The New York herald., 1871-01-15
TREASURY THIEVES.
The nGagisterjal investigation
Closed at Last.
A Full Account of the Examinations Self.
Constituted Detectives are Held in $4,000
Bail for Trial at the General sessions-Ths
Plea Of Working for the Owners Dis
credited-The Interviews with Mr..
Boutwell, at the Treasury, &C.

The examination into this mysterious and remark
able case, which, like wounded snake has been
dragging its slow length along nearly six weeks
has at length been brought to a close. ana t may
fairly be said that 1t has been OF the most pro-
tracted investigations OF Its kind on record. The
charge originally was for the unlawful possession
ana attempted disposal OF $4,000 United States
registered bond, preferred by one M. Castillo OF
Loyzago, against Captain Pelleter, OF Washington
and a man named Bennett OF New York.
As previously stated in the HERALD, Castillo, a
Spanish Cuban, was robbed some two years ago OF
registered bonds OF the value OF $50 o0 the robbery
being SO well planned that the thieves got clear
away with the property. The loser communicated
with the Treasury Department, giving them Ghe
numbers and amounts OF the bonds, and upon re-
ceiving this information the Secretary notified the
various sub-departments lnstructiug them TO
call the attention OF all the s'bulls'' OF Wall
street and elsewhere to the fact, so as
to render them useless as negotiable transfers
From the evidence AT the first examination II was
shown on the part Of the prosecution that the two
defendants, Pelerler and Bennett mad offered some
bonds for sale to Mr.. McNeaL broker detective In
the city, ana among them was one OF Castillos, or
the denomination OF $4,000; that the broker. know.
ing the property to be part OF thar mentioned in
TIE NOTIFICATION FROM THE TREASURY
caused the arrest OF these men being In unlawful
possession, and at the same time attempting to
dispose Of them as bona roe bonds OF their own.
II was stated moreover by Captain pelleter that he
had received authority 10 recover the bonds for the
owner but Castillo distinctly repudated the asser.
tion for when he was invited TO be present at the St
Nicholas Hotel on one occasion they offered to
secure to him Castilio) the possession OF the pro-
perty II he would pay down a certain OF money
for 1t. He refused to advance money for such pur
pose nasmuch as he imagined he would be assisting
the thieves; again, not knowing the parties who
were privy TO the proposition, he declined to enter
into any arrangements.
On the 4th OF the present month, In an examina-
ton before Judge Hogan, at the Tombs Police
Court Judge BARLEY, Of washington. said that Pei
letter came to him on the lst OF November, 1870, and
asked him II he could make arrangements to take
up or redeem stolen United States bonds for their
owners, or get the Treasury Department to cancel
the bonds and issue duplicates. At OF these In
terviews Pelletier spoke Of the bonds stolen from
renee and from the Ocean Bank.
Oarstopnsr 9; cox g Of washington and ex-Lieu
both the Defendants and, calling at the ONCE Of
Judge BARLEY and Chief Justice Ohase, In Washing
tlon was invited to statement made by Captain
Pelletier that he bad been approached, while on
frining compensation to recover certain stolen
bonds for the owners. Judge Hartley and Chief
sna sss M sus %s for for
consent and authority Of the owners, II was per-
iectly legal transaction. He Cox agreed TO assist
referred t0-WestDro0k, OF No. SO Pine street-spoke
about the subject openly and frankly to some lead
would not .'come down" for the recovery Of his
bonds. and so the Ex-Governor returned ID Wash.
iDgton and gave up the hunt He saw the $4,000
bond In Westoroeks possession, but that gentleman
would not say how he came by 1t.
Neal the detectve who caused the arrests in Nassau
street. has oeen cross-examined upon his Testimony
ana he eth perslsts that Pclietier aud Bennett
from nfteen TO twenty-five per cent OF their value,
and he states that ne trapped them by
HAVING TWO DETECTIVES IN A BACK oPFICE.
The signal for their entrance to seize the defend
ants was the exit OF ONCE lad, who was TO pre-
THE PRISONERS STATEMENT.
On Friday last Pelleter was placed upon the stand
in possession Of the bonds and all he about it.
Pelletier commenced by saying that in October last
could get hold of some stolen bonds, he could dis
pose OF them, and also If, through the influence he
tPelietier had at Washington, he could get the men
counsel, aud he told him that as he was going To
Washington he would make inquiries and let him
know. Before going to Washington Westbfook told
him he could get between eight hundred thousand
and
MILLION DOLLARS WORTH OF STOLEN BONDS.
of the Treasury and after relating these facts 10
him, Mr.: Boutwell, thought he had better communi-
WIN Nc Why o. the e secret r. Service
held the Solicor TO the Treasury, and this gentle
man told him he ought to return to New York ana
endeav0r 70 recover some OF the bonds and Drlng
them to him. While In the Treasury, Bennett re-
celved from Belldeld. the government solicitor,
| ing Washington ne was surprised to see Colonel
Whitley, who took him aside, and after questioning
| him, asked HIM (Pelleter) -
TO TAKE PART OF SLEEPING CAR WITH HIM.
ana asked MIN 70 call upon him In New York the
following day. He did SO cal, but the sly Old fox
sacnusets and could not stay to entertain him.
Peetier next called upon Westbrook, at No. 3s pine
purchase stolen bonds; but Westbrook told him the
parties were very distrustfu ana would not give up
any bonds until the money had been PAID That
afternoon westbrook brought him two bonds
which had been stolen from Mr.. Lawrence, for $500
each and PeIeter paid him $500 for the two. Re-
turning TO Washington the same afternoon, Pelle.
| tier called upon Reddinghow, the banker, and he
went to the Treasury for the purpose OF asceranng
| that they had been altered and now corresponded
IN In numbers with those Of two ladies in fremont.
The solicitor OF the Treasury sent MIN make all
possibly inquiry as to who owned the bonds and
Pelcter discovered they belonged to Mr.. Lawrence,
| York, and subsequently Gilmore told Peetier that
his cousin would offer $500 on the 1000 for all he
! written authority to get the bonds, but told him
! that
| THE TREASURY WOULD STAND BY HIN.
Coming again to New York Westbrook after a
| deal OF parleyng, exhibited $4,000 bill belonging
to Castillo but stated he must have the cash before
| he would let him touch IT, Here he related the in.
terview with Castillo. which has before been pub
| llshed.
But the most peculiar part OF the whole affair is
that though Peetier seemed to be exerting himself
for reward he nevertheless gave Westbrook ST. 500
| to secure the $4,000 bond. After receiving this
| bond he met Bennett ut the Astor House and got
him, he said, TO 60 to McNeal and ask him Tor money;
heswanted $1,000 but when he went for the money the
| 200 had been put up on him." and he was nabbed
while In the act OF handing the $4,000 bond TO
McNeal as security for the $4,000 for which IL was
supposed, the ofnce lad had gone to the bank. Ben
nett had offered TO be security for him previously.
on cross-examination by Judge Hogan Pelletier
rOwed the money to pay the first $780, and that the
| reward which he sought was more prospective than
positive because he hoped that the original 'lifrers'
| would be arrested.
| Yesterday morning counsel summed ND for the
defence and after an able and lengthy argument In
which he said 1t was clear the defendants had but
one motive and that the recovery of the PROPERTY
for the owner, ne cited the law unon tho "a "a nj