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Those too lerge to be entirely included In one exposure ere filmed beginning in the upper left hend corner, left to right end top to bottom, es many frames es required. The following diagrams illustrate the method: Un des symboles suivants apparaftra sur la dernlAre image de cheque mici'ofiche. selon le ces: le symbols — ^ signifie "A SUIVRE ". le symbols V signifie "FIN". Les cartes, planches, tableaux, etc., peuvent dtre fiimis A des taux de reduction diffirents. Lorsque le document est trop grand pour dtre reproduit en un seul cliche, 11 est filmi d partir de Tangle supArieur gauche, de gauche A droite, et de haut en bee, en prenant le nombre d'images nAcessaire. Los diagrammes suivants illustrent la methode. 1 2 3 < a 3 1 * ■ • 6 T H E 1) lIAITLAiND DISTILLERY CASE REPORT OF THE TRIAL OF MR. S. S. HALLADAY, AT THE YORK AND PEEL ASSIZES, BEFORE THE HON. JUSTICE JOHN WILSON, JANCAKY 8 — 12, 186«. .J^^ By WILLIAM COLDVVELL KEl'ORTKK FOR TMK " (!I,OBK."' . I TORONTO, C.W.: I'lMNTKD AT THK Gf.OUE STEAM JOB PRESS, 26 & 28 KINR STKEKT EAST. 1866, .':■'*'.'"' «^,, ^ J «* Bi'/ty (•■S!^., THE MAITLAND DISTILLERY CASE. THE ATTORNEY GENERAL vs S. S. HALLADAY. Counsel for ihe Crown, Thomas (talt, Esq., Q. C, J. T. Ander.son, Esq., K. A. FfARRisoN, Esq., and James Patterson, Esq. For the Defendant, Hon. John HnxYARD (Jamkron, Q.C, M. C Cameron, Enq,, Q.C., Stephen Richards, E.sq., Q C. nnd E. Orcmbie, Esq. The trial commenced on the 8th January, 18fi6. at the Winter Assizes for the United Counties of York and Peel, held in the Court House, Toronto. It was charged, oi\,bohalf of the Attorney General, that the Defendant, S. S. Halladay, who had carried on the Distilling business at the Village of Maitland, between Prescott and Brockville, had not, while currying on this businoss, com- plied with the regulations of the Statute 27th and 28tb Vic, by which lie was bound to keep such stock book or other books as were described by the regulations prescribed by the Minister of Finance, and enter therein in full a statement of all grain or othe.r vegetable matter used in distilling or rectifying, and also all spirits made and disposed of, with the strength of the same ; the quantity of grain malted and the quantity otherwise disposed of. It was charged on behalf of the Crown that Defendant had made and disposed of 200,000 gallons of spirits between Sep- tember, 1864, and July, 1865, which had never been entered in the stock book or paid duty ; in consequence of which Defendant became liable to the penalty imposed in such case, namely, a penalty of S5200, together with a further penally equal to three times the amount of license fees, duty or other impost payable under ^he Act ; and that in this way Defendant was liable to the Government in the sifmof$180,QpO. The defence set up was that there had been no infringement of the Statute. It was objected, on the part of the Defendant : 1. That there was no proof of " regulations," in writing or otherwise by the Finance Minister, as to the form of the stock book. 2. There was no approval in writing, by the Finance Minister, of the form of the stock book ; and his verbal approval was insufficient. 3. There was no " regulations" either verbal or in writing of the Governor-in Council, or approved by the Governor-in-Council, either in relation to stock books or any other particulars ; and proof of such regulations is necessary by law before the penalty, as stated in the information, could be incurred. 4. There is no description in the Act of the meaning of " stock," and whiskey distilled is not Included in the term. ^0- 10 5. Whiskey or spirits removed from the Distillery to the warehouse or other house of Defendant, is not disposed of, and ucod not therefore be returned as dis- posed of, until sold or properly parted with ; and spirits not brouprht into the Distillery are not returnable. 6. That the information in evidenceproduced could be laid only for not return- ing to Uovernment a true account under the 62nd Sec. of the Act, there b'jing no stock book or other proper regulations of the Minister of Finance or of the Governor-iu-Gouncil, on which the penalty us laid could be incurred. Mr. Thomas Gam, Q.C, opened the case for the Orown. Ho said — Gentle- men, — the case which is about to be laid before you is, J believe, the most impor- tant that has been tried in the Province for many years. It is important in every respect in which one can be, to the public. It is important with regard to the amount involved, for that was no less a sum than $180,000. It was important to the revenue of the country ; because the ground of complaint was, that frauds to an astoundinff amount had been perpetrated, And it was also a case of great importance to the Defendant in the suit, for it involved, in the most serious man- ner possible, his character and fortune. Under these circnmatances, Gentlemen, I will have to beg your close attention to a rather dry subject^ as a great deal of my address will consist merely of figures. While I am now addressing you, it would not be right for you to take down any memorandums on the subject. I have, first of all, to make good my statements ; and when I do so, by the witnesses to be pro- duced before you, then you can make notes of facts and figures. 'I'lie facts of this case I will now state to you, Sherman Smith Halladay, the present Defendant, went into Company with another person named Borst. They carried on business under the title of Borst, Halladay & Co., and were Distillers at Alaitland, a small out-of-the way village between Prescott and Brockvillc. They constructed there a large Distillery, in such a situation as to be well adapted for carrying on busi- ness either honestly or dishonestly. It was close by the T iver St. Lawrence, and within half a mile of the Grand Trunk Railway Station. But before going into further particulars ol the case I will state to you, Gentlemen, what the Legislature has said with reference to Distilleries. This is set forth in the information fyled by the Attorney General in this Jcase, which gives the court to understand certain facta. I will lead it to you as I wish to occupy as little of your "lime with my remarks as I can, consistently with your having a thorough knowledge of the case. This is the information of the Attorney General : " Province of Canada, | The fourth day of September, in the year of " County of the City of Toronto 1- our Lord One Thousand Eight Hundred and " To Wit : J Sixty-five. " Be it remembered that the Honourable John Alexander Macdonald, Her Majesty's Attorney General for Upper Canada, who prosecutes for Hkr Majestv the Queen in this behalf, doth in behalf of Her said Majesty give the Court here to understand and be informed that every Distiller in the Province is required by law to take out a license, and that eveiy party licensed as a Distiller is required by law to keep a book or books in a form to be furnished from time to time by the Minister of Finance, and to be open at all seasonable hours to the inspection of t ouse or other turned aa dio- ifrht into the •r not return - lere biiug no Be or of the aid— Gentle- most impor- ant in every Jgard to the mportant to at frauds to ise of great srious man- fentlenien, I deal of my it would not ive, first of to be pro- acts of this Defendant, »ii business a small cted there on busi- nce, and oing into islature fyled by certain with my the case. year of red and Id, Her Iajksty urt here ired by ired by by the !tion of . I 11 the Collector of Inland Revenue, or other proper officer of Excise, wherein such Distiller shall enter from day to day the (|uantitit>H of grain or other vogetuble productions, or other substances put by him into a mash tub, or otherwise used l»y him for the piirpose of producing b«^r or wash or consumed by him in any way for the purpose of producing spirits, or otherwise disposed of, and also tlio quantity of spirits by him id in siicli form and manner as shall be ordered and prescribed liy regulations approved by the Minister of Finance, and that every person carrying on any business subjeet to excise who siiould fail or neglect to keep stock booVs and all sucli other books as may be required to 1)h kept by any regulations approved by the (lOvernor-in-Coiincil, and by the Act passed in the Session of Parliament held in the 27th and 28th years of the reign of our said lady the Queen, and in the year of Our Lord One Thoasand Eight Hun- dred and Sixty-four, entitled, " An Act to amend and consolidate the Acts respect- ing dutiiH of excise, and to impose certain new duties," or to make true and correct entries therein of all particulars recpiired by the said Act or the said riigulations to be entered in such stock books, should forfeit and pay for every such offence a penalty of $200, together with a further penalty equal to three times the amount of the duty payable under said Act on any stock, article or commodity in respect of which any fraudulent, false, incorrect or imperfect entry, return, account, or statement has been made, or in respect of which any entry, return, account, or statement has been' in whole or in part neglected or refused to be made. That before and at the time of the committing of the offence in this Count hereinafter mentioned, and before tlie exhibiting of this information, the form of such stock books and the manner of keeping the same were ordered and prescribed by regula- tions approved by the Minister of Finance. 'I'hat before and at the time of the committing of the offence in this Count mentioned, and at the time of the exhil>it. ing of this information,' there was by the said Act imposed, to be levied and col- lected on all spirits distilled withir tK\H Province, on every wine gallon of spirits of the strenif th ot proof by Hykes' ! y'rometer, and so in proportion for any greater or less strength than the strength ot p. oof and lor any less quantity than a gallon, 30 cents. That Sherman Smith Halladay and others in partncship with him, under the several names and styles of Borst, Halladay & Co., and S. S. Halladay k Co., were from, to wit, the First day of September, One Thousand Eight Hun- dred and Sixty-four, up to and until the (irst day of July, One' Thousand Eight Hundred and Sixty-five, Distillers at the Village of Maitland, in this Province, and were duly licensed as Distillerc as by law reciuired, and then and there, during iill the time aforesaid he, the said Sherman Smith Halladay, either alone or in part- nership with others, carried on business subject to excise. That forms of said stock books, [and directions as to the manner of keeping the same, as ordered and prescribed by regulations approved by the Minister of Finance, had before the said first day of September, One Thousand Eight Hundred and Sixty-four, been by proper authority supplied to him, the said Sherman Smith Halladay, and the said Sherman Smith Halladay, thereupon, on or before the said first day of September, iwP I 12 Oae ThoasarKi Eight Hundred aad Sixty-four, procured such stock books to be maJo for his s^ai 1 Distil[>-ry in accordance with said forms, and showing the parti- culars r jqiiired by the aiid Act and by the suid regulations. That the said Sherman Smith llalladay, being Muuh U stiller as aforesaid, at the yilla);^c n( Maitland afore- 8ii;d, utter the passing of the suid Act, and after the first day of September, One Thousand E'ght Hundred and Sixty-four, and before the day of exhibiting this information, did not, durim^ all the time aforesaid, to wit, trom the first day of September. One Thouisand Eight Hundred and Sixty-four, to the first day of July, One Thousand Eight Hundred and Sixty-five, and on each and every day between the said fir^t day of September, One Thousand Right Hundred and Sixty-four, and the suid first day of July, One Thousand Eight Hundred and Sixty-five, make true and correct entries in such stock books of all particulars required by the said Act or the said regulations to be entered in such stock books. That among the par- ticulars required as aforesaid to be entered on such stock books, was the total wine gallons of the strength of proof distilled and taken from the close receiver, and bought or brought into the Distillery during the periods of time in that behalf specified. That a certain large quantity, to wit, 200,000 wine gallons of spirits, of the strength of proof by Sykes' Hydrometer, was between the said first day of September, One Thousand Eight Hundred and Sixty-four, and the said first day of July, One Thousand Eight Hundred and Sixty five, by the said Sherman Smith Hallnday, and others in collusion with him, distilled and taken from the close receiver and bought and brought into his Distillery, which was not entered on the said stock Hook, owing to the failure and neglect of the said Sherman Smith Halladay, and others in collusion with him, to make true and correct entries therein of all particulars required by the said Act and by the s lid regulations to be entered in such stock books at the time and place aforesaid, whereby, and by force of the pro- visions of said Act, the said Sherman Smith Halladay hath for his said ofience forfeited to Her said Majesty the Queen the penalty of 3200, together with a further penalty equal to three times the amount of duty payable under the said Act on the said large quantity of spirits, to wit, the said 200,000 gallons distilled and taken from the close receiver and bought and brought into the said Distillery, and not entereJ in the said stock books, owing to the failure and neglect of the said Sherman Smith Halladay, and others in collusion with him to make true and correct entries thereof in the said stock books, which said further penalty amounts to a large sum, to wit,* the sum of $180,000." There is also a second Count in the indictment which simply sets forth in it the form of the stock books, and says that among the particulars required to be entered therein is the total wine gallons of the strength of proof disposed of by Halladay ; and then it charges that there were 200,000 gallons disposed of by Borst, Halladay & Co., between the Ist September, 1864, and the 1st July, 186.5, which quantity was not entered in the said stock books as required by law ; and on this account the consideration of the Court is prayed in the premises. This, gentlemen, is the nature of the charge I prefer before you to day. Now, many persons consider smuggling a very trifling thing ; but those who talk in that way little think of the long train of crime this offence draws after it. You will be astonished to learn that almost every offence known c books to be ing the parti- said Sherman aitland afore- ptember, One :hibiting this 3 first day of day of July, day between Kty.four, and e, make true the said Act ong thepnr- >e total wine Bceiver, and that behalf 18 of spirits, first day of first day of •man Smith ose receiver on the said Halladay, rein of all ' entered in of the pro- lid offence er with a !r the said K^ distilled distillery, ' the said I correct unta to a int in the ■ays that allons of ere were )tember, id stock Court is I prefer ' thing ; offence known 18 to our law has been committed to give elTect to this one. Ucmemher, I do not say that all these offences were committed by Flalladuy. But I do Hay this, that in carrying out the frauds on which my caso is basfnl, — and to substiuitiate which I appear before you on behalf of the Attorni-y Ciencrul,— fraud and porjury without end almost have been committed. By thn Htiitutn in tills caso the Distiller was required every two weeks to make an affidavit as to the total quantity of spirits made by him within the time, and I will put in 20 such affidavits, every one of which is a fraud. I will prove to you that tlio shipping notes wore stolen from the Grand Trunk office— that the agent of the Grand Trunk Railway at Mait- land kept fal.se books and has loft the coimtry — and, last of all, I am prepared to prove that Halladay committed an assault with intent to murder, in his efforts to suppress evidence in this case. If, gentlemen, you become satisfied of these things, you and any person hearing me will bo led to think that smuggling is a very different and much graver oflTenco than it i.^ usually represented to be. Not only docs the smuggler cheat the (iiyvernnioiit, but he takes advantage of the honest trader ; nnd in tliis instance, when J chiirt^o before you that this Defendant has smugglcil 200,000 gallons, I put the (juantity far lower than I might. I tell you he has smuggled not merely 200,000 gallons, but nearly 300,000 gallons. But I prefer to put it at the former quantity to show you that we are not pressing in every gallon to make up the case. Now, I will tell you the history of this matter from begin- ning to end. I will show you that had it not been for the admirable manner in which the Grand Trunk Railway Company kept their accounts, this man (Defen- dant) would have walked out of Court to-day and laughed to scorn the laws he has broken. I will also prove tOj you, from their own stock books of grain, that it is utterly impossible but that he must have committed these frauds. I wil' show you that Borst, Halladay & Co. shipped over the Grand Trunk Railway alone a much larger quantity of spirits than their whole returns made. I will prove that he sent to Montreal alone an amount of over 490 000 gallons ; and you will thus see that, when in the information the quantity smng?led is set down at 200,000 gallons, it has been put far below the full amount. When we talk of figures of this kind, it is very difficult for the mind to grasp their full importance. But if you are satisfied this Defendant did smuggle some 300,000 gallons, you must remember that that (juantity is nearly equal to a quart of spirits for every man, woman and child in Upper Canada, from the extreme shores of Lake Huron to the Ottawa, It is, of course, a serious matter to charge any man in this way. It is something which onght not to be lightly done. But I undertake to prove to you what I have stated, and nine-tenths of that proof will be from the statements of the firm of Borst, Halladay & Co. themselves. I hold in my hand a copy of one of their stock books, which I may mention were of two kinds — one, showing the quantity of spirits made in the Distillery and taken from it » the othtr showing the grain brought into and used in the Distillery ; for they were obliged by law to account for every pound of vegetable matter brought into the Distillery. From this book I find that thty had on hand on the 1st Septem- ber, 1864. 40,728 gallons, and in bond 42,352 gallons, making a total of 83,080 gallons. By the return they made, the spirits taken from ^e close receiver up 14 ^ to the 3l8t October, wa8 2,1 IT) gallons of the Htrength of proof; for the half month ending NovphiImt IT), 4,316 gnllonR ; for th(( last half of November, 17,971 ^rallons; for the first half of Deccmbor, lf),28f>; for last hiilf of Dereni- bor, 24,0()H ; niakinj,' a total of ()7,fin4 fjalions. 'i'hcHO aro thti sworn rotiiriis pnterod in their stock books, 'I'ho amount of evorj one of those returns is verified by llalladay's oath as tnt* whole amount of their nmnufacture, and the whole amount on which they admitted their liability to pay duty. Now, for the first half of January they return 10,120 j^allon.s ; for the second half, 17,022; for the first half of February, 17,920 ; for tlio latter half, 20,16(5 ; for tho first half of March, 16,430; for tho soooiid half, 18,f)84 ; up to April l.^• l.'),.')33 Rullons ; up to 30th, 10,698 gallons : from the first to tho 1 5th May, 1 l,2r)8 gallons ; from the 15lh to tho 30th, 13,274 gnlI(Mis ; from the 1st to tho ir)th June, 11,511 gallons, and from tho 15th to the 31si .Fune, 10,984 gallons ; making a total of 173,800 gallons lor that half year. Xow, I will show you tho way the ease sf and.s. I have stated to you all tho amounts which these parties represented to (Jovernment as tho total of their manufacture, and, of course, all on which they admitted their liability to pay duty. Well, the stock books require not only this, but also that they should account for the manner in which jtlic si)irits was disposed of; that U to s!iy, they hiid to enter in tho stock book tho date when tho spirits were taken from the Distillery, name of tho person to whom they were consigned, manner of re- moval, and tho (piantity of tho strength of proof. The first side of the aecttunt requires that they should enter what they did — how much they made. The se- cond side should show the manner of its disposal. That being the ease, when we come to examim> the stock book, what do we find? Up to tho 31st December, 1864, the amount of spirits reduced i(» the strength of proof hoIiI and dispo.«p(l ol v/as 74,3.'{9 gallons. Of this uniouiit there was disposed of by coiiveyaiiee, other tlian the (Jrand Trunk Jtailway, 10,!)H8 gallons, and by the (iniiitl Trunk Rail- way itself, 57,351 gallons. ThiM is tlie amount which, according to their stock book, they took from the Diatilli'iy and disposed of between the 1st September, 1864 and the 31st December, IHIJI. Prom the stock book it also appears that, between tho 1st January and the Isl Jnly 1HG5 tho amount of spirits of proof sold and disposed of was 281,51!) gallons. In tho addition of tho stock book there api>oais , I may say, an error of two gallons, which I have set right. Well, from the amount I have mentioned has to bo deducted 61,878 gallons — (as shown by tho stock book) — for this number of gallons appears on both sides of the accoimt. The Distiller, I may explain, is allowed to bond spirits, and so long as the quantity continues in bond, it is of course exempt from duty. But they arc obliged to give an account of all tlie spirits made in tho Distillery, and therefore wher\ they send an amount into bond, they take credit for it ; but when it is taken out of bond it is entered on the debit side of the account as so much spirits brought into the Distillery. In the present instance, during tho six months, they took credit on the 6th April, with placing 18,584 gallons spirits in the bonded warehouse, where it remained till June, when it was taken out, and they charged themselves with the amount. Well, from the total quantity of spirits entered on the credit side of the stock 15 f ; for the half of November, iiiir of Decem- Hworn rptiiriis urns JH verified »n(l the whole w, for the first 7,022; for the firwt hiilf of i ffalloiiH ; up )na ; from the l.Sll gallons, *l of 17.{,8(l() fvnils. I hftve overntnent an dmittcd their but also that of; that into •0 taken from iianimr of rc- the account 'le. The sc- .s|^ when we t l>ecc'ni|,er, ilisposed of ";»■<', other •iinlv Rnil- heir stocK Heptembrr, »iurs that, »<>f sold and e appours, from the wn by the lint. 7'lie qiiiintity ' obliged therefore when it account instance, placinpf ned tiJI amount. le stock book, thlfi 61,878 gallons must be decbjcted, when we have 219,643 pollons m the amount which, according to the stock book wui actuully dicposicd of between January 1, 1865 and J-ny 1, iHCif). Of tliis amount th(!re wub disponed of by con- veyance, other than the Grand Trunk, 28,291 gallons, and by the (Jrand Trunk, 191,352 gallons, which, together make the 2l9.(;43 giillou?. From these state- raents, it appears that the total f|Haritily forwiinled by the Grand 'IVunk was, according to the stock book, up to 31st Denmber, 1864, 57,351 gallons; and between that date and the 3 tli June, i8C5, 191,352 gallons, giving a total of 248,703 gallons, represented in their stock book iis the whole amount sent per the Grand Trunk Hallway. Then, again, of that amount, according to their stock book, only 185,991 gallons were sent to Montreal, and 62,712 gallons were sent to Quebec and other places. Now, mark me. If they are shown to have disponed of more spirits than this, they are liable to this information. There was a balance on hand on July I of 30.592 gallon.