The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-11-25
TIE DRAWBACK FRAUDS.
The Examination Before Commissioner
Csborn-Further Interesting Testi-
mony New Discoveries = Other
Parties Implicated-Ihe Frauds
Increasing in Humber.

The examination OF the three parties charged with
conspiracy to defraud the Treasury by means OF
false and fraudulent internal revenue draw back
claims was resumed yesterday afternoon before
United States Commissioner Osborn, Judge Pierre
pOnt and Assistant District Attorney A. IL. Purdy
representing the government. The first case calleu
was that OF
FRANCIS a. HOWARD,
who ia charged with having been party In the con-
spiracy at time while he was holding the RESPONSE
Bile post Of chief clerk OF the Drawback Bureau IN
the ONCE OF the Commissioner OF Internal Revenue
at washington, thus abusing MS posltion IN the
interest Of the couspirators and derauding the gov
crnment lt VIII be recollected that the evidence
on the part OF the government was closed
al the last session and an adjournment
was granted to the defence to prepare
their side of the case. Mr.. Howard was
In court yesterday afternoon, and when his
name was read by the Commissioner his
counsel Mr.. Jerome Buck, arose and stated TO the
Court that he deemed 1t advisable to waive for the
present oil defensive testimony; that at proper
time, before jury, Mr.. Howard would concluslsely
snow his innocence IN these frauds; he had held
himself out by open publication that from his expe.
rience he would advise as to the proper means OF
passing drawback claims at Washington the prose-
cution had admitted that these claims came TO the
defendant properly attested by the Custom House
officials and bore every evidence or authenticity;
that Mr. Howard believing them genuine, certified
them; the counsel stated further that at the
trial Mr. Towards defence would be conclusive; he
regretted that the press had it to PREJUDICE Mr..
Howard, as the Times had done yesterday morning,
and ne believed it matter OF proprety, as well as
OF public policy, that criticism should be foroorne
until the defendant was heard and his gut or inno
cence established by jury THIS waiver OF all fur
ther examination before the Commissioner ended
the proceedings in the case OF Mr.. Howard, and the
court called that OF
RoMEYN MuLLIGAN
IN this examination, on q similar charge, Judge
Quackenbos appeared for the defence, and Mr.. NJ F.
Hodge was the first witness examined yesterday for
the defendant The prosecution submitted,
on behalf Of the government the papers Of
a fraudulent claim, the exporters affidavit
having the blanks nlled In the hand writing
OF Mr.. Muigan and 1t was sworn by
the witness Korn that the signature "W. Richards"
was also In Mr. Mulligans wiring. The defence
sought TO dlsprove this. Nj. Hodges testified that
he was president OF the Excelsior Insurance Com
pany; that he knew Mr.. Mulligan anu was familiar
Mltn his handwriting; that the signature ~.
meats on the treasury orat-"B NJ. Johnson ~ co.,
and *. Mllllgan'-were in the handwriting OF the
latter on cross-examinaon he testlled that ne did
not pretend TO be an expert IN tue matter Of Judging
OF tbs handwriting OF persons.
Inc next witness was Mr. j. z. HaZletOn, wee
PRESIDENT OF The Gutta fercha Company; knows sir.
huiiiyan, who was employed by the company
bookkeeper Is familiar VITA his handwriting; the
signature OF Nv. Richards 10 the affidavit Is not
Muitgans, though the Ming OF the blanks Is his.
Cross examined by Judge Pierrepont--is not an
expert in judging handwriting Is familiar With Iu
hgan's style OF writing the signature Ike his
usual style, though there is some similarity IN it;
the endorsement on draft witness should think to be
Ar. Mulgan's would not be positive, but gives bis
opinion with mental reservations; the signature
Nv Richards may pass for his, though 1t may DO
inarau
from Muhiganis usual style; the s'Rn In .Rchardsr
aud in .'R, Mulligan' shows very little difference.
