The New York herald., 1869-02-27
BROOKLYN CITY.
TIE COURTS.

Tho Alleged Drawback Fraud-How the
SpoiIs Were Obtained and How Divided
Testimony of Riesenberger, tho Man Thai
ssBlowed," and Others.
Before Commissioner Jones.
The second hearing in the case OF Korn Wilson,
Laidaw, Whimster, Theriot and Dickinson came on
yesterday. Mr.. George p. Webster appeared FOL
Korn in the place OF Judge Troy and MI. s. A.
Noyes assisted the District Attorney. With these
exceptions the counsel were the as on the first
day of the examination. The counsel for the de.
fence have not thus far thought advisable to
examine any Of the witnesses called by the govern
ment though the last witness that was put upon the
stand they have had no chance to question had
they been 80 disposed. Inasmuch as one OF the
parties, by his own testimony. was as deep in
the frauds which are charged upon the others, he
viii in due time, without doubt, be subjected to a
most searching cross questioning.
George A. Mercer testified as follows:-Am a clerk
In the Treasury Department; have been so tor Ave
years; warrants upon which drafts are issued pass
through my hands; the warrants are issued In the
Registers Office, and draft Is issued by the Trea-
surer attached to the warrant. and IL vovcher for
the Treasurer In his settlement with the depart-
ment; these drafts are numbered so as 10 show the
number OF the Fifth Auditors report to which they
correspond; this report contains the claims ITSELF;
have drafts drawn on Internal Revenue drawbacks
which have been paid, and are attached to the war
rants
MT. Sedgwick said that they would take the papers
in gross and would aamit that the claims hled In
the Fifth Auditors report correspond with tue drafts
drawn on the Treasury Department.
Mr.. Tracy said that the papers would have TO be
returned to thesdepartment, and would have 10 be
examined Immediately II at Oil. Here large num-
Der OF claims, warrants and drafts thereon, with
the names OF persons to whom they were made pay.
able, together with the amount and the cndOgeers
were offered In evidence, the object being to show
tnat the warrants aud the drafts sponded with
the claims In the Flfth Auditors ONCE. The cert
cate the witness TO the character OF the pa
was, by agreement taken as evidence to save the
s. d. Blatchford testified as follows:-r have OK.
amined the claims for drawbacks and compared
them with the records OF the Custom House: inc
goods mentioned as exported are incorfect no such
goods exported az set forth ia the cetincates
the correctness OF the maniiests are certified
by @. J. 1herlot the clerk IN the AUDITORS
department. the export statistical bureau detect he
faIsity OF the papers by tue records Kept In the
clearance department OF the Custom House; by com.
pairing the outward manifest with the papers prs.
sented me to examine; the outward malilest woud
show by whom the exported goods had been ,fi.
fed to; II would show an issuance OF certificate
for that lot OF goods; the clerk whose duty il Ia 10
make these certificates has nothing 10 pievent his
entering on the manifest goods not really exportsd
no record OF claims Tor drawback are Kept la our
ONCE.
Charles r. Fstcc testified az follows:-I am one of
the frm OF Estee son, statoners, Gl Cedar street,
New York. the drafts were endorsed by nv firm or
certain drafts corresponding to the numoers read
this morning.
Mr.. scdgwick admitted for the purposes NJ b,s
examination, that the endorsements were genuIue
wherever they occur.
Witness-A gentleman came 10 me and wanted
me 10 exchange my checks Tor two drafts ana
did SO; that was Mr.. u. w. Green the Su erintend-
ant OF Exports aud Drawbacks: the reason he as-
signed waS that the parties 10 whom they were pay
able were unknown 10 the Treasury Department
and did not wish TO go to the trouble OF being ldent
fed; endorsed thirteen.
Henry Boucher, Jr., testified as folIows;-Am
broker; know George w. Green endorsed treasury
drafts a. his instance; have not all the numbers:
! nave the number Of the person to WHOM the
drafts were payable In oil cases. endorsed four:
Mr.. Green came to ine ana asked my endorsement,
as matter OF convenience TO the parties, who aid
not wish to be at the trouble OF being iaentned;
drew my cheek to Mr. Greene IN every instance
except one.
Charles r. Estce recaled--The checks were all
drawn payable to bearer think.
X. Rosenbefger testified as f0lIows-I live In 1hIr-
ty-nftb street, New York; have lived IN New York
eighteen or nineteen years; have known Wm II.
Whlmster, Wn. j. k0rn. John y. u. WILSON, II. a.
Dickinson, G. u. Tlerot for periods varying rom
aycar ana han 10 two years; when ! lrst kntw
korn he was CLERK of u. u. Chdweli Co.. custom
house brokers' IN rear street; know OF the making
up aud presentation 20 the osccrs OF tue Treasury
Department OF fraudulent claims 0l drawback;
Participated ~ the making aud preAeBtati0D OF these
clatns the tng was commenced IN January, | 81,
not long after ar Caldwell gave up his oilce IN
Pearl streets tbat was 10 december 1860: aboat Jam