^, making the total qu'intity of which they had the means ol' disposing. 203,982 gallons. Now, I will prove to you the de- livery in Montreal, over the fJrjiid Trunk, of upwnrd.s of 490,000 gallons; and 1 will trace that t|uantity for you from the time it left the Distillery till it got to the cellars of those buying it. Further, J will show you that it does not include the large quantities sent to Quebec and other places. This alone would fully make up the 200,000 gallons charged in the indictment, and I will prove this quantity to you beyond doubt as against what they admit to have sent. You may say, well there n)ay have been something very wrong ; but how do you bring the charge home to this Defemlant? I will show you, gentlemen, in the most con- clusive way, by the Collector of Customs, and other;', that he took into tl'e Distillery material suflficient to enable him to do this. Out of the stock books of the firm,'I will prove to you that they consumed this amount in the Distillery. Thus, from their own admisnion, it will be apparent to you that they used mate- rial enough in the |)i> lbs; for corn 'oncerninff the ds of the cargo <^'aim further, ■ As damaged Here, again, I as taken to the OO bushels dis- sed for feeding or some 2.300 aflmit having been on hand admitted hy '' they take Taking their >e 5,524,470 n item has into the tely led to by iAlr. brought 'Pfl on tlio ids of eorn only fn- f»ne pound nir loud, fhat these lis fo the hich th(>y 'Oil divide it gives I'lantities for (hem 3.'{ lbs., f t40 lbs. ; to have n the St. 17 Lawrence; and, lastly, the 140,000 lbs. which the claim as fed to Iior.«ies. If you become satisfied that these are fictitious entries, and strike them ofl", the total of corn alone would produce 473,430 gallons of proof spirits. But they state that the quantity of barley and other gniin consumed between Sept. 2, 1864> and July 1, 1 805, was 878 lbs. barley; 125,.523 lbs. oats ; 410,959 lbs. rye ; and 33.770 lbs. malt ; also 82,407 lbs. oats ; 357,535 lbs. rye ; 74,578 lbs. malt,— making a total, admitted by themselves as brought into the Distillery (other than corn), of 1 ,085,650 lbs. In July they claim to have had on hand, 471 460 lbs ; and they thus leave a balance to be accounted for by them of 614,190 lbs, which, at 17 lbs. to the gallon, represents 36,120 gallons. From corn alone, I showed you that they consumed enough to have manufactured 473,430 gallons, and if to this Ave add the 36,120 gallons, we get 509,550. According to their own statement, therefore, they consumed material more than enough to make the quantity charged against them in the informatiori. To the 509,550 gallons yon must add their admitted balance of 83,000 gallons on Sept. 1st ; and then we get a grand total of 592,550 gallons, from which we have to deduct the 30.592 gallons on hand July 1. If, gentlemen, you become satisfied of the correctness of these state- ments, this defendant ought to account for 5()1,958 gallons, which they must have made and disposed of. Now thse, gentlemen, are figures made from their own admitted statements, with the exception of the car loads of corn, which I can prove to you were brought into the Iiistillery. It appears that some time since — I forget when, exactly — but it was in May or Juno, I think — the (Jovernment receivei;cs are called to speak to the quantity of spirits, ^t is almost iiivariably .^)0 per cent, over proof, and therefore an allowance must be made in the quantity in that re- spect. One thousand gallons of such spirits would be eciual to 1500 gallons on which duty is charged. The Legislature says that proof spirits is to be the test, : if the spirit is less, then it is to be reduced in quantity; if greater it must be increased ; and 1 think you will find in the examination I am now a'oout to institute, that almost all the witnesses will speak of the spirits ns over i)roof. Mr. ALFRED BRUNEL was the first witnest? called. Examined by Mr. Gai.t : — Are you the Inspector of Customs and Excise? I am. The document handed me is the form of stock book to be kept by Distillers, prepared under the Act 27 and 28 Vic, cap. J{, and approved by the Minister of Finance. Hon. J. H. Cameron — Where is the approval of the Minister of Finance to the form of stock book of which you speak ? He approved it in my presence. 20 Hon. J. H. Cameron.— I would submit that the approval in writing of the Minister of Finance is necessary. Mr. Galt. — The statute says nothing about writing. Hon. J. H. Cameron. — The statute distinctly speaks of " regulations." In the 35th sec. it is set forth that " every Distiller, brewer and tobacco manufacturer who ia required to take out a license under this Act, or who carries on any busi- ness subject to excise, shall further keep such stock book and other books and in such form and manner as may be ordered and prescribed by regulations, ap- proved by the Minister of Finance." His Lordship. — Do you object as to the form ? Hon. J. H. Cameron. — I object that the statute 'as not been complied with. We should have proof by the original document of the regulations as prescribed by the Minister of Finance, under which these books have been issued ; and I contend that they cannot be produced here without such original document, or a certified copy. The " regulations" I affirm, must be in writing, and we must either have the original documents or certified copies of such " regulations" and approval ; and then we must have evidence that these stock books were according to these regu- lations. Mr. Qai-t. — My learned friend is mistaken. In the first place the statute is silent with regard to the manner in which the Minister of Finance is to give his approval ; and in the next place the books produced contain all the particulars required under the statute. They were prepared by the Inspector of Customs and Kxcise, by whom they were submitted to the Finance Minister. He, in turn, approved of the form, and it was adopted us containing all the requirements of the statute. Hon. J. H. Cameron. — In reply, we say that if the statute prescribes no form, the form to be adopted certainly cannot depend on the verbal instructions approved of by the Minister of Finance. The statute, we conten 1, never contemplated any such thing. Written regulations were evidently contemplated by the statute. We say that the two steps which ought to have been taken in advance never were taken, and therefore object to ihe introduction of that document, FTis Lordship. — What is the statute? Hon. J. H. Cameron.— The 27th and 28th Vic, chap. 3, see 33, pp. 41. His Lordship. — (To Witness.) — AVera these books given to the different Dis- tillers, and did they use them? Witness. — They were. The forms were prepared in MSR. by me, submitted to the Minister of Finance, who made one or two alterations, and finally approved them. The .TuDOK made an entry of what witness stated. Hon. Mr. Cameron. — The regulations and approval must be in writing. Mr. Brunei has stated there were no such documents. Mr. Galt.— But he has stated that the form produced has been used through- out the country ; that all the books have been kept in this way. His Lordship. — I overrule your objections in the meantime, Mr. Cameron. It strikes me at present that if your client accepted these books as the proper form, it does not lie in his mouth now to say they are not. But I will note the point. grai< stand DistJ my duril temV ofcd 1 diffi' ■i i info 1 Ma 1 tha 1 Bom 1 to] ■ con m Ma his 8U at 21 writing of the gulations." in CO manufacturer ■ies on any busi- ler bool{3 and in regulations, ap- complied witli, 8 prescribed by and I contend t, or a certified ist either have approval ; and to these regu- the statute is 's io give his le particulars Customs and He, in turn, ements of the ibes no form, ODs approved -mplated any the statute. 3 never were >p. 41. ifferent Dis- . submitted y approved ting- Mr. I through- leron. Jt 'per form, I point. Witness. — This other document handed me la the form of stock book for grain. Hon. J. H. Cameron. — To all these documents, we make the same objections. His Lordship. — Of course. Witness. — Both documents were made and distributed under the same circum- stances. I examined the stock books kept by Borst, Halladay Sc Co. at their Distillery frequently. These books were printed according to the form I hold in my hand. I often visited the Maitland Distillery. Was there a number of times during the ten months in which these transactions took place, commencing Sep- tember 1, 1864, and ending July, 1865. Ml'. Galt. — Do you recollect your attention being called officially to any entry of corn made at Maitland during 1865 ? Yes. Would you have the kindness to state the whole transaction ? The first difficulty arose in September, 1864. Say nothing about that. Begin and tell the whole story. I received information that a quantity of grain, consisting of 41 car loads, had arrived at Maitland from Sarnia for Borat, Halladay & Co., it turned out subsequently that it was consigned to some one else. In connection with this, there had been some irregularities in the entries in the Custom House. I proceeded immediately to Maitland to investigate the matter, and found that the' corn had arrived there, consigned to the First National Bank, Detroit. I went to the Station Master at Maitland to make enquiries in reference to it. He said — Hon. Mr. Cambron. — Never mind what he said. WiTNKss. — Very well. I charged Halladay with having received the corn into his Distillery, and he admitted that he had done co. Mr, Galt. — How many car loads were there? 41. The documert in my hand is a copy of Distillery stock book No. 1. Copies were made under my supervision. Mr. Galt. — I wish to show that there is no entry of grain in the stock book at all. (Copies of the grain and spirit stock books were here handed in, and marked respectively " C " and " D.") The JuDOE. — 1 have noted that these copies are used by consent. Hon. Mr. Cameron.— Everything is subject to the first objection. Witness. — The 41 car loads are not entered in the stock book. Mr. Halla- day admitted to me that he received the corn. The quantity and the number ot car loads was named and admitted by him. It was 847,383 lbs. This was admitted to have been taken to the Distillery. At the same time I made a general investigation into the affiiirs of the Distillery (in July, last year), and this satisfied ine that there was some fraud. From ray papers I find that this enquiry com- menced July 3, 1865, and continued several days. His Lordship. — After disposing of the corn, what did you do ? A. I en- quired in reference to other deliveries of grain, and found there had been some delivered — Hon. Mr. Cameron. — My learned friend, Mr. Galt, opened on the 41 car loads of corn, and in this proceeding you cannot take up any other matter. 22 |ti> :i{ I II ;■!' I: ' ? ■ i : i Mr. Galt.— I have not opened on it at all. His Lordship. — Wait till I understand the objeclion. Hon. IVIr. Cameron.— I say whatever has not been charged In the information they cannot give evidence on. His Lordship. — As I understand the charge, it is that yon made a number of false entries in the stock books? Mr. Stephen Eichardb. — That is not the charge. The JuDOE. — And for each of these false entries, he says a certain penalty is due to the Queen. This is evidence. Hon. Mr. Cameron. — I say it is giving evidence of something not charged in the indictment. No false entries of grain are charged iu the information, and hence I say he cannot bring the matter up. Your Lordship will have to rule on the point. Mr. Gai.t— My learned friend's objection has no force. There are two charges. First, that the Defendant distilled and brought into the Distillery certain quantitias ot spirits ; and, secondly, that he removed certain quantities of spirits. My object in proving the material brought in is to show the quantity consumed in the Distil- lery ; and it will be for the ja.y to draw the inference that it was made into spirits. His Lordship. — This is not evidence on which you ask for a penalty. But you give it in order to show that he had material to make the quantity charged ? Mr. Gai.t. — Yes. His Lordship. — I understood you to open the case with the statement, which you said you would prove, that this Defendant sold more spirits than he entered in his books ; and by showing what the quantity of grain received would produce, you would corroborate your statement ? Mr*. Galt.— Yes. The first count is for distilling the whiskey ; the second lor selling it. 1 wish to prove that Halloday consumed an amount of material in the Distillery sufQciont to have made more than double the quantity he returned. His Lordship. — So I understand. You offer to show he had material enough to have niiido all you charge him with. Hon Mr. Cameron. — I do not object to the question being put in another shape. It is not a question of false entry. His Lokdsiiip. — T will note the objection. Mr. Gait opened by stating — " I will show from his books and from the Grand Trunk accounts that Halladay made more spirits than he returned ; and, moreover, he says, I will prove that a certain quan' tity of grain was required to produce it. Now I will give him the largest figure required to produce a gallon of spirits, namely, 17 lbs. of grain, and yet I will prove his receipt of grain enough to make all the spirits 1 charge him with." Hon. Mr. Cameron. I understand that ; and only with that view is the evi- dence admissible. Mr. M. C. Cameron. — Our claim is that no circumstance foreign to the inves- tigation sliouki be Imported into it. Mr. (JiLT. — I have no objection to make the inquiry in the way suggested. (To Witness). In the course of these investigations, did you visit the Grand Trunk Station at Maitland ? I did. as thl did;! iherd unde and I run I bool! 23 tlie information iJe a numbpp of •*ain penalty is not charc-ed in formation, ami have to rule on e two charges, tain quantities 8- My object i in the Distil. 'e into spirits 'ty. But you harged ? ement, whIcL he entered in produce, you he second for ^terial in the urned. ^rial enougb "1 another igf— " I will made more rtJiin quan" ?est %ure yf. — 'I'here might have been someone else interested in getting rid of the books. Mr. Galt. — No ; no. Uis Lordship. — You said you could prove the point irrespective of this testi- mony ? Mr. Galt. — I can ; and for the present 1 will not trouble tlir- (Jourt with it. (To Witness.) Yon say you made an investigation on the 3rd July and discov- ered that these forty-one car-loads had gone into the Distillery ; what did you do after this discovery ? There were, I found, other car loads of corn which came to the Distillery and were not entered. Well, what did you do ? T seized the stock of spirits and grain. What quantity of corn did you find on hand ? I make it up 174,1 1 3 lbs This account was taken July 8, and is arrived at after deducting the cargo of the stock, 922,899 lbs. The (juantity actually on hand was 1,097,012 lbs, corn on July 1. What quantity of oats did you find ? The quantity supposed to be on hand was 246,466 lbs. But I cannot swear positively as to it ; rye, 417,200 lbs.; malt, 30,780 lbs. These quantities were subsequently verified by a person who is in Court. They were made with the consent and assistance of Halladay, Arnold, Wilson and Davis, ft was made up at the period of seizure, when the parties went and measured the grain . I afterwards found the measurement to be incorrect, when a second measurement was made by Striker, Davis and others. Cross-examined by Mr, M. C. Cameron.^ At the time the statement was made to you by Halladay as to the forty-one car-loads, did he say what became of tlie corn? No; he said, generally — you know I have a good deal of corn coming and going, and do not keep account of it. Was any person present ? No. 24 , ■ 1 >! ! SI ■ . ii I m Did you usually communicate witli Halluduy, or any person in his beliall ? Very frequently. On that subject 1 do not romomljer sc^einj? any one except Halladay. Who did you usually see there? Uenerully Halladay; sometimes Arnold; sometimfs Chisholni. When was it that tliese cur loads of corn were received ? Sometime in May. That is in May, iHd.") ? Under date 31st May. Toll U3 what question you put to Halladay in rel'enjnee to this matter ? 1 told him the Station Master admitted to me that the corn did not !>u lo O^^lensbur^'h, as represented. Kalladay then made astulement to me about the c(>rn. It was, that the corn did come irto the JJislillory, and that a great deal of corn came and went which he kept no account of. That was the statement Halladay made to you when you made the enquiry in the tirat place, was it '! No ; 1 spoke to him about it half a dozen times, and he said at first that it was not his ; that it belongeil to some one else. Mr. M. {'. (Jamkro.v. — Oh, this is another .statement about il. WiT.NK.s8. — The difliculty was to get liira to make two statements alike. Mr. .M. (J. Cameron. — It was at your instance this trial came on; do you expect Her Ma.iksty to deal liberally with you ? I expect nothing but Nvhat the la', gives me; nothi'.ig more or less. 'I'he jjrosecution was not at my instance. Do you mean to say that you do not expect to get anything out of this 3180,000? If you were the prosecutor, you would be entitled to half. I do not expect to get anything out of it, or the i)roperty seized. Do you expect to get anything from the liberality of the (Jovornmcnt? No ; the lawyers will eat up the whole of it — (laughter) — unices you can show that the law allows me soniething. If the prosecution is successful, will you make any claim ? You are going a little too fur. I have not the slightest intention of making any claim in the matter. You have at different times made full investigations in reference to this Dis- tillery — you found something wrong there, you say, and reported the matter to the (lovernment in December, 18G4, and then, I understand, commenced proceedings. When did they commence? 1 do not linow. Witness, by reciuest, here read the report he made of the matter, which set forth that Borst, Halladay & Co. had failed to account satisfactorily for the grain which had entered their Distillery — the sales made of their stock showing some 25,000 gallons over the returns. He also read the report of the Commissioner of Custom's and Excise on the case, recommending that proceeding.^ should be taken to make them pay the difference. Examination continued, — I investigated some things which had taken place pre- vious to September 1 . In 1 8G4 the law was changed. The stock books did not come into operation till September 1, 18G4, therefore I did not make use of any of this information. These enquiries extended from the commencement of the Distillery till September, 1864 ; and by their own admission of the quantity of grain brought in, 40,000 bushels were unaccounted for. ^ )n in his behalf? any onu except iiietiines Arnold; ictinie in May. ) ruattor ? I told to O^riicnsburs/h, "'corn. I), wuH, »!' Corn (;anie and li.' tlie oi'quiry in :en times, and he nts alike, nin on ; do you g but wliat the my instance, liing out of this to Iiair. I do <<' o von m lent? you I'an show ou are going a ly claim in tlie ce to tliis Dis- matter to the proceedings. ter, which set for the grain hewing some nmissioner of )uld be taken en place pre- did not come ; use of any iment of the quantity of 25 Afcor that, it appears, they were allowed to take out a license again ? Ye?. At the time, nothing aeemed wrong as to the apparatus so that we had no power to refuse a license. Mr. Wilson was the iJoJlector of Inland Revenue there. VVIien I went to the Distillery at different times, I examined the apparatus and did not find anything wrong. Mr. Oalt. — What e.\amination liave you referred to? Made in September. la64. Did you make subsequent examinations ? Yes. When ? In August, July and June. And did you find everything right? Apparently so, in reference to the Dis- tillery apparatus. Previous to September 1, 1864, investigations showed that 40,U00 bushels of grain had been unaccounted for. Mr. Cameron asked me did I at that time e.xamine the apparatus. Hon. Mr. Cameron. — At that, or at any time ? I examined the appar&tus in July or August. Mr. Uai.t.— Do you mean to say that in September, 18C4, you made an examination of the utensils and apparatus of the Distillery? I did not mea- sure them. Then you did not examine them? The question is, did you examine the utensils of the Distillery in 1864? I examined, but did not measure them till August, 1805. Hon. Mr. Cameron. — My learned friend (Mr. M. C. Cameron) simply asked the question in referen/:e to the apparatus. We did not ask anything in reference to the mash-tub. Mr. Gai.t. — Then let it be understood that hi.s examination was confined to this. Mr. M. C. Cameron — (to witness) — Was the first measurement of these vessels made under the authority of the officer of customs ? Mr. Wilson, the officer of excise, stated that he had not made it. Davis informed me that he had mea- sured the close receivers. I was told that they were measured. Hon. M. Cameron. — It \i\ clear that the apparatus only was spoken of ; and not the tubs. JOHN DUMBRILL, examinei] by Mr. 'r alt. — Yon were station-master at Maitland ? Yes. I was appointed about a month after the opening of the road to Brockville, and continued till February 18, 1865. Look at the way-bill book for Pointe St. (-harles — (produced). In whose handwriting are the entries made? Thomas Bowker. He was jjorter at the Maitland station, and made out all th6 way-bills. Were there goods forwarded to answer the entries in this book ? Every entry. (Witness here called off" the entries, which were verified with the copies put into Court, and found correct.) Who was the consignor of the goods ? Ilalladay & Co. llow do you know whether the casks here mentioned contained spirits or not ? Only by the shipping bill. On the 9th September do you see there a shipment of what purports to be two barrels of whiskey ? Yes. 3 26 I 1 Hon. Mr. Cameron. — I do not admit this iia evidence. It is merely a state- ment that ho examined the books of the person who Itept them. Mr. Galt. — If my learned friend would have the kindness to wait a few minuutca, and give me credit for knowing what I am about, wo would get along faster. Hon. Mr. Cameron. — We do not wish our case to be prejudiced in any way. Witness. — The spirits were brought tlwre by the teams of Borst, Halladay Sc Co., or teams they hiral. There is no Distillery in the noighbouriiood of Mait- land nearer than Pre.scott. The freight mentioned in these bills is all outward. (Here witness read the list, which wiis put in) Under date Ocober 1.*), I find— E. F. HudoD & Co., 21 puncheons of .spirits ; November 27, P. Arnold, 21 puncheons of spirits ; November 9, E. F. Hudon & Co., 21 puncheons ; Novem- ber 14, * * * •* * M. J. Borst, 21 puncheons of spirits ; November 22, M.J. Borst, 21 puncheons of spirits; November 23, M. J. Borst, 10 puncheons, 30 barrels spirits ; November 25, M. J. Borst, 20 puncheons spirits, 5 barrels old rye ; November 29tb, 15 puncheons spirits, 15 barrels whiskey, to M. J. Borst. Mr. Galt. — Were you acquainted with Mr. Borst? He was Mr. llalladay'a partner — was he not 7 Witness. — Mr. Borst was Mr. Halladay's partner. On the 29th 1 find Borst Halladay & Co., 21 puncheons. * * * Some were also consigned to Mr. H. Chisholm. Mr. Galt.