New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-03-31

Edward Thornton, Henry Thomas,
John Petrie, Edward l.. Kalbnesch
James IL Hart, (s0D OF tho ex-MayOr)
John A. Hughes, WIN. Il. Soaring.
VIM, III. Wilkescn Christian Schumann.
Samuel Hutchinson,
After the jurors names had been called of in accord
anoe with custom Mr.. Tracy SAID that before opening
the he would inquire under what statute the DIS
trictAttorney alleged tho oense have boon commit
ted and the indictment drawn There four different
acts under which indictment for conspiracy might
brought against parties for oenses against the Govern
ment Mr.. Tonuey said under the act of July 90 1863
section 9 Mr. Tracy said he should raise question,
proof offered. the validity OF this III
dctment upon the statute and perhaps would he bet
TO discuss the question and time by dlspGn
sing with the opening He should object to evidence
the ground that oiIense has been committed under
the Statute Judge Benedict left the que son with the
District Attorney who decided TO submit his opening
efore motion made that the facts might first be
stated to the jury lie then addressed the larry.
ADDRESS OF DISTRICT-ATTORNEY TENNEY.
May it please the Court-Gentlemen of the
Jury: The defendants. Alfred yanderwerken, Lucien
Hawey and John d. Sanborn arraigned before you
for trial upon indictment charging them with con-
spracy deraud the United States out OF largo
OF money by OF false and fraudulent representa-
tions made TO the Secretary OF the Treasury.
The charge is serious one, and the Of
Tense, If committed serious one. IL is not necessary
in the prosecution OF this that shall show that
there has been verbal or written agreement between
these defendants that there has been any pecunaTy
consideration passing between them II we show that
there has been Illegal association between these de-
PENDANTS or that there has concurrent action tend
ing toward an Illegal object, and the accomplish
ment of that illegal object then the conspiracy
is made out. and they must he pronounced
guilty The law Classics cOnspiracios under two heads
hrs conspiracy 10 commit m illegal ohenso BY Illegal
means, the other to commit lawful act by unlawful
means To the first belongs the conspiracy charged
against the defendants. that they have cOnspired
dcfraud the United states OF money by false and
fraudulent representations mado to the Secretary of the
Treasury OF the United States
THE FACTS OF THE CRIME
June 80, 1864 Congress passed act known the In
ternal Revenue law Of the provisions OF which was
this That the estates of persons dying valued at up
wards of 900 should pay tax 10 the General Govern
ment at rate OF from to six per cent THIS was
known Legacy and Succession tax, the
and the Succession tax TO real estate.
This statue remained IN force from June &c. 1851 until
July 80, 1870 when it was repealed, to 80 iao et-
feet on oct. |; so that all estates from June
law. valued at upward of s1,OO) are liable TO
tax 10y the Geneal Government OF from one TO six per
this Under tins internal revenue law many offices
nue., with headquarters at Washington, who was chef
OF the Bureau then Supervisors. Assessors, ana Cox
lectOrs, Deputy Collectors and Deputy Assessors.
The defendants here served unGer the internal Rev
enue Law. Alfred Vanaerwerkon was Deputy Assessor
YORK the time Of his arrest Mr.. IIawley was SUI
pervisor Of the state of New-York: Nj John
derwerken held the office of Assistant Assessor
pointed Assessor and took upon himself the duties of
Assistant Deputy Collector holding from May
both positions. Vsnierwerkens duties were
to attend 10 the returns Of tho represent
atibes of the estates, or TO supervise the
making out OF them. We shall present
before you estates which have been collected
aege wrongfully ana the amounts due and PAL threOn
have converted TO the Government Ter tbs san
born contract While was D,puty Asses
sor vandorwerkens duties were simply TO put
these estates upon a list. TO return them 10
to make these assessments himself and them 20
the Collector Mr. Freeand WAC was ~ collect tho taxes
aud give receipts therefor After no became deputy
collector on May 90 1870 his duties were to
make return monthly OF these estates 10 MS
return placing them assessment list known as
% lie was to make returns to the Commission az wash
the list to Freeand or the Collector, who was then to
collect these Legacy and Succession taxes 49,,
MI HaSiey was assigned rs supervisor 70 the 5ate OF
New-YOrk. His Guues. in word, were simply to see
internal revenue OUIccr dli NJ, uILy, -, T.. -.
John d. Sanborn, the other defendant in hi' case,
was a SPECIAL Agent Of the Treasury Department, or
person employed 10y the secretary o. tue Ired,uIJ 70
assist the proper officers 81 the Cove nment ~ dsc)Y
eriug and collecting moneys withheld from the United
conditions the Secretary OF the Treasury might think
was entered into by Mr. SanbJrn and the secretary OF
the Treasury Aug -. 1872 Il was enlarged aud ex-
@ cent or onenaif OF the money thus Collected MI
! Sanborn had three contracts. The second -
! the one under which these estates appy-was dated
mrnt OF the prior contract. The third. dated Marcl
1873 pertaned 10 the railroads and supplemental to
the made August 49, 1872 These contracts were en-
| tered into In tins manner: Mr.. Slnborn, in the
| first place. submitted to tho Secretary OF the
Names SAYING in MS statement az have discovered
these estates or these Gsiilleres or railroads. and
propose to collect the money due thereupon. lnrth9T
NOR stating that this money Is Illegally WtlheIu. lie
affidavit OF this aud upon tho.e ilsts ana Nv
the authority Of that statement the contract IL entered
iD,o TIE law operating these contracts was passed
by Congress May 3, 1872
rHE CONSPIRACY ORGANIZED
No sooner did SanbOrn enter into possession OF his
contract than he began the organization OF this mighty
conspiracy which corruption aud for obbery stands
uuriyaled and unmatched in the history OF the civilized
world need not tell you that all matters pertaining
10 estates arc on file the Surrogic's office OF every
county where the property is situated. You know
very well that when person dies leaving u
will that Will admitted to probate is spread upon The
records OF that Office and remains there forever anu
when there is no Will, the matters pertaining 10 the
settling OF the estate also put upon record 30
that ali Mr.. Yanderwerken had 70 do was
several counties OF the First Collection District
ana those records from June 3d. 1868 the oct l.
1870 aud lie would find there complete list OF every
person dying there he would fad IN the recorded evil
dence the full particulars OF these estates Mr. van
derwerken's duties were to make return OF
these estates TO the Collector; but find he goes
his wn Office in book furnished by the Commits
sioner OF Internal Revenue, ami paid by the United
he enters the entire particulars Next Van.
derweken sends out circular TO the representatives OF
me estate ssned - hms?ii Vhte9 States Collector
Of in;tT1al Revenue, nc. n Court-ot? Room No. ~
I'D this point everything Is regular II was iRht 10
issue this circular but 20 the 10 which 1t mas
been applied it false and fraudulent III the extreme
III was mere dee0y, aud used SUCH TO induce pay
meDt to himself and through him TO SanD0rn. TINS.
gentlemen the first act IN this grand drama OF crime
1.-The issue Of this circular adding: return must be
made at once, you will be reported Tor prosecution