The New York herald., 1870-03-24
Examination by the Ofiiaal lrquisitors Sill
Dragging Its Slow Lensth Along.
General Pleasonton Not to Take Possession OF
the 0ffico for Several Days-lhe Ex-col-
lsctor IS an Operator in Bogus Bonds
Paying Offices for Friends and the
State Prison for Enemias-Bailey's
Disappearance a. Affecting
Rents and Whiskcy.

class OF narratives that the more there Is tod otner
Developments follow rapidly aud closely on the
heels OF the previous recitais indicating END 10
the continuous series OF events awaiting record.
Everything, IN fact, clearly shows that what has
thus Tar been written ID only the beglnnlnx
OF the beginning OF case that IN all It's
peculiar phases aud unwonted curious coinpli-
cations furnishes abundaus though sad ma
tcrial for long drawn cut chapters at once
Startling and dramatic IN q .'strange eventful his
toryn 1t 1 one " those cases that VIII oltlye the
usual period OF longevity accorded TO even the most
s,lrringy sensational events-a nne days wonder
and IN the wrangle OF political conflicts over new
charters and talks over reconstruction and funding
bills IN Congress ana Mordaunt divorce suits and
wholesale murders ana snps lost ut sea, win rise
uppermost 10 the surface aud stnl command u good
share OF the pnoic attention. IL "a oaly natural
this should be so. In the Thlrty-second internal
revenue district ibere ~ centred more wealth
than in any Internal revenue dstrct In the
United States. For neary year Mr. Bailey
had charge Of TINS district Everybody cam.
10 know him ana hts wiles OF iaekcry and
ufisuiandSeaient as previously had the residents
III the Fourth district, over which he before nad
charge ior Tour Years. tits assumptions Of extraor
binary vigilance Ia looking after lne interests OF
government, tae stern severity OF las cen
OF those attempting TO perpetrate fraais ald his
pretended Snow u excessive integrity, nave All
comolncd 10 make nus ran the greater and ms own
deeds OF mafeasancs more giaring ana reprehen.
sibs. As yeta tact 1t ~ hardy necessary TO state,
but which - necessary part and paree ~ lbe
tnuous daily record OF tie casehls DIS ppearance
continues and the utmost vigilance o. Liqllry aud
search has tailed 10 discover his whereabouts. But
we VIII not dwell longer on Lnesa prciaSory points,
but proceed with tue latest budget ot new develop.
mentS
AFFAIRS YESTERDAY AT TIE CEDAR STREET OFFICE
Matters remain here pretty much as they have
during the past several DAYS. Under Mr. Van, Mr..
Baiey's CHIEF deputy, the routine business OF the
office IS still conducted. The other depaties and
also the old clerks continue In their places though
an altJn tl,ntt
anticipation or speedy removal an anticipation the
ruiten which is likely TO be fulfilled III very short
time. In the course OF the afternoon General Pleas
onEon, the newly ,appoinied Collector OF the
distr'ct, paid long visit TO me office.
the clerks, though not dropping tner swiftly
EIovinG pen5 anXouSy cast sidewise gAacea
at blrn see evidently they could defect any nope
for themselves IN his pre-eminenty immoplle coun-
Lenauce. AS for the deputies. they exercised toward
''the coming nGn," every possible art OF chester
| feid.aa politeness, 30 as to make sure and lose
nothing ny such acts, which, rhousn "a caeaD often g.
gool way Of sErewdy couciiiatln. ulp onacy. 1ne
short time he renamed the General spent la CONVEX
! salon with Commissioner Doaglas and Deuufy
Commissioner Parne.i and supervisor butcher w1o
are stii Dus,iy engaged In their LABOR OF examining
tue books and records OF the o1lce. 1t was stated
| that ne viii not assume charge OF the ONCE until
tnis examination snail have been cDnc.u1ec and tie
analrs at ms own olice during his regime are all
fully settled up In readiness Tor nis successor 10
step uuiraiumeaei into ms place. As To the eX-
animation OF Mr. Baieys books ald papers il Is ex-
pected tnat TINS Will occupy several days more. The
defalcatons thus far Drought TO iigh5 Sis, 900
which It Is believed VIII cover the whole auoun, OF
the RoYernInents loss
| OPERATIONS IN BOGUS BONDS.