^WLo is the Mr. H. Chisholm mentioned ? 'I'here is a Mr. Chisholm, Borst, Halladay & Co.'s book-keeper ; I suppose that to be the same man. Do you know anything of a person named lieid ? Is there any one of the name in Maitland ? Not that I know of. Mr. Galt (to the Judge). — A very great deal turns on this ; as no less than 25 car loads are sent to this person who has no existence. Witness continued to check the list which was put in and marked " E." Mr. Galt. — Look at the Railway book for Point Levi. Witness did so, and read a list of the entries from September G, 18G4, to the number " 1707." The first entry was a consignment of 21 puncheons spirits to Tessier & Ledroit ; the next, under date 24th, to P. Arnold, 21 puncheons spirits. I always understood P. Arnold was agent for the firm. The next was in October, Laird & Co., 21 puncheons spirits ; the next, Feb. 8, 1865, another consignment to Tessier & Ledroit. Who was in the habit of making the shipments ? Sometimes the carters ; sometimes Mr. Chisholm. Hon. Mr. Cameron. — Witness does not know whence they came. (To Wit- ness.) Do you mean to swear that all these goods were brought by Halladay's teams ? I have seen the shipping bills, and liuow that the men were hired by Halladay & Co. Hon. Mr. Ca.meron. — He neither knows of his own knowledge, from whence they came, what they contained, or where they were going. Mr. Galt. — I proposa to call a dozen witnesses, or as many as my learned friends choose, to prove the matter in this way, and then I will do so generally. Sepj 27 Jerely a state- > wait a few i«I yon reside ? Montrral. What is your employnieril ' I rect'lve the cars Ironi thu West. Do you kirp any l)ooI< l)y which you clit'clv out ? Ye.H. Will you get the hook that you kept in iHOl.aud look at the entry dated Sept. 10. Do you find any entry with regard to ('ar No. 3261 ? Ills Lordship. — What is the object? Mr. Gai.t. — I want to prove by the witness the arrival of the goods in Mon- treal ; and then I shall prove of what they consisled. WiT.NKss. — 32bL contained 2 barrels of whiskey. On way-ltill 8'J 1 find 21 puncheons spirit? and 8 barrels rye. Look at pp.132. What do you find? I find .10 barrels rye wliiskey ; Cur 11)21, way-bill No. 90, 50 barrels rye. Look at pp. 18.'), Car 2882, 21 punclieons spirits. Look at pp. 220, Car 24.')4, 21 puncheons spirits, bill iO. Ills Lordship, in o.xplanution, stated that witness here read the number of the ear, way-bill and its contents, which Mr. Clalt checked on Schedule " E." Mr. Gai.t. — I propose to do this, because there is no use going through every one, and asking have you examined the way-bill in the Schedule to which your initials are attached. (To Witness.) Have you cxamii^ed the documents care- fully ? Yes ; they are correct. Mr. Gai.t. — It is quite unneceesary, I submit, to go throtigh them. To save time I bad these lists made out ot Court. Crns.t-exaininatwn by Mr. M. C. Camrron. — What is the manner in which you check these things ? Out of the cars as they come. What do you check in ? In the books. Do you find the entry in the books? Yes; the night clerk makes the entry. At what time ? All night. Then you check over the entry made in the book, to see wiietlier the things coming from the car correspond ? Yes ; and if anything turns out whi«ih renders it necessary, we go to the way-bill. Then you do not .see the way-bill '! 1 do ; but d ) not always check the way-bill with the book. That is at Montreal ? Yes. Mr. Calt. — That book is a copy of the way-bill to Montreal ; and I will pro- du(;e as many books as you like to verify it. His iiORDSHip. — As the goods come out of the car, witness checks them by the books ; but he says the goods there cliarged he did seo. come from the cars correctly. Mr. tiAi.T. — Yea. A. O. II. HUDDELFj, examined by Mr. Gai.t. — AVhere do you reside? At Montreal. What is your occupation ? At the time between Marcli and April, ISfiS, I was checker. Mr. M. C. Cameron. — This is subsequent to any evidence yet. 28 , t 'I I Hi« Lordship— (To Mr. Oai.t.)— How far did the lost witnesa verify your copies ? Mr. Gai-t. — All of the documents produced— as fis;' down as Murch 11. lion. Mr. (^AMEnoN. — That is a montli iafei' Ihnn tlio prccodinj? witnesu. Mr. M. 0. (Jamrrox— ( To Mr. Uai.t.) - You be^an iit Muitlurid in February, and ought to continuo it. Mr. Oalt. — I hope my learned friend will liavj u littl»! ])ati(.>n('C. His LoRDSHii'— (To .Mr. (Iai.t.)— You are the leader ; thviv are three or four counsel on each flide ; and you, perhaps, know well that thew) interruptions are intended to " help" you a little. (Laughter.) Mr. Oalt. — Yes, my Lord. Witness. — I checked out t lie goods mentioned in the Sfhed'ili.- pcKlmcd, be- tween the 22nd March and the 12th April. Mr. M. 0. Camrron.— Did you adopt the same plan as Mr. i'lu-kett? Yos. Mr. Galt. — Have you seen the way-bills sine you <■ '\i\o hero? J have. PETER OWENS examined by Mr. Gai.t.— 1 reside at Montreal, and am freight receiver there. I began April 12th, nnd have continued c or .since. Have you examined the entries n-ade in the left hand column of this Schedule? Yes ; those I have initialed were handed in. I did not sec the books since I came to Toronto. ALPHONSE DOUTRE examined by Mr. Gai,t.--Do you produce the way- bills of the Grand 'IVunk Railway Company ? I do ; from Sept. 1, 'C4, to July 1, 1865. Would you produce the way-bill of February, 1865, No. 20 ? I produce it. Cross-examined by Mr. M. C. Cameron. — What id your duty on the Grand Truiik ? Receiving Cleik in the Grand Trunk freight department, Montreal, at Point dt. Charles. I am merely to examine the way-bill, in casje difficulty arises. You do not know for a fact that the books produced are the Grand Trunk books ? I do and have compared the entries with the corresponding waj'-bills ; the book in which the way-bills are pasted lies in the office under charge of an agent ; a little boy pastes them in. Then you made no entries in the books ? No. J. HE BERT, examined by Mr. Galt :— What ia your occupation? I am Conductor on the Grand IVuuk Railroad. Were you so in February last ? I was. Would you look at way-bill No 26, car 1577. Is your name on the back of that way-bill ? It ia. Do you recognize it as havin%' boc", one ' ..) your postsession ? Yes, in February last. Where did you get it ? At Maitland. What did you do with it ? Took it to Montreal. I also delivered the car «« Montreal. Would you have the kindness to turn up way-bill 869 ? I have done so. Now, Mr. Conductor, did you ever see that bill before? Yes. Turn to " progressive " number 868 for February. I do so. We have " pro- gressive " numbers for each month. M ^ verify your ch 11. witnesH. in February, tlireeor four Tiiptions ure |j. 'Iii- L(I, be- kett ? VcH. I have, wal, and am since. 13 Schedule '! since I came uce the way- i. to July 1, •roduce it. the Grand ^lontreal, at cn'ty arisen, and Trunk way-bills ; liargeofan ailroad. e back of February le car it so. e "pro- Pid you ever ««• way-bill 869 before. Ye«. How do J- 111 know? Mocauso it has my Rif(nature. Kttv*^ you examirio ? Yes ; for the purposes of this trial. f »'> you roconiii/'^ any of these (showinff witnpss way-bills) ? Yes, by my «lg- naturo unfl me-noranduni book. Have you oxamined tho list pro«laccd carefully? andean you say that the entries opposite to which your initial.^ an;, aro correct or not ? Yea, they are. You brought down tlu^ cars represented here ? Yes. Ills LoRDRiirp.— You never opened the cars? No. Mr. Gai-t.— Of coursn the Conductor knows nothinj? of what is in the car. Witness. — I delivered the cars with the way-bills in Montreal. Mr. (fALT. — All you have to do is to check the cars and see that the numbers correspond with the bills? Yes, You have private memorandmns of your own? Yes; 1 have examined my private books, and And that in ail cases I brought down the car^ currespondinfc to these numbers. Hon. Mr. Cameron. — la that endorsement of your name in your bandwritiDg ? Yes. JOHN STEWART examined by Mr. Galt. (Mr. DOUTRE, at request of Mr. Galt, turned up way-bill No. 125 for March.) Mr. Galt (to Witness). — What is your business? Conductor on the Grand Trunk Railroad. Look at way-bill 125, progressive number for Marcli. Yes ; the number of car is 876. Know the bill by my signature. Brought it to Montreal with the cars. Your name is opposite a good many entries ; have you carefully examined each? Yes. I examined the list b} I lie way-bills and my own memorandums, and swear that I brought each car to Montreal answering to the list here. HUGH ROBERT FRASER e.xarained by Mr. Galt.— What la your occu- pation ? I am Conductor on the Grand Trunk. Look at progressive No. 1151 for November, 1864 (addressing Mr. Doutre), and hand it to witness. Mr. Doutre did so. To WiTNE.ss. — Did you ever see that way-bill before ? Yes. How do you know ? By my name on the back. You did not bring down many oF the car loads entered on the list ? No. Have you examined the list carefully ? Yes ; and will swear that I brought down the cars mentioned here opposite to which my initials are placed. Mr. M. C. (Jameron. — And you also examined them by your memorandum book ? Where is it ? In my pocket. It is a private memorandum book. J. W. STAVELY examined by Mr. Galt.— What is your occupation? Conductor on the Grand Trunk. (Mr. DOUTRE, at request of Mr, Galt, looked up way-bill, progressive No. 772, and handed it to witness.) 30 Did you ever see that way-bill before ? T have not. IjOoU at your hook, ani see if you ever saw it bciore I have a metnoranflum of oar 3149 from Mnitland to Montroal. I took it iluwn to I\Iontreal,aud that was the car of which 772 was the way-bill. At what time ? Heceiiibor Ifi, 1864. Look at way-hill, projjressive No. 2, March. 186'>. Did you ever see that before? Ves. F recognize it by my signature on the back. Have you seen this list (handing witness the schedule already referred to) ? Ye,s, and have carefully examined the items to which my initials are attached. I brought th(! curs down to Montreal which are represented there. Know nothing of their contents. J. HKBERT recalled ; examined by Mr. Galt. — Have you examined this list with the way-bills? (.Mr. Gai-t to His LoKr>Hnip.--'l'hese are cars brought to ISfoiitrcal, but sent to Quebec. These Conductors only bring them as far as Montreal.) You do not run beyond Montreal ? I brought the way-bills from AFaitland to Montreal. Mr. M. C. Oamero.n. — Do you put your name on the back of those going to Quebec ? Yes. Hrs LoRDSHir. — Your name or initials ? I put my name. Mr. M. C ('amero.v. — If you take them no further than Montreal, how is not the name of another ('onductor on the back? I do not know. Our orders are to sign all our way-bills. 1 do not know what the practice is at the eastern end. Mr. (tai.t. — I'ou have examined all the way bills to which yoU put your initials. Yes ; and will swear that I brought all tlie cars thus represented from Maitland to Montreal. MR. J. W. STAVELY recalled and examined by Mr. Gai,t.—T have ex- amined the list produced, and know that I brought the cars mentioned in it from Maitland to Montreal. Mr. M. C. Cameron. — You do not know what niunber of names were put in after you saw the list ; nor how long the goods remained in Montreal ? No. JOHN STEWART recalled, examined by Mr. Gai.t.— Have you examined the list produced ? Yes; I brought down such of the cars mentioned in it from Maitland to Montreal, as have my initials attached to them there. Mr. Galt (to the Judgk.) — Now that stock book, my lord, is admitted so far. His Lordship. — What stock book ? Mr. Galt. — The spirit stock book. His Lordship. — How is it admitted ? Hon. Mr. Cameron. — We allowed a copy to go in. Mr. Galt. — I propose to show that there were consigned to James Holi- day & Bros., 1000 puncheons of spirits, not one of which appeared in the stock book of Borst, Halladay & Co. ALEXANDER KYLE examined by Mr. Galt.- -Are you in the employ of James Holiday & Bro., Montreal ? I am, — they are warehousemen. In what capacity do you act ? Clerk. betj ent| to delJ doJ one 31 memoranrJum . aad that was Pver see that referrefl to) 7 "ttachefl. r ''': they choose at any time to bring information. Mr. Richards. — For every neglect to enter in the stock book the Oown can recover one penalty and three times the value of the spirits not entered. HisTjOrdship. — At present I think the Crown can recover. Examination of Mr. ALEX. KYLE resumed bi/ Mr. Galt. — Between Sep- tember 1, 1864, and July 1, 1865, what quantity of spirits consigned to you from Borst, Halladay & Co. was received in the stores of James Holiday k Bro. ? One thousand puncheons. What is the average contents of a puncheon of spirits ? They vary greatly ; ranging from 100 to 130 gallons. Could not exactly state the average of these. The spirits was delivered to parties in the city. Were "orders given for the delivery ? On some occasions I got orders. (Wit- ness produced the warehouse receipts.) Are you acquainted with the signature of Borst, Halliday «fe Co.? Yes; I think the document shown me bears >[r. Halladay's signature. The order pro- duced was for 105 puncheons of high wines 'or Borst, Halladay & Co. Mr. Arnold got the spirits on the order of Borst, Halladay & Co. Mr. Gai.t. — Here is another warehouse receipt, dated Dec. 8, 1864, for 102 puncheons high wines belonging to Borst, Halladay & Co. To whom was that delivered ? Could not say. It is endorsed Borst, Halladay & Co. ? The spirit was delivered out on an order, to Borst, Halladay & Co. I put in an order of the 16th Dec, 1864. ,j^To Witness.) If a person brought you that order would you deliver up the spirits ? Yes. 'I'his order was for 105 puncheons. The next is dated March 2, 1865, 209 puncheons. To whom were these delivered ? Cannot say. There is the endorsement of Borst, Halliday A; Co. on the back of it. Then here is another, dated April 20, 1865, for 105 puncheons ; and the next is of tiie 17th April, for 42 puncheons high wines. Were these delivered ? Yes. Here is one of the 26th June, 1865, for 42 puncheons high wineu ; again, on June 29, 1865, 105 puncheons. It reads thus : — puncfl 11 U ber, man; ncheons were t a penalty of the article of (Entered, the >n-entry takes 'gcd only one ot add these be }'«u. The recovered. first paying aifl I think present view quantity on Crown I can twcen Sep. ^ joii from 3ro.? One ry greatly ; re of these. rs. (Wit. ^ Ves; I order pro- r- Arnold t. for 102 was that 't on an brought 65, 209 Thon I of tlie ain, on 33 •'March 24, 1865. " Messrs. Holiday & Bro. " Please deliver to our order 105 puncheons of spirits, and oblige " BoRST, Halladay & Co. " Per Arnold." That is an order for delivery. Here is another dated December 28 : " Messrs. Holiday & Bro. "Yoii will please deliver to Messrs. Middleton & Laidlaw 21 puncheons of spirits." Witness. — The order for the 105 puncheons is contained on one of the receipts. What was the strength of that spirit ? Cannot say. Do you know the strength of high wines ? 50 over proof (o. p.) How many barrels did you deliver out of that store between the 1st Septem- ber, I8r»4, and the 1st July, 1865 ? You say you received 1000 puncheons. How many did you deliver? We delivered all. Cross-examined by Mr, M. C. Cameron. — WcrcBorst. Halladay & Co. in the habit of storing with you ? Yes. They engaged the store. D. was partly their own storehouse ; and what they stored was as in their own store. Before Sep- tember 1 they had a quantity there. His Lordship. — How many of the 1.000 puncheons had been received and were there before September 1 ? The 1 ,000 puncheons came in after September 1. What did you get before? 221 puncheons. Mr. M. C. Cameron. — Were they only storing with you for one year ? They commenced in July, 1864. How did thase puncheons come to the store ? By the Grand Trunk carters generally. I think nearly the whole of it. I was not the person who used to receive it ; but knew how it came, because we had to give acknowledgments to those from whom we received it. Ti> whom did you give these warehouse receipts ? To the carters. Has Halladay an establishment in Montreal for the sale of liquors ? [ think Middleton sold for him and some on his own account. I know that Borst, Halladay &, Co. had liquor stored with us. Never tested its quality. Do not know whether or not it was 50 o. p. The receipts produced do not denote the time I received the quantity. The case was simply, if I had the quantity in store they called for, I gave it out. JOHN MACDONALD examined by Mr. Anderson. — You are a merchant residing in Montreal, I believe ? Yes. Did you, between September 1, 1864, and July 1, 1865, receive spirits from the Maitland Distillery? Yes. Can you tell us what quantity? Witness (after looking up his invoices, paid) — 1 only received two loads.. One on the 4th January, 21 puncheons, and one on the 4ih June, 1865, 42 puncheons. What number of gallons would tiiey together make up ? Between 6,000 and 7,000 gallons. 'I'hcy make up 7,445 gallons. What strength was it ? I bought it for 50 o. p. ;.!■ 34 1 •• "i I : That'wonld be equal to one-half more of proof spirits ? Yes. How clid you get it ? The first load was direct from Maitland, and the other from Holiday & Bro., on Arnold's order. These arc the only two purchases I made direct, and that the strength. Mr. M. C. Cambron.— How did you test the strength ? By McCarthy, the cooper. How did he do it? In the usual w-iy. According to Syke's hydrometer the strength appeared to have heen correctly stated. He put the hydrometer in and another instrument. Mr. (iAt.T. — Are these your invoices— (producing them) ? The- handwriting on one is that of Mr. P. Arnold, agent for Borst, Halladay & Co. Also on this other. It reads : " Mr. J. McDonald, " Bo't of Borst, Halladay & Co., " 21 puncheons 50 o. p. spirits, 80c." It is signed Borst, Halladay & Co., per Arnold. JOHN ELLfO T T, examined by Mr. Galt. — Did you buy any spirits from Borst, Halladay & Co. between September, 1864, and July, 1865? Yes. Here are my invoices. The signature on one is that of Mr. P. Arnold. It is signed Borst, Halladay & Co., per Arnold. Mr. Galt (reading from invoices).— It is dated May 15, 1865, and is for 2,664 gallons. Of what strength ? I bought it for 50 o. p. M. Galt. — That would be in proof gallons 3,996 gallons ? The next is dated May 1, 1865, and is for 20 barrels lye, 974 gallons ; strength about 30 u. p., or about 680 gallons' proof. Yes. On the 27th April how much did you purchase? .50 puncheons, equal to 5,988 50 0. p. Who did you pay tor it? Mr. Arnold, for Borst, Halladay & Co, On the 23rd March, 1865, there were 21 puncheons, 2,508 gallons, amounting to 3,762 gallons proof spirits. Yes. On the 17th March 21 puncheons, 2,487 gallons, 50 o. p.; equal to 3,730 gallons. To whom did you pay for this ? Borst, Halladay & Co., per Arnold. The next was on the 9th .March, bought of Fiorst, Halladay & Co., 55 barrels, containing 2,618 gallons, 50 o. p., amounting to 3,927 gallons? Yes. The next was on the 7th January, 1865, liought of Borst, Halladay er Arnold, who receipted for the payment in all these instances. May 6, 20 puncheons, 2,350 gallons, 50 o. p. ; payment receipted per Arnold; 13th June, 1865, 21 puncheons, 2,486 gallons, 50 o. p.; also with Arnold's receipt of payment; Jane 19,1865, 100 puncheons, 11859 gallons, 49 o. p., equal toll,779 gallons, 60 o. p. ; payment receipted in same way. Got this lot from Borst. In proof gallons the total amount would be 50,836. Mr. Galt. — (To opposite Counsel) — Do you consent to these Gentlemen (wit- nesses) giving evidence now in this way, and leaving their invoices in .rwhiAey? Ye,. By 30 i''iUdo.sj?oucs(..|/'y '-•'j'ot(Jisti„c;|y" 'aes distinctly. ^'"■"k llie rate '«fs7 Tjjut iSOO^-eara >'n reeollec- ■ "'Stance it iiect from ^^fy thnu lied fi oin ""■•^'gned 'ufid. i of tbe Yes. Since the 1st of Sept., 18C4 ? Yes. What was the first time then? From my inv ' h I sou it wuh on thclTlh Oct., 18G4, 21 puncheons. .50 o. p., '2,41/8 gals. net. Next? On the 20tli Feb., 180.'), 21 pnnclieons, 50 o. p., 2,409 gain. Next? March 8, 1805, 42 pnnclieons, 50 o. p., 4,'JII4 gala. 'I'hen, May I3lh, 21 puncheons, 50 o. p., 2,533 gals. What is the total number of f,'al8. ? His Lordsiiu'. — 18,696 proof. Mr. IIarktho.v. — Are these the original invoices ? Vos. Prom whom did you mako your purchases? I'artiy from Arnold and partly by co'Tespondence with liorst, Halladay & Co., at Maitland. Which of these was by corrcspondoucc ? The three first ; the last, to th»i best of my recollection, was made with Arnold. Could not say where the last one came from. Hia LoKDsnip. — Did they como by the cars from Maitland ? Cannot tell how the last came. Cross-examined Inj Mr. M. (J. Cameron. — Did you make the bargain yourself ? I think the letters were written by me. Do you know tlie strength of the Hplrits? 1 tested it myself in several instances, and found it 50 o. p., except in one small instance. When the spirit was received we generally tested it in the office. What process did you put it through in testing it ? I first took the temperature of the spirit, and then put in the hydrometer. I generally took a sample out of live. In only one of the invoices is there anything said about its being o. p. ? Can you say you tested any except the particular one professing to be o. p. ? Yes. Which ? The 42 pnncheons. When ? In March. Had you been dealing with this firm before ? Yes, through Arnold. Did he call on you to solicit orders ? Generally. And you do not know their whiskey from any other ? No. Mr. N. (j. MOUNTAIN examined by Mr. Hauriso.v.- -Are you son of N. G. Mountain, Quebec ? Yes. What is your father V Merchant in Quebec. Haa he had any transactions with Borst, Halladay & Co. since Sept., 1864 ? He had, on May 5, 1864. Mr. Harrison — (to Witness). — We are talking of since Sept. Let me see your invoices. (Invoices produced.) In whose handwriting is that memoran- dum produced ? My father's. These are the only two invoices I have. Mr. M. C. Cameron. — Why did you give him his father's handwriting ? Mr. Harrison. — I did so to help his memory— not to make evidence. (To Witness.) These invoices are both in May ? Yes. Mr. M. C. Cameron. — Did you ever, on the contrary, instead of buying, sell them any liquor ? I do not believe we ever did. EDWARD CAHILL examined by Mr. Harrison. — Are you a member of the firm of Robt. Shaw & Co. ? Yes. 40 Hi i i ' a "i Yon do husines^ an mercliuntH in Quebec ? Yes. Hum IliiU firm lind any transiictioiis with Bor^t. Ilalladay & Co. aliicoSept., 1864 ? Yi'H ; the first woa on Si'pt. 30, 10 pnnclioonH spirifH, :>0 o. p., 1 .1 A'i ^'iiIh. Next? 23rd May, IPO;'), 10 puncheons, 50 o. p., 1,'2'2(> >,'alrf. Total? •2,3.'-)8 gals. Have you the invoices? Ye.**. From whom was tiiis spirits purchased ? From ArnoiJ. From what plact. ? Cannot say. Did you receive any advice notes with it ' No ; it was delivered to us at Quebec. Ctoss-examined bji Mr. M. C. Camerov.— Did you buy it in your establish- ment ? Yes. Hud Borst, ilalladay & Co. a warehouse at Quebec? Yes. Arnold told me tbey had a store. Part of it came from that store. Did you speak from the invoices or your recollection of the transa^-'lion when you spoke of 50 o. p. ? From the invoices. Do the invoices represent it as o. p.? T speak from the transactions in thut matter. The papers do not express it to be o. p. Did you make both purchases ? Yes ; from Arnold, and he gave me to under8tu'.id he had a store at Quebef. HENRY GLASS examined by Mr. Harrison. — Are you member of the Arm of Langhiis it Glass? Yea. Merchants at Quebec ? Yes. Had you any transactions with Borst, Halladay & Co. since Sept., 18G4? Only one ; on the 15th May, 18G5, 21 puncheons, 50 o. p., 2,499 gala. His Lorushij*. — From wliom did you buy it ? From Arnold. Mr. HAHiiisoN. — Do you know from what place it came? No : except that it came trom the Grand Trunk Did Arnold tell you where the whiskey wad mauufuctured? No; -but it was represented as Borst, Halladay & Co.'s whiskey. Did he represent it as such on any occasion ? He often explained that it was manufactured at Maitlaud. 