The New York herald., 1870-03-22
THE WHISKEY RAIDERS FLIGHT.
Collector Bailey's Defalcati0ns Es-
timated at $4,000.
PROGRESS OF THE INVESTIGATION.
Extortion and Blackmail Upon Whiskey
and Tobacco Dealers.
THE Ex-coLLECToR's RECORD

tho night OF Collector Bailey and the de falca-
tons In his ONCE yesterday constituted an absorb
ing topic Of inquiry IN all business circles and espe
clally within the limits OF the Thirty second inter-
nal revenue district. THIS district embracing the
lower part OF The city, every broker banker and
merchant Of Wall street and it's adiacens
surroundings, was on the Qui uive for
news concerning the missing Collector, and the
Revenue ONCE In Cedar street was besieged through
out the day by eager interrogators. Merchants as
sembled In each others private ofices to compare
notes and revel IN the huge sensation, and those
who had grievances against the fugitive Official rub
bed their hands with indescrbable zest,
not unmingled with regret however, that
their tormentor had escaped punishment. The
whiskey and tobacco merchants were par
ncularly fierce in their denunciauons OF the
ex Collector, and were eloquent in the recital OF
their suierngs stating that fear OF worse revenue
INFECTIOUS had closed their mouths 80 long as Baiiey
ruled the district. From all quarters there came
bitter complaints against the ex-Coilector,
aud extensive aud minute in detail
were these allegations OF extortion and backmail
that there seems to be no doubt whatever OF Bailey
having robbed citizens well as the government.
A subordinate of the Ihifiysecond district revenue
Office IL credtably reported to have said that tne
government had become strict on cials were COM
PEELED to piunder the other sde, and the allegations
against the management OF this ONCE certainly indi-
cate that the above theory was very extensively
practised.
THE REVENUE OFFICE
IN Cedar street presented lively scene. Tnc clerks
In the front part OF the door benz very
Ousy over books and papers, pretending to be
hard al work, but their eyes and ears were con-
tinuousIy directed towards the huiTyng visitors
ana groups about the back Office. where officials
noveIed the records. Everybody connected
with the establishment seemed TO be either on the
point Of gong into 1t or just recovering from
some such Ike attack, and gazed at one another
and about them like small boys caught In the woods
py a thunderstorm. They evidently felt that the
whole revenue atmosphere charged
with lightning, ana momcntarliy expected
some one to get struck. Nothing tend
ing TO throw any light upon the ex-Coector's
dongs could be ELECTED from them, and all profess
ed 10 be ignorant OF any bad traits in their late
snperior's character and protested that as far as
they knew he was gentleman and a scholar.
THE INVESTIGATION
OF The books was conducted at the Office by Super
visor Dntcher and Commissioner Parnel, under the
direction Of United States District Attorney Pierre
pont Solicitor Banled, Of tue Internal Revenue De-
partment having gone to Washington Sunday
night TO consult with MI. Delano and the Secre-
fary OF tie Treasury. The examination has titus
far developed the iact that tho frauds
upon the government amount to about
$4,000, some $4,000 OF which, 1t is alleged nave
been used by Bailey ia strengthening out his ac
counts in The Fourth district at the time OF his trans
ter from that Office. There is considerable evidence
already obtained showing thai extensive frauds
were committed by Bailey In the Fourth district and
some Interesting developments are expected TO be
made In that quarter also.
WARRANTS FOR THE ARREST
OF Bailey, Deputy Collector G. s. Childs and Frede
rick Low cashier in Baey's Office. were issued sat
urday afternoon by United States Commissioner
Shields, on affidavit made by Colonel Whitley.
chief OF the secret service division OF the
Treasury Department. The afndavit recltes that
Bailey Childs ahd Low conspled to defrauu
the United states ont OF ab u. 500, 600; that
Bailey has confessed that he Is defaulter
10 a large amount, which he has appro-
priated to his own use, and the deponent alleges
that the others charge must have aided and abe,ted
Bailey In his crime, as they had full knowledge OF
all that part OF the business OF Bailcy's office re-
latng to assessments ana the collection and dlstri.
button OF cash.
Mr.. Chiids was yesterday taken before Commits
sloner Shields and held to bail In $4,000. He makes
long statement in reference 20 Bailey's accounts,
admitting that the Collector was in the practice OF
misappropriating the funds, and that :he embezze-
ments will amount 10 at least 100000. He also
saysI have often spoken to Mr. Bailey In reference
TO mis- Indebtedness TO the governme Mt so Iar az
was acquainted with the facts; his accounts were
not always allowed by the Treasury Department.
money was generally paid in at the office IN cnecks
large numbers OF persons often came to pay their
taxes; some merchants who were pressed for
time would 20 to Mr. Bailey and give him
their checks; he would hand them receipts
Tor the amounts but often failed to make any
entry the books OF these sums; he also returned
Bailey admitted that he was doing wrong, but
seemed to think that he would eventually come out
time were aowed.n
Solicitor Banhcld is expected to return frop WASH
tnRton tomorrow and complete the investigation
THE Ex-CoLLEcroi's WHEREABOUTS,
still remains mystery. NO has been found that
since late last Tuesday night. Many or the
opinion tRat ne has committed suicide by plunging
Into the, river, but those most familiar with his
country and VIII eie long be heard from ID some re-
mote place.
BAn.Ey's BoNDsMES
were changed last Janu3fy IN consequence OF the
death OF OF their nuntuer. the following letter
gives the present ilSt--
To THE EDITOR or THE HERALD
Noticing an inaccurate statement in regard to Collector
Of neay on Decoant the death Of Henry j.
s1ym0n one q the old rev up for Mr. Bailey
Reny n Gews Thomas g 'uan George Douglas and John
The lss Gora approved BY Mr rIerepon United
s Sa'es District Attorney aud sent 70 Washington about the
10Th o Janay so aud received ard accepted by the
Department cuARLts HARRIS PHELPS,
MAaon 81, 1870 '''''s u0NO q N'rsau''re''
AN INTERESTING CHAPTER
is aforded by q asAetch OF Baeys antecedents for
the last nine years. in 1861 lie was appointed q
clerk IN the Treasury Department at Washington IN
which city he married, and wnere he lived at the
time IN reduced circumstances After occupylnv
that position short period he was made a SPECIAL
agent OF the Department ana assigned 70 anty Iu
New York Wnlle acting in tnat capacity
ne became favor1te OF Secretaries Chase ana
McCuocb, and In 1866 was appointed Collector OF
internal Revenue for The Fourth ostric lie had ID
great difficulty in getting his appointment to the
Thirty-second district confirmed by the Senate and
IN "a maid
tain individuals out OF Congress as counsel fees for
services rendered IN his confirmation campaign.
ms noue oi nvlhg naa Deen ior the iasl three or
matter OF wines, dinners ana horses he drove a
crack team, had wine cellar stocked with
large assortment Of the choicest brands
and gave most expensive dinners to prom.
nent public men. The house occupied by
him In Twentys second street was rented; but
the fnrntture. all OF Which nnren 10 Bailey