New-York tribune., 1874-03-09
THE JAYNE CONSPIRACY.
Apn1lurNr nE JACKSON s. SCHULTZ.


scRmKp-MoRE INSTANCES OF ROBBERY BY IhE
GOVERNMENT sPIEs-THB INVESTIGATION Ci'EAI-
ING GREAT INTEREST IN CONGRESS AND oUf'
IBY TELEGRAPHsro THB TRIBuNE'l
WASHINGTON March S.-The strength OF the
Javne couspiracy organized TO entrap and TOD tne
merchants of New-York and Boston, IS so nearly
broken that the spy and informer need be eareo no
longer. The Committees from the merchants ana
business men of the two cities have done tnen "oh
so thoroughly before the Ways and Means Commit
tee that there is little left to do In that quarter
INT the work in the House and Senate Is YET 10
come though Of the fnal result the gentlemen tnen
solves have little doubt
The strongest and most convincing argument ye'
made before the Committee was that OF jackson .
Schultz on Saturday. He showed such thorough
mastery OF tbe subject and at the same hhe 80
slrono oonvicton of the injustice of the system OF
moieties and espionage, that there was but one
opinion in the minds of the Committee. He gave
orapbio photograph of the whole business Of import
ing following goods from the time they were boxed
inoreien countries TO their arrival at Liverpool or
Other port told how they were shipped; how they
were landed what papers were required; now they
were executed; the system OF warehouses; the
process OF warrants; and the whole description
of the business of importing. lie showed that
II the CustOm-house officers did their duty non
estly and faithfully fraud the part of importers
would be impossible. His speech was full OF ilIustTa-
tons and examples, and is spoken of.by members OF
the Committee the strongest, most practical, ana
most convincing that they ever listened to. Even
JAYNE himself, after its close, congratulated MT
Schultz and told HIM that from his (Mr. SchuItzsl
point of view he did not blame him for thinking
that he LJaynel was soouudrel. Mr. Schultz by 10
means denied the assumption, but confirmed 1t.
The speaker referred to the case of Capt Barnes
of Connecticu who sent vessels TO the West Indies
with mixed cargoes, which he exchanged for sugar.
Oh which was specific duty. The Government ad-
mtted that ii received all the duties that IL was
entitled TO- but by some constructions or technical
violation of the law, he was arrested two years after
the importation and sale of the sugar and
locked up ia Ludlow-st, Jail. Mr.. Schultz himself
bailed him, and Capt. Barness penalty was $1,000
which he had to pay, although he had TO sell bis
homestead TO obtain the money. Many other cases
Of equal hardship were given dsproying the state
ment of JAYNE, few days ago, that no proceedings
were ever taken for technical violations of the law
and showing in other cases beside that of Barnes,
that the Government had not lost dollar.
Mr.. Schultz has not quite finished his statement
but hopes TO be gwen few minutes tomorrow
morning Ii is probable that Jayne Will be cross
examined tomorrow evening OF the next day. Mr.
Robbins of McKessOn, Robbins d. Co.. drug dealers
and j. Austin Stevens, for the Chamber of Com
merCe, viii be heard by the Committee in day or
two. The Committee will occupy portion Of the
time tomorrow in questioning Mr. Schultz with
reference to certain statements Of Jayne.
Among those here in the interest Of the merchants
is Mr.. Putnam. junior member Of the firm Of Rufus
Story Co. He tells the story Of the indignites Of
that firm they have not been told before, and he
Said he would make affidavit to them if necessary
The books of his firm first seized by the Ring on
the charge that the firm were engaged in smuggling
from Canada. The charge was disproved of course.
but the detectives found what they thought was
more 10 their advantage BY going back four years
a discrepancy IN weight of lot OF pepper was
found. The discrepancy was $500. This occurred
four wears before but soon after the error was
found, a cargo of pepper consigned to the firm ar
nyed the value Of which was over Si00,0O0 This
was seized and held on falling market, and Story
. d Co. lost $1,000 by the detention. This cargo
was held over year, and during the entire time
the firm of Washington d Culver the Gus
tom house brokers' and lawyers, which the
hrm had employed in good faith were admonishing
them 10 settle; that the case was bad one, etc.
The figure at which settlement would be made
was first placed at $500 0O0 but this was rejected by
the firm as simply robbery, when the case to be
settled amounted TO only $4500 and finally the sum
was reduced to $100000 and Messrs Story d. Co.
were driven to the payment OF that amount. The
check for this was given to Mr.. Culver Of the firm
of lawyers, and was made payable to their
adeI. The check has been shown in this
city, and will probably be produced before the
Committee. None of this 100000 could have been
used for counsel fees for Story & Co. pald $4,000
to Mr.. Culver ON that account Yet the records
show that only $4,000 Of the 100000 reached the
Government.
Mr.. Dawes who has been absent from the sessions
Of the Committee, returned to-day from Massachu-
setts, and will take his place at the head of the
Committee, relieving Mr. Kelley. When asked in
direct terms the position taken by the merchants,
prominent member Of the delegation said that they
held that the Government is bound by every obiga-
tion not only to itself but TO the merchants and the
people who support it, to furnish at the custom
houses who will perform their duty-honest, capa
bic, Trustworthy men, who will faithfully do what
is isrequlrod Of them. Mistakes and frauds will then
be impossible.
The investigation is creating as much interest in
Congress and Of ii as any inquiry ever held here
II is the general subject of comment in the House,
Md for time at least it oyershadows the monsrous
,windIes of Sanborn. When the subject reaches the
House the merchants will have the strongest support
among the ablest members. Among those who have
freHnain, Geo. +. Hoar, Hawley Of Connecticut and
Woodford.
ADMISSIONS FROM MR.. DAWES
THE EXISTING System OF NOTIFIES AND sKIzuREs