'I'liis was in other transactions. Mr. Rr'Hahds. — Did he make any represeiitation with regard to this spirits? No. Mr. Harrison. — But it was understood all the time? Yes. PETER ARNOLD, examined by Mr. Gai.t.— Where do you reside? At Maitland. Did you act as agent for Borst. Halladay tf gallons. In the stock book it is 16,430 gallons. The next is for the last half of Afarch. It is signed in the same way, and is for 18,584 gal- lons. In the stock book the entry is 18,584 gallons. The next return is for the first half of April. It is signed in the same way, and is for 15,533i®(?5 gallons. In the stock book, it is 15,533 gallons. (Putin, and marked " H 1.^).") The next return is lor the last half of April, signed in same way, and is for 10,6971^5 gal- lons. In the stock book the entry is 10,698. The next return is for the first half of May, is sworn to in same way, and is for ll,258i'i5'{j gallons. The stock book gives 11,258. The next is for the last half of May, is signed same way, and is for 13,274 gallons ; same in stock book. The next is for the first half of June, signed as before, the number of gallons ll,511i5u ; stock books , 11,51 1 . Then the second half of June, 10,984^^% gallons ; stock book, 10,984 gallons. Then the first half of July, signed as before, for 9,2^Q^^^ gallons ; stock book, no entry. Ifalladay'n hanVsV ^ai- e first half :ock book and is for Qe, signed lie second first half 4 4:i Mr. Oalt. — I want to prove the entries that appear in the ?tocl< book. (To witnes.s.) — llavo the goodiKMs cureliilly to look through thin book and see whethrr your name appears, and if it ilocs, say so. (To the Court.)— I have now proved the spirits returned uh takt'ii from the cIohc receiver ; and I want next to prove what they took credit for, to whom sold or transferred, mode of conveyance, wliere warehoused, Ac. WiTNKss haviiijif looked ut the documents liatided h'.n, said :~There ia ()D« entry. Mr. (iALT.— Oh, that ia to Maitland. I mean to Montreal or Quebec. .See it any other tjuantity appears entered to you in the stock book, i do not see any. 'I'here ia only an entry of a small (fuantity of whiskey for my own use. Are you acquainted with a person named W. Ileid ? I am not. Did you ever see that order before? (handing witness order) — Is that not your own writing? 1 think I have seen i», before. It is not my writing. Mr. GAt,T.— This is an order in the folljwinij terms :— "Grand Trunk Railway. " Fluuse deliver to P. Arnold what whiskey may be consigned to me. " (Signed) W. BEID. " IMaitland, January 21, 1865." Mr. Galt. — Uo you find \V. Reid's name or the name of Holiday & Bro. entered in the stock book ? 1 .see " J. W. Read, 150 packages." That is not the same name. You do not see W. Iteid's name ? 1 do not. Do you see the name of Holiday & Bro. *' I do not. His Lordship. — You see no entry in the stock book of a sale to W. Reid or Holiday A Bro. ? I do not. Mr. Gai.t. — liOok at this receipt. It is dated January 21, 1865„Graud Trunk Railway. Did you ever .see that before ? It is my handwriting. Mr. Galt. — It is an order for the delivery of 21 puncheons of spirits consigned to W. Reid, Montreal. The order is from Borst, Halladay & Co. WiTNKSs. — The order to deliver to Cuvilier & Co. or order (part of the docu- ment) is in my handwriting. Mr. Gai.t. — You received those spirits? Yes. What wa^ the strength ? They usually run about 50 o. p. That is what we sold them lor. (Document put in, and marked *' K 1.") Look at this (handing him another document, marked " K ^.") Is that your handwriting? Yes. It is : " Grand Trunk Railway, January 23, 1865. Received from Borst, Halla- day & Co. the undermentioned property, in apparent good order, 21 puncheons of spirits for delivery to W. Rc'd, Montreal." This is a receipt note which is endorsed over and sent t) the consignees. Was not that order which was read the one on which you got that and all other consignments made to W. Reid ? I could not fay. Was it not on that order that you got these 21 puncheons spirits ? If not, on what authority ? I cannot say whether there was more than the one order or not. 44 Unless on that order, what business had you to receiv; the spirits ? I might have had another order. Who was W. Reid ? I do not know who he was. He was an American who bought a lot of liquor from us. Did you ever see him ? No. Did you receive many packages of spirits consigned to him ? I did. His Lordship.— Any definite number ? No reply. Mr. Galt.— Under whose instructions did you receive these spirits, Mr. Arnold ? Instructioiia from Borst, Halladay & Co., to receive, sell and keep the proceeds of them separate from other sales. Those spirits, I presume, were bought from Borst, Halladay & Co. ? Yes. Is that the order on which you received the spirits consigned to W. Reid ? I could not say whether I received any on it or not ? I did receive an order from Reid, but cannot say whether this is it or not. Did you ever receive any other order of Reid's but the first one showed you, signed by Reid ? I could not say I received even this order. You received the spirits consigned to W, Tleid ? Yes. That will do : whether you received them on the order or not. WrrNKSS.— In these cases the bills either were endorsed to me, or there was an order or orders. What was the average size of the puncheons? They usually run from 112 to 132. Strength ? Usually 50 o. p. - some 20 under. Mr. Galt— (to the Judge).— Has your Lordship got the quantity of the second order I produced— 21 puncheons? The date of this next one is January 23, 1865. It is—" Received from Borst, Halladay & Co. the undermentioned property, addressed to W. Reid, Montreal." (Document put in.) Witness. — I received the 21 puncheons mentioned and sold them. To His LoRCSHif . — I was to send the proceeds of the sale back to Borat, Halladay & Co., and they were to communicate with Reid. Mr. Galt. — That makes 63 puncheons spirits, so far. Look at this (hand- ing witness document marked " K. 3,"). — It is the same sort of document, for 21 puncheons. I received the spirits. Here is another (marked " K 4."). It is for 21 puncheons. 1 received and Bold them. His Lordship. — A car load ? Yes. Mr. Galt. — Here is one (marked " K 5,") for 21 puncheons ; and another (" K 6,") for 21 puncheons, 5 barrels, all consigned to Reid. I received it all, I think — that is, gave orders for it. Here is another (" K 7,") for 21 puncheons, 5 barrels ; another (" K 8,") 21 puncheons ; (•' K 9,") 21 puncheons and 2 kegs old rye. Did you receive these ? Could not say. No doubt I did. You have got an order for the whole. Have you any doubt you received it ? I think I received it. Could not say positively. Here again — (" K 10,") — 21 puncheons. Do you believe you received that ? I thiok I did. 45 >'"ts? I might American who I did. Mr- Arnold ? the proceeds of h.? Yea. W. Reid? I an order from > showed yoa, there was an 112 to 132. 'f' the second ^J' 23, 1865. ^ property, a. ^ to Borat, his (haud- »ment, Ibr sived and another ed it all, 8/') 21 these ? iceived f that t " K. 11," 21 puncheons. Any doubt as to receiving that ? I think I received them. " K. 12 " is different. It is an advice note to Reid of the arrival of spirits, on which Arnold writes to deliver them to a person in Montreal, E. Hudon. Now, I am going to put in a number of other similar documents, all of them specifying quantities of spirits consigned to Arnold himself. WiTNKss.— I could not say how many puncheons I received in this way. 1 had shipped to me a large quantity on which a large amount of duty was paid- 1 got the 21 puncheons mentioned in " L. 1." Unless some of the other docu- ments put in contained the number of the car, t got that quantity in addition to the rest. 1 also received and sold, 1 believe, the 21 puncheons mentioned in " L. 2," and the same ((uantity mentioned in " L. 3." Either myself or Borst received them. To His LoRDSHrr--A cask ia usually 50 gallons, but I think all these consign- ments were puncheons. Mr. Gai.t then handed witness the documents " L. 4 " to " L. 9," each of which speciBed 21 puncheons, consigned to Arnold. WiTNERR.-" L. 10 " was for 20 puncheons ; " L. 11 " and " L. 12," 21 pun- cheons each; " L. 13," 20 puncheons and 10 barrels ; "L. 14," 21 casks, 3 barrels; " L. 15 " to " Tj. 24," 21 puncheons each, i did not receive this whiskey. Mr. Galt.~No ; but you disposed of the whiskey it represents. Witness.— L. 25, 21 puncheons ; L. 2G, 55 barrels, about 1,112 gallons, or 12 puncheons ; it was 20 o. p. ; L. 27, 63 puncheons ; L. 28 and L. 29, 21 pun- cheons each ; L. 30, 55 barrels, or about 12 puncheons ; L. 31 and L. 32, 21 puncheons each; L. 33, 21 puncheons, 5 barrels ; L. 34,21 puncheons; L. 35, 21 puncheons, 4 barrels ; it has my signature opposite it ; L. 36, 21 puncheons ; L. 36 and Lj^37. 21 puncheons each, with my signature ; L. 38 and L. 39, 21 puncheons each. His Lordship.— Till you call my attention to it, I will assume that all these have your signature. Witness.— These are all signed by me. I received those opposite to which my name stands. L. 40 and L. 41, 21 puncheons each ; L. 42, 21 puncheons, 4 barrels alcohol. The latter four barrels would equal about a puncheon. L.43, 21 puncheons, 5 barrels ; L. 44, 21 puncheons ; L. 45, 55 barrels old rye, equal to 11 or 12 puncheons ; L. 46, to L, 51, 21 puncheons each ; L, 52, 42 casks. The latter has not my^signature, though it looks like my signature on the ship- ping bill. L. 53, 10 puncheons, 35 barrels. His Lordship. — Is that signed by you ? It is. Then there is L. 54, 55 bar- rels, about 14 puncheons. Mr. Walt — (to His Lordship) — There are, in all, 85 car-loads sent to Arnold, exclusive of Reld's and Holiday's, as appears by the Grand Trunk books. (To Witness.) Could you not tell us the number of puncheons received ? I have not got any memorandum with me. Mr. Galt (addressing the Bench). — There are a great many car-loads for which he has not got these documents. i! a 48 Mr. DOUTRE recalled - 'n reply to Mr. M (■ (.„ definitely only to 54 car ln«rTl'' "" ^^^'"'^^'^'P '^^Plamed • Uu «nfl he wishes i '''"'''^^'«; h"t there were Mr cL ""^'« ^P^ake «nce. "^'" ^'^ ''^"^ '^^ ^^r- Arnold, when I^^^^^T '' '''''^''' Mr Mr (< '''''"««'«:"ature,thedifrer- '• ^- '^- ^A'VKRON (to Mr (iaJf 1 h , car 2,490 2fith i.^ I , ''^^«^-2; car 2,480 Feh 9- ^^«^as---Car No '»'. Ma„h 1 ; .;•//* !^,';- ^^-al, March 1 ; c. 3,mllp r°''''' 15th ; car 2 608 t tl' If ^'■'^' """^^d 15th ; car 1 Too tl. . '" '^'' ^'239. ear 3,159 21 'tT u"""'^' '"'"^^ ^Ist; car 84T Ji t m '*'' ^"'•^''' '"«^«<^ W24:h^reS^ -- 22„d -, ,,^1£, ^.^^0.7;^" ^ after; car 3294 llZ'T'' ''''' '-'^■' ca Pa'tf^M*""'"' ^""« ^^^^e ; car3 07 31st m''^''""^''^ 30th; car 26^^ 0^^^^^^ May, „,oved 2 davs ■Mr. (i^LT. — Yes T). it i- vvou/d yon 47 ■^'i'ness speaks """e 85 car-Joads "ature.thediffer- 'hese loads which '^0 checked out 1 have marked if'erson a list) iasks ? ^as ^ot up. 'erhaps be done es. '' contained the s were checked '•as .wcar \o ^7, 28th Feb.; ^eb., removed ^ *'eb..remo- 1. 28th Feb.. 'I 28th Feb., ' «n fith ,• car '■ car 3,23.9, ■afch, moved ■^f^h, moved 'O'^ed 22nd ; ^' 24th ,• car me date ; 3 ^y; car 810 ' car 3. J 52 ' I9th May ■ay. moved awe date ; "^ 2 days me date ; 2nd,- car 2th r car "*3, Juna ^^ June, ar 2963 Uld JOB look at the book, Mr. Arnold, and find there, delivered, 6 puncheons to J. 0. Mussier ? Do you know him ? No. I do not recollect selling spirits to him. I recollect selling Robertson & Beaty a small lot, about 5 puncheons. I do not recollect selling any to Moran, Bull & Co. Mr. Galt. — As to these spirits coming consigned to you, do you think that the Grand Trunk would deliver them without an order from you ? I do not know. You see the way-bill (showing him) ? Have you any question that that spirit came down to your order consigned to Montreal ? Could not say. Mr. Galt (to Mr. Doutre.)— Turn to way-bill No. 7 (he did so, and handed it to witness.) Do you, !Mr. Arnold, believe that spirits consigned in that way would be delivered out by the Grand Trunk without your order ? Mr. M. C. Cameron. — I submit my learned friend has no right to ask that question. Mr. Galt. — I have a right. His Lordship — (To Mr. Galt) -I understood you were going to produce receipts from the Grand Tiunk. Mr. Calt. — Mr. Arnold sold tlifc spirits to different persons and gave orders on the Grand Trunk for it, and of course, those people receiving it gave their I'eceipts. Remember we have had Durabrell proving the moving of the spirits, and Burket its receipt at Point St. Charles. And now I ask Mr. Arnold the question, does he think the Grand Trunk would deliver out the spirits without his order ? His Lordship. — Suppose he answered in the negative, is that proof? Mr. Galt. — I will put the question in another way. Looking at the receipt book, have you (witness), any doubt that these spirits were delivered according to the receipts ? I could not say. Will you swear that car-load did not come down to you ? I could not. Have you any doubt it did come to you ? I have a doubt. Looking at the way-bill have you any doubt that the spirits came down to you ? I have a doubt in regard to the delivery of them. I lave you any doubt on your mind that a car-load of spirits came down to your order ? That I did not deliver ? Mr. Richards. — I submit my learned friend has no right to show witness the way-bill and ask these questions on it. Mr. M. C. Cameron. — If witness's order is in existence, it ought to be pro- duced as evidence. Mr. Galt. — What I contend is, that these spirits were sent without beimg entered on the stock book ; and then I ask Mr. Arnold have you, looking at the way-bill, — (and it has been proved by the Station Master that the casks of spirits were sent to Montreal, and by Mr. Burket that they were checked out from the cars) — I ask him, have you any doubt that this spirits came across the road. Mr. Richards. — That is an illegal question. It involves half a dozen others. I'i 1 48 Mr. Gaj t w ^'ar 1227 runninrv '"''"'"'^'^ ' •^'"'' ""^ ^7 this bill/eithert' ^^elJol T "'' '^'"^ ^^'^^■''^" '^ ^^ it wa« con.- . To His Lordship rf t ,, ^ '" "°* *« ^^e former o,ip .vh- ». them, and in thp ? J ''" ^«o^« «ot i„ my cJlL] ''^ ^^' ^«2I. order. '" *'^ ^^^'"^'"^ '^o^rse of business tit "^^ '"^' '" ''"'" '^•• Mr. Ga.t To .- ""-^''' ^'•'^"^f^'' the Mr. Gxi,T.-It"is ''''''°'' • His Lordship.— w;t„„^, sold to those persons ; ZVT' I. ^^""«^ «Peak positively for h« ^'"Png might transfer. '" '''' ''''"'^ ^'o^-'se of trade. £ si n "''"" o»ly proof of delivery would h!M *'"'"^' ^"''^ ^^"vered to fh» •. -thing about partic'ui:rciL?::r""°" «^ ^^« -'- vv^-t::t?' ''^ the road. '««d«. as large quantity of thincrs dl ""''' ^ We have ^«d^"esW . i 7 "' '" ""» ^-loM '"^ «°' " ' At * s-rCcL j *;: ^"r -i*-/'" '"!'"" '° *^*'°" On «..ssenbl,„g : ' ' "• "^O"" took a recess for «„„„ '"ay be by law reoS rP''*^ "^^"««d to keen s„H, . ' ''''"""' ^''•^^ *^e have shown ir"-'ts fo hiniflpjf. r^^iye<] in jv,^,,. "^^« to you, and )uJd say, J have onsig-ned to me J'C'h was J 821. p an order for 't transfer the t those spirits for he never ^ajs, persons "'itness. the tness Jcnows coDie over •oad? If J ot. that. Di(j ents. ^J ffot it ? 'en incJu- f'drfJeton Js infor- i every which ' as he of the 49 PETER ARNOLD'S examination resumed by Mr. Anderson.— (Mr, Dou. tre. at Mr. Anderson's request, produced the Grand Trunk way-bill for car load. 1848, dated January, 21.) (To Witness.)— Yon see this way-bill of spirits to W. Reid, did you receivp it ? I do not know that I received that car load. J received some consigned to Reid. (M. DouTRE.on being asked, turned up the receipt and handed it to witness.) Witn::ss.— I could not say I received that, or delivered it to Middleton. It is impossible for me to do it. Do you know anything about car load 1841 ? 1 do not know. It is receipted for L. Rivet. I do not know him. His Lordship. — What is the date ? M. Anderson. — 24th January, 26th received at the station. (To witness.) Car 1754 : what do you say to that'/ Cannot say anything about that car load. I have nothing to guide me in the matter at all. Mr. Anderson.— It is consigned to Reid and rleiivered to Holiday. His Lordship (to witness). — I thought you received all consigned to Holi- day ? Witness. — A large amount. To Mr. Anderson. — I had a general order for all consigned to Reid. >Tr. Anderson. — This was consigned in January, 1865. 'I'here might have been some consigned to Reid which I did not get. But I think I got all. J cannot speak of this particular car load, for a great deal was delivered to our customers in Montreal that I did not know anything about. Here is car 1743, to Middleton, 28th January, Do you know anything about it ? No. Then car 2005, January 30. Do you know anything of it? Cannot speak definitely. All I can say is, that 1 have delivered whiskey to Villeneuve A Lacaille, whose names are here signed. His Lordship. — How would they get it ? If I delivered it to them I would have to give an order for it. His Lordship. — Was that course of dealing adopted often ? Yes. It was understood by the Grand Trunk that I was to have this whiskey coming to me. Mr. Anderson. — Way-bill 141. car 1754, date same as last. What have you to say regarding that ? Cannot say as to that particular one. Way-bill 15, car 401, consigned to Reid, January 30. I do not know any- thing about that more than the other. Way-bill 16, car 53, same date, consigned to I). Masson ? I have sold and delivered whiskey to M. Masson ; but could not say as to this car load. Way-bill 17, car 290, same date. Do you know anything concerning it' It is delivered to V. Hudon. I have sold him whiskey. Could not say as to this load. Way-bill 18, car 277. consigned to C. Philips? As to this car load, could not say. Way-bill 26, car 1577, date February 22, consigned to several people ? I'l (.( I II i, V' • i Us 50 . /^'r. M. 0. (;.„,,„. ._.,.. _.. .. . "^ '"^^'"^ - *" ^J-ia par. -old to Sicotte. ^ "'"""'■-'^'^ ^hom did ^ou sell ? To E Po„„ •„ Never Air. And "" ^- ^ommerviJJe. N. •^'horlesboilTiTa^y^^J'^'" ^'' '"" ^^"^^^ date February 29 ^ .• to have roceiptal ? I d„ LVu . ^'™" « "weipt for whal ih. , • -'Ot .h» whole cir '"" ■■'"«"" ' ""''"-. or ih. .hole „r it , . , „ , "■•• M. C. C.M™„,v.-VVe„ ,k, .. ' '"-• Do not J know ^-ym 80, car » f V'T.f '-' ' ' "y the „„, of i, Way-bill 81, car 18.50 ilj I """• "' '' ■ •»«t,eaho„t that alt' itr ^''" "' *-" ^^-'.«. Holi,., , Way-bill etcaTl^'s 1? T-l ' '"' '"» "« '» it trea ? JVo. ^ ^P''^*« «^ns,g„ed to Borst, HalJada/& Co in M^'" Way-biJl 93 car 12fi9 t °"" m 1 K as to this par. merviJIe. JVever jdeJivered to A. \skey. Lacail/e ? j whiskey. 7-hig^ '"y getting it. ^y a/so appear ^ f should saj- '^^'"''igelse in Vi'Jeneuve * y one of the ^ • HufJon ? "ff about it. Holiday ^ •' Do not J know ^'o. ? J hiskej. sson & ^O J^OII Mon- to A. they 51 Way-bill 91, car 2828, date May S.Tourvillo, Gauthier & Co. " Do not know anything particular about it except that we have aold them spirits at timee. Way.bill 98, car 2627, delivered to Cuvillier & Co.. date May 12? 1 say the same rcgardinp it i..^ the laat. Way-bill 99, car 469, date May If), to A. Cusson ? 1 think I have Bold him only one barrel of whiskey. 'J'hero is only one barrel marked down, Mr. Galt said tuat the witness might retire for the present. He would recall him for the cross-examination of his learned friends. THOMAS TIFFIN, of Montreal, examined by Mr. (i alt. — Did you ever purchase any spirits from Borst, Halladay & Co. ? Yes. (Invoices produced.) Mr. Ga:,t read the invoices. — Tiie first is : .Montreal, May 13, 1865, for 60l{ gallons, 50 o. p.. receipted liorst Halliday iBMrCI„, , ^"""nply made «»d jou .oem to ],ave 1':," •"'"'''<•;»"■'. "t-ain, an,l Ucaillo also 5 . ...a tl,,:™'- ' "" ""' ""' '» ^"".e then, tw° e "Ze ~ hT" ,"" *' E- POSTOK of p '"' '"' "" 68 [ On the 2.'ith neons. '^ebi uary 28. titios mentioned Jst Juljr, 18^5, * "'"s 8ick, and >pt. ^'^c. 13, 1 p„„. '^ probablj tj,e ^m Holiday * J think. ^'' a car load simply n.ade puncheor,!, '^e deJivered fl, of which J 6,033 luaJ to f 2,934 Were you present at the time of purchase ? I was in the office, where it VM mooted to me. I recollect the transaction. It was with Arnold. Do you know where it came from ? I could not swear, but understood from i.rnold that it came from Maitland. [did not knotv there was a storehouse iu tie city. Were tb.jc invoices delivered to you at the time the arrangement wad mxde 7 Invoices came with the articles to me. Only one of these mentions o. p. ? I am aware of that. Were you present at both bargains ? Yes ; and although the spirit is not bcated to be o. p., I bought and sold it as such. Are you quite sure the invoices came with the spirit ? I would not like to swear positively, but believe they did, as they alwr;3 had done. I see the invoices marked in bond ? The spirit was bought to go in bond, and we placed it in bond. The invoices say it is already iu bond ? Coming down it is in bond. We can have it sent to ua iu bond. It is in bond till the duties are paid. You had to pay the duty, and ciid so '( Yes ; I paid 45c. per gal. duty. 1 thought we were being charged with these as not having paid duty. Here we find it goes in bond. His Lordship. — Mr. Gait says he gets this witness to corroborate the state- ment that so many car-loads went from Maitland distillery. Mr. Galt. — Certainly. NEIL SHANNON examined by Mr. (talt. — I purchased spirits from Arnold and from Middleton, Laidlaw & Co. What did you buy from Arnold? 21 puncheons, oii January 4, 1865, equal to 2,477 gals. What was the strength ? It was sold at 50 o. p. Your purchases equalled 111,C3 proof gallons? Yes. On July 8, 1865, bought, through Arnold, 42 puiicheons, containing 4,942 gals, 50 o. p., equal to 7,413 proof gals. Mr. M. C. Ca.mkron. — You bought iu Montreal, you say ; where did you get it? In Montreal, delivered to me. Do you know where it came from ? I could not say. Part of it came by Grand Trunk carters from the Grand Trunk Railroad. These last two loads came by Grand Trunk carters. Did you get orders from Arnold to get them ? No ; they were sent to me by Arnold, who called at ray place, took the guager to guage it. I go the certificate, and it was delivered to me. Do you know whether or not the Grand Trunk Co. store whiskey ? I think they always deliver goods on their arrival. I think the liquor would probably have been tested in the Grand Trunk sheds. Do the Grank Trunk carters do no business but for the Grand Truuk? I never gave them anything to do only for the Grand Trunk. Who are the Grand Trunk carters ? Shedden & Co. ' ; ■ ff;r ( 1 Itf 64 Mr. (Jaw— Von, r. • ""* ^^t"*' cannot be. g.«r.l„. '"°>. Low d,d ,t e„„, , city cM„. b,„„„i. ,, r^!( y' and the Grand ""' thej,!,, any- "'»"«■ i do not ^'"rw •■ f^ut nevor c'mse anjr gp,>it^ Arnold ? Vou "ow us any y„u produced.) "'•i«65, forli '"8 McCarthy's ct from Borst, 9rs brought it 5 puucheons, 'ng deJivered a"7 received -o the store for it. The ent, and he "^s- Sonie- i and send fn Mon- f through ncheons. 1865, 3 '' 9 pun- ed from lieve it ftft Was it not your bargain to got it free of cartage '.' No. If you had got it from Middletun, or Holiday, getting it through Arnold, would you have paid cartage ? No ; but I am certain it came by tlie Urand Trunk. On evt tutal 10,U81 gallons. WiTNKSM.