The Birmingham age-herald., 1903-04-16
PAYNE EXPLAINS
 PORTO RICAN CASE
District Attorney Was Instructed
 Not to Prosecute Accused,
SMUGGLERS WILL PAY UP
Evidence Shows That Goods Were Not Brought In for Profit, and Hence Criminal Proseeuuon Would
 Be Persecution.

Washington, April 15.-The attention of the officials of the department of justice was called today to the published dis patch from San Juan. Porto Rico, to the effect that the United States attorney there had declined to prosecute criminal ly a number of army ana navy officers for alleged smuggling explaining his &C., ton by the statement that he was acting under instructions from Washington. The following statement was made by the department:
 "The facts are that the treasury de- partment approved a settlement in one of the pending cases on the basis of re- lief from the criminal liability upon pay ment of a fine equal to double the amount of duties. Instruction to this effect was given to the United States attorney at San Juan by the solicitor of the treasury, and upon inquiry by the United States attorney of the department of justice for confirmation of this instruction the sub l ject was brought before the cabinet and 1t was directed by the President that Secretary Moody and Postmaster Gen eral Payne should investigate the entire subject upon their arrival at Porto Rico, and that the cases should be dealt with in accordance with their recommenda- ton.
 Acted Under Instructions.
 "The attorney general directed the United States attorney for Porto Rico to dismiss pending cases and to present no more cases to the grand jury until he was otherwise instructed. The cases involve certain officers of the army and navy and certain civilian employees of the gov ernment of Porto Rico"
 Postmaster General Payne, when his att tention was called to the matter dictated the following statement:
 These cases were called to the atten- ton of the cabinet because they involved officers of the army and navy. and, at the request of the attorney general the secretary of the navy, and the postmaster general, who were about to visit Porto Rico, were asked to make a personal in- vestigation Into the facts of the case
 Ut seems that certain officers had brought to San Juan articles for personal use which were subject to customs duties especially cigars and some liquors and it was said that a present of some of the cigars was made to a local club in San Juan. There was no charge of import ing anything upon which 1t was proposed to make money, or to sell for proft-sim- ply personal effects for personal uses, some of which, 1t seems were given away.
 'We were advised by the secretary of the treasury that such cases coming under his jurisdiction, in cases of this character where there was no inten- ton to import for profit. meaning by that that where goods were not brought in for to criminally, but to settle such cases by the payment of the penalty.
 This was done in this case and the officer or officers in question have paid the penalty imposed by the treasury de- partment, which is twice the amount of the original duties"
 Would Be Persecution.
 "A settlement on this basis having been approved by the secretary of the treas ury it seemed to the secretary of the navy and to the postmaster general that criminal prosecution would be persecu- ton, and we felt entirely justified in recommending that no further action be had in these cases"
 The department of justice today re- ceived a dispatch from the United States attorney at San Juan stating in substance that the judge having Jurisdiction of the smuggling cases had instructed the grand jury to proceed with the investigation notwithstanding the order of the depart ment of justice to the United States at- torney not to prosecute them Ie asked for further instructions and the depart ment has sent the following reply:
 Department of Justice,
 Washington, D. C., April 15 1903 United States Attorney, San Juan,
 P. R:
 Your duty Is to obey my instructions to dismiss pending smuggling cases and present no new cases until otherwise di- rected. Considerations of moment not confined to Porto Rico or individuals in- volved have moved the administration after full investigation and deliberation to course directed; which will be adhered to. But If judge calls upon you, or court requests you will perform your usual functions before the grand jury. The fact that the government may not or will not prosecute if indictments are found, does not prevent consideration by grand jury"
 Pettingil Explains.
 San Juan, P R. April 15.-District Att torney Pettlngill has issued the follow ing statement regarding the intervention of the Washington authorities in the smuggling cases:
 T am reluctant to make a statement, but in view of the discussion in the local press. and after yesterdays action by the grand jury, which is a matter of record, it seems advisable to make a dispassionate statement as to how the matter stands. It has been current rumor for some time past that the defendants have made strenuous efforts to settle with the treasury. The authority to make settlement in these cases is claimed under section 376 of the statutes. The latest instructions received from Att torney General Knox by cable, April IS, were as follows:
 Dismiss the pending proceedings in the smuggling cases and present no new cases to the grand jury, unless otherwise directed. Hereafter report fully by mail on the nature and status of the said cases
 While I did not advise the course which is being pursued. it is not for me to criticize the action of a superior. Doubtless the course seemed proper to the officers at Washington under the cir cumstances. It will be observed that Mir Knox's cable does not finally dispose of the cases. The actual effect of the in- structions will be to carry the cases