Year: 1868

OF the lacts presented-the jury sworn ON tne iai'
The whole case considering the fertile source from
whence the alleged frauds originated; the frequent
charges that have from time to time been made
against officials In the Revenue Department In this
city, nom watchmen In bonded stores and petty Of


cers IN charge OF dstilefies under seizure, 70 the
heads Of metropolitan boards-running through the
whole gamut OF official note-for mafeasance In
IN an1 hs c.x wnc IN cases oa even
the principal denquents have gone unwhpt OF JUS
tce, having excited public comment and public In
attention TO the trial OF Callic0tt, and keeps II
still on the alert watching the nnal denouement.


Itself @ ee aaa IN o. ae rs
In the testimony which from day to day appeared In
all its important bearings In the HERALD. That test
Internal Revenue OF the Third Collection district
some time early In 1867, and that very soon after
such appointment systematic course OF fraudulent
removal or whiskey from q large manufacturing es-
tablishment known as Wilson's distery and from
certain bonded warehouses was set on foot. That
parties not In the ring" were removed from ONCE


to make place for the Interested particpators I'm the
scheme OF fraud, and that the chance detection OF
suspicious transaction, small in ITSELF on the part or
one OF the operators led to the disclosure OF the
whole official cheat, In one case only, that Oh
trial. amounting, to $4,000. IL was lucky for
the government that the operations Of the Brooklyn
whiskey ring were npped In the bud and that the
principals Were at one swoop brought within the
grasp of the law. With the Collector himself and the
whole machinery OF the Office in his hands al the
head OF combination to evade the very law he was
specially appointed to enforce, It would require an
adept or at least one pretty well versed land such
are not hard TO dnd in the practice Of these whiskey
frauds to compute the amount the government
would nave been neeced OF in taxes and the sum that
would on the other hand have gone into the pockets
OF the ring had 1t been spared for longer existence.
IL Is known that the jury convicted Callicot and
acquitted Alien, his deputy. The latter, however,
was previously jointly convicted with Enright on
somewhat similar charge of filing and exc
cutting fraudulent bonds for the removal OF whskey,
and for that act he is still liable with his superior, to
the penalty therefor made and provided. There ls
now before the Circuit Court motion for new trial.
al a. n i
In the case OF Enright and Allen, previously tried and
found guilty OF the charges alleged against them The
motion was made before Judge Nelson sitting in cir
cult in this city but he declined to entertain 1t in the
absence OF Judge Benedict, who was associated with
nm IN the tral OF the case The motion VIII DE re-
newed In the Brooklyn court in day or two, when,


If refused, Judge Nelson will proceed to pass
the sentence OF the court as provided by law. The
following Is the charge OF the court to the jury,
perusal OF which VIII show that the jury had no
other alternative but to bring in the verdict they
did,


JUDGE NELSON'S CHARGE TO THE JURY IN THE CALI


COTT CASE.


The indictment in this found against the
accused Is III substance that Calilcott and Allen,
collector and deputy collector of internal revenue
of the Third Collection district OF New York, and


ing to defraud the United States of divers sums of
money, payable for taxes upon 200 barrels
OF distilled spirits, on the 7th of May, 1857,
conspired together to procure to be fraudu-
ently executed q certain bond required by
the laws OF the United States and regu-
that is to say bond for the transportation of dis
titled spirits dated the 7h OF May, 1867, purporng
to be sufficient bond for the transportation,
cuted by X. IL. Hand as principal and william
Malln and John Jaggard as sureties, for the
sum of $43,oo0 for the transportation of the
200 barrels from the bonded warehouse of
John Wilson, In Brooklyn, to the bonded warehouse
OF NJ S. Cole of the Third district In Massachusetts,,
Boston; whereas in fact the name OF Hand was
forged and the sureties were insufficient and wholly
worthless, as the said Cacott and Allen and the
others well knew, by which fraudulent bonds pay
ment OF the taxes evaded and lost to the United
States. The Indictment Also charges that CaIlcoft
and Allen frauduently accepted this Hand bond for