— -1 have uiiutiiKr, iluted Maitlunil, July (i. IH65, 10 puiicheuiiii, r>0 u. p., IIKO Kulloim, utul :jr> burrcld whiskey, aliout 'X\ u. p., 1704 ^uIIodh. or reduced, umking 113(3 ^'ullotia. Mr. M. (!. Oamkkov.— -All this you bought ut Montreal? The flr.it wus generally ordered by one ot the pattners ; but the latter by telegraph. .Souie ot° it was bought from Arnold. Could not tell which. We ordered froA) hiin on oue or two occusions. Where was it tested ? In Montreal, generally. Wiio tested it ? Generally, McCarthy. How was the quality ascertained? By guuging. Did the barrels turn out to contain the quantity invoiced ? As a general thing they would not hold what they guage ; but very little less. The pun- cheons are generally averaged 118, but never hold out what they ure guaged : there would probably be one or two gallons deficiency. A. MASSON, examined by Mr. Harriso.v. — Are you member of the firm of D. Massou & Co., merchants, in Montreal ? Yes. Have you had any transactions with Borst, Halladay & Co. since Septem- ber, 1864? Yes. . Mention them, beginning at the first. On the Ist December, 1864, we bought 16 puncheons, 1929 gallons, 50 o. p., equal to 2893 proof gallons. On February 1, ISe.O, 42 puncheons, 4881 gallons, 50 o. p., equal to 7321 gallons. On Murch 20, 42 puncheons, 4982 gallons. .'iO o. p., equal 7473 proof. May 1, 25 barrels, 1239 gallons rye, u. p. 22 to 25, equal to 929 gallons, .funo 19, 55 barrels, 2627 gallons, also rye, u. p., making 1970 proof gallons. Total, 20,586 gallons. Mr. M. C. Cameron. — Did you buy in Montreal? We did. From Arinld ? Mostly through a broker ; but we were immediately placed in connection with Arnold. We bought through A. Charlesbois & Co. Did you test it ? It was generally tested in the oflBce by ourselves. You did not take McCarthy's test ? McCarthy generally tested for Arnold. We for ourselves. Do you recollect testing these in particular ? No ; we did not care so much for the gauging as the strength. SIMON HAMLIN examined by Mr. Harrison. — Were you in the employ of Victor Hudon, in November, 1864 ? Yes ; and continued with him up to May, 1865. While you were in his employ, had he any transactions with Borst, Halladay & Co. after Sept. 1, 1864? Yes. Mention the first. It was Nov. 4,21 puncheons, 2,464 gallons, 50 o. p., equal to 3,696 gallons. The next is Dec. 9, 21 puncheons, 2,479 gallons, 50 0. p., equal to 3,718)^ gallons. January, 1865, 21 puncheons, 2,497 gallons, 50 o. p., equal to 3,745>^ gallons. Feb. 1, 42 puncheons, 4,906 gallons, .50 o. p., making 7,359 gallons. Feb. 20, 21 puncheons, 2,453 gallons, 50 o. p., equal to 3,679>^ gallons. March 30, 121 puncheons, 14,541 gallons, 50 o. p., equal to 57 ^ puncJieons, no '"04 KulJoii«,or ''■'le first wui V«pli. Souitt Jered f,oa, bij„ Asa gouoiul 'y uru guaged : 'ef "<■ the tifu, [ j liuce '*^epteai- ber, 1864, we gallons. Un 7321 gallons. ^oof. Afa^ 1, •^uno 19, 55 ''«^tal, 20,586- ^^eij placed Co. es. for Arnold. re so mucli he employ Ijim up to Halladay 50 o. p., 'Jlons, 50 lions, 50 .'JOo.p., equal to qual to 'Jl.HUi.j pilloiiH. May ;i(i. 11 iMiiirhooii.s, l.nifj palloii.s, f.o ...p., l.'.tTJ gullons. Ili.x LoKiwiiii'.— Yoii ii'l'l (hen ? WiTNi'HM. I was .still III tin* lioii.sc aiHJ piiiil fur lliom niyrtelf. Jutu- i:». l(»'2 piincli.'oiiH, 1 ImiTfl. t'(|iial to I'-'.OTH ^raHuns, fiO o. p.,()r IH.IIT iralloiio proor Tlio uoxt, AuKiiHt r., wo.s (»piritH stored in Montreal, I think. It wan (i2 puneheon.s. 7,221 kiiII"Iis, f.O o. p., erpml to lO.HUl '..; gallons proof. Had you invoiccH lor nil these ? Yes, Produce them all. Witiie.ss ,lid so. Mis riOHD.mm-.—Tho total nnmlier of gallons anioimts t.i 7l,'>.T2i,. gallons. Mr. M. (/'. (Jameron.— l''roni whom woro the.so bought? For th(! most piirt from Arnold. Was it all bought in the city of Montreal? Ves ; aonio may have been bought by 4, we bought 21 puncheons, containing 2,447 gallons, 50 o.p., equal to 3,670 gallons. Keb. 1, 1865,21 puncheons, 2,480 gallons, 50 o.p., otinal to 3,720 gallons. Fob. 25, 21 puncheons, 2,457 gallons, 50 o. p., equal to 3,685 gallons. Jnne 8, 10 puncheons, 1,181 gallons, 50 o. p., equal to 1,771 gallons, aud 35 barrels ; same day, 1,693 gallons. Total, 2,539 gallons. His LoRDsnip. — I make the total number of proof gallons spoken of by wit- ness 15,385. Mr. M. C. C.4MKRON. — (To witness) — Where were these bought? In Mon- treal, except the last one, June 8, which we got by lots. Did you buy from Arnold ? Can't tell. Who bought it ? My partner. We got a car load from Middleton, 25th Feb., through a broker. I had no personal knowledge of the transactions at all ; my partner bought all the whiskey himself. JOHN HATCHET, examined by Mr. GALT.—Are you in the employ of Fitzpatrick & Moore ? Yes. Are you aware whether they purchased spirits from Borst, Halladay & Co.? Yes ; (invoices produced.) Mr. Gai.t.— This one is dated Nov. 2.3, 18«4, 21 puncheons, 50 o.p., 2,489 gallons, equal to 3,733 gallons proof. It is receipted by Borst. Next is 6th Decembr, bought throngh Middleton, 15 Imrrels old rye, 717 gallons, 25 u. p. or 538 gallons. December 21 , 2,443 gallons, equal to 3665. Witness. — 1 believe the handwriting there is Borst's. Mr. GALT.-r-The next is March 11, 21 puncheons., 2,505 gallons, 50 o. p., equal to 3,757 gallons. It is receipted Borst, Halladay & Co., per Arnold. The next is May 25th, 42 puncheons, 5,000 gallons, 50 o. p. , 7,500 gallons proof, and 482 gallons old rye, 25 u. p., equal 362 proof. His Lordship. — The grand total is 19,555 gals. Witness (to Mr. M. C. Cameron). — I know the spirits were purchased from seeing the invoices. I understand McCarthy tested them G. LFi BLANC, of Montreal, examined by Mr. Gait. — h'J you purchase spirits from Borst, Halladay $ ('o. ? I did. Have you the invoices ? Yes. The first is dated Dec. 28, 1864, for 21 puncheons, 2,495 gals., 50 o. p., equal to 3,742 gals. The second in dated 24th March, 1865, 21 puncheons, 2,532 gals., 50 o. p., equal to 3,798 gala. The 17th June, 1865, 21 puncheons, 2,491 gals. ,50 o. p., equal to 3,736 gals, proof. J4is Lordship. — The total is 11,276 gals. Mr. M. 0. Ca.meron (to Witness), — Were these purchased in Montreal from AAold? Yes. Did you test them ? No ; I bought it at the rate specified. A. CUSSON examined by Mr. Galt. — Did you purchase any spirits from Borst, Halladay & Co. ? Yes. 51) Aro these the invoices I show yon ? Yes. Mr. Gai,t.— The first i3 dated May 17, IBfif), 21 iiunclieoiis. 2,490 pals., f>0 0. p., equal to 3,73r) pals. Next, May IS, 180;'), 2 puncheons, containiuir 21)7 f^als., GO o. p., equal to ^iU) pals, proof. Ills LoRDsiiii". — The total is 4,000 pals. Mr. M. C. Oameuox (to witness). — Were these boupht in Montreal? Yes ; throuph a broker, Charlesbois. Did you pay to the broker ? No ; to Arnold. M. t'lFARLFiSBOTS examined by Mr. 1Iari?iron. — Rave you ni.ide any purchases Ironi Horst, Ilalladay Ar f)o. since Se])t^, 18fil? Yos ; on Feb. 24. IHC,., 2,470 pals., .')l 0. p. in the bill, but 1 paid lor it ns 50 o. p. .[iine II, ISfif), 21 puncheons, 2,471 p.als., .')0 o. p. (invoices put in.) Mr. ^i. Vj. (JAMKKO^f. — Wa.-t that beupht in Montreal ? Yes. lirs liORDSHir. — From whom ? The first lot was from a broker. I paid it to Arnold. At this stape, G o'clock, p.m., the Court adjourned till the Ibllowinp day. THIRD DAY'S PROCEEDINGS. (Before Hon. Justice .loiix Wilson.) . • WEONEsnAV, Jan. 10, iHfif). Court assembled apain at 10 o'clock, a.m. The first witness called was JOSKIMI PllELAN, who was examined by Mr. Anderson. — You are a merchant, carryinp on business in Montreal ? Yos. IMwnon Sept., 1804, and July, 180.^), had you any transactions with Borst, Ilalladay A: (jO. ? Yes; on Nov. 21,1804,1 purciiased 21 puncheons, 2,r»08 pals., 50 o. ])., equal to 3,702 proof pals. On the 2.1rd. same month, 1 car-load, 2,489 pals., .50 o.p., ecpial to .'{,733 pals. 'I'hese two lots were boupht by corres- pondence. His Lordship. — At Maitland V Yes. Mr. CnoMniR.-f-Did you test these yourself ? No ; I merely bought them as such. Do these punciieona always hold what they are puaped at ? No ; 1 had on one lot of puncheons 12 pnls. le.ss. What would be the uirt'erence ? From 2 to 5 pallons. JOHN PHASER examined by Mr. ( J ai.t.— Where do reside ? At Quebec ; am a cooper. Were you in the habit of puapinp and testinp spirits ? 1 puape most of those cominp to the city ; but very seldom for strength. Did not try the strength of those marked as cominp from Horst. ITalladay & Co. Mr. Richards. — Have you known puncheons to be much less than what they guage? I never tried them, except with the rod. Have you ever palloned out a puncheon? One ; it was a false puncheon. ^ i 60 ^!.! i i Mr. DUNHAM JONES examined by Mr. Galt.— You are the Collector of Customs at Port Maitluud ? Yes. Have you got the returns at the Fort with regard to grain imported for Borst, Halladay & Co.? Yes. Thi.s is the book. What was the anionnt of grain imported for Borst, Halladay <^!: ?'o., between Sept., 1H64, and July 1, 1865 ? Have you made out a statement ol it? Yes ; here it is. Did you make the entries yourself? No ; but I was present when the grain came in . To. Mr. trALT : — Under date Oct. 24, I find 6,000 bushels of rye, that came by the " Morning Star," equal to 336,000 lbs. Mr. Richards. — What book have you got? Witness. — It is the book of the Port. His Lordship. — Suppose a complaint were made that the cargo did not agree with the manifest, would it be rectified ? Yes. Mr. Galt. — What is the next entry in the book ? 13,005 bushels of corn, from Chicago, for Borst, Halladay & Co., per the schooner " Tecumseh," of Goderich, 728,280 lbs. The schooner " Flying Cloud " entered, Nov. 15, 3,500 bushels Indian corn, weight 196,000 lbs. On Dec. 11, by barque "British Lion," 15,337 bushels corn, weight 858,872 lbs., for Borst, Halladay & Co. Manifest 16, Dec. 1, what do you find there? 18,436 bushels corn, h" the schooner " Prince Alfred," weight 1,032,416 lbs., for Borst, Halladay k ' In manifest 17, Dec. 5, what do you find ? 17,985 bushels of corn, by :;.. r'.t' "John Bredin," 1,007,260 lbs. Manifest 18 ? On Dec. 9, 16,769 bushels corn, weight 939,164, per schooner " Eli Bates." Manifesfl9 ? May 29, schooner " Bahama," 11,200 bushels corn, weighing 627,200 lbs. It was imported from Chicago. Mr. Galt explained that this was the entry made by the parties themselves, and sworn to by Chisholm. Witness. — All these documents were presented to me, instead of the mani- fests, and were .signed in my presence. Mr. Galt. — What do you find entered under date July 4 and 5, from the schooner " Shook ?" 6,045 bushels corn on the 4th, and 11,490 on the 5th. Were these entries (handing another document to witness) tendered as the quantity brought by the schooner " Shook," and say whether you accepted or refused them ? I refused them. Mr. Galt. — Here is a case in which they claim to enter at 15,672 bushels, in places of 17,535 bushels. (To witness.) Do you recollect the circumstances ? I d(> About that time I heard they intended to have taken part of the cargo to Ogdensburgh. They unloaded first 6.045 bushels. When that much was done, the mate of the vessel got drunk, and could not tell whether the measure- ment was right or wrong. Next morning (the 5th) Halladay & Co. concluded to have it all discharged, and then I asked for the manifest. Mr. Galt.— In the first place, I produce a manifest of the cargo ladeji on board are the Collector ain imported for y'''^V. between mtolit? Yea; It when the grain •ye, that came »f le cargo did not >ushels of corn, ' Tecumaeh," of Nov. 15, 3,500 •arque " British tday & Co. els corn, h" the laday f the cargo t much was lie measure- • concluded w on board 61 the schooner " Shook," showing two lots — one 6,000 bushels, and the other 11,535 bushels — to. 8i(ew the original intention to land the 6,000 bushels at Mai tland, and send theother lot, 11,535, to Ogdensburgh. (To witness.) With regard to railroad manifests, look at the entries in your book from March 1 to March 10, 1865 ; how >nach corn do you find ? Here is an entry, dated Port of Brockville, of an importution per the (irand Trunk from Detroit, of 1,507 bushels corn, amounting to 84,392 lbs. Tt is sworn to at Maitland, 22nd March, and signed by Chisholm, who transacted business for Borat, Halladay & Co. Here is another, 17th April, 1,442 bushels corn, Port of Brockville, for Borst, Hal- laday & Co., weight 80,752 lbs. Look at entry, 5th April, 1865 ? I find 2,000 bushels barley. And here is the manifest of the scow " Monitor," of Kingston, 2,000 bushels barley, consigned to Borst, Halladay & Co., date 5th April, 1865 ; weight, 96.000 lbs. (To witness.) Refer to April 24. (Witness does so, and checked, as in the other instances, the copy in Mr. Gait's hands, with his [witness'] books.) Mr. (talt. — It is the manifest of the cargo laden on board the barque " St. Lawrence," Alfred, master, 20,217 bushels of corn ; date Nov. 21, and makes 1,132,152 lbs. Witness. — Cargo was entered April 24. Mr. Galt. — Look at the entry April 27. I find entered 4,037 bushels of rye. Mr. Galt. — Here is the manifest, it was 226.072 lbs., brought by the "Morning Star" from Belleville. (To witness.) Now refer to entries in April and May of manifests of 41 car-loads, brought by the Grand Trunk ? I have no manifest?, but have entry or 41 car-loads, containing 15,099 bushels of corn, in both March and April, amounting to 845,544 lbs. Was this entry (showing him) ever tendered to you ? Yes. It was an onward entry, and was tendered to me for 41 cars of corn. (The document read: "Port of Brockville, Maitland. Imported for First National Bank, Detroit, per Grand Trunk, 41 cars of corn." Document put in and marked "N.") Do you recollect any circumstances connected with the matter ? On May 31, a Mr. Truman Smith, accompanied by Halladay, came into my ofiBce and tendered me an entry. I think this is the one. I directly asked Mr. Halladay where was the manifest. He replied, there was none. He said this corn had gone to Ogdensburgh. I believe he wanted to get it entered at Maitland, so that the books could be settled at Port Sarnia. The same day I went to the Station Master of the Grand Trunk, and asked him about the matter. He Mr. RinHABDS. — I object to your giving any such statement. Mr. Gam. — Did Halladay admit to you that those 41 car-loads had gene to the distillery ? He did. I went, same day, to the Station Master to know what became of the corn, which, it was stated, had gone to Ogdensburgh. He said it had gone to Ogdensburgh, and gave me an outward report. Is this the report (handing him a document) ? Yes. < I 62 r I'-f If % I (The document was road, and stated that thcic 15,{)J'J bushels of corn were consigned to Oj,'densburj;h, and belonged to Smith & I>yce.) WiTNKss. — I was not salisliod. [ was sure the corn had not gone to Ogilensburgli, and I wrote to Striker, Collector ol' Customs at I'roscott, to send me word if it iiad gone, lie said it iiad not. Tlicn 1 got a letter from I'ort Sarnia, l)laming me for not sending the manifests back receipted. I asked IJowker where the manifests were ; and first he replied that ho did notknow. I (|uestioned him considerably, and he finally acknowledi^ed sending them by llalladays teamsters. After 1 hid discovered that the corn must have come to Maitland, llalladay called on mc and said : I wish you would write for a duplicate of those manifests of the 41 cars, so that it could 1)0 arranged ; for the cars came here, and never went away. I did not wrl. j for the duplicates to Sarnia, but they came down. Mr. Galt. — Hid you ever see what purported to be duplicates of the mani- fests ? His Lordship (to witness). — Let the jury understand how it was that the Collector at Sarnia had interest in looking after the 41 cars. Witness. — lie could not close his books without them. The manifests of the corn were sealed and directed to me ; and if the corn was exported, it was my duty to return the manifests to the Collector at Sarnia, receipted and signed. IJut I never received them. To lli.s LoRDsiiii*. — The corn was bonded from Sarnia for export. Mr. Galt. — Did llalladay ever speak to you about your having called the attention of the Collector of Inland Kevenue to tiie <;"intity of corn going into the distillery ? Yes ; 1 do not know the date, but remember it perfectly well. It was in 1864 first ; then 18G5. Tell us what llalladay said in 1805. llis LoRDSuii'. — What time in the year ? 1 do not know. Mr. Gakt. — I will call another witness to prove that exactly. (To witness.) Tell the whole story. Witness. — Along in May or Juno, ISdl, I said to .Mr. Wilson. Inland Rev- enue Inspector, do you know how much corn I have in my books ? and he said. No. I then said 1 had 129,000 bushels of corn for the distillery. A day or two afterwards, llalladay came into my ollico, and was annoyed at my telling Wilson how nnich corn had come in. lie wanted to know if I wished to injure iiim. He said a good deal to mo, and appeared to be very much annoyed. He said I was bringing the corn under the notice of the Government. One day, at the close of 18G4, Wilson turned around from his desk, when ho had closed up the year's accounts, and said. How much duty has llalladay i)aul for the year ? I replied, $40,000 or $50,000. He said it was more, about ^70,000. I thougiit that tallied well with my booi' s. After that, again, llalladay said a groat deal to mc in my office. He ise( to como into my olHce, and say 1 wished to injure him, in consequence of stutinT; these things about him. Mr. Galt. — If you can remember it, please toll what was said. Witness. — It was in reference to niy telling Wilson how much corn there was. llalladay came in in a violent way to the office, saying. Do you wish to eh of corn wei ro 1(1 not .qone to !it I'rescott, t... »t a letter from yt-e^l Jaskcl "' "fJtknow. I ■ndii,^. tlmn hy '"st liavo come •»'ii write for a iirraiiged ; for e duplicates to 'S of the mani- t waa that the -' iii.inifests of ported, it was '•eceipted ai.,1 ttrt. "«• called the 'f" corn goinir ^- it perfectly '''o witness.) '"'and Kev- •i'kI ho said. A day or t "ly tellin- «' to injtiro loyed. ire )iit) day, at ' closed up the your v ' thoneiht A-'reat deal ' to injure orn there wish to 63 injure me by telling Wilson about the corn ? Sometimes he would state to me that he was determined to sell all the tubs out of the place — that it was too small for him. Mr. Galt. — Mr. Jones, cannot you come to the point ? Cannot you tell us about Halladay's abasing you ? I can. It was this summer. Mr. Galt. — What took place between you and Halladay after you wanted the return of corn from Bowker? Mr. Richards. — When was this? In June last. Halladay came into my office. I was unwell. It was in June, I am pretty sure. Halladay came in smiling, first, [Laughter] but directly demanded what I meant by interfering with his business — saying that 1 had demanded a statement from the Grand Trunk. He got violent and accused me of interfering with his business, and said I should not do so. I answered, I would not be interfered wiia in the Customs Department. If I had done anything wrong, ho might report me to Quebec. He then got very wrathy, jumped up, and said, " By the Holy Josus ! I will smash you !" " By the Holy Jesns ! I will ruin you." Mr. Richards. — Oh ! Mr. Galt. — In this case it is of great importance the jury should hear the language made use of to the Collector of Customs in the discharge of his duty. His Lordship. — He may have treated Jones roughly or improperly. Are we trying that ? Mr. Gat.t. — It is a circumstance of the greatest possible consequence to siiow the conduct of Halladay in the case. In the discharge of his duty he made certain enquiries ; and if there were anything objectionable in iDat course, Halladay ought not to have made use of the language. His Lordship. — (irantcd. But let us not hear all that violent swearing. Witness. — Halladay jumped up in a violent rage, said he had more influence than I had, and that he would ruin me and smash me, and used similar language. He was vei^ violent ; and at last I' went to my inner office, and he went away. Mr. KicHARDs. — Who is your assistant? The landing-waiter. I attend to outside business myself. There was no duty on grain during the time the entries spoken of were made. So that, as far as your office was concerned, the quantity of the cargo — whether it was 6,000 or 9,000 bushels — did not matter? No. 8o far as your office was concerned, they had no interest to be particular about the entry, whether it were correct or not ' Nono. Do the manifests show the cargoes in pounds ? No ; all in bushels of 66 pounds to the bushel. You made the calculation in pounds since you were subpoenaed as a wit- ness ? Yes ; I did it this morning. Do you recollect the cargo that came by the schooner " St. Lawrence ?" Yes. Was that cargo damaged ? It was, badly. I went on board the vessel two or three times, and took specimens of it to show to Brunei when he came. Do you recollect the cargo by the " Eli Bates " being in a damaged condi- If! 64 if ' .i; '5| ,1 ■■' ii -.r >|! Ill '■'' i! tiori ? No. 1 recollect buying about 90 bushels dainnged com .'rem them last year. Do you know whether Smith «fe Dyco lisul grain at Ilnlhuhiy'si mill? I do not know. Who were they ? They fed cattle at the distillery they are from the States. What nunibt ? 'I'he; only had two stables. Who else had cattle there ? Mr. SloviHi and others. There were about 1,000 beef cattle there altogether, and '1.00 or 500 hogs were being fattened there. Did you know of Smith & Dycc receiving grain there? Last winter Halla- day said he had u quantity of oats stored there, which had to be shipped to Ogdensburgh for Smith & J)yce, and one of them came into my ofllicc and told nic J might have a coHjjle of hundred bushels of their oats. Do you know of their having corn there ? Ni>. Did the distillery break down from time to time ? Occasioudly. With regard to the 11 cars coming by the Grand ''Vunk, liiey came at dif- ferent times ? Yes; 8 cars came in during the winter. That was the first I knew about the cars. Cars were coming in constantly ; but could not say to whom. To whom did the 8 cars come ? 'i'o Smith it Dyce. Smith tendered entry. When Ilailaday asked for the manifest, did he tell you the corn had not left Maitland ? No. He said the corn came here and has not gone away. Did you ever weigh any of this corn yourself? No; 1 took the quantity from thf manifest, from the inward report of the captain, and every way. 1 believe -lalladay and yourself were very good friends up to this time ? Yes ; I sold him a good deal of stuff. He always paid me, and I am not very angry now. Did you thiiik it unreasonable of Jlalladay to get angry, then ? Yes ; he is a large man, and I am 7i{ years old. I agree with you ; and if ho had tried to strike you ? 1 would have tried to thrash him if I could. You are aware his property is unc'er seizure since July last — some six or eight months? Yes; he is a very large distiller, and paid a large amount of duty. Here Mr. Richards commenced to question witness witli refereace to the condition of Ilailaday before he went into Jones' office and got angry. 'I'he Judge ruled the evidence out. Mr. Gai.t (to witness). — I do not exactly understand about the l,r)07 bu.