1t 10 stasea That Tor the past two years aud hall
| Mr. Baiiey WAS co8utzant OF the issue and use OF
bogus bonds To effect the renova OF wniskey ironl
bond. He carried Inns on according 10 allegations
| made In various quarters, 10 q great extent. We
have been suown papers, copies OF Original reports
sent to Mr. NcCuiiocn wnea Secretary or the irca-
sury, as also 10 eAComnilssoner Rollins ana To ex-
@ "nee eors ss
State Prison on Charge OF perjury, preferred as
Will be remembered, by air. Bailey, aDeted by Pred
A. ar no lnft
gased their affairs, and through reporting the facts
| was removed from his position IN the United States
Secret service Bureau and subsequently made to
answer Tor ms feveiat'ons against Bailey by SEN
tence to term oi Imprisonment In the Kings
county Penltenliary, where ne ~ now serving out
one Of his victims Bailey sought Visit punishment
upon Mr. Bernard LESS, CT tnat Tune In the revenue
service, on account OF charging him Win dishonesty
In the matter Of these bogus bonds and otner alleged
fraudulent transactions. Mr. Hess fortunately escaped
his clutches ana now his possession copies or
| those original papers which were such q source OF
Wropx 10 MT Bailey. These papers show III one
case now Mr. Bailey effected the removal OF 600 par
relS OF whlskey from tho government warehouse
| without the payment OF the government tax aud
bogus oonds being given for them; announcer o,
| tue removal OF 2so barrels OF wnlsxey by the same
process third OF Cne removu. OF Ito barrels ol
whlskey from tae Erie rdliroad depu and others toe
numerous TO mention. Mr.. Hess eayg that the gov
ernment has been swndied cut of q very large sum
by this bogus bona business, anu that Ciie extent
these transacuons can never oe asccrtalned by any
amount oi investigation, however sedulously an 1
faithfully conducted, mo MI. Balley's papers and
accounts.
COMPROMISING CASES.
Prom all accounts tnere appears to be no end 10
4 the number Of cases Which Mr.. Bailey compromises
the result OF these compromises being cheating the
\ government out OF It's proper dues and putting In
his own pockets the sums eXtorted frooo his Victims
We have ii from o1iciai rdtaor that nearly one nun
dred cases OF this character were long Sce by Davies
1 and otncr parties reported TO the Department III
Washington ana also iaid before the ofcials tine
United States District Attorneys Office In this city,
! No action, however, vas taken upon them except
sending the principal informer already stated to
| 10 manipulating maGsers to his own advantage de-
nounced these complaints as concoctions Ol tue
whiskey rlng-tnus shieldn. himse.f from an In
vestlsation and the exposure sure TO follow.
| BAILEY A BITTER PERSECUrOR.
While Mr. Eaiey stood steadiastiy by those stand
| tn0 by INN and gtve them Handsomely paying
offices, he was unrelentmg IN his prosecutions Of
those who tried to block his game OF wholesale
one OF the foremost IN 1erreting out his frauds and
endeavoring 10 secure examination into them ut
Washington stood thorn In his way, whom ne
way OF doing him HARM In the course OF Mr.. HeHs'
official duties AZ Inspector or the Internal Revenue
CUSTODY Of the united STATES government. IT, wasre W ere
tney have been since August 1857, and Gained by
soS SoSrgs ;. oa zolasaoo lagtlys drom justice
run, OF the United states Cour. 70 two years
IN state Prison for frauds the government In con-
necton with the internal revenue service Mr.
Bailey, according 10 the statement OF Mr. less gos
Witnesses. among whom the chief wae Fred G. Tap.
II
Mr.. Hess had tried to backmall the parties from
wn0m the cigars were seized. In ORDER IN the first
place 10 secure the return OF the cigars without
Ment OF tue government tax, for which he was 70
De rewarded OF course, and IN the second place to
get Mr.. HesS sent 10 State Prison, ike DAVIS ana
John u. McHenry, another victim OF Bailey on q
charge OF backmall. The case up before United
States Commissioner Belts aDd after prolonged anu
searching investigation Mr. Hess was nonorably
quilted Mr. Hess proved 100 strong man In THIS
case against his WHY and bitter prosecutor HIS
strength lay IN his having IN incorruptible judge
pass upon his case. lie, however, succeeded get.
ting Mr. Hess removed from his position In the IN
ternal revenue service. II lost my head by being q
faithful oncer and came near going to state Prison
BESIDES" Is the lungent way MIR. Hess sums up the
conclusion or his case. He says, however, that ne
has not said all his say yet but f Mr. Bailey ever
found and arrested that he means to try cetcncy
against him OF the mass OF documentary evidence
ne has IN his Possession proving frauds against
Bailey lie says further that mixed up In these
frauds are large number OF past aud present
officials IN the Internal Revenue Department.
THE TOBACCO hEN.
Sucn prominence has been given 70 Mr.. Bailey's
whiskey RAIDS that the fact that he raid quite