Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1875-03-12
unlted States Circuit and District Courts.
Hon. NATHANIEL SnIPMAN. Presiding.
O. l..ok r 1877

III tut t1.c Va 49,
/ National Lille Insurance Company, pro,
cecded with their argument upon the legal
/ points involved with reference 10 the sub
mission of the case to the jury on the CUES
! ton of fraud suggested by the plaintih on
the ground first that Mr.. Herrick was in no
condition, either physical or mental, u
transact business at the time he surrendered
the policy to the defendant and second Il nc
was then the consideration paid ham by the
defendant was wholly inadequate.
On the conclusion of the arguments III,
Honor held that the action had been proper
Is brought by the wife of the assured. mas
much as she was the person Tor whose
benefit the policy was issued; that the
weight of authority was to the elect thai
the insurance Company could not legally
terminate the policy of the assured without
the consent of the wife that to allow the
jury to pass upon the question OF iraud
would involve an incongruity with the pre-
vious rulings of the Court. That the poll
cy, not having been legally cancelled, was
in force on the Goth OF July. leo9, when the
annual premium for ls6970 became due
that the payment of the premium, or Legal
tender of the same, then became condi-
ton precedent to the continuation Of the
policy that the plaintiff had not complied
with such condition, and therefore the
policy had legally lapsed beyond the au-
ihority or power of the Company to restore.
! His Honor, therefore, directed the jury to
| bring in a formal verdict Tor the defend
ant The plaintiff excepted, execution was
STAYED and the case will eventually be car
ried up to the Supreme Court Tor lima! de
cisiOn.
United States ". seven horses. Henry II
Russell of Pawtucket, Rhode Island claim
ant, was the next case tried. This was an
information for the forfeiture of the proper
ty in question on the ground Of undervalua-
ton. The property was seized in July,
1873. The defence is that valuation re-
turned by the claimant although over $500
| below the cost was IN reality greater than
| the appraissl OF the same property subSe-
quentiy by the government appraisers, and
there vas no intent on the part @! the claim
ant to delrard the revenue The trial was
concluded AT noon, and at the beginning oi
the afternoon session, the jury brought IN =
verdict Tor the claimant. r II. Start for
the claimant L. 5. District Attorney b +.
Fifield for the government
United States y. TwentY-nine t3nsoi hay,
A LGnthier, claimant, next occupied the
attention OF the court ior an hour. foI-
FIXTURE Wa claimed by the government Tor
] Inc TtA-tu Nudt AAlt Va hfaf Az
ported was greater than appeared by the
claimants invoice. The testimony showing
that the discrepancy arose from the differ
ence in computation by the owner and the
Custom House officers, the one giving the
quantity in net tons, the other in gross, Il
non-suIt was entered on the suggestion OF
the [ ). District Attorney, Daniel Roberts
appeared for the claimant.
There being no further eases Tor the petit
Jurors, both panels were discharged Tor the
term.
The remainder Of the afternoon wa ,cca-
pied with hearings in Bankruptcy.
The cases OF the nited States y. =. \.
Jewe,t and \ j Crane will be taken up
this morning
SATURDAY.. March o.
The Grand Jury yesterday concluded
| their !abJrs OF the four bills returned by
the ioreman-Mr Charles F. Ward one
was mot found" The Jury wers then di>
charged with the thanks OF the court.
At the adjournment OF the court Thursday
| afternoon, a hearing was ia progress
in the matter OF Griffith K. Jones. bank
rupt. This case came upon reference
made BY the United States District Court
10 ascertain the validity and priyity OF Yari-
Gus liens on the property of the bankrupt
in Rutland county. The property consists %
slate quarry ana various other real estate
The principal claimants %. liens again~, the
properiy are the National Bank OF p0Clt
~. Gardner Parker OF Poultuey and Judge
r., IN Of Granville. \. \. The facts IN
uo vase conflicting liens are too
eo1gni,,,t ~ a. be- sta '"d. sud the question:
are numerous. The only = ' ~ bsbs i
| lie interest is whether patton '.-d
authorized hy the banking act Of the H..