-;h- els by the railway in the beginning of March — the 8 car-loads ; were these 1,507 bushels represented to you as the contents of the 8 cars ? They were. Was that true ? Did Ilailaday afterwards admit to you His LoKDSHir. — Stop ! ^!r. Richards. — Put no lea'st and ivero pro- 'ook and ' hem] or ''e could luai'tity ere wrtB "■ovion,s !, and I <" that I'lentJy 'iginal re the d per », per fouse r the >ther (57 grain, which I understand to cover rye, and (1,000 Ib.s. malt." From >h\ur 1 to 15, theymashsd 188,100 Ibw. corn, ft.OdO lbs. out.-*. 14.40(» lbs. other L'liiin. 4,500 lbs. malt. From the Killi to the ;{(itli June, they niiislied 17 7, ('..">(» lbs. corn, 8,500 lbs. oatH, 13,()00 1I)S. other f-rain, and A:!^) lbs. malt. .luiieHO, tliey credit thomsolvcs with (i72,()00 IIim. corn damaged, of the »S7. l^inrrcncc oviin, of iMontreal, accompanied me to t^uebec, and I found that Ilalladay and Devlin were j^oinj^ to try to induce the Government to come to a settlement, and not interrujtt the work. I said I should bo sorry to throw any olistiu'le in tli(> way. I woidd not wish needlessly to depress the value of the I)roperty. At that time I had not discovered the enormous quantities of spirits ship|ted per the (irand Trunk. 'I'hey saw the Minister of Finance, and 1 saw him. Tie instructed me to see the Attorney General and ask whether such an arranp:ement as that proposiul could be legally come to. The Attorney (General decided that no bond could be taken, but that the poods mipht be sold, with the consent of both parties, and the money bo held, subject to the result of this suit. I returned witli the view of having this arrangement made, and valuing the goods. Halladay then said he did not think the measurements were correct that had been made. 1, f course, said the measurements had been already assented to by him, and 1 could not understand how he could raise objections then. He proposed that the whole of the grain should be weighed, but he said, let me go on" with my Distillery while you are weighing ; you can keep account of what I use. I said that would not tally with my instructions ; that the whole thing should be sold before the Distillery was allowed to continue. lie then said I must have it all weighed, for there is not the quantity there which has been represented by the measurement. I finally said : well, if it must be done, it will be a work of time. Nothing further, I think, passed with Halladay except some conversation as to how the funds were to be deposited. As to ')ie measurements, I instructed Striker by letter to take Davis and such assistance as he re(|uired, and measure the grain, and told him to propose to Halladay that instead of weighing it in scales, they should get a box made, and make a computation according to the number of cubic feet. He ha .* box made containing 27 cubic feet, took the average weight of the grain per cubic foot, and then proceeded to take the cubical measurement of the granaries, and in that way computed the true quantities, which I have here. Striker made the measurements with Halladay. It must also be borne in mind that they had been working during two half months subsequent to ,h\\y 1, and had used a portion of the grain in this way contrary to my order. These are the correct quantities : i.'i the Harvey warehouse, 130,.'U3 lbs. corn ; in the cooper's shop, 57,656 lbs. corri. which was represented to have been moved from the Harvey warehouse iM |<^ <)9 ■ffrPDce to Ipancies be- !"'•' not, do wore not In ')Gt\vpf!n pia/ after pistllJery. M 'lid not '>oo to got ^''"o, and •""fl that -oiiie to a '"'ow any '0 of the of spirits e. and J whether 'Attorney be sold. 'e result ade, and Its were a/ready jectiona ''ut he n kepp 8 ; that ntinuG. ' there tmust I with sited. such se to I and box ubic and the een ion es : bs. ise in order to cool it ; in one distillery bin, 249,924 lbs. coni ; in anotiicrdistillcry bin,4lH,669 lbs. corn, inalcinp in the Distillery (WiH,fi9:J ll»s. From the .sworn semi-montlily returns, 1 find there iiud been ina? of the schooner S/hxj/,-, the entry tendered not beinjf the same as reported, I have ^iven tliem the advantage of it, and I deduct only 922.H99 lbs. After 1 instructed Striker, 1 think 1 went to Kingston, and if I remember rightly, Striker telegraphed to me there, and wrote to me that he found such enormous discrepancies in the corn, that he did not think it worth while going on with the other grain, and would do nothing more until I instructed him. 1 went back to Maitland or Prescott. Mr. Richards. — What did you find? While in Kingston, I discovered at the Grand Trunk Station His LoRDtHii' stopped witness. Witness went on to say (in reply to Mr. Gait.) — In the stock book, the corn on hand is stated to have been 1,911,289 lbs. The (juantity on htind was 174.- 013, showing a discrepancy of 1,737,276 lbs. I may mention that this is giving them wliat they claim for feeding, damaged cargoes, and everything they claim. Mr. Galt. — Doe^ that include the 41 car loads of corn entered by the Gnmd Trunk ? No. Their amount from the invoices was 847,383 lbs. ♦Mr. Galt tendered the entry of the car loads made by Uyce & Smith. Mr. Richards objected. His Lordship. — Mr. Jones says he believes Smith was present, and pro- posed to niake the entry at Maitland, and that then Halladay was present, asserting it was right. Mr. Richards. — I did not know that Hallady was making any assertion. His Lordship. — The entry does not purport to have been made by Halladay ; but he was present at the time, taking an active part. The enquiries instituted with regard to the 41 car loads of corn resulted in the Collector satistying him- self that it never left Maitland. He charges Halladay with ;;ot sending it away, and he says. No, I did not. I'o Mr. Richards. — It was in December, 1864, I first took evidence at IM ait- land. 1 had examined the Distillery several times before that, but cainiot say precisely how often. The new law, requiring higher duty, came into operation in 1864. The department has special forms of " safes " to be used by Dis- tillers. In Halladay's case the requiremeats of law as to apparatus was not complied with prior to that investigation in December. I oJmplained, and he made all sorts of excuses. .A glass dome, required by law, was wanting ; also an overflow pipe. Again, one of the tubs was so ill-covered that any amount of liquor could have been stealthily abstracted. There was a second pipe wanting, too, the lack of which left a hole which could be used for fraudulent pur- poses. I threatened to stop the Distillery if he did not put his apparratus right. He made some improvements soon after. In January, I think, when I 70 rotiiriiod, 1 lounil a pipo roplacinu: tlio ono which liml hoon hrokon off; hut it WHS only aitufliod hy scnfWH, iind spiritH coiilil »till bo Hurrt'ptitiously drawn oir. I ciinipliiincd ol'llii:*. In McccniliiT. Mr. Wiivis, rrov invcHti^iatinn. Ifo cxaniinod, ivt my request, tint pipes lictwi'on the xalo and tlio closo ri'coivcr, and tlm iiu>an.s of abatrantiiifr Hpirilrt lioni tlif closo receiver. 'I'liere are two receivers, H or I) feet hiffli. The niixinir nioin was direc^tly over, with tnip-doorrt optMiiii^ over the receivers. Hy openinir tlic'^i', and looking' down, not hinj,' wron^r appeared. On poiiip down in .Inly last, we lonnd a fjreat (lel'ect in the lid ol" one of tho tnlw— a warpin^f, which left a hoh> that I could put my hand throuifh. The ov(>rfiow j)ipe was reqnireil to he allaclie(l hy law. it leads otf into the low wine tuh. The pipe at the Hidt> of the metal safe had heen sot ri,i,dit hy January, IHCif). The top of one (»f tho tubs wad warped. 'I'lu* top part of the lid lapped over about 1 '^ inches all round. This, howevtsr, was the case on only one of the receivers. The other was so situated that I could not ji;ot at it throuc;h tho trap door with- out movinii^f a lavfje vessel. My Deputy should have soon to it, notwithstand- ing that dilliculty. There aro iron bars over tho door, fastoninp it down- It was two or three weeks after th(> lirst seizure that I observed the openint;' in th»> receiver. 1 tiiink it was in the he«,nnninfr of August. Mr. Merrill was with me when the discovery was made. It was never observed before. I examined the " doubler," which was not according to tho requirements of the depart Mici\t . hut there was nothing wrong so as to help tho abstracting of liquor, 'i'here is a pump from the low wine tub to the doubler, which I complained of ;«but 1 do not think any si)irits were drawn otf in that way. Tlio man-hole opens directly into the receiver. 1 put my hand and part of my arm in. I told the cir- cnmslance to .Merrill antl ^Vilson. 1 did not tell llalladay of it, for T do not think I have had any eoiivfrsation with him since. Tin* toji of tlu! close receiver was, I think, nat m-ally warped, n(tt pressed down . 'J"he trap-door ov(>r the other rec(Mver was covered by .some larye utensil, which Merrill and myself could not move. 'I'ho trap-door was from Is to 24 inches s(piare. The locks used are diflerent, re(piirini;'dill'erent keys. Some of the locks wore sealed with papt>r in such a way that the lock could not he opened without destroying that paper, which paper was put inside the cover of tint lock, and should bear the initials of the (jiovernment Inspector. At the time I discovered tho warp in tin* lid of the tub, in tiie beginning of August, the tab was, 1 believe full of water. Liquor had been in it till the end of .luly. In December, 1H«J4, 1 made them enter up ihto their stoek hook tho spirits on hand. They had 83,080 gallons. 1 do not think the entry in the stock l)ook had been made l)efore [ called on them to do ■so. Jn making the al).str.icts from their hooks, wo co])ied the number of packages that is, barrels, puncheons, Sic , the nuudior of gallons contained in each, and the prices at which the litpior was sold, liesides tho abstracts made hy me, some were made hy others at my retpiest. Tho abstracts cover practi- cally the whole period to September 1, 1804. Messrs. Striker and Wilson measured the dimensions of the bins and buildings, and on their returns 1 made the calculations, allowing the proper amount of cubic measure to the bushel, f*ff< l>ut it ''^ ft priicti- "y roqnpst. iibstriif,ti„^, '">'•■ 7'Ju. 'ivors. liy Iff'loH'll ill warpiii^r, pipo was I'iio top o( ■'•out li.< rocoivors. "or witli- 'tJistand- 't t think t" was, I ecoivoi- 0- 'I'he '•'rent, uch a which >f the '■ the if/uor Tup ' not ) do ' of I in ade fti- lon ;de el, 71 which nieuHiiro waH found, Ity actual cxporiniont, in this way : — llavint; nscor- tiiined how much cultic npaco a liushcl, \>y weight, n>i|uii'(Hl, I iiiadf that a divisor (if tlio wholo nuint^r of cubic feci occujticd l«y the p-ain tlio dividend, and ho ii.-t(;crtaini>d tli(> nuinlierof IiumIu>Is. In carry in;;' out tlii.-i process, tlicy made n lio\. containinjf e.xactly Hpact! oCi" culii(! feet. 'I'lioj^iain IVomtlie Harvey warelionse, which filled that iiox, wei)tliud l.l'i'ii.j IIh. 'I'lio corn in the Distillery, known iH the •• Shook " coi'M, weiirhed per box full of '21 cubic feet, l,'2H()i._, llts. Since ilalliiday A- Co. connnenced diHtillin/r, th(>y may or may not Inive paid !|^l.'!0,IHIl) tinty. I cannot Hay. 'I'lii? Distillery has l»een closed since vVnuiist last. Som" time in Septend)er they were formally forbidden I'roiii entorinf; the Distillery unles.s in the presence of our ollicer. Mr. Merrill. Oolleclor o\ Inlan*! Revenue for the District of (Irenville, is in char^ro, and has watchmen there dny and night. His LoRDfliiti'. — This has no l)earinjf on the case. .lAMKS MULTiKN examined. —1 purchased .spirits from norsl, llalladay •fe t'o. throuifli Anndd. On tin? :{C.t:i May, IHC"), I bou;;;it 21 puncheons, M o. p.. containini,' 2,4H9 ^'allons, equal to .'J,734 proof f;allonH. On Juno 28, 'J'J pun- cheon.s, 41) o. p., 2,572 f^allons, (upial to .l.i-'.TJ pruof jfallons. To Mr. M. (y. (Jamero.v. — 1 have b: ' sli)j;htp rsonal recollection of the tran.«ac- tions, anil I am f,'uided merely by the invoices. 'I'her; are uot, receipted by Arnohl. T think wo paid for the licpior by an accep^ni. t . Wo made the pur- chaRo in Montreal ; I presume in our office. I \\a\v an indistinct recollection of one of the cur load.>i, but noiio at all of i.i. .thprs. We ni • r bounrht any before from llalladay A' Co. A. LAVKRDIKli examined. — 1 reside at I'oint Levi. I am rreiirht Checker of all f,'oods that oonm there by the (Irand Trunk. The list of cur loadH hIiowii me (a jmpor beinoods are safely delivered, the receipt taken by the carter is returned to the oUice, and pasted into a book opposite to the duplicate. In spite of our care, mistake.^ at times arise, and <>oods get astray. IJut I will guarantee none oi the whiskey in question went away. (JKOIKJK T.ONtiLKY examined. — T examined Halladay.s stock book (thin one). No. 2, from September, 186+, till 31st December; .'57,351 gallons appear from it to have been nsmoved by the (.Jrand Trunk Railway, and IC,988 gallons removed by otiier means — drays, teams, ttc. 'I'ho total is 74,339 gallons. Again, T find that from January 1 to June 30, 191,3i")2 gallons were removed by the (irand Trunk Railway, and by other means, 28,291, making a total of 219,- G43 gallons. 'I'he grand total of gallons sold and disposed of is 293,982. In my estimate T made three deductions : — First, for liquor lying in bond in the warehouse. 19,280 gallons; then 24,r)04 gallons ; and lastly, 18,584, making a total of (;i.878. The total quantity entered in the stock book on the 1st September, 18G4, is 83,080 gallons. There was taken from the close receiver to the end of l)ecenil)er, (.7,094 gallons ; and from Ist January to June 30, 173,. 800, making u total of 324,574 gallons. Deducting 74,339 and 219,G43, making a total of 293,982 gallons, a balance remains of 30,592 gallons, which agrees with their stock book. A. N. S rilllvER examined. — T reside at Prescott, and am Collectorof Cus- toms there. Was at Maitland in July last, and superintended the measurement of grain at the Distillery. Mr. Wilson, Collector of Inland Revenue, and Messrs. Davis, Jerro'ids, ttc. ; for the greater part of the time, Halladay were present We measured by means of a tape line. I know nothing of the first measure- ment. (On stating this, witness was allowed to go for the present, iu order that the Court might first hear the evidence of Nr. Davis, who was at the first measurement ) JOHN DAVIS examined.— I assisted at the two measurements made of Halladay & (\).'s. grain. The first w.aa maile on the 11th July. Halladay, Arnold and Wilson, (Jolleetor of Inland Revenue, was i)resent in most cases. We measured the insicument produced is in my handwriting, and is correct. Mr. (Jai.t. — I will read it — it is : — " Maitland Distillery, July 31, 1805. '• ITarvey Warehouse, corn ; average depth of corn, 1 foot 7 inches ; width, 28 I'eet 9 inches. 'I'otal length, 70 feet 10 inches — less a deduction of two leet." WiTNKss. — Wo tested the grain in this warehouse in a box — a cube of 3 feet inside; measurement, 27 feet. The gro-ss weight was 122!) Iba, less a tare of lfl3)J lbs., making 112r» il»s., equal to about 20 bush., .5j,< lbs. That was in the Ifarvey warehouse, on lh(^ lower floor. The upper floor contained oats in good condition. Did not measure the grain on this floor, as it was not in shape. Dis- tillery corn-bin, upper floor : corn bright and in good condition. Average depth of i!;rain ascertained ))y six measurements, 3 feet 33.< ; length of grain in bir. 44 feet 8 ; width, 30 lect 0. 'I'otal weight of grain in box, 1384 lbs., less allow- lUK'o for weight of l)ox, 103'.j lbs,, leaving it 1280 lbs., equal nearly to 2;> Imshcls. Distillery bin, lower floor ; corn bright and in good condition. Average depth, ascertained by six measurements, ft. 10^4' ; length, 33 ft. 3 ; width, 3(; ft. 7. Uye bin, in Distillery : length of bin, 29 ft. 2, less 1 ft. for an opening ; average depth, ascertained by four mensurements, 4 ft. 10 ; width. 21 ft. 7. Mult bin. In Distillery : depth, 4 ft. 4 ; width, .^) ft. 2 ; length, ft. 10. Corn in hop- \m' not measured, but assumed to be 20 bushelfl. 'J'hen, corn in cooper's shop — sanij)le same as in Ifarvey's warehouse : depth, 3 ft. ; width, 21 ft. ; length, 22 It. In cooper's shop there were oats in good condition : depth, 2 ft. 8 ; length, * * ; width, 21 11. 2. Oi\ the mill floor I found 33 bags oats and 8 bags barley- assumed to be 1 bushels, llalladay said it had been brought in by custoim is since the seizure. Mr. (Jai.t. — Who made the calculations based on these measurements? 1 made them. In the Harvey warehouse, lower floor, I found 130,599 lbs. In tin- Distillery corn-bin. upper floor, I found 250,51 1 lbs. Distillery bin, lower floor, 419,198 lbs. Corn in coojier's shop, what did you estimate that at ? 57,770 lbs. His I.ORDSHI1'.— Tliat makes a total of 850,104 lbs. corn. 7(i % ' 1 I ^\ i'l'l M''^"^-;ii' m 'II Mr. Gai.t. — How much rye was there i'l tlio Distillery rye-bin ? 1 did iidt compute the quantity. Ifon. Mr. Cameron. — I do not quite understand my leanicMl friend's object just now Is it to show that we had a ((uantity of grain on hand V His LoKDSiiii'. — They say you not, only sold so much whiskey, but had \\w means of making it. Hon. Mr. Cameron. — And they show the capacity of the! building ; but was the grain all there at the one time ? }fis LoRDSHii'. — They are showing the grain at this time. Hon. Mr. Camkron. — T do notseethat the fact of showing a certain (luartity of grain in our possession shows that we made a certaiii tpiantity of whiskey at ,jarticular period. Is that tlie oltject? His TjOrdsuh*. — No ; the oltject is to show the quantity left when they stopped, which would be taken (rom the gross (juantity ])ut in. And then they say, you distilled the rest. Hon. Mr. Camkron (to witness) — Did they make any representation as tn quantity? No; but Halladay was present and assented to the nieasm'ement we made. Was that tlie time Mr. Halladay 's boat was seized ? Yes ; I was directed tu seize the boat, and — His LoRDSHii' ruled tiiat the evidence as to their boat was unudmissiltle ; they had nothing to do with it. * Hon. Mr. Camkro.v, — Have i not a right to know why the boat was seizRii. It is connected with the seizure in this ea.se ; and I propose to ask the witiasH why the " Pleasure" steamer belonging to Halladay was seized. His Lordship. — If you will stop at tliat. — Hon. Mr. Cameron. — No; I will not undertake to do that. Mr. Galt objected to the enquiry as irrelevant. Hon. Mr. Caaieron (to witness) — Did you put down the '^leasurement your- self? 1 did. Did you make them ; or were they called oft"? Part I made and part I did not. The measurements in the Harvey warehouse and coopers' slioj) I e.xaminud with the line and guage-rod myself. Who held the line. Davis and Jerolds. During all the measurements ? In the Harvey warehouse I held it myself. Mr. Galt. — Was Halladay present? Not when we commenced; but we went over it again for hinr. Mr. Galt. — Having made the statement to the jury that I would offer evi- dence that Halladay had taken certain steps to suppress evidence in this case, I am prepared at this stage to introduce evidence on that point. . iiut in deference to his Lordship's ruling that I could not go into the question with regard to the false books at Maitland, I suppose I cannot go into this. Your Lordship held the former matter to be irrelevant to the present enquiry. Hon. Mr. Cameron. — No ; but it was that you could not ask that question in reference to what the station master did. His liORl '•'■^"■" ? I did iK,t wiurs object just kt'y. I>ut lind Ui, mililing ; but was oortuiii (,-iiaitity ^y of wliiskcj- at '''ft when llif.j. And tlien (li,.y 'sPiitatioii as tti iiwiHiireineiit wc was directed (o ^ 'inadiiiisHiMo ; 4 >oiit was seizfl,!. isk the witness ^nrenientyoiir- 'i"'I part J di.) '!» ' exaiiiiiiej ' it myself, 'ced; butwu "ild offer evi- 1 this ease, I ill deference e^irard to the h'P iieJd the ■ question in 77 Hrs LoRDRHTP. — Do you propose to prove something about this a&sault spoken Afr. (tai.t. — I said I wus prepared to do so. Now I say I understood your f,oi'dship to rule before that I could not go into the ((ueation of these false books. Ills JjORDsnii'. — Not in the way it was put in, I meant, not as to theadmis- I ,;ion of the station master with reference to tliese books. As to this assault you propose to enquire into, I would say, iss in the case of the steamboat, that there niijiht be a suit as to this assault, and then the enquiry would properly be made. Mr. (Jai.t. — Yes ; there is a suit. I now wish to tender my witness. Hon. ]Mr. Camkron. — You know very well you can not examine the witness. Mr. (itAi.T. — I call lor Arnistnins- Mr. Anderson. — The evidence is tendered to show guilty knowledge. J01l\ A. ARMSTRONG, examined byMr.GALT: What is your occupation ? <4overnment detective. Were you at any time at the village of Maitland? Yes, on the first day of Xovember last. Went there some few days before. Between the 20th Oct, and 1st November. [ was there once or twice. Are you acquainted with the defendant? [ am. Under what name were you known at Maitland ? James Street. No ; James Wait. Hon. Mr. Cameron. — The witness does not know which of his names he used. Witness. — I used both. I saw Halladay two or threy times. You have referred to being at Maitland Nov. 1st, — did you see Halladay then ? In the evening. State what took place between Halladay and yourself that evening. Halla- day came to me and asked me when 1 came, and I told him. He aoked me if I had lioiight the horse ot Wilson. T said I had not. He then told me he had one for side. I asked him if it was pretty fast. He replied it was, and wanted me to go iiml see it. I asked him where it was and he said it was just "down there," point- ing to the Post Oflicc — some short distance from where we were. I — Mr. M. G. Cameron. — If my learned friend says this is merely preliminary to taking evidence cl' the assault, J object. Mr. Gai.t. — Yes ; I give you tiio opportunity of taking the objection. • His Lordship (to Mr. Calt). — Had the witn^^ss any conversation with Halli- \Vi.ser ic Co., of Proseott, Distillot^ ? Arc you siware ot'any sale of corn boiiiu' niude to Halliday by Wiser ? Tcs. The delivciius titoli place in January and I'cbruary, 1865. What was the quantity sold ? N'ino tliou^^nnd bushi.lri i i "irn, delivered at our Distillery, to their learns. "Was there any cither grain ? Ycs ; 1,000 bushels of rye. How was it ta.ken away .' By thc'if teams, or teams employed by them. It was on (lis order. Did you buy any large (piantity of spirits from Bi rst, iJ illaday & Co ? Yes. F'.om September, ]8*)4, to July, l^Ofi. we boupht 1f>, 389i^,) gallons proof. What ^ere the date.: of these purchases? They vw scattered over sioine twtn- ty-two diflFerent lots :— Sept. 26. 1861, 2!l fralln.!.. ;»0 o. p.. s-amodate, 250 jl-'uIIoms rye whiskey ; Oct. 20, 1861, ;M8,i,'!ilions jsiiirits M o.p. ; Nov. 11, 124'.^ ;'allon,s Nov. 19, 11»0 gallons ; Nov. 22, 605 f,'alIons ; Deo. 12, 2."iOj,j gallons ; Die. t.'i, ?<2::- rullons ; Dec. 14. 4';6 gallons ; Dec. 1."), 213 gallons ; Jan. 10, I860, 402 gal- lons ; Jan. 26. 1639 gallonri ; Feb. 10, 812).; gallons ; Feb. 16, 1,214 '._; gallons. Wild 422 gallons rye whiskey ; IVb. 24, 408 gallons ; March 2, 747 gallon,-; ; .March 7, 986 gallons ; March 14, 115 gallons rye whiskey ; .May iS, (3 lot,'*). 165, 280, and 41 gallons. Some of thiti was strong t^pirit, 65 o. p., and the lest 50 o. p. May 31, 1865, 627)^ gallons. Mr. Galt. — 1 have now 1881 in my list. Witness. — I have no such quantity. Then there is July 7, 740, 50 and 40;i gallons. Mr. Galt.— The stock-book ends on the 30th June, and I have charged nothing: for the last two entries. Hon. Mr. Cameron (to witness).