New-York tribune., 1878-10-04
DESTROYING PROOFS OF FRAUD.
SECRET HISTORY OF REVENUE SUITS.

Dc Gref & Co., in the importation OF silks In 1870
the United DistrictAttorney instituted two SUITS
against this rm for the recovery or s2oo'Ooo anu
the other for OOO for alleged fraudulent importa-
toDs and the penalties attaching thereto Inc primer
pal informer In the case man named kanski' VINO
had formerly been Custom House officer His attorney
was Hugh Begey who in that capacity also aced Us
associate counsel for the Government. He occupied
rooms in the United States Building and was afforded
facilities for obtaining evidence IL Is claimed Dy Ine
Government that after Begley got possession ot tue most
material and damaging evidence, he began negotiations
with the members Of the firm for selling 1t TO them that
John W. Birmingham, who employed by the hrm 10
make a compromise or settlement OF the SUIT ue"'eu
with Begey that the latter said that he could get pos
session of evidence In Washington, which II Destroyed
would prevent any further prosecution OF the suit IL
is further claimed that the price asked by Begey was
$20O00 and favorable received to his pro-
posas that he made trips Washington and on
August 1876 after Peter Schurmann, special partner
OF the firm. returned from Europe, the bargain WIS
struck Begley received $1,000 in cash. 1t Is Claimed
and security for the remainder aud delivered the eV-
dence into the hands Of Brittngham and schurmann'
They gave It TO Mr. De Grei who destroyed In ther
presence
These circumstances Assistant DisrictAttOrney F1ero
states first came knowledge OF the Government
through suit instituted in the State supreme Court Dy
Co. 70 recover nearly 500 900 for alleged services and
disbursements in settling the suits Ine complaint V
Birmingham in this suit alleges tnat
$4,000 imported by the firm on December a. lsIo,
seized by the Custom House Ofcias ana SUITS ".
stuied for fraudulent impOrtatOns that On August
1876, Peter Schurmann member Of the hrn urged the
plaintiff TO take full control oil the sts III beha oi TUE
firm, agreeing that II he should secure settlement
without the nOtoriety and obloduy OF public trial. he
should he paid 100000 and his expenses that ne hc
eepted these terms, and they were ratned Dy a,
De Gre that he obtained evidence favorable to the
defendants that April H. 1877, the suits were d,s
missed; that they were renewed IL Juy py d .no
Distrct-AttOney, but again because OF tue plantns
efforts they were discontinued on November To- ls1l.
auio, for fhoG fOr
and disbursements, and about $1,000 additional Tor
other services The answer Of the defendants j. that
Brttngham employed by them at the rate of 900
per month and that whatever services ne performed
were included in this employment. ,-,. -.
De Greif Traeca and Begley were brought before
Commissioner Shields yesterday morning. They iur
nshed 0OOO bail In each instance, and the e1anna
tion down for Tuesday Each OF the three
repeed all imputatiOn OF wrOng-doing Mr. Beglty
he had not done anything for which he was ashamed.