the transportation OF spirits as above described and
thereafter permits to allow two hundred barrels to
be removed from the warehouse of Wilson, well
knowing the insufllciency OF the bond and OF the
suretles. This Is the substance, gentlemen, of the
charge in the Indictment against the accused in what
may be called the first count of the indictment.
There Is also count in it charging conspiracy the
defendants to connive at the fraudulent execu-
ton Of this Hand bond and to accept 1t as
security within the act of Congress for the trans
portaton of spirits from Wilson's warehouse and
upon the acceptance Of which permit was granted
to remove the spirits to a warehouse in Boston
already referred TO. The indictment which have
thus stated to you IN condensed form is founded
upon two sections OF acts OF Congress, one Of the
act of March 1S67a late act; the other the act
dctment is founded the thirtieth section OF the
act OF 1867, which provides that "f two more per-
in any manner whatever. and one or more OF them
shall do any act to effect the object of the parties
the conspiracy, he shall be deemed guilty of mis-
demeanor, and on conviction shall be liable to a
$4,000. aud to be imprisoned not ex-
You % WIN observe here DESCRIBED 'ias as pa'ai cons
tuting that offence, fall short OF the actual
commission Of the fraud against the government;
the conspiracy to fraud with any one act with either
of the parties constitutes the offence. The simple
combining to commit the fraud Is sufficient, without
government. II any one Of them has taken step
towards carrying 1t into eectas In the present in
stance the procurement Of the fraudulent bond-that
IL one STEP and the granting OF the permt-that
would be another step-f0r the withdrawal. OF the
whiskey from the warehouse. The law strikes at the
incipent steps or germ OF the offence, with q view
the more effecLuay 10 deter persons from entering
upon it, and lays hold OF them before its consumma
ton. The other offence charged, to which we have
referred is found in the forty second section of the
act OF July 1885, instead OF 1854 1t provides that
'f any person shall sign any fraudulent bond, per-
law or who snail fraudulently procure
the same TO be executed, or who shall connive ut
the execution thereof, by which the payment OF any
be executed for the purpose OF Withdrawing spirits
from the bonded warehouse, on convection shall for


felt all his interest in the spirits II he has any, and
be imprisoned for a term not less than one nor more
than i've years." This act makes II an offence for
any person to execute or connive at the execution of
fraudulent bond; to execute or connve at the ex-
ecuton Of q fraudulent permit or other document
required by law, with a view TO avoid the payment
OF the tax, for the purpose OF withdrawing the
spirits from the bonded warehouse. 1t will thus be
seen gentlemen how specifically and particularly
the offences charged IN the Indictment OF these men
that any person who can read cannot misun-
derstand them, more especially public officers,
who are appointed to carry into execution the
law the provisions Of the act and whose attention
must therefore necessarily have been drawn to the
particular provision as the guide to their conduct
and the foundation OF their duties. by the forteth
section OF this act Of 1s65 distlers' spirits which
have been inspected, gauged and marked by the in
spector may be removed without payment OF the
taxes from the bonded warehouse Of the distiery,
as exemplihed In the case OF Wilson, upon the exc.
cuton Of transportation bonds as the Commissioner
Of Internal Revenue may prescribe which he has
done, as you see from the form Of execution, and
may be transported to any general bonded warehouse
used for the storage OF spirits and Immediately upon
Its arrival at the bonded warehouse to which the
spirits have been transferred there to be again
gauged and again inspected and placed in the ware
house. The Hand bond, which figures largely In this
case, was got up under this provision OF the law and
the regulations OF the Commissioner. That this bond,
grossly fraudulent was SO got up for the purpose
Of defraudng the government by the removal of
whiskey from Wilson'S warehouse without paying
the tax Is undenied and that II erected the purpose
designed by procuring the removal OF the Ali barrels
without paying, whereby the government lost some
$4,000 taxes equally true. The proof this SUBJ