— Have not Borst, Halladay A:. Co. a hii'^ie warehouse at Prescott? Y'es ; all the whiskey we bought Irom them was de- livered by teams. JOHN MILKS examined by Mr. Galt.— Look at the book 1 hand you,— is that signature yours ? Yes. What is your occupation ? Carpenter and joiner. Did you ever team ? No. Did you ever receive corn ? I was at the station on one occairion, and through tlio station-master I signed the book you have shown me. Mr. Galt. — It is a receipt given by witness for a quantity of corn consigned to Borst, Halladay & Co. Witness— The car loads represented here were at the station then. Mr. Galt (to opposite Counsel). — The entry en the stock-book is June 10. These arc the entries made after Mr. Brunei had signed the stock-book, which 79 I'lonytopivf., let [t"^'«>). Did y,n, jbook-kcojKT to of corn |)oii,ir I'n January anil Jelivertd ut our by nioni. If 'A' Co? Vc-s. >'is proof, vor some twdi- t^'. 2.-);) .iraji,,,,, --''•j.yallu,,..; '•">'<; l>o you know that it was ever done ? No. You have no knowled,c;c of it whatever ? None. What was your particular business in the Distillery ? To attend to any busi- ness. Any business 1 was sent on. Did you never see any spirits pumped out of the receivers in the absence of the Collector ot Revenue? Only through the right i»uin|), when it was unlocked. I have seen spirits pumped. Who pumped it ? I cannot tell ; the pump was running. Who was present at the time? It was when I was laying some lead pipe rom the receivers. 1 think Geo. Ljunbcrt was present at the time. Anybody else ? Not that 1 remember. Was Lambert the only por.«on present ? The pump was runniiiy , and no one was present only Lambert and L Was Mr. AVilson, the ('oUeclor of Inland Kevenue, there ? lie was not. Any ofTicers of Government ? No, Who was Lambert ? Me was a coppersmith. Mr. Galt. — Now.we know where the spirits went. A JuRY.MAN. — When you speak of the pumps running, wai it after it had been unlocked by the proper officer. Hon. Mr. Cameron. — That is the ve:y question I was going to put. Witness. — Yes. A JuRY.MAN. — In reference to the corn yon receipted in the book, did you receipt it of your own accord? I did it through the iStation Master ; at his re- quest. Do you know why you were asked to sign it ? rio that the books would be straight. Who did you expect would get the corn V I received the corn. What did you do with it. Left it to him to do what he liked with it ? 1 un derstood through him that Hon. Mr. Cameron. — Never mind ; you can only say what you know as a mat- ter of fact. His Lordship. — How came you there to receipt for corn if you weie a car- penter ? I was sent there. His Lordship. — To receipt it ? No ; he did not tell me what his object v/aa. He would not explain it. His Lordship. — Why did you do it? No answer. Why did you take the corn ? 1 do not know. Do you mean to say you do not know where it went to ? Was it left to the pigs to eat ? No, 81 ra and belief, corn. tivx-Iy. ti'liry ill the to auy biiij, iilweiico (if "i iiiilockul. ^ lend jtjj)(, iiiil no oiif! ns not. tt'r it had f' did yaw 'it his 10- voiild be s a niiit- a cur- ct Was. to the AVIicre was it sent ? To the wapgons. Wiiose? JTaihiduy'8 wa,!,'gon8 Ihat were sent up there. I'ETKR ARNOLD recalled for cross-examinalion. Ills LouDsiiip. — Uavo you no more witiieiwca Mr. (jAr/r? Mr. (jalt. — I have not, my lord, that 1 am aware of. I'KTKR ARNOLD croas-examined by Mr. Rfcuards. The Maitland Dia- tillcry is between half and three (l^a^ter.^ of a mile Irom the Maitland Station. The J>i3tillery is in a hollow. At the station there iw no villajfe. All the villa;rc there is, is on the road running on the north side of the Di8till(;ry. Can seethe Disiillcry from thestation. It is a wind millund can see the top of it. Do you know who made the entry in tijo stock book as to th ■ amount of liquor iin liaiic? 1 made it on the 1 st September, 18G4. W ho kept the stock-book ? I did, for Halladay. The stock consisteil of li(|uor in the Distillery and some in bond ? Yes ; 8.^,000 gallons in all ; 40,000 odd gallons being in bond. Where was the liquor? In different places ; some in the cooper's shop, some in the warcliouso. I think the bonded lot was in Harvey's warehouse. Where was the liquor belonging to Read ? Did you enter it in the stock- liook ? No ; because it was sold before September 1st, and was notour property. Where was that liijuor ? Jt was in the cattle barns. Jf ow many of these cattle sheds are there ? Klovcn. His IjORdshii'. — How many were thus stored? Between aoo and 400 pun- cheons. Mr. Rici.'AiiDS — You never took that into account in your stock of liquor on iiaiid? You were only required to keep a stock-book from September 1st? Yes, and the liquor did not belong to Halladay then. Are you aware of Halladay buying, or having liquor before the stock-books were oiKiicd ? Yes ; he bought from other parties. A large quantity was bt ought Irom Toronto. I saw it in the ohl stock-books, 80,000 or 100,000 gallons. Arc you aware of the firm having a large quantity store. No. Was that liquor the property of Borst, Halladay & Co. ? I presume it was. Any liijuor It(diday it Co. had, coJinected with Borst, Hallada}' it Co., was it Borst, Halladay it Co.'s whiskey ? Yes. Why did you not enter it in the stock-book >. It was not entered till sold, and I was not at Rlaitland when it was shipped. I explained to Bru- nei that I could not enter it till it was sold. You understood tho entries in the stock-book to refer to the sale of the lifjuor ? Y'es ; I understood it was not necessary to enter it till sold. I explained this to Brunei, and told him, too, that it was impossible for me to etl Mr. I was I thatl tiesl lorj in YeJ on jof eomo Iroiii ''(^lic/, (lid }„, I" ktu)w US II I'll I (Jolivorj? (n VVClVrllt |„. ["» Chicago ' "f> to th« >t from the House. question and Jer- Jneasured. coinpar- betiveon er l,125i old. The tape Jine •W of the was said also the o Holi- liday. iimo it fc Co., ■ed till Bni- of the d. 1 r me 88 to enter it in the stock-book, us I was fruiiuently away when it waH Hliip[)od. Mr. FtriMiel mai' no objection to my not onterinjj it in the stock-book till it was sold. 1 uxpi.iinod to him that the li(iuor was consigned to me, and that when it wau sold, 1 always entered it. You had a largo 1 do not think so. As far as you know, everything was right about the distillery ? Yes : I WiiM not there much ; but was in Montreal a good part of my time. Do you know anything of the pipe being broken ? I do not. How many head of cattle l)ad you there ? About 1,(K)0, and 200 or .'{00 hogH. The persons feeding them had access to the grain— (meal)— that would be in case of a break-down. Were there frequent breaks-down in the distillery ? There were: more the lirst year than the last. Do you recollect a cargo of grain coming by the n rcrtHuii to think (ithorwiso. Vou Hay lIuTt) v/vw lu'twi'i'ii ;{(H> ami 4(K> |iihicliconH / VoH. Ills Ijounsnir. -What tlid yon avura<;e tho pnnchuunM / 171 proof f{alH. IMr. CJai.t. TtOl nut I ho contuntH in proof ;,'allonH of 'M'2 pinichnons of HpiritH at oO o. p. (»1},!»KS ^'al«. Did you say that was in hand iiuforo Ho|»t., IH(tt I I did. Mr. (J ALT- (to tho Court) Now, I havo in my liand an abstract of tho (piantity of j^rain and otht-r Hulistanci'n nm'd hy Morst, llailaday »V Co., suh- jtict to duty, durim,' tliu jK-riod from tho boyinning of tho distillery to tho Ist Sept., ]H\\i ; ami I will road it ovor to witnuHS and lot him chock it to 800 if it is right. (To witness) -Look at tho paper — it is in wino gallons, and proof. Tho lirst entry is from tho lOth to tho IMHli September, ISUH, 2,I(t!)gals. ; from tho Ifitli to tho .Hist October, 10,450; November 2nd to 1 Uh, I»>,51H ; November Kith to 30th, 7,155 ; December 1 to 15, 22,:W(i ; December Ui to 'M, 15,242; January 1 to 15, 1H04, 20,250; .January 15 to ol, 22,(>88 ; February 1 to 15, 10,3(14; February Iti to 20, '48,551 ; March 1 to 15, 21,201 ; March l« to 31, 21,702; April 1 to 15, 11,782; April U\ to 30, 17,820; May 1 to 15, 18,514 ; May 1(5 to 31, 17,228 ; June 1 to 15, 13,(}25 ; June 10 to 30, 0,762 ; .luly 1 to 15, 1,710 ; .fuly 10 to 31, none ; August 1 to 31, none. His LoRit.sHir. — That is tho whole amount, from the beginning to August ( Yes. The total is 288,174 gals. Mr. Galt. — Can you say what amount of spirits was sold up to Sept, 1, 18()4 ? 1 cannot. We had it in Mr. Itrunel's evidence that the amount of sales as agreed to by Borst, ;\t Maitland, was 217,132 gals. With regard to tho spirits con- signed to yourself, was that made at Uorst, llailaday tt Co.'s distillery I 1 received and sold it as such. How does it happen that it docs not ap[)car on the stock-book i Hon. Mr. Cambkon. — It does appear, when it was sold. Witness— 1 did not protend to say that 1 entered all that waa consigned to me. Mr. CiAiiT (in reply to opposite counsel) explained. He said : I take the stock-book and say, as regards spirits removed by any other mode of con- veyance than the Grand Trunk, 1 presumed it was correct. Then 1 say I do not care to whom you sold tho si)irit — tho (piantity I claim against you is the quantity L have proved in puncheons. 1 clai' that you disposed of such a quantity of spirits ; and say that, according to your stock-book, the whole amount you had a right to dispose of was so much. From that we will deduct the amount you yourselves say was sent to places other than Alontreal or Quebec. And then 1 Scay we have shown that you sent to Montreal alone upwards of 200,000 gals, more than appears from your re- turns. I say I will give yovi credit for every gallon you disposed of. You say in your stock-book that you disposed of so much to parties in Toronto ancu thai ami thj hoj unj haj thi ol 85 llad/iy A "»f gain. II'OIIH of of tho , Hllll- to th.i k it to r'llIoiiH, -'iKl to 2,;mi ; iriiurv to 15, ftiul olHOwhorn. I Kivo yo\i credit for nil thftt ; ami bUII say I havo proved that yoii hav« Bunt over tho (Jrand Trunk, from Maitlaiid to Montreal, sui'h n (inantity of spirits that it oxcoiulod by upwards of liO(»,0 ^'allons or puncheons, or any other tpiantity ware- hosiiii'— (to Mr. Cameron)— They answer that you had nono on liard. Mr. ALT.— Yes ; I aHkod Arnold this ; and he nqdied ho could not say they had any stock of spiritH on hand on 'luly 1, IKtto. WiTNKsH. — I was thinking of 18«}t. f think there was a little on hand on July 1 , 18(i5. Mr. Oai,t.— Do yoti think there wore 20,(XK) gals. / I do not. Hon. Mr. Camkron. -Tho delivery was proved of a great deal more than that in one parcol on tho 1 0th August. Mr. (« ALT. —Never mind. (To witness)— With re;,'ard to these spirits sent to you, were they entered at tho tiiiio in the stock-book / No. VVero those spirits that appear to havo been consigned to J. Holiday it Bro., entered I Not when they were consi'^ned. Were tho spirits sent to you to Quebec entered in the stock-book V Not in my name. When they were sold, the name of tho purchaser is given. Does this stock-book contain tho entries of all tho spirits that were sold I No, it does not, —of all that was sold in Montreal. Look carefully at it, and tell us how much you believe was sold in Mon- treal altogether, through your agency / Perhaps in tho neighbourhood of 4(X),00() gals. Have tho kindness to look at this abstract of the entries in the stock- book and check it with me. Yes. The following are tho tpiantities sent by conveyance other than tho Grand Trunk, in proof gallons :— 05, G7, IL'O, ;{4, 40, 154, 35, liK), 3H, 41, 200, 40, 1!»2, :U2, 'MG, 40, 40, 34, 79, 70, 180, 200, 3*5, ICO, 430, 159, 07, 199, 373, 105, 373, 80, 151, 200, 82, 80, 07, 30, 75, 161, 522, 27, 75, 20, 037, 80, 378, 98, 80, 00, 05, 153, 03, 285, 00, 908, 00, 75, 40, 400, 301, 070, 471, 248, 370, 233, 225, 45, 1234, 714, 319, 200, 121, 75, 107, 102, 72, 180, 34, 200, 158, 309, 80, 75, 12, 27, 19, 247. That is all shipped up to 31st Dec. Then take by the Grand Trunk :— 1974, 1723, 196, 197, 397, 391, 398, 192, 225, 3721, 195, 1979, 3030, 1198, 9, 19, 349, 79, 40, 880, 80, 913, 1698, 897, 3733, 3747. WlTNES.S.— 3748. Mr. Galt.— 3748, 160, 3732, 1545, 3721, 3760, 200, 2466, 3697, 573, 3718, 3664, 520, 838, 160. Turn back and you wiU find 148, 179, 150, 75, 152, 150, 397, 76, 12. (Witness did so.) Now, you have checked all the entries for that half year ? — Yes. SG !■■:'■ ! v.i ■I i I'M t it Now look at the other— 222, 98, 07, 32, 20, 40, 34, 003, 78, 22;., 42, 150, 40, 223, 70. 34, 225, 2458, 138, 345, 3!), 35, 205, 50, 32, 34, 110,20, 220, 121, 108, 1015, 00, 220, 70, 40, 1822, 338, 244, 205, 102, 75, 38, 147, 3!>, 223, 150, !»0, 34, 30, 75, 40, 1479, 108, 300, 08, 305, 272, 38, 30, 34,332, 381, 100,41, 32, 80, 35, 41, 85, 122, 222, 08, 30, 142, 223, 200, 35, 234, 270, 40, 78, 78, 30, 75, 1 17, 41, 8, 70, 84, 82, 34, 247, 483, 118, 105, 208, 223, 81, 404, 147, 308, 500, 10, 34, 100, 40, 197, 84, 81, 1881, 151, 40, 115, 40, 34, 75, 40, 82, 40, 40, (80, 41, 375, 334, 320, 150, 42, 82, 1340, 401, 204. Then by the . Grand Trunk Railway— 208, 007, 204, 75, 2583, 500, 728, 150, 377, 450, 18, 330, 3705, 3544, 3048, 3073, 3130, 3172, 7(J, 153, 3700, 3703, 747, 100, 1120, 885, 8875, 3703, 3073,3007, 3070, 3085, 3!)9, 3097, 7840, 1700, 3084, 3702, 3780, 3798, 3048, 3700, 3727, 78, 105, 3780, 04, 37, 83, ,0, 42, 40, 3:5, 71, !»92, 780, 39, 477, 2175, ;{082, 1789, 1900, 7550, !)I0, 001, 000, 38, 0070, 1830, 1008, 30, 35, 4311, 82, 18584, 372!), 1707, 1147, 225, 2102, 30!t0, 4072. Mr, ff ALT explained that he had ibeen getting witness to check oft" as against tlie abstract, the quantity of spirits which appeared by the stock book to have been forwarded by the Grand Trnnk, by drays and other means. (To witness.) — I understand you to say, speaking from memory, that you disposed of some 3(X),000 or 400,000 — which would luave a very nincli larger surplus than 180,000 gals, unaccounted for. lion. Mr. Camkron.^ — If that quantity has been sold ; you uist remem- ber there was a quantity sold before Sept. 1, to Reid. Ther*^ tvas a cpiantity in Halladay's store, uad a large quautity sent from Toronto— making up- wards of 200,000 gala. The first year there was 100,000 gals, sent from Toronto. WiTNiws. — Yes*; we bought it from Gooderham. Hon. Ml". Cajikkon.— About 300 puncheons were sold to Reid before Sept. 1, and 221 puncheons on hand, — none of which came into the stock book at all. Witness. — Yes. Mr. Galt. — When did that come from Toronto '—In 1803. You say there were frequent breaksdown ; when did they take place !■- was there a breakdown since Sept. 1804 / Yes ; oould not say how many there were. Is there any loss in rectifying the spirits I There is a small loss, about 3 per cent., it is said. I do not think it is over one per cent. Mr. Galt. — The duty is payable before the spirits are rectilied, find in the stock-book they put the loss at 3 per cent. There is therefore an addi- tion of 3 per cent, to be put to the sales of rectilied spirits for diity paid before it had been rectified. Mr. BRUNEI^ was then called to prove the (piantities agreed as to the sales book. (Examined by Mr. Galt.) What amount of sales was agreed to between Mr. Rorst and yourself, when you examined the sales book, while the investigation was going on in Decen the aa altogt nary, from the q\ian entei Tore m 5 87 cJc off as lio stoclc Jj otiior inoniory, a very renieni- 'HI!,' iip- iif. from before e atoek tee /— niaiiy out .'J nd in iddi- paid ' the lelf, 1 ill December, 1864 ? He was present when I made the abstract. He took the sales book and made up the quantity sold, apart from my computation altogether. He made it 217,132 proof j,'allon8. This was on the 19th Jan- uary, 18C5, and had reference to the sales previous. The sales extended from the commencement of the distillery till September, 1804, and covered the period referred to in the abstract. He also stated at the same time the quantity of stock in every shape on hand, as 83,080 gallons — just as it was entered in the stock book. He also spoke of si)irit8 brought down from Toronto. Mr. M. C. Cameron — Yet yon are Kuing Halladay as responsible alone. Mr. Galt — If you bring Borst here we will make him responsible too. (To witness). Did Mr. Borst make a statenicrit about spirits being sold to Reid I No ; I do not recollect seeing the name of Tteid in the books, thouijh I examined them to see what was sold. If any quantity like 200 or 300 puncheons was sold, yo.i would recollect it 1 Yes. In reference to large sales, such as these, I should remember the name. Was any statement made as to any spirits being in store in tlie stables I No ; I asked particularly had they any more on liand, and tliey led me to believe that was all. Had they any object in showing a large quantity of spirits on liand then I Certainly ; we were then engaged in making up the quantity they reported as having been manufactured and returned for duty. But tliey could not account for as much as the sales book showed they had sold. The latter showed about 25,000 gallons more had been sold than they had returned to Government. Their object would thei-efore have been to cover the ditler- ence between what their sales book showed and the returns— their object being to avoid payment to Government of the duty on that amount. Tliey then admitted a deficiency in the corn account of 40,000 bushels. If this spirit was there then, they had an interest in showing you it was there > Certainly. You do not recollect seeing the name of Reid in their books I No ; 1 should recollect it as beini;; a large quantity. Did you ever give instructions to Arnold with regard to the manner in which the entries in the stoek-books should be made I Yes. Did Arnold ever tell you he did not make entries in the spirit stock-book when spirits were removed and sold I He said it was the cour.se they fol- lowed at the beginning. I told him it was not the proper way. When was this conversation ? I think it was in December, 1864. Are you positive you told him then, that the course lie had pur- sued before was not correct i—l did, and told him I understood that the statute required that the atock-book should contain the amcmntsold or trans- ferred or removed from ihe distillery. I said that if they kept a distinct sales book from the stock-book, and recorded there the particulars of every 88 !.!■ . I.ii'l. •t !' '■'■ "'. f'i ti ^ii i transaction, they mis^ht enter each day's transactions in tlio stock -bool;, makini,' reference and seeinj:? that it tallied with the other books. Hon. Mr. Camkrox — That would not bo the course reqiiirod by the statute, according to your inter^n'otation. Court adjourned for an hour at this stage (2 o'clock, p.ji.) When Court resumed its sittings at three o'clock, Hon. Mr. Camerojj rose to make objections on the part of the defence. Your lordship, ho said, has already a note of some of the points I have raised in objection, and I need not repeat them. They have reference to the stock- book and the "regiilations." 1 renew these objections as groimds of non- suit. And 1 further object that under this statute, in the first place, the word "stock" does not include whiskey — that whiskey distilled is not iuchided in the term. Under the English law, the word " stock," or "stock- in-trade," is made use of with the interpretation clause. The nieanin;; placed on the statute is, tliat it includes what the material is, as well as what it is made from. Eut, according to our statute, the whiskey, or what is . made from the material, is diflerent from tlie material itself. Tliis appears from the n^tli and 30th sec, which show the interpretation of the statute itself, that stock is tlierc^ described. Everything else is described as articles or commodities. And when tliey came to the «pi03tion of the stock-book, we say it cannot include that article which is not provided for in the statute. I contend, again, that that there is nothing Avh.atover in the statute! in reference to the words "otherwise disposed of," except with regard to articles of grain or other materials from which whisky is made, except in the .34th sec, which provides as follows ; — " Eveiy penton or party licensed as a distiller or as a brewer, shall kee[> a book or books in a form to be furnished, from tii.io to time, by the Minister of Finance, and to be open at all seasonable liours to tlie inspec- tion of the Coflleetor of Inland Revenue, or other proper oliicer of excise, wherein such distiller or brewer shall enter, from day to day, the (piantities of grain or other vegetable production, or other substance put by him into the ma.sh tub, or otherwii- o used by him for the purpose of producing beer or wasli, or consumed by liimin any way for the purpose of producing spirits, or ufJti-iwi.ti' dlsposfil ()/, — and also the quantity of spirits, l)eer or other mall liijarirby him distilled, manufaduredor made ; and for any wilful falstMintry or any wilfid neglect to make auy entry hereby reipiired, the distillia" or brewer shall incur a renalty of $,W0." 