The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1871-05-27
TIE DIAMOND SMUGGLING CASE,
Light Thrown Upon the Secret
Service Department.
CUT DIAM0ND."


DIAMOND CUT DIAMOND"
Yesterday Commissioner Osborn was occupied for
considerable time In taking testimony on a case
referred to him TO ascertain who Is the infOrner In
the now celebrated diamond smuggling case. and
who under the act is entitled to the lnformer's
mOfeties-whether Colonel Whitley Chief Of the
Secret Service Department. or Friend 8. @. Esmond,
both Of whom claim TO have given the nrst informa
ton. As the evidence taken throws considerable
light the secret workings Of this so.caed Secret
Service Department, we give q full report OF the
proceedings yesterday fa
TESTIMONY OF ONE OF THE INFoRMERs.
Friend s. G. Esm0nd was recalled and rc-cross-
examined at considerable length In reference to the
bond which he had given Radcliffe as security for the
diamonds, which lie was to sell for Radcliffe
throughout the country. The original bond was not
produced, but paper purporting TO give the sub
stance of 1t was put In.
Counsel for the government said he could not put
in the original bond now. The Commissioner told
him that If be, counsel could not produce the orgt
nal. he would allow HIM, If 1t was lost or destroyed,
TO give secondary evidence Of it's contents.
Esmond then went on with HIS testimony, stating
that after he returned diamonds worth between
S. 600 and $l0 900 to Radcliffe he received from him
diamonds which he said were worth So 900; 1t might
have been two weeks or ten or twelve days after he
received the first diamonds; there was lapse OF
time, during which witness went through the
country. He ssefAteo
@ Did Radcliffe say ANYTHING particular to YOU
when you returned him the diamondsY
Objected to.
Counsel-what is the object OF examining the wiz.
| ness as to his connection with Radcliffe?
l. prOn inn II IN ika fatn o
object.
Commissioner do not think II is material.
| @. After you returned those diamonds to Rad.
cllfYe, did you receive other diamonds from him 2
| A. / did.
! Q. When did you receive them-when say dia.
| monds I mean precious stones of any kind9 A.
Within two or three days aftev returned the f1rst
| lot. t
| Q. How many diamonds ala you receive then. aud
| OF what valueS A. think about $4,000.
@. Did you return any Of them9 A. did; re-
turned part of them on an order by telegram from
| Radcliffe received by me at Chicago
@. What was the value Of those that you returned
| to him last9 A. cannot tell until refer to my
books; believe returned nearly all Of then can
| not tell the date OF the return of those diamonds
until look at my book; that was the last diamond
transaction had with Radelifre this was not in
o DID YOU see Colonel Whitley immedleiev after
your return nom OhlcagoP A. No; got a Telegram
| from Radcliffe while was In Chicago requesting mo
to await there the ARRIVAL from him OF large bril-
I liants and gazIers' diamonds. which were coming
| TO him in a letter from England waited there
sent me any Of those diamonds; while al syrac use
on that tip received from Radcliffe Two large bril-
at Chicago three or four days returned to New
! York on Mr.. Radclifes order; saw Radcliffe on my
that trip; on the contrary he received them from
me; subsequent 10 my return from Chicago / did
| not receive any diamonds from him. think
| SAW COLONEL WHITLEY
| within four days after my return from Chicago; I
saw Whitley, as have already testified; told him
/, had information TO give him In relation To dla.
| monds: he told me that would be considered the
governments friend aud that should he protected
accordingly; when Colonel Whitley told rue that l
4 was entitled to the nf0rmcrs share, that 1t was
| A BIa CASE
and that we would make 500, 900 out OF It. NOBODY
was present bu, Mr. Justice, myself and the Colonel
in the inner room OF his ONCE; there was another
conversation to the same effect between US in on
outer room, at which MI. Beatty was present. ~
. Prosecuting counsel rested except in relation tc
| the bond il he could produce ft.
THE OTHER SIDE
! Henry @. Justice was sworn and examined on be-
ing engineer By proissson; sm acqnnned WITH
Friend s. Esnond. who claims TO be the infOrmer In
years; my impression is that had an interview
with Esln0nd about the 10th OF January. 1871; I
isn 18TH; Mr Esmond came to me on that date
sna reSscs ssve me to ses Gsons Whit
| tell Colonel Whitley; he wanted me to tell
Whitley to hold him harmless In consideration OF ex-
posing Radcliffe to the authorities; IN pursuance Of
that called at Wnitley's place OF business, Al
Blocker street. in the evening or afternoon Of the
18TH OF January 1871; did not HIM that time
called next morning, on the 1gth and sill did not
see him; made an appointment with his clerk to
meet colonel Whitley ~ ms once that evening at
five p. H., and met HIM az that time; he invited me
into his private office; when we were alone tod
Colonel Whitley the nature OF my business without
giving ea I e sa rsno Z, nS a or
party; that this gentleman was willing to expose
his principal to the proper authorities he could be
guaranteed safety from arrest and prosecution as
rariceps crinnis; he sala that could all he very
easily arranged; that ne would hold the gentleman
THE GOVERNMENTS FRIEND,
and that II would he wrong for the government TO
prosecute person for performing his
DUTY TO TEE GOVERNMENT,
a. the same time stating that he would be entitled
to tho
en ISrORMEB's MoIErTRs;
] then gave him the names OF the partles he re-
ques,ed me to make out statement of what I knew
OF the case, and also that should request Esmond
those statements from every one giving informa-
ton as to the arrest OF parties: he requested me 10
lar. Esaond; appeared at his office next
morning with Mr. Esmond as requested; introduced
EsM0ND TO WHITLEY,
who took us into his private once; wo then gave
HIM general statement Of all the facts; Esmcnd
gave Whitley q separate statement signed by him;
Esmond maze O full verbal statement OF his cOlnec-
ton with the matter TO Whitley OF the fact that
Radcliffe had struggled diamonds, whereupon
italy the same pledges, TO wit. that Esmond should
be considered as the governments friend, ana in no
case to be liable to arrest for having acted agent
ip the sae Of Radclife's diamonds he stated that
Esmond would be entitled or that we should be en-
titled TO al tr
rNFoRMERs' MorErIEs; -~e IL y
dtsclaimcd 10 him any desire intent TO partic.
pate IN the moieties for my self alone he stated that
1t one or the ciearest cases that had ever
under his supervision; that IL was bg case out OF
which large amount OF money could be made; that
he would
MAKE 1T COST RADCLIFFE 100000
before no was through with him that there was
enough In it for everybody; he then requested
Esmond 10 assist him and one OF his men In making
the arrests in the outer ONCE Whitley reiterated IN
the presence OF his subOrdinates about the same
language that ne had used to me and Esmond IN
the inner room pertaining to the amount Of money
that to be made out or the case, and to Esmond
being the tnforIner and entitled to the fnformers
moletcs; A. G. Beatty was presentut that time.