New-York tribune., 1874-04-01
PrvEN,rr INVESTIGATION CHECKED.

tf,llv y.
One of the receivers Of the N. y. and o. Midland X X
REVENUE INVESTIGATION CHECKED.
THE TRIAL OF sANBoRN HAwLEY, AND WANDER
wHRKEN CIosEp-JUDGE BENEDICT INsTRUCTs
THE JURY TO ACQUIr.
Authorization was upon the cOuntenance OF
every man who in the United states CourIroo 'h
Brooklyn yesterday, waiting for Judge Benedct 10 an
nounee his decision in the sanborn case whch WAS pe
gun the previous day When the hour OF II came 'he
room was crowded with lawyers, prominent ana o'her-
wlse who exchanged freely as to the proDaoe re
suit of the case By far the larger number inclined 10
the opinon that Judge Benedict would decide against
the prosecution for one of which was his
significant and persistent effort to hold the prosecution
down to the question OF variance between the ssaeeh'
in the indictment and the contract
Messrs sanborn, Hawley and vanderwerken and their
counsel wore satisfied and entirely confident look, and
were on hand long before the Judge came n Inc DIS
trictI ttorney and Mr.. Hoxe absent when Judge
Benedict a few minutes after II, began to read his
decision, apparently not noticing that the chairs
directly in front lof him empty. Being reinhdco
however he sent an officer for the two gentlemen, ana
soon DstrictAttorn Tenney and Mr. Hoxie came H.
Judge Benedict then said:
The objection made by defense TO the introduction
I'm evidence OF what been designated as the SanbOrn
Contract urged upon the ground among otners,
lection was taken advantage of to present the Court
at early stage Of the trial question, apparently
the test question OF this case and which has been so
treated by both sides. In determining IT renIk tnat
IL is not to supposed that intended by TINS IN
dictment charge the defendants with conspiracy 10
defraud the United States by obtaining IN ia"lui
way from the Treasury OF the United States sums Vi
money due and payable by virtue of lawfll contract
The only theory OF the prosecution Therefore, Wcn
be gathered from the language of ths indictment
that Notwithstanding the contract mace win sapotn
in respect to certain taxes II was Sun te dul VI Wy
regular officers TO collect those taxes anu tn
the contract gave SanbOrn no right 10 any portion vi
said should be collected by the revenue ocers
without his assisting in such collection. The cnarge
intended be stated therefore, is that after the e1eeu
ton OF the contract corrupt agreement was MADE DC
tween sanborn and the revenue olhcers named, sna @
these officers should do their duty in collecting these
but should receive them as agents OF SanOorh
transmit the Secretary Of the Treasury and there
by be enabled to claim and receive under color OF ms ho
contract, money TO which he was not entitled ana the
United States thereby defrauded Thereon.
The contract is referred to IN the indictment a. one 3
the means used TO accomplish tne c0nspracy cnpeu
ayerment that the contract was an ega
one nor charged that OF obtaining The con
tract by false and fraudulent representations Inc con
tract conceded TO be Vald contract, ana 10 nave
been in existence and effect at the time OF the alleged
conspiracy but IL described in the indictment as
contract whereby Sanborn became entitled 10 90 per
cent OF such taxes only as should be discovered col
eced and recovered by him, Sanborn, and which he.
SanbOrn, should assist the officers IN recovering Inc
contract under consideration, with It's attendant docu-
mens, offered IN evidence III snpporto OIL 'niS aver
meHt -, -,
the contract made with San0orn,l nave examined lts
provisions The result OF my examination is the con-
cusion that the contract which SdnDorn oDIhneu uoes
not Limit his rght 10 portion Oh such Vi Ic va f
therein named might he collected by means OF MS
aid hereaer rendered but that upon the execution OF
this sanborn acquired night TO receive upon
the collection of the taxes included In MS coniac he
SapomsoeYeF coIIccted The contract was claimed by
sanborn and AWARDED by the Secretary upon the ground
had already discovered tee lndeb1euess
to the United States OF the parties nained ana tnat
these being withheld III III express Terms
cOnfeTs upon SanDorn the rlgnt 10 collect tuo
taxes due from parties designated by name.