'I'he words " otherwise disposed of," wa contt'iul are, then, applii^ahlo to grain and not to spirits ; and while regulations may be nijide uiuUt the statute, no rtsgulations can be made which will go beyond the statute. You cannot require the distiller to do anything which the statute does not provide for. It does not jn'ovide for what is claimed in this instance by the prosecution. Again, according to the wfirds " otherwise disposed of," no return, we contend, is to be made unless absolutely sold. The words mean — so as to be out of the power of the person manufacturing; and the mere fact of the spirits being out of the distillery and ia ;! :h 89 ■Jie .stock-l)ool )k8. f tho defenco. I Jmve raised etothestock- >«n(Is of noii- stiJled is not ff/'or'^atock- I'iio iiieaiiirijr fiteriril is, as atatute, tlic 'erent from •"^fitll ,S(ip 'ck IS tiier(> Cities. And mot include! ' -igain, tJiat o the words "» or oiIi(>r ich provides s .1 hnnver, o tinio, ])y , •fiiantitics V Jiim into "'inif huej. "-'^spirits, ^•Jiei- malt "-'•iH entry stiJIr-r or M«d of,' nd wriiilo 'e inad(! ■1' to «lo vi(Jo for !,' to the > 'inless ' person 'and in tho waroliouae, orotherhouae, ia not "disposed of ;" and such spirit need not, tliereforo, l)e returned as ' " disposed of " until sold or properly parted with ; and spirits not brought into the distillery are not returnable. Again, the authority i^iven here to i)rosecute for penalties wo lind contained in the 100th section. Now, that section declares, that "every person carrying on any business .subject to excise who shall fail or neglect to keep such stock-books and all such other books as may be required to be kept by any regulations, approved by theOovernor in Council, or by this act ; or, to make tnie and correct entries therein of all particulars required by this act, or the said re- gulations to be entered in sucli stock-books ;" or, who shall neglect or refnse to make such stateiiients, or render such accounts as are required by the act, shall forfeit and pay the penalty attached. My ["^rned friends, I say, failed altogether in the evidence required forprosecut under this act ; for tliey have not shown that the stock-book or stock-books were kept accord- ing to the regulations of the Governor in Council. By this act, indeed, there are no stock-books. There are, we say, two things necessary with re- gard to these stock-books— that the Minister of Finance is required to deter- mine tlie regidationa under which they should be issued, and to approve of them ; and neither of these steps were taken. The information in evidence produced, could be laid, we say, only for not returning a just and true ac- count, under the 02nd sec. of tho act ; and there being no stock-books under either the proper regulations of the Minister of Finance or of the Governor in Council, under which the penalty is laid, it could not be incurred. Mr. G.VLT — In answer, I would beg to call attention to the books requir- ed i)y tho 34th clause, and it ivill be apparent they are not stock books at all. The kuv says : — " Every person or party licensed as a distiller or as a lirewer, shall keep a book or books in a form to be furnished from time to time by the Minister of Finance, and to be open at all seasonable hours to the Inspection of the Collector of Inland Rovenue, or other proper otlicers of Excise, wherein such distiller or brewer shall enter from day to day the *[uantities of grain or other vegetable production, or other substance, put by him into tho mash-tub, or otherwise used by him for thn purpose of produc- ing beer or wash, or consiniicd ■( 'lini in any way for the purpose of pro- ducing spirits, or othei •.vif: disp ..sod of,— and also the quantity of spirits, l)eer, or other malt li([uor by him distilled, man\ifacturod or made ; and for any wilail false entry, or any wilful neglect to make any entry hereby re- ({uired, the distiller or bn>wor shall incur a penalty of $500." Those ar a (litFtUTut set of books altogether from tlin stock-books, and are what are I'alled "register- books." The li^tli clause, which refers to stock-books, says, — " Every distiller, brewer and tobacco manufacturer who is required to take out a license under this act, or who carries an any business subject to Excise, shall, f miller, keep such stock -books and other books, and in such form and m:'.nner as may be ordered and prescribed liy regulations approved by the Minister of Finance." For the purposes of this trial, we now hold t'aat this stock-book has bei«n approved of b" the Minister of Finance. This 7 90 is the first time the term "stock-book" is used ; and weaffimi that these are not the books referred to in the 34th sec. Then, the 36th sec, on which my learned friend relies, says — " Every quantity of grain recorded or stated in the stock-books herein mentioned and in all returns, descriptions and statements re([iiired to bo kept or made by this act, and the quantity of every other article or commodity, except fluids, used in or about premises subject to excise, or entering in the manufacture of any article or commodity sub- ject to excise, shall be stated in pounds avoirdupois. All quantities' of fluids shall be stated in the aforesaid books, returns, statements and descrip- tions in wine gallons." It is not necessary to trouble your Lordship further than to call attention to the facts — first, that stock-books are not re- ferred to in the 34th sec. at all. They are referred to in the 35th, and there it states that in those books all fluids are to be entered, according to their quantity, in wine gallons. With regard to the 109th sec, "every person who shall fail or neglect to keep," &c., the meaning of it was clear — that so soon as the Govemor-in-Council thought necessary, distillers should be re quired to keep all such other books as they might be required to keep. But no such books ever issutid, — that is as might be re([uired by the Governor-in- Council and this act. It refers, you will see, to three classes of books. First — sitock-books ; 2nd, any other books required to be kept by auj regu- lations of the Governor-in-Council and this act — and here they had refer- ence to the books referred to in the 34th sec. His Lordship, in the meantime over-ruled the objections, and defend- ant's leave to move in the higher Courts was reserved. Mr. M. C. Camkron then addressed the jury for the defence. On behalf of defendant, he said, it becomes my duty to make a few observations. But I shall not occupy your time long for after the evidence I will be followed by my learned friend, Hon. Mr. Cameron, who will go more fully into tlio matter. I understand the Crown does not i:itend to raise any objection to my learned friend. His Lordship. — I rather think I have something to say in that matter. Beyond what you do in the opening now, you have no right to go. Mr. M. C. Cameron. — We would only have the right to sum up ; not to make any observations. Mr. Harriscn.— You have no right to sum up at all. His Lordship.— I understand them to concede that the same mode of procedure should be adopted as if it were a case under the Common Law Procedure Act. Mr. M. C. Cameron resumed. The case, be said, as presented by the Crown, has two aspects. They seek on two grounds to recover "rom this defendant the large sums mentioned— ^200 as a penalty, $500 as a further penalty, and three times the ordinary duty paid on such liquor made and disposed of as they see not entered in the stock-book. The first charge is, that more liquor was distilled by this defendant than he has given returns for ; and they say that in consequence of his neglect to make proper re- that these are sec., on which )rded or stated scriptions and antity of every smises subject >mmodity sub- quantities' of ts and descrip. •dship further are not re- th, and there fding to their every person :lear— that so hould be re keep. But Governor-in- es of looks, by auj regu- 3y had refer- and defend- On behalf tions. But be followed IJy into tlio Ejection to lat matter, 'P ; not to ' mode of mon Law d by the rom this ' further ado and large is, ' returns 'per re- 91 turns, the penalty has attaclied of the sum stated by the statute, and tliree times the ordinary duty paid on the liiiuor. That is, instead of 30c. pir gallon they claim !tOc. Now, in reference to that particular charge, I apjirehoud, if you have been paying attention to the case — as I have no doubt you hive done— you would have noticed that there was an otiicer of customs whose particular province it was to look after this dis- tillery — to test the licpior— ascertain its strength — and measure the (juantity made by them — and you will consider it remarkable that he has not been brought before you in order to speak to what he found +o bo the state of affairs in their distillery from day to day In this case the Crown prosecutes the claim against a siibject, who is charged with serious and grave oli'ences apart from this ; for he was accused of iiiving committed perjury. It was said to bo essential to this crime — and it was said that almost every crime known in the criminal calendar had been committed by Halladay ; and it was even insinuated that he had attempted to commit nuirder. Now where charges of that kind h.id been made, one would have supposed tliat the jiuntleman specially charged with the inspection and examination of the dis. tillery, would have been called before you to show if he had any reason to Huspect or believe that these frauds had been committed by defendant, and that his I'eturns were not faithfully made. The first count, I say, charges that he manufactured a larger (juantity than he returned. Now, as far as the revenue is concerned, it is clear that if they have not manufactured it, it does not matter how much we disposed of. If we did not manufacture it, some one else did, and paid the duty. It, therefore, becomes important that we sliould in(|uiro whether more has been manufactured than would appear from the return. It is important. And if, after hearing all the evidence for the defence, taken in connection with that offered by the Crown, you conu to the conclusion that more has not been manufactured than retui-nked, I apprehend you will pay very little attention to the otlier part of the information. Now we propose to do what the Crown has omitted to dr. This is the stock-book kept in the es- tablishment — the stock-book of which returns were made to (jovernment. Every two wcnks these ri^turns had to lie made to Mr. Wilson, the Collector of Inland R{!vemi<;, who resided at Brockville, and who went to this Mait- laiid Distillery almost every d.iy to make examinations of what was going on. if any of you, gentlemen, are familiar with the business of distilling, you must know that it takes more than four days to manufacture the grain into spirit, liable to duty, ^'ou have heard the (iovernment precautions against fraud in these distilleries, airoug which I may now mention that everything connected with the vessels in the distillery that can be found so as to ex- tract liquor from these! vessels before it has been measured, and is chargeable with duty, is locked, and the key is kejjt in possession of the Custom House OHicer. You are to remember also that that lock is so made that it cannot be tampered with, without discovery by the excise officer. In the casing of this lock a piece of paper is placed, on which are written the initials of the 1^ 1 '^: I ri i'r 92 Cuatom House Ofticer. This is placed right opposite the key hole. The lock is then shut down, and it is not possible to get it open without perforating the paper, and showing the officer at once that the lock had been tampered with. Of course, if a forgery were committed in reference to the piece of paper, it could be easily detected by the Customs officer — wh» would see that his initials were not on the piece of paper. It was thus impossible to take liquor from the receiver through the ordinary cock or pump ; and if liquor was extracted, as charged, it must have been by some other process. Now you will understand, as a matter of fact, that the law requires all vessels contain- ing the liquor should be painted of a particular colour, so that no tampering wivh the hoops could take place — no one could move them the slightest particle ; and nothing of an attempt' of that kind had been disco irered in this case. It was not pretended on the part of the Crown that they had, up to this moment, discovered the means by which the alleged frauds had been committed. They gave no evidence to lead to this conclusion ; and the only circumstance that we hear of now is the fact that one of the man-holes in the receiver — some time after the distillery had been in possession of the Go- vernment, and this defendant had nothing to do with it — when he was even denied access to it, axcept hi. piesence of Ci'own officers — one of these man- holes became warped in such a way as to allow of a syphon being inserted to draw off the liquor. Under these circumstances, gentlemen, it appears to ma that we have not heard one solitary thing to determine whether any fraud had been committed ; and wc say distinctly that no fraud has been committed— that this defendant lias always conducted hia distillery fairly ; acd, further, that even if he designed a fraud, it was not in his power to commit one. The fact that the air. pipe was broken, might be an evidence that liquor coiUd have been taken away improperly. But we will show that no quantity of liquor worth speaking of could have been ab- stracted in this way : for the breakage was repaired in a daj or so. The quantity of liquor which could have been drawn off m the meantime must have been small indeed when the instrument used was only seven-eight! is of an inch in diameter ; and during the 24 hours, but 6 at the utmost could be consumed in i-unning off the liquor. It will be for yov, yontlemen, to say what quantity of liquor could be run out during tho time this portion of the work was out of repair. That was in December, and for that month you will find that the re- turns made to the Government were larger than for any other month before or after. So, you will see that at that time, at all events, no fraud had been committed on the part of Halladay. I may here remark that I understand Mr. Wilson has been suspended from his position of i/).Bpecior of Inland Revenue ; but the Crown has not brought him before you, although, sur, y, he would have been a judge as to whether these alleged misrepresentations were made or not. They have not given that gentleman an opportunit'^ to come forward and say whether or not he Wis guilty of complicit} in the fraud here charged. No ; they endeavour 'oJe. The lock »iit perforating )een tampered o the ])iece of 'h« would see oaaible to take d if liquor was ss. Kow you issela contain- no tampering the slightest 3^eredinthis 'y had, up to Is had been and the only i-holes in the I of the Go- he was even these man- r inserted to appears to hether any d has been lery fairly ; s power to n evidence 1 show that beeji ab- ill a day en drawn nstrument iig the 24 'lo liquor, could be '^ repair. t the re- Jr montJi 'ents, no > I'emark sition of w before 3r these fcn that not he leavour 93 to damage this defendant's case by excluding that witness. They leave him out, they say, because the frauds had taken place, and in some way or other he must have been cognizant of them, or have grossly neglected his duty. But this, gentlemen, is the merest suspicion. Now you will, perhaps, understand that it is only necessarj' to got up a suspicion against anybody or anything, and that it tiiJ\os very little indeed to feed it and lead to the belief that it is a certainty. The Crown has chosen to say in this case that they cannot prove as an absolute fact that this liqu«rwas distilled in greater (|uantitie8 tlian returned. But, they say, we are going to show certain suspicious circumstances— we are going to show that the station-master has been tampered with — that he has committed great frauds and left the country. This, gentlemen, is merely an insinua- tion. They do not prove it. They add that certain papers have disap- peared, and infer that they must have been abstracted. But, gentlemen, it is not suspected that anything has been wrong at Montreal, though papers have been lost there as well, where it is not pretended Halladay tampered V ith any one. But it suits them to throw suspicion aro\ind the Maitland papers, in order that you may gather that wrong has been committed in this caae. They charge us also with aendini; more spirits to Quebec and Mont- real than we have accounted for ; and this they endeavour to make out by calling before you a great number of persons making purchases of spirits sent to these places. They call the officers of the Grand Trunk Railway to show the number of puncheons passing over that road consigned to Mr. Arnold, or -some one in Montreal, on account of Halladay. They charge against us all the sales made in these places, and do not take into account what we had on hand beforo the 1st of September, when we were not bound to keep a stock book ; nor do they make .'allowance for the quantity we had in Mont- reiil, which has been proved by Arnold and Kyle. They nierelygive general evidence of sales here and there ; and in the confusion arising from sifting the charging of the same items two, tliree, and four times, they say we find evidence here of larger rpiantities than you returned. I shall not, gentle- men, take up your time by making any lengthened observations to you ; but shall content myself with saying- there is our book of the quantities manufactured. It was examined almost every day by the Inspector of In- land Revenue, Mr. Wilson ; and here are Mr. Halladay's returns verified on oath, representing the correctness of the <[uantities Oh, but, my learned friend says, he has not signed il ; and, therefore, it is a fraud. Against such an assumpti(>n you will place the fact that a close personal supervision of the afl'airs of the distillery was made by the proper officer, who came there almost daily to make examinaiions. Beginning at the 1st of October, you will see the returns show 6,000 lbs. of grain, -here are the number of wine galK>ns, and of proof, anu then the initials of the Inspector, " W. H. W." And here and there you will find the same initials. Here are four days runinng, on which, according to this book, he officially visited the distillery. What opportunitj', then, had this defendant of doing wrong. When he was li''' 94 It i! li '•' III V ';.:;'1 ^1 tM kept under such a close Biirvoillaiice, what opportuiiitios liatl ho for takitiL; li(|Uf)r out of the close receiver, unless you can suppose that tlio Inspector aufl llallailay were in complicity— unless you can supitosu tliat the othcer of the (iovernnient was aiding' in tlio frauds^ If he were, of course there would be the opportunity, as his goiny there would be a mere ceremony; and on these },'rounds, I thinl\, gentlemen, it would have been far more satisfac- tory if tliia (jflicer had been called before you. You will understand, ton, that though Mr. Brunei has disclaimed any pecuniary interest in the result of this suit ; yet, aa the law was at the time this transacUon took phice, he would bo entitled to half the amount recovered, if the case were made out in its entirely, and a verdict were rendered against defendant. Here again (looking at the book) 1 lind the In- spector had visited the distillery. 1 lind his initials, " W. II. W." Tlie man hole w.as opened, and the quantity tested l)y the guago outside, lie went there to see the strength of the liipior, conip\ite the ninnber of gallons, and then wo have the qmmtity put down in the return, and Mr. Wilson's cer- tificate as to its correctness. From the 1st of September, 18(>1, to the lat July, 1805, when the seizure took place, this is the way proceedings went on. Now, I say, that when frauds of such a description are cliarged, and penalties like these asked, I am sure you will agree with me that the evi- dence on wliich the charge is sought to bo established, ought to bo of the most clear ami satisfactory character. It sliould not bo of a kitul open to suspicion. You shoidd have had brought before you a person engaged in the distillery constantly, to speak as to whether or not anything of the kind which is charged could have been done. You should have the proper llevenuo Officer called before you ; and I will be bound to say — though 1 have had hd communication with him, and wo have not had a solitary word of conversa- tion with him on tlic subject of this charge at all, lest it might bo said that there had been any attempt on our part to induce him to give testimony in our favour- I will be bound to say when lio is plucd in the box his evidence will show you that it is ([uite impossible the Oi\>wn could have been defraud- ed. It is not necessary, 1 presume, to uuike an\ observation oJi the position whicli IMr. Wilson occupied. lie had been selected to lill a position of trust, and "t was clear ho was then considered a respectable man. And I would now ask, what solitary thing had occurred since ho had received that appointment to show that Iiis cliaracter was not truthful and trustworthy. It will not do to suspect him merely be- cause others from motives of interist and gair, feel it necessary to impute the worst of motives to him and to this defonuant in this action In nei- ther case, irentlemen, can their mere miserable suspicions be allowed to black- en and destroy the characters of men, whom they have not been able to assail in any other way. For the Defence the first wit?ies8 was Mr. D. WILSON, who was called and examined by Mr. Richards : — Were you mate of the "Shook/" — Yes; and I recollect arriving in 9ft " ^>^ of thu "l' OpOJJ t(, "i't'll i,J thjj 'vind « hich *■ Jiovt'inio ■ive h.id ijo coiivorsa- tiniouy i„ » cvidoiiL.e ' tlofraud. ' Oil tJl,! 'I to /ijj dered u '"^' Iiiid 'ftracter i'"l>iite Ju uei- ) bJaclv- •^ assai] "g in Maitland some time in July, 1865, with a cargo. I weiglied out part of that cargo. Up to what time ?— Noon : this ii my "tally" now shown mo. How much did you weigh up to that time 7—11,704 bushels of 56 lbs. to the bushel. Was it bought in Chicago ? — Yos. How was the com. measured f— It was put into a hopper on the scale and weighed, and that was the quantity. When the com was put in at Chicago, it was sleam-driod. Mr. Gai.t — Were you the only mate ? — Nu ; there was another one. Did Halladay complain that the cargo of tho "S).'Ook" was not full ?— I did not wait. Mr. LOURY examined by Mr. Richards : — • Were you employed to weigh out the cargo of the "Shook " after Mr. Wilson left? — Yes; I commenced at one o'clock. I commenced where he left oflf : for the horses were taken oft" at twelve. What did the balance of the cargo Aveigh ? — 3,968 bushels at 56 lbs. to the bushel. Was there a large stock of cattle at the distillery I Yes. Did those persons who fattened the cattle have free access to the grain ? They often got it when they wanted it. Mr. Galt. — Have you auy idea of the quantity of grain taken for such a purpose ? I have not. MARTIN O'DONOHOE, examined by Mr. Richard.s. Where did you live ? At Maitland. Was in Halladay's employment since the distillery started. What is your business ? Rectifier. Where does your duty commence ? When Mr. Wilson unlocks the taps, I take the spirit and pump it upstairs to the rectifying apparatus. Is it your duty to take check of the liquor from the time it leaves the rectifier till it is fit for barrelling i Yes. When it is pumped up stairs is the liquor reduced ? Yes ; it is put down to about 32 under proof, and then it is put through the rectifier. We cannot as well rectify it unless we reduce it. The liquor is all reduced to 32 below proof, and afterwards it can be run up as high as 65. Was all the liquor put up to 65 i No. It is put up to different strengths i Yes. Is a great deal of it left at 30 ? Yes ; we send off" very little higher than f 0. Have you frequently examined the receivers ? Yes, when Wilson, the reveuie officer, has been there. There are two receivers in the distillerj'. Ove? each of the man-holes there is a trap-door to enable us to get down to them. How is the test conducted I Tho vessel is first unlocked ; the liquor is or. II V I i •'ii then nhakeii up. I am thon-protty nearly all the timo. ' [{onerally stir it \ip with what is called a "plungor," aiul ho tcstH it. Have you ever known this nian-holo not to fit ('o^vn while tcstini,' was Roing on / No. At the last time when it was opeiunl to get water in, \vi> noticed a warp — we could not j^et one of the lids to lit down. That was the last timo I tested it, I never saw it in such a condition that liipior nii^^ht be got out of it. I do not knn., \hat ono could put their hand in there now. Did you ever hoar of li(iuor being taken ouiof the receiver otherwise than through the pump / No ; it is my duty to have the licpior taken out. Except through the cooks, you never know or heard of liipior being taki'u out of the receiver ? No. I am (pute svv I would know if any had been taken out otherwise. Mr. Wilson unloc! inix, and after that 1 can pump out at any time. Did you ever take liepior from either receivers till Mr. Wilson had tested it and opened the tap ? No. Do you know anything of tho pipe l>rokon at the side of the safe ? Vis ; I mind of the pipe being broken oft" there onco. Mr. Wilson came and said it must be put on riglit away. I found it could not be put on till the worm was washed out, and in two or three days after it was done. During that timo was any whiskey got out ! I never saw any. I never took any out. Has over any liquor L;one from tho place -that has not paid duty? Not to my knowledge ; and if any wont I would be likely to know. On tho occasions when Wilson tested were you always present '. Nearly always. . You recollect when tho distillery stoj)ped in 18(15, — did you then till those receivers with water > Yes ; after Brunei seized it. Did yo I observe whether ono became war^ied since or not .' Not till tlie time Wilson and I were there, wheti they were locked up after the water was put in. Wo got up steam ono day when the receivers were empty, and then wo first discovered tho warping. Used Mr. Wilson to come there without notice i He came at all hours of the day. 1 never knew him to make any particuLar appointment to come. Did you know of a quantity of liquor being piled up in the sheds or not ? Yes : it was in four sