, 1870-03-24

Nls Guilt t-Acflon Of supervisor
Dutcher-C Complaint by Colonel
whsteley Against Two OF BnI1oy'a
O1ticcxs-Thc Lat~st Report OF ths
anseatlEnllna COMMITTEES.
FfpH the NV 1'ot 7im<s, Aarrh n.
It was reported yesterday that Bailey left !
confession With = government ofieiA 1t the
time OF his flight, IN which he admitted having
committed several frauds during his officii
career, and in which he also asked that elem.
env5 might bo shown his bondsucn, Efforts
we're maar - is,,ocuro copy Of the confess
tlcn, but without success
Supervisor S. D, butcher and other hfi,Ars
Of the Internal Revenue, were engaged yaster.
day in examining the books OF the Thirty-sec-
ond Collection District The stamp account
WAS found correct IN erory essential particular.
Tho work Of checking the assessment lists Is
progressing elorls, requiring the entire aYaila-
lie force Of TIC oiliee, and will occupy several
office to implcato Collector Bailey in any i11og-
u1sriies.
Colonel whiteley Appeared before Commis-
eioner Shields yesterdas, and made the follow
ing important Affidavit concerning the frauds i'll
the 1hnty-second District:
- II. C. ThitcleY, being duly sworn, deposoa
and sass that he il Chief OF the Secret Service
OF the United States, and that. from info.mA-
ton and belief, one j. F. Bailey. Collector Of
the Thirty-secona District, one c. s. Childs,
Deputy Collector of said district, and one
Frederick Low. Cashier, did cons piro to de-
fraud the United States out Of large sum Of
money, to-wis: 500 600, contrary to Section
10 OF the act Of Congress, approved March 2,
1867; that deponent bases his information
nron the confession Of J. F. Bailey,
Collector Of the 1hirts-sSeond District. .
lad aIsconded and vas 80 detauiter
by the appropriation to his Own use Of largo
amount OF the government funds, and wAs de-
sirouB OF clemency for his bondsmeu- That
said c. $. Chids, Chief Deputy. snd manager
Low, cashier and keeper Of the funds in the
said Office, did aid, abot, and conspire with said
Bailey to defraud the United States, contrary
to the statute in such case made and provided;
that the relation OF the said ChiIls md Low to
the business Of the said Collector, in his Office,
their case Of the asfesement rolls, their custody
OF the money collected sud their duties in receipt
Of the Raid moncya, and in the disbursement
thereof, we're such Is would give them knovl-
edge OF such defalcAions. That the deponcnt
las had conversations with the said Ctnlds, aud
he now processes his Willingness to give iu-
formation touching such defalcations, but tho
deponent deems it important that ateps be i'm
me1iately taken 70 insure the preeonce Of the
said Childs, and the said Low, md naia Bailey,
upon the proper legal information OF the same.
H. c. WHIELEY.
Chlds waived an examination, and gave bail
in &, 900 to appcar for trial. Low was not aE-
refted-
District Attorney FeEepont is authority for
tho assertion that Baiicy's de{a1catiop will be
pretty large The Investigating Committee.
Of which be il member, found it to be about
O000, but are not certain il 10 confined to
this amount. 1t occurred by receiving taxes
which have never been entered upon tho t,ooks
snd by ab+tractine the Office funds from the
tAfe after they bad been paid in by the uer-
chants. It viii b impossible to ascertain the
,.fz 1.,rB rff fha fund Jyy,+St I'll fta rn-
eeipts are collected
4 positive denial hza been given to the re-
rort announcing that Bailey er1or in his &C
counts in the Fourth District arose from tho
confusion in which the accounts had fallen in
tllA ofico before he entered IL Those Who
have stated this arc kaid 10 he mistaken in
their assertion, from the fact that the accounts
Of Ar. John Mack, his predecessor in the
Fourth District, were fully auditca and SLOWED
by tho Treasury Department II w&s found
that the latter had ovetHaid the government,
and balance amounting to s1.sm was there
fore paid back to him BY the Treasury.
Another statement WAS made by Chids. yes
tnrdzS, concerning his knowledge OF Bailey 4
transactions, Of which the following ia the suh-
stance:
lsevenuo District he labored Under rnaay dit6-
cultiea: The Affairs in the Office were IN great
ennfusim. and it ess some time befose things
got veil regulated. Tho March and
April lists OF tho first year OF his
term vcrc lisallo~ed by the treasury Do
rartment. He deposited the funds COL
lccted bE him in the Fourth National Rank !:
whenever he required Any amount Of money he
drew upon this account bnt do not think he
UNDERWOOD the Law upon this subject, Tho
Treasury Department 1t one time sent Mr.
| Mann to examine M. Bailey banking socouns
had long talk with tbat Sentlcman on this
subject The matter va4 finally eetsled; but l
do not know in what manner this was accom-
! rtished Mr. Bailey hza done al that lay in
hia power to return al tho money tAkon by
| him; he did not want the public to know how
| l,is a0AirB stood: he Vas naturally YER
! r,roud man :: he was also extremely ambitious,
| and would not submit 10 public disgrace.
| Mf, Bailey 2lways endeavotcd to detect fraud
wherever it WAS possible to do go; he has rc-
pcatedly said to me. ~ do not want money 50
much Is desire tho reputation OF Good and
faithful officer" 1 hAvo often spoken to A1.
l.ailcy in reference to hts indebtedness To The
government 80 far - WAS Acquainted With
| The facts. his accounts were not Always allowed
| by tho Treasury Department; money "aa gen
| ONLY p4id in 1t the Office in checks; Argt
nr.ubeis Of persons often caloe to pay tncu
taxes some merchants who wsc pressed to'
time would 60 to Nr. bailey and G1Ve MN
their checks; hn would give them teceiRs
for tho amounts, bat ofteu failed 10 naan
any cntr1 On the books Of these suma he Ato
| rstu.ued numbers Of tho Abovo ~ not hsTH9
| laid. IhAve never used any money o. The u
| ice for my own benefit, and whancynr !oc%s
| I'd money AlwAy1 returned II To the cashier. !
have in rny possession letter from III. b1les
| which clesIs me from any suspicion Of hA1ns
| ever received any funds IN N unlawful uAHer
| he sent for nc and gave Mimic my hands, MI