The New York herald., 1871-05-17
THE DIAMOND SMUGGLING CASE.
Most Extraordinary Developments : Colonel
Whitley Chief Of the Secret Service, Sell
ing Diamonds to His Operatives.

The further hearing OF the case OF The United
States VS.. II. @. Justice. who is charged with con-
spring to smugge diamonds into this country from
England, was resumed yesterday before Commis-
sioner Osborn.
Mr.. W. f. Kintztng appeared as counsel for the
defendant and Mr.. De Kay for the government.
The facts elected IN the examination OF yesterday
are Of most extraordinary character. and II all
that has been said Ia true there can be no doubt
whatever that the Secret Service Department In
the city OF New York Is In most unsound and rot
ten condition.
TESTIMONY FOR THE DEFENCE
The nrst witness examined for the defence was
A. Q. Beatty, private detective. He testified as
foliows:-I am private detective; was formerly in
the employment OF the Secret Services up to the 18th
OF last month; know colonel Whitley; was under
him for one year; remember the arrest Of II. G.
Radcliffe who was arrested for smuggling dla-
monds; did not act with Colonel Whitley In the
arrest OF Radclife was present at an interview in
Blocker street between Colonel Whitley Mr. JUS
tice ana Mr. Esmond; there was conversation
about who was the informer.
Objected to by counsel for government.
Counsel for the defendant said he wanted to
prove that Whitley was the chief master conspirator
In this matter, and that Whitley told both Esmond
and Justice that they were the informers. though
Justice disclaimed all intention OF claiming the IN
formers "motety.n
The Commissioner State, II there was any con-
versatton, when and wnere 1t was.
Witness-After Radcliffe was arrested heard
conversation between Colonel Whitley and Justice,
ct Whitey's oiice, 81 Bleecker street, heard Colo
mel Whitley say to Justice that 1t was
VERY BIG JOB
and that they ought TO make e great deal OF money
%d o ou Of
Justice said he hoped they would get along with it
and said he thought they would e they could only
very nervous. and would make
BAD WITNESS;
ne sent me on several occasions to keep Esnond
quiet; heard Whitley say inat sqhey" should have
the moiety, meaning Justice and Esmond; that It
would be go0d' .asT pig neag H,;xopgS purchased
from Colonel Whitley about three weeks after the
arrest Of Radcliffe and the seizure OF the diamonds
paa %apR ss9s Mg u as eet Es nas
Inc e were @S
dollars in gold; Whitley, at the time he sold me
those sSd s1sy were Of
Colonel Whitley had OF that time other diamonds
Mr.. Knitting said Radclifre had stated in his ey.
dence tnat all his diamonds mad been returned to
him on the payment to the governments OF "a, 5O0
yet now It appeared that Whitley had been selling
THAT NEwcoMB.
VINO had @ been bee previously examined here as % wit s
then them. - - '''''''' ''1' '''''""S''" Aou'o =
Ii.
Mr. Kintzing-I am gong to give 1t now.
Witness-At the time purchased these diamonds
from Whitley l saw other dlam0nds--ab0ut fifty
with nim at the same time that he sold me diamonds
he also
to Mr. Sullivan, Mr.. Newcomb, Mr. Nettleship and
Mr.. Butts, all operatives IN the employment OF
Colonel Whitley INewcomb has some OF those dia-
monds yet; he wanted me to buy them; bought the
FROM COLONEL WHITLEY,
think, pending the examination OF Radcliffe before
Gommissloner @ as Osborn; met you Mr Rntzlng) for
communicated these facts 10 you; you then sum-
mOned me here as q witness.
Cross-examined-I do not know why LEFT the
secret service; I got letter from Colonel Whitley
dtscharging me; do not know why was dis.
S9Srge9; dd mos near "a tne WIN
which were not smaggled; 1 did not hear from
Whitley when boughi the diamonds that they had
To counsel for defendant-When was discharged
other operatives were also Discharged; they said
seven, but could only see another besides myself
To the COMMISSIONER now say, under oath, that
have no tlfeellng toward Colonel Whitley by rca-
son OF my leaving the service.
Mr.. De Kay said he would ask an adjournment in
order to show how 1t was that the diamonds stated
by the witness to have been sold TO him had come
into his tWhitey'sl possession.
O'Clock. Colonel Whitley, to whom allasion has
been so repeatedly made in the above testimony, is
comes back he Will douotess give his version OF the
affair, If it be not decided before his return.
Colonel whltleys detectives who were present
during the examination OF Justice before Commis-
sioner Osborne, on charge OF aiding Radcliffe to
sSmuggle diamonds, say that Abraham 9.
the rom s hs sefSSs eps
large quantity OF wine which he had seized on an
italian ship lying In BROOKLYN and also that the
diamonds which he and other officers OF the depart
ment had purchased had been pawned by Radcre
they were redeemed and paid for by the detectives.