States 10 lend money on mortgage security,
and j made whether mortgage 80 taken
can be enforced Messrs. Prolt. Simons *
Walker Of Rutland for the assignee ct ai<,
j. T. Besman OF Poultney and f. J Phelps,
tor the bank Of Poultney and Parker
UNITED STATES rs 5. J. CRANE
The case Of Inited States vs. \. ) Crane
va, taken up at the opening Of the court yes
terlay morning. The two indictments which
were originally found against the rcspon-
dent-the one charging him with deia.ca-
ton a. collector Of iuterua! revenue ana
making ia.~e and fraudulent entries On the
records OF the office, the other tor embcEC-
ment IN his account As discussing agent
had been consolidated To this con-0.I-
dated indictment the respondent at the last
term had pleaded not guilty. Tins plea.
the counsel for respondent asked leave -
withdraw. and the respondent pleaded
guilty TO the second count in the first in
dictment and 70 the second iudictmon, in
fall. The ntel States district attorney
then entered a mol pios n to the remain
OF the first Indictment
In presenting the statement IN behalf III
the government. District Attorney L. f. Fl
field, remarked that the respondent. Crane,
was Collector of Internal Revenue FOR the
Third District of this State. having been
appointed IN l,67. Immediately upon en-
tering on the duties Of his Office he appoint
ed Mr f. \. Jewett. the deputy Of bis pre-
deces-or IN the office, as his deputy. and put
him in charge OF the office and OF the books
Al the same time he (Crane) wa daily IN
the Office, having stthe time no other bust
ness, and apparently had the personal SUI
peryision of everything pertaining to the
duties of the Office. In accordance with the
regulations of the department the assess
ment rolls must be closed and balanced
every SIX months and any balance against .
the Office became due from the Collector, 1
personally. 1t appeared that money was
taken. from time to time. from the collec- /
ton account by emitting to credit, at the I
time, all OF the sums received for taxes. /
The deficiency thus created was covered /
and carried along as money came IN, the /
sums received from new payments OF taxes /
being credited 10 the deficient accounts, by /
means of false entries or omissions 10 enter /
a portion of the sums received. This pro-
cess went on down to ISL, when Mr.. Crane
dismissed his deputy. Mr.. Jewctt. The de-
iiciency had then reached the sum Of Sl7,-
900. Who had appropriated this SUN,
whether the respondent or his deputy the
was unable to say. IL only
knew that the deficiency existed. The
books were all kept by the deputy. and all
tho entries were in his handwriting but
whether the false entries were made by the
deputy, with the knowledge and consent of
the respondent, or where the money went.
IS not shown by any conclusive evidence.
In addition TO his duties a. Collector Of
Internal Revenue, the respondent was also
The discussing agent of the government. for
The Internal revenue district OF which he
was collector. In this capacity he received
md dis5ursed funds for the payment of his
,wn salary and commissions, and the sala-
les ol his subordinates. In this account
Ilso deficiency was found to exist amount
ng to about s., 900 To the indictment
,harging the cmblezzlement Of this sum,
he respondent pleads guilty. MIR. Jewett
vas succeeded by Mr.. George johnson as
deputy, and it appears that he received
pecial instructions from the respondent to
ontinuc the same system of false entries.
Now under the Federal Statute the punish
nent for emblezZloment is imprisonment for
period of not less than Fix months nor
more than ten years and a fine amounting
o the sum embezzled For making false
ntries. the penalty is Imprisonment for II
'eriod not exceeding three years or less
han six months, and u fine OF from one to
i've thousand dollars. By the laws of YER
mont the States Prison is only open to
risoners who are consigned to hard labor :
t is not therefore possible to c1nGne the
espondent in the States Prison at Wind
or as he cannot be sentenced to hard {
,bor lie can. however. be confined in {
all or in the Penitentiary at Albany. In {
losing, the District Attorney said he did {
ot ask that the punishment should be vim
ictive in its character. but he did desire
hat it should be sufficient to deter others
rom acts of this character. If sentenced to
g.. Al.