Mr. William Mulligan " as then sworn and stated
that he was the brother oil tle defendant; presi-
dent Of the Humboldt Insurance Company; saw his
brother write frequently; the filling OF the blanks in
the anidayits Is In Muigan's handwritlng the sig.
nature "W Richards Is not; ms brother never COM
menced 10 write with an upward. but always with
downward stroke.
Judge Pienepont-You are the brother OF the
defendants A. Yes, sir.
Judge PerrepoDf-I will not cross anime YOU
sir. The witness Ihereupon lett the stand.
Alfred X. Bennett was next sworl-He is O
foreign exchange broker; had known X Mnlligan for
about eleven years; saw him write repeatedly; was
employed with him In the same Office, K Aui!igan
being bookkeeper and the witness foreign corres-
pondepce clerk; the banks in the affidavit are
Mulhgan's but would not recognize the signature
Nv. Richards as his; the endorsements on the
draft are his. On crosS-examlnatioD tue witness
stated that he might be deceived, and would not
swear positively about anyDody's handwriting.
Judge Quaekenbos then addlessed the Commis
sOner stating that he mad several other Witnesses
one from MeStcheGter county, but that they were
not III court, pfOOaDiy OWING 10 the storm. Jnere
was no Immediate hurry to close the case. II time
were allowed bin he would put gentleman on the
stand whom the District Attorney would be GLAD TO
see (meaning undoubtedly the principal in the con-
epiracy sir. X. B. Caldwell who Is said 10 have fed
10 Canalal In order 10 do this he desired an ad-
lournment for TWO weeks.
The District Attorney-lf you pledge yourself TO
bring that man here.
Judge Quackenboss--I pledge myself to make
every effort have that man mere at the adjourned
session, and that this application rs made in good
faiin and not Tor delay.
I
doubt that your offer TO get that man here IS made
In good faith; but you viii not succeed The case Is
exhausted. can't keep the Grand Jury together be-
You'd this month have no moral or legal rsnt TO 10
IL. We ought TO 90 on, there are 20 many OF these
eases. and new ones are discovered every day,
bringing the amount OF the frauds far beyond mil
lion Of dollars. would not be surprised II counsel
were 10 take the same course which had been
adopted In the Howard case by waving all further
examination. II there be such man as W. Richards
In existence why DO not the defence produce hiD
There Is not even d suggestion maze by the other
side tnat there exists such What is there IA
the de.enceS Nothing at all, aud the prosecution
would not oher anJ rebuttlng testimony, as there IL
no need for Ii.
Judge Quackenbos expressed hls surprise that
the District Attorney should have expected him 10
pursue the sane course that the counsel for Howard
has and waive an examination. He could not nave
succeeded IN making himself understood at the in
ception OF these proceedings. From the first he has
been seeking TO throw all the light possible on hla
clients participation In these frauds. lie insisted
That Mullgan was the victim OF others. IL with
view Of elictng all the light possible that he
offered to place Michigan on the stand, but the
learned District Attorney preferng darkness rather
than hight Tor reasons best Known TO himself re-
fused to allow Mulllgan to testify. Judge Quacken-
hos again assailed the witness Korn with great
severity, and SAID he would not demean human ma
ture by calling that Creature man. no In
the community would DC safe If such perjured wit
nesses could testify IN court OF justice No man g
character could stand such an ordeal and II was a
dissertation OF the temple Of justice that such wit
nesses should be introduced in support Of any
charge. Judge Quackenoos also referred to the
OF the District Attorney not cross kan
lining the brother OF Mulligan.
Judge Pierrepont-It WAS not sarcasm bat purely
O matter OF de lcacy.
Judge Quacken0os-Ills client had renamed In
the city and continued in business; he did not skul
away; had no convenient leave OK absence to avail
himself or
The Commissioner remarked he knew wnom Judge
QuackenboS referred to as the gentleman he pro
posed TO place on the stand as witness; his testi
mony might be OF benefit to Ar. Mulngan, and Ger
nj Qhu IN fha mt. hnf a