EX-Dis ricf- -AtOl ney Bliss said yesteIday Inc org
inaI snlts against De Creif & Co.. in 1875. for
alleged undcrvauatiOns The invoices at the Custom
House showed that there had been system or contnu
Gus undervaluaton and regarded the case exceD-
tionaly strong Begey who Is the managing CLERK for
Webster Craig, acted Tor tue lniorineIt, NeWklfh
the norIners and aerward flied notice OF claim for
moety The nfOrmers and their counsel we've instructed
70 work up the case and it was most conclusive work
The members the accused firm expressed good deal
Of indignation at the time aud was roundy abused
Notice was given TO take the testimony OF Landry Jul
Hard Paris who shipped the goods This was substan
TALLY the condition OF affairs when went out OF office
seizure Of G1aS arss qn@0y Oess OF rSSs goods we're be-
aferW1rd bonded for $4,000 had originally seized
goods worth between 100000 aud 100000 az their
store TO secure the Government fJudgnent Tor large
damages should be given. All the documentary evil
dence consisting OF duplicate invoices ana letters were
in the Dstric-Atiorneys office when retired from the
endants and have understood that strong efforts
afterward made at Washington TO influence the Inyes-
tgatiOn. Orders were sent TO the DsirlcAltOrney TO
have the cases tried Immediately. In the meantime 10
nformants and the result ghtfuy bad memories
Tne trial forced and the DstrctAttorney being
liar
Later another suit was begun with similar order
from Washington for an Immediate trial. aud Judge
BatehfOrd ordered entry OF Judgment FOR the dc
PENDANTS The order from Washington 10 try the case
was SO peremptOry that District Attorney woodford
would the commission 10 take the evidence IN
PARIS / have understood that subsequently
bers Of the firm auarrelcd and Of them disclosed
the truth that Peter Sohurmann' the special partner
oatra was sent to Landry & Julard TO know II they
would that the goods were inyoced at their cost
myoeed below cost under orders ard that they would
tell the entire truth If called upon 10 do So The hst
heard Of De Greiff Co. in 1879. when | ordered
CsptaIn Bracket to seize goods In Philadelphia
sent from this city for storage, ana consigned TO this
Gapian Bracket discovered lot Of tne silks. II was
then claimed by DE Greif Co that Mr. hitchcock had
imported the goods using the firms name, and MI
DE Greif affidavit Of his Innocence Afterward,
Witcbcock & Co. indicted, under the supposton
that MT Hitchcock had gwen information against them
After hearing my statement the Grand Jury unah-
monsly refused 10 find an indictment"
Mr. Bliss inclined 10 believe that lawyers and others
documents at Washington and that II was necessary 10
brbe certain officials and that thus they got large sums
Of money while IN rcanty no uocunehtS "eIe ue-
Ethan Allen who was at time the attorney for De
GTeiff a. Co., eaid: "n 1875 the Government began
proceedin gs against A De Gref Co., and their
on BrOome-st seized. Mr. DE Gren was In Europe
and the store in charge OF Mr. Tracca The latter
through j. T. Hogeboone retained me TO defend the se
ton There three proceedings against the tru.
seizure IN OF $4,000, another suit for Sl5O,000
for the value OF the goods alleged to have been under
valued and seizure OF the store with goods worth 00
900 10 cover prospective penalties bonded the goods
ga and the suit tn peTsondm stood on Its merits.
induced the DstrlcAttorneY to reduce the bonds
$500 900 to 100000. Issue joined IN March, and
Mr. DE Gref Mr. Tracca and John Miller the buyer OF
the firm, spoke with me frequently In regard TO the
suits They Invariably declared their innocence OF any
wrong-doing and defended them at all times the
theory OF innocence. ged for commission to 20
70 Europe and take the evidence Of the firm that shipped
the goods This was ready TO be sent by September l.
1874 that we might he prepared for trial by tbe NJ
vember term About that time received note through
John Miller, without any DrevlOus excuse or notification
stating that the firm did not think IL desirable con-
tnue the the basis on which was defending t
and asking 10 hand the papers over TO Kenneth o.
| White was defending ON the basis OF innocence
"Wben my connection with the Case ceased profes-
sionay went 10 the DgtrietAttorncy and asked him
for the Governments side OF the case. Informed
that he had two sets Of invoices, letters which mpl
Gated the hrm and evidences OF fraud beyond doubt
These papers shown to me- but at this late day
could not parcuarze their contents. have been in
formed within six weeks that the present suit
was hastened by effort to arrest John Miller the
charge that he had been implicated In systematic SNUG
Cling and that white the officers searching for him
the Neckar lac exchanged his ticket for passage To
Europe BY the Britannia, and thus escaped from the
city That opened up inquiry and led from one
thing 10 another until the Treasury agents succeeded In
oaning Information that Improper measures had been
taken In disnllssng the prior am Informed that
they have also found that important papers and docu
ments IN the case have been distracted and destroyed
It, am told that among the missing documents Is "A
letter frou Miller in winch he specifically described the
frauds IN undervauatiOn."
A FASHIONABLE WEDDING IN BOSTON,