The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-11-16
THE DRAWBACK FRAUDS.
Further Proceedings Before Commissioner
Osborn Yesierday-HighIy Important Tes-
timony-Ihe Division of the Spells
The Percentage Of BlatchfOrd--
Howard Insists on His Full
Sharc-The Checks.

at the close OF the examination for the day In the
case OF che United States against II. Mullgan, Mr..
Francis A. Howard OF the firm of Doblee 4 Howard,
OF No. 10 Wall street, was brought before Commls-
sioner Osborn, having been arrested on rhe charge
OF completely in the drawback conspiracy. Mir.
Howard was formerly CLERK chief of the drawback
branch in the ONCE OF the Internal Revenue Com
missioner sc Washington, and 1t is alleged that IN
his official capacity aided the conspraors in New
York in their efforts 10 deiraud the Treasury and
that he received brlhes for his assistance Mr. How
ard had resigned his official connection with the
public service at Washington about the LIST day of
January 1867, and opened banking and broker's
Office under the above firm name IN this city and has
been engaged In that business ever since.
MIR. Howard, when arraigned on Saturday last.
wished the examination to proceed at once; but That
being impossible 1t was set down for two O'Clock
yesterday afternoon, and the bail for his appear
ance fixed at $4,000 twas only late on Saturday
evening that he succeeded In procuring the required
surees and ne liberated. IL will also DC remem.
bered that this the second arrest OF Mr.. Howard
for being concerned IN these frauds the first being
made some time last spring, at which time he also
gave bail In the same amount.
THE PROCEEDINGS YESTERDAY.
Yesterday afternoon at the appointed hour, Com
missioner Osbora took his seat on the bench again in
the United states District Court room on Chambers
street. the government being represented by District
Attorney Judge Edwards Pierrepont and Assistant
District Attorney A. n. purdy. and Tor the de-
fence appeared MIR. jerome Buck. Yhe case
OF the United States against Francis A.
Howard being called, Judge Pierrepont without re-
peatlng his extended review, already published OF
the manlpuations by which the several parties &C
cused contrved defraud the Treasury OF vast sums
of money went at once into medals res and offered
IN evidence the same documents which were danti-
fed on Saturday IN the case against Mulligan and
winch were published IN full in The HERALD or sun
day morning. Judge Plerrepont said that he be-
lleved Mr. Buck, the defendants counsel was in
court on Saturday and mad heard the Identification
OF the papers.
mr. Buck replied that he was not and that he
would most certainly object TO the transfer of any
such testimony rom Mulligans case. They were
now in the case OF Francis A. Howard and
The District Attornay-It needs no words; If you
object il is all rigat; there is no necessity for any de-
bate about the matter; the proof Is ready that they
came from the Custom House and from Washing
ton and that they are the originals
The Commssioner--It will not prejudice your
case Mr.. Buck, admit them; 1t VIII only expedite
matters.
Mr.. Buck-very well; just as you please, Nj. Com.
missioner.
The objection was then Withdrawn, and all the
documents published in sundays HERALD were or
fered and admitted IN evidence as also the fact that
the iDtias "F. A. III on the certificate signed by
Il. A. Rollins, Commissioner OF Internal Revenue,
ana directed TO the Flfth Auditor OF the Treasury,
were in TIE handwriting OF Mr.. Francis A. Howard.
TESTIMONY or WILLIAM j. KoRN.
William J. Korn was then placed upon the stand
and testified substantially as follows, the District
Attorney having hrsS exhibited TO nm the following
check
ssvaiap NO. an, 70 NEE M Nn me
Pay to Y. A. HowAGD, Esq or order, Two hundreds
Sd0lsssssoio $50. w. koAS'
Endorscd-Pay to the order Of Di5blee Howard. r. A.
For deposit account or Dibblea Howard.
Witness knows the check; IL was drawn by him
self TO the order OF Mr. Howard,
MIR. Bucs here rose and objected to this testl-
mony The affidavit on winch the warrant was
Was arrested charged him win having
salary to induce him TO PASS fraudulent
claims while holding an Official appointment
lett the department. on the 3lst DAY OF December.
1885, and the cneck offered III evidence purports
connned to the period OF his continuance IN the de-
| partment aud what he has received or done since
that Tune was no. proper subject OF investigation
i now.
Judge Pierrepont replied that 1t would be better
TO nave full understanding or the at this stage
Ine charge Is that OF conspiracy deiraud the gov.
| ernmcnt commencing IN 1860 and continuing In
1867; that the defendants while an officer OF the gov
| ernment, 1856, was an agent or Caldwell and or
many others (for there are great many persons
concerned III this natter, and that although he left
Washington Ia January, 1867, he continued in the
conspiracy to delraud the Treasury. And she law ~
wei known that In case OF conspiracy any act done
by one OF the parties to It, whetner IN furtherance of
TINS Or any other Similar design whether before or
AFTER any particular acb charged, IS admissible IN
! evidence.
! Mr.; Buck-Will not then, tho government INFORM
The Commissioner admitted the evidence and Mr..
! korn continned;-knoWs the defendant, Francis A.
howard; witness was clerk Tor X. h. Caldwell & TO-,
Custom House internal revenue brokers' who had
an once IN Pearl street IN this city; commenced
| with them IN the fall OF 1855, and remained TIL
spring, 1867 he ceased 60 be with taem in FEBRUARY
or March, Wnen he left their oHlce he saw Howard
frequently; saw him FIRST at Caldwell Office NO 200
| Pearl street. early in 1856; saw hun there many
times after mat and understood he was chief clerk
| IN the WASHINGTON Internal keyepu9 Department;
heaid MN olten converse with Caldwell but
| does not recollect any particular subject on
S when The, they s eonyersed once witness saw
lattsrs onice, now TO make mp drawback claims;
chs was Ia 1886; can't give the NUMBER OF tunes that
| Howard was in Caldwei's oace; witness don't
know that lie heard the conversation between Cad-
| Wen and Howard except that once when Howard
1 dictated 10 Cadwell when Howard came ne ana
/ caldwell went into the private oilce and taen W.T.
ness did net hear their conversation; witness again
1 idenuled the initials ''F. a. H. as being ia Nr.
| HoWard's handwriting
I THE CHECKS 10 HOWARD
Being asked by the District Attorney about the
| check, copied above, Mr.. Korn SAID that the check
was given TOR claim made IN the name OF >. III.
Fischer; be gave MIR Howard the claim; the under
| standing was that Mr.. Howard should receive ten
per cent or the amount OF the claim on It's passage
through the department.; The amount Of the cheek
was Tor the ten per cent.
Judge Pierepont then handed the witness TIE
following Check
DEsieSArEp DErosrAEy or TIM Uxrrs6 srAfra,
ocpAN !, MY yong, Dec. u, 1877.
81 Pay 70 T. q. HcwAsp on order,
$l,3is $780, j, o. L. WILSON,
endorsed, T. 4. Howard.