The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-11-20

Continuation Of the Proceedings Before Com.
missioner 0sb0rn-Yhe United States vs.
R. Mulllgan-Same VS.. r. A. How
ard-Same W. James Caldwell
Interesting and Important Rev.
elatiOns = Indictments.

defraud the government out Of vast Gums OF money,
BY means of false and fraudulent vouchers was
resumed before Commissioner Osborn. The first
case called was that OF
FRANCIS A. HOWARD.
1t viii be remembered that the examination in
this case opened on Monday last, a full report OF
which appeared in the HERALD OF Tuesday. The
principal witness for the prosecution was William f.
Korn, who was a clerk for II. b. Caldwell n Co., In
ternal Revenue Custom House brokers, and who are
alleged TO have been the orignators or the con-
spiracy. Mr.. Korn is himself indicted and under
sIo COO bail to answer the charge Of defrauding the
government and has, only within the last six or
seven weeks, concluded to reveal all he knew Of
these dark transactions and his knowledge iB made
use OF by the authorities to convict the guilty parties
On Monday an adjournment took place to one O'Clock
yesterday Afternoon before the counsel for Mr.
Howard had concluded the decentralization OF the
witness, At THIS stage the proceedings were re-
sumed yesterday.
When the case was called, Mr. Korn took
his place on the witness stand. The defendants
counsel, Mr. Jerome Buck, rose and said that pre-
vious to proceeding with the crossexamination of
the witness he would call the attention Of the Com
missioner to certain statements In the press, and
also in the stenOgrapher's notes. OF certain testimony
to the reception Of which strenuous objection was
ulduc az tllc uccuCct
no notice seems to have been taken. The portion OF
the testimony referred TO was that Howard, when
told of the fraudulent nature OF one Of the claims.
'He shook his head knowingly, as If he meant he
understood IT. That this was not legal evidence;
1t impaired an opinion OF the witness ana Is not a
statement Of fact and hence, is inadmissble, for
which reason it was objected to.
The Commissioner remarked that he reeolected
the words OF the witness and he would note the
objection OF counsel on the minutes
Mr.. Buck then continued and said that defence de-
manded the production by the District Attorney of
the papers upon which the charge against Mr..
Howard Ii based, meaning the several certificates
OF export. these papers came, as IL is said they
they did, into the hands Of the defendant with the
the signatures and seals from the Custom House and
with all the evidence Of authority required BY law,
they ale entitled to have them produced.
The District Attorney don't exactly understand
what the gentleman means.
MIR. Buck-We mean the papers which are under
the control OF the District Attorney In the which
1t Ia charged the defendent conspired with others
to pass through the department at Washington.
This is charge Of conspiracy, and all the papers
which the charge Is made should be produced.
The District Attorney-I don't understand the
gentleman. The papers are IN evidence
The Commissoner-Only those produced In Mr.
Mulgan's case, Mr.. District Attorney, but not the
papers in the Fischer case, which the witaess swore
were made out by himself
Some further sparring between the legal gentle
men followed at the end OF which Mr.. Buck gave
verbal notice to the District Attorney that at the
hearing he would call upon the latter produce all
the papers.
Cross-examinaron OF william l. Korn was then
resumed. He testified substantially as follows:-
o.
who is a retail and wholesale liquor dealer; is post
ing books and collecting rents for him gave Howard
claims OF j. A. Fischer and Of Others tobacco
| drawback claims; they all made up in the
ONCE OF Wildwood Co.; they were all certified IN
and had the signature OF deputy collector anxea
Therrtot was clerk In the Custom House; the
papers were sealed with the Custom House seal.
The District Atlorney-f 1t be your object to prove
that these papers passed through the custom House in
regular way that they have all the signatures
seals and ''checksn necessary to make them certl
Gates, we shall admit that they had ali these sigma
lures, superscrptlons, seals and checks required;
that on their face they were regular papers, though
fraudulent
Mr. Jerome Buck desired this liberal admission to
be distinctly noted and proceeded to cross-examine
Korn:-Howard once asked the witness who the
exporter was, witness said he was q myth; this
was said while Howard was looking over the papers;
witness does not remember the number OF claims
he gave Howard; u may have been fonr 1--WE;
they were all regularly executed; it was only once
the witness told Howard the exporter was myth;
the question was asked only once
To the commemorative was on the occasion
OF the Fischer claim, which the witness believed was
the first one given by him to MIR. Howard.
BY Mr. Buck-This Claim was collected early in
March, 1867 others were collected shortly after that
they came from witness office; no inducements have
been held out to him to testify; no promises Of
nolle prOsequ In his case were made 70 him, and he
MN hin win be discontinued; he was indicted n the
latter part Of June, 1859; at one time he was en-
ployed oy Mr. Warner. as assistant assessor Of rev.
enue and afterwards Internal Revenue broker, and
before that he worked for Jeweer IN Maiden lane;
he was twenty years old last February; he was
never arrested before this nor indicted.
the District Attorney stated that he had received
number OF other drawback claims from the depart
nent at Washington OF earlier date than those pre-
vlOusly offered. which he would submit.
Mr.. Buck considered this proceeding irregular and
inquired what these papers were
papers, on which drawback claims were allowed IN
the summer OF 1866, and on which the name OF Mr..
to the witness and asked him whether he knew or
| recollected Them The witness said "Yesn lie
knew they were made up al CaldwelI's Office
The District Attorney-Give the dates.
Mr. Buck did not wish TO be over-technicai, but
the District Attorney had made certain charges,
brought the witness on the stand and closed the
direct examination during which he Introduced GER
tam documents. He (Mr. Buck would object TO
reopen the direct examination and produce these
the COMMEMORATIVE District Attorney had not
these papers in his hands at the last session. II he
had, and had closed the direct examination without
producing them, he would not admit them now, but
under the circumstances he would allow them TO be
offered
The witness then described three of the claims
placed IN his hands by the District Attorney the
latter calling the attention OF the Court TO certain
discrepancies. The papers are OF the same nature
as those copied In the HERALD OF Sunday last, that
s a certificate from collector OF internal revenue,
that the tax on certain described manufactured
articles had been paid; the AFFIDAVIT of the shipper
or his agent that these same Identical goods were
shipped to foreign port giving the name OF the
vessel and her date OF sailing, and certificate from
the New York Custom House that these articles
entered Gu the outward bound manifest OF the vessel
as ascertained by actual examination. These
latter certificates had all the initials as. T. By
Samuel ]. Blatchford-upon them. The three
claims were all passed by Francis A. Howard,
at the Internal Revenue Department at Washing
ton, IN June, 1860 while ne was chief clerk OF the
one was in favor Of A. X. Williams, for 81 03i 60;
one In favor Of III. G. Holman, for 81 100, and one In
favor of 4. n, Caldwell n Co., for tlSSl The dis
crepances referred TO were. that In the case of VIII
llsrns, while he was named In the affidavit as the
shipper OF the 'refned petroleum. I'D the Custom