and IL then expressly declares that whenever any money
legal proceedings conducted by the proper United states
Attorney, or by settlement, as compromlse OF sala
clalms-there shall be paid to SanDorI, OUT OF such
money as fast as collected so per cent of the amount
which nowhere in the contract described az couleh
saon for TO be rendered in the collecting OF the
indebtedness which taken TO have been discovered
by m. Such contract does not support tne aVerneht
indictment, and, with such contract concedeu
am OF the opinion that this prosecution must fal Inc
theory upon which tie Indictment is framed depends
upon nscODception OF the scope and etct OF me con
tract and the error be fatal 10 this Indictment
Such being my opinion upon what Is cOnceIeu 10 ne
decisive point 10 the case do not consider he othef
grounds OF objection.
The effect Of this decision upon the audience was some
what sensational. Upon lthe District Attorney and Mr.
Hoxie appeared TO make mo Impression whatever, as
though it had ali along been suspected, while 1t served
simply 10 enhance the contented expression upon the
faces OF Messrs Tracy and Shipman John Davenport
was apparently delighted than any one else.
Hawley fairly showed his teeth-very white onesas he
turned stroking ms whiskers rapidly TO his colleague In
crime, Vanderwerken, while the horid Sanborn, snot
commal in expression from the beginning gazed about
him with the wondering look that he sometimes wears
The Distrct-At0rney, as soon as the decision had
been announced, said II your Honor please, desire.
before the Court is adjourned believing II to DC due TO
myself and TO my Office to make this statement Ny
attention ting morning has been called to the pubca
ton OF circular in The Net1 York Herald pertaining TO
a subscription being raised for the prosecution OF this
never knew Of its existence, 1 have never received
dollar 10 aid in this prosecution aud have never
d,lla ar funTn
NOT consider It necessary, be aause always believed
during the many months had this case under consid
GRAFTON, that had perfect case and, with all due
Difference to the decision your Honor has rendered,
still consider that have, and that we are prepared to
OF the IN this District that Sanborn never as
sisted in the collection Of tbs money Dat ina that the
Hawley, the regular revenue officials, and was CON
yeyed TO the Treasury Department by r sanborn who
retained half and represented 10 the secretary OF the
Treasury at the same tme falsely and fraudulenty,
had been paid 10 him. and that he had discovered
Mr.. Tracy-We have nothing TO in reply to the
epeech of the DistrctAorney after the case is dis
posed Of in regard TO the origin OF this prosecution or to
what the DstrcAttorney supposed before ne brought
It, he might prove, or what he supposes now he can
prove. We have only TO ths that 1t has seemed To
from the beginning that this prosecution was founded
in most marvellous msccnception OF the legal nights OF
these parties We have never doubted for instant
what must be the final result Of this case the moment IT
could be brought 10 the test OF judicial deolsio and
therefore that confidence raised that point In the
beginning Of this case that Mr. sanborn has Dractced
deception upon the Secretary Of the Treasury before
subsequent TO the making OF this contract and the
claim that he has is quite un!Ounded rs any other re-
mark OF the DstrlctAttOrney. 1 hold IN my hand "A
book from which has been consented that either party
may read, which shows by document after document
the secretary Of the Treasury was Informed from
time time Of the precise manner in which tins con
tract being executed ana these moneys collected,
and that nodeception OF any description been
practced upon the Secretary Of the Treasury by Mr.
SanbOrn by these revenue officers. The revenue
officers have acted under the instructions OF their
superior officer aud not only has the contract been
executed according TO its terms, but has been made
within the spirit of the law There Is no criticism IN
this except upon the law Itself.
Judge Benedict do MT care to hear defense OF any
the parties upon any other charge than the Cne in
this Indictment; therefore, discussion is useless.