The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-03-20
THE MoIETY ABUSES.

Ex-Distrfct Attorney Davis ON the Evi-
dence i'm the Pheips-Dodge Case-seif-
Exoneration from the Responsibility
OF the Prosecution.
WASHINGTON. March 10. 1874.
Judge Noah Davis made an elaborate statement
before the Committee on Ways and Means to-day
giving his knowledge OF and connection with the
Phelps, Dodge Co. case. At the request OF The
Custom House authorities he examined the docu-
ments and the statement laid before him by Mr..
Jayne and gave his opinion that 1t a case that
justified further examination. He then arranged
with the authorities that the application for war
rant to seize books and papers should be brought
directly to him. but should be kept under ms con-
troll and should not be served unless firm should
refuse TO exhibit their books ana papers alter
an interview with them. Obtaining the warrant
the next morning, he went TO the Custom House,
when Mr.. Dodge and Mr.. James came there, ana he
stated to them the nature OF the charges and said
the evidence laid before him justified the invests-
CATION. They expressed great establishment az tho
charges, and declared their entire innocence OF
any fraud and want OF knowledge OF any violation
oil the statute. They said their books and papers
were at the service OF the government for
any examination they might choose TO
make. Judge Davis said the warrant should
not be served, but he would keep 1t WITHIN
his own CONTROL and that Mr.. Jayne and other per-
sons connected with HIM would go TO the store
and receive from the firm such books and papers
as might be required. They assented to this ana
MIR. jayne went to the store for the purpose men,
ton ed. Mr.. Jayne read them the statutes which
he alleged they had violated and the form OF the
oaths, and stated TO them that In taking the oath
In that form the person who made the entries had
committed perjury, and showed them the PENAL.
ties in such cases, but did not make any threats
except such as might be implied from what he had
done. on the aoth OF December he was sent lor by
Iatsp tarnr anIf hoy
found Mr.. Jayne and the counsel OF Phelps, Dodge
q Co.
NEGOTIATING A SETTLEMENT.
Mr., Jayne SAID a proposition had been maae
which ne could not accept according to the
Judges recollection about s15O, 600. Mr.. Jayne
said he had sent for the Judge to inquire IN what
manner the matter could be closed up at once.
He said to them 1t could only be done by suit for
the specific sum and the payment OF that amount
in iull, but suggested that there might be basis
of settlement on the articles alleged to be actually
affected by the alleged fraud. MIR. Jayne was then
requested by counsel Tor Phelps, Dodge IL Co. TO
ascertain the value OF such articles He did so and
reported the sum to be about $3.50 900. jayne re-
ported to counsel for the irm and after consultation
with their clients they came to the conclusion to
pay The amount to close the matter at once. lie
was arranged to do this on the evening OF Decem-
Der 3d. The next morning Judge Davis had an APP
pontment with Mr.. Bliss in respect to cases then
thereafter have charge. During the consultation
he received note from Mr.. Jayne, requesting to
see MIN.
AT the close OF the consultation he said to Mr..
SCI am now going down TO the custom House
to close up as suppose the heaviest case that has
ever arisen in this district, the arrangement Tor
the settlement. OF which was made last
tied then. The services of this Office have
all been rendered and / suppose AN as
much entitled to The fees as II the services mad
been rendered six months ago; but rather than
you should think have neglected other matters
ior the purpose OF hurrying up the case, to get
large fee just at the close OF my term, propose
you go down with me and participate in closing
the case, and take one-half Of the fee." Bliss was
oh r-Al
pause, Judge, since you have made that prop
osltion, feel bound to tell you that the case Will
what took place at the Astor House, and was at
the Collectors house ti late hour, and know it
S not TO be settled today they nave been play
you who-has been carrying water on both shou-
ders. think won't go down with you"
no VERDICT FROM JURY
Mr.. Bliss then left the office and Judge Davis
repaired to the custom House. He went into
room IN the Naval Oflce and found the Collector,
surveyor Naval Officer ana Jayne together. Jayne
SAID he wished to ask Judge Davis about decisions
made constituting tue statute OF torfeltures. Judge
DAVIS said, 81 am ready TO give you advice, but
wish 1t to be UNDERSTOOD before doing So that
Will have no lees and no part OF fees in this case.
the case Is settled to-day or hereafter" He then
answered the questions asked and said that the
case, IN his opinion, was one in which no jury
would ever give verdict unless by special dlrec.
ton Of the Court that counsel Tor Phelps
and II they looked to their own interest they
had better accept compromise. He mad no
consultation with Mr. Bliss IN relation to the case
or the lees other than the one in his office. He
never spoke to him about the character Of the
nor as to dividing the fees, except as above
stated. He had not at that time any knowledge
idea that Bliss knew anything OF the case
had claimed 10 have any interest III 1t whatever.
Judge Davis said that Bliss that morning de-
cemDer 30l mad privately taken the oath of Office,
which TACT was wholly unknown to MIN. The
tom mad been for the retiring attorney to appear
in court to present the commission OF his
successor and to move that he be sworn
in. No suit was ever commenced by
Judge Davis in The Phelps Dodge Co.
case. No money was ever paid to him. He had
received no money directly or indirectly, by or
through any A lew days after Judge
Davis retired IRON the office OF District Attorney
Mr.. ID dye called at his house to have some con-
versation about the case. Judge DAVIS could not
say anything counsel or attorney but he would
say To him, as he would to his own brother, that
THEY OUGHT TO CONTEST CASE
and fight IL out TO the end. Mr.. Dodge at that
time explained to Judge Davis the reasons that
induced them 10 let the settlement 90 on. When
Mr.. Dodge requested Judge Davis to write a letter
he looked iurther into the case and became more
fully satisfied there mad never been any inten-
tloDal fraud. Judge Davis proceeded TO show now
the error was committed in the invoices and
tries, and the enect OF the law and decisions OF
courts III such cases, making suggestions as to
the proper mode OF ascertalnIng actual intention
to deiraud to be determined by jury, and where
actual fraud was found Dy jury the Secretary OF
the Treasury should nave no power OF revision.
The statement. of which the above is mere no.