauds OF a similar nature
IN the Internal Revenue Bureau and the Treasury
Department at Washington. were issued by Commits
sioDer osborn. The warrants were placed IN the
hands OF Marshal Harlow, and the arrest or the par
ties named In the wrts VIII probably have beer
ELECTED before this reaches the eye OF the reader
| Inc names OF tbe persons against whom these new
complaints are made, AZ well as the particular ma
ture or the charge against each, are for obvious
] reasons Of pubic pphcy withheld FOR the present.