The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-03-04
The System Of Seizures By Gus.
tom House Spies
TESTIMONY In THE INVESTIGATION.
The Illegal Issue Of the Green
back Reserve.
THE DISTRICT OF COLUMBIA INQUIRY.

before them the subjects Of seizures OF books and
papers Of merchants and importers and OF moieties
There were present Jackson s. Schultz and Mr..
hcKesson, Mr.. j. O. Hopper representing the Ma
nonai Revenue Reform Association and the I'm
porters' and Grocers' Board Of Trade Messrs. A.
d. Rice, Gambler, Spaiding, Nourse, hyde and
Pomeroy, M the Boston Board OF Trade william
E. Dodge, David A. Wells and B. G. Jayne were
also present. Some of the gentlemen
were amply supplied with documents.
The proceedings commenced with the read
ing Of testimony given at former
meeting by Mr.. Jayne on the subject ofmoieties in
which 1t was said that he had made examinations,
or been connected with the examination Of ntty-
nine commercial houses, In forty Of which judg-
ment has been obtained; twenty or twenty i've
were for false returns for which suits were brought
Mr.. Jayne explained the mode OF proceeding in
such cases. and gave the particulars Of the Phelps,
Dodge d Co. case. After noticing the recent pub
locations against his offclal and private conduct
he explained the case OF Rufus Story, OF the firm
OF Rufus Story l. Co., No. Front street, New
York. In 1871 he caused the seizure Of the books
and papers Of the concern. They had imported pep
per brought into New YORK by E. D. Morgan 4 Co.
The fraud was in the false weight returned the gov
eminent losing s. 900 OF duty And here the witness
said he had settled no case. He had, however
furnished evidence to the United States Attorney
who had received any oYer Of settlement that mad
ever been directed to him. Mr.. Hyde, OF Boston,
said he and hts delegation came here with the
understanding that they would discuss only cases
In which charges had been made, and that those
accused should have an opportunity to appear be-
fore the committee. They did not propose to go
into general discussion. Mr.. Kelley, Chairman
pro tenn Of the committee. said he supposed the
witness was showing the methods by which
frauds were committed Mr.. Wood, of the CON-
mttee said the object OF the investigation was
mainly with regard to revising the existing
law, but II IN the course of hts statements
the witness should give testimony which
affected the credit Of merchants trans
acting business tn Europe or the East Indies
It was due to any respectable merchant whose
business was put in peril that ne should be
heard by the committee. Mr.. Kelley said he I'M
derstood the purpose Of the committee was to in
vestigate the subject fully. Mr.. Jayne said with
much apparent feeling and In tremulous tone Of
voice. II stand before you accused OF wrong.
These gentlemen come and ask you to listen to
charges given under the impulse OF public opinion.
and shall stand here accused while my wife to-
day is broken-hearted by these charges made by
these internal thieves ana their representatives w
Mr.. Wood and other members OF the committee
said they could not permit such remarks as those
just uttered by the Witness who was required
to take his seat. Mr.. Kelley warned the
witness he must regard the decorum OF the
occasion. Mr.. Nblack, Of the committee, suggested
there must be some limit to the examination, and
therefore the committee should consult upon the
subject before proceeding further. Mr.. jayne re-
Stunning, said that he had in no case recommended
the prosecution Of any man for technical viola
ton OF law. He then referred to the law Of 1863,
showing the course pursued relative to violations
OF the customs laws. Mr.. Sheldon, of the CON-
mittee, suggested two points on which the witness
should give his opinion as to protecting merchants
from prosecution for alleged fraud in cases where
errors are accidental or unintentiOnaL and
whether the sums paid to 'o1lcers as moieties and
expenses OF the court are notso large as to amount
to q severe execution Of the law. After brief
conference the committee adjourned TILL to-mor-
row morning at ten O'Clock.
The District Of Columbia Investig alton
Vouchers, Contrscts and Accounts To
he Examined.
TIE Board OF Public Works Of the District, by
direction Of Governor Shepherd, IN response the
requirements OF the Joint Committee Of Investi-
cation, have caused their vouchers, contracts and
accounts Of expenditure to be placed in trans
portable boxes and carried to the rooms OF the
committee for reference and comparison with their
books OF record which are to be examined They
are in the charge OF Mr.. T. S. Burr, OF the Audi.
tors ONCE, who Is made responsible for their safe
Keeping until they are turned over to the commit
tee 1t is expected that there Will be meeting OF
the committee tomorrow, when business will be
commenced In earnest.
The Starving school Teachers Of the Dis
trict OF Columbia.
The teachers Of the public schools OF this District
have not been paid Tor many months and their
situation has attracted the attention of the benevo-
tt,n ntot~io
with which to pay them. At the meeting of the
Georgetown public school trustees last night
superintendent Wilson stated that. in conversation
with Mr.. W. W. Corcoran, Mr.. Corcoran had offered
to pay one months salary to the teachers and
janit0rs OF the schools Of Washington and George
town, amounting to about $4,000 He did this,
owing the report OF the suffering Of these people,
The offer was accepted.
Wtrepulltng to Secure the Whftewash-
ing of the Western Arkansas Politic nj
Investigation.
The astonishment expressed yesterday that the
authority asked by the Committee on Expenditures
of the Department OF Justice to Investigate the
fraudulent expenditure Of money in the Western
District Of Arkansas should have been granted
was not greater than when the Essex statesman
rose in his seat to-day and gave notice that he
should move to reconsider the resolution adopted
yesterday giving this authority. motion was
made to lay this motion on the table which was
ruled out Of order by the Speaker. The explana.
ton Of the conduct OF Mr. simmons friend Is that
Senator Dorsey, or Arkansas, who Is peculiarly in
terested in the investigation. voted for the connr-
nation of Simmons, even showing his zeal for Mr..
friend by leaving his sick chamber for
the first time in weeks and returning to 1t when
the vote was over.
Limitation OF Invalid Pensions.
The House Committee on Invalid Pensions TO.
day agreed to bin which provides that all pen. I
sions granted on account OF diseases contracted In
the United States service, or wounds IN battle
since March 4, 1861, which have been granted or
may hereafter be granted on application filed pre-