The New York herald., 1870-03-23
THE RAIDERS "LAST DITCH."
slow Erogcss in the In
vcstiEation.
Arrest Of Deputy Collector Coop Some
More Light on the Ex-C0lIector's OH.
cial RecOrd-What His Friends
Say and What His Bonds.
men are Doing.

case having already become quite familiar TO the
public and especially to all business men In the
Thirty-second district Everything was very quiet
at the revenue ONCE in Cedar street throughout the
day. The business OF the once MAS proceeding as
usual In the hands OF the regular clerks
under the direction OF Acting Collector Vail
and the only apparent indications OF derange
ment consisted In the presence OF the half
dozen ofcials in the private apartments where the
investigation is conducted. Commissioner Douglass
assisted BY Deputy Commissioner Parnen and su
persisor butcher, Is snil engaged In examining
the accounts, but has NOT yet been able to form any
definite conclusion to the actual amount Of the
defalcations.
TIE STAMP DEPARTMENT,
conducted by Mr.. John Daggett has been thoroughly
examined, and in all its transactions, involving
sl,5oO,ooo discrepancy OF only SIX cents was
found, that branch OF the revenue ONCE having
been totally exempt from peculation. Mr.. Dag
gett IL thus relieved from all suspicious at
tached to the management OF the oflce and
having been long known as faithful official not
only In Bailey's office, but in the Pardon Bureau OF
the State Department at Washington. viii probably
be retained by Baiey's successor, General Pleasan-
ton. His snreties are Hon. John A. Griswold and
John NJ Francis, OF Troy
THE EXTENT or THE FRAUDS
investigating junta not to exceed 500, 900; but as
there Is large class OF revenue collections upon
which there Is no check taat can be Immediately
compared with the accounts, the actdal msappropr-
alton OF funds viii probably approximate 100000
more Many OF these collections, above ref erred
to, are stated 10 have been Illegal and extortionate
In character; and, as announced in the HERALD
yesterday, the tobacco aud whskey merchants are
preparing to tdevetop their amount by combined
exposure OF the system by which they have
been annoyed and bed. The report that Bailey ap-
propriated $4,000 belonging to the gaugers IN his
district is denied by persons acquainted with the
AFFAIRS OF the office and by many OF the gaugers
themselves Inc money PAID by merchants
for ga"ga,ns was handed the GoIlectSr
payment OF the men employed. A gauger Is not
allowed 70 receive over $3.50 month"; and any sum
ernment. This excess IS the only account made to
the Treasury Department Dy the Collector. The
$1,000 q month; and for the last six months was
only 00Oo The Saugers were paid IN full up to the
1st or March.
Mr.. Frederick Long, for whose arrest warrant
was issued on Saturday, has not been taken into
custody IL having been demonstrated 10 the salts
faction OF the investigators that ne was in no way
crminally accessory TO the frauds. lie Is sIlll al
tending to his duties In the office.
ANOTHER WARRANT
was issued yesterday upon the complaint OF Tracy
Co., one OF the largest liquor houses IN the DIS
trlct made before Judge Barnard for the arrest OF
Bailey and Deputy Collector Il. }. q. Coop. Ihis
IS suit for trespass committed upon
last, on the occasion OF gailey's great
whiskey raid when he nauled up aDout twenty
dealers. Some OF those cases nave already Deen DIS
missed by the courts and the probability Is that all
the seizures at tnat time viii be proved 10 have been
without Sufficient grounds. The amount OF baii III
Mir. Coop's case is fixed al $4,000.
THE FLIGHT
Of Bailey becomes more mysterious as the invesiga
ton progresses. 1t Is supposed that he took sudden
alarm ana became demoralized with the apprehen-
sion that tho efforts known to be on foot
Tor his removal embraced specific charges OF
fraud, and that he might at any moment be
arrested. The decision III the Fullerton case, IL Is
believed, Influenced his conduct In great degree
ana everything indicates that no did not resolve
upon Gighs nntil the night of his departure. This
theory Is sustained by the circumstances attending
his last 0f1iciaI transaction.
All funds collected in the course OF the business OF
the Thirty-second district were deposited In the
then given TO the Collector. This document was
taken 10 the Sub-lreasurer and held as an
order upon the Bank OF Commerce for tue amount.
The snb-Treasurer, IN return, issued three GER
thcates one OF which went to the Secretary OF the
Treasury, another to the Commissioner OF Internal
Revenue, and the third was kept by the Collector
az a voucher. These deposits were always looked
upon accurate, and no doubt was ever expressed
accounts II The ex-ColIectur had medltated
nlgnt and was preparing himself with funas
1S snase s M ~ aea aase 1na IN
he could have awaited himself OF about $500, ,000
When Bailey's private desk was opened, his books
checks for the payment OF the salaries OF
storekeepers in the bonded tobacco warehouses
molly d. Co., w. p. Klttroge 4 Co. and March. Price
Co., and amounted 10 over $500. As late as lasr
TUESDAY afternoon AZ Jour r. O'Clock Bailey ssns
receiving the money he sent 1t 20 two men
IN his employ. One OF these men was IN
Buffalo, under his direction, engaged IN an examina-
ton OF supposed Illicit dstlliery, and the other
was in Albany looking after an alleged fraud in
Tracys whiskey dlsiiery. Both OF these men were
No cue has yet been discovered to the ex. Coec-
tors method OF disappearance Many are sim or
nm nnntn m, fhnf ha ia nyyU nrf
BAILEY'S FRIENDS SAY
that IL is not improbable he has initiated the SAD
These apoiogists Ior the exC0liector claim that his
sense OF honor was 80 keen that when he found his
transportation OF funds which he scrupuiousiy
intended 10 replace were about to be exposed
he was unable - endure the contemplation OF the
lgnomlny threatening him. and IN temporary a0
erraton OF mind destroyed himself All OF this
class OF gentlemen insist that Bailey did not
intend TO deiraud the government, but was
the time OF his Disappearance was endeayor,np TO
sraighen out the Old Deficiencies or, as the puolic
generally term it was stealing from new sources
to cover UP the tracks OF former DeZzlements An
indication of the character OF the ex-Colector's
necessities for much money Is afforded
by a few well known cases. Although very poor
man in 1861. he managed In snort time alter his
Appointment TO the revenue service in New York TO
purchase considerable property In New Jersey. and
a. the same time pay nigh rent, Keep fast horses,
give grand dinners and maintain magnificent
wine cellar. salary OF $1,000 per year requires
very astute fnancierlng all these luxuries
but Mr.. Bailey not only INDUCED gorgeonsly IN these
elegances but managed to contribute generously 10
the election fund In Mr.. Van Wyck's dis
trlct at the time of the latter genueman's
investigation as chairman OF the Congress
sonal committee INTO Collector Balley's accounts IN
the Fourth district. ana also paid counsel iees
high as $4,000 In single case on the occasion OF
the contest over his confirmation In the senate
Collector Of the Thirty district. Examples or
the above mentioned class showing now MIR. Bailey
was tempted 10 use government funds. can be gwen
without number. but to recte them would seem like
malicious persecution.
BAlLEY's BoSDsMEs
were yesterday very retcent the subject OF their
relations with the ex-C0iector. They state that
nothing has yet been officially communicated to
them respecting their responsibility suFetles ana
that they do not expect 10 be applied to by the gov
ernment until after the case has been disposed Of
by the courts.
After Bailey became Collector OF the Fourth dts
trict and before he was confirmed by the senate, u
was found that his accounts were irregular The
Secretary OF the Treasury, Mr. Mccullough, sent on
his confidential agent. Mr. Mann, at whose instance
tue United States District Attorney Daniel S. Dick
ins0n, issued warrant for the arrest Bailey, and
went to the office IN Chambers street with
the deputy marshal. The agent told Mr. Bailey the
object OF his visit and explained the condition unner
which ne would agree not TO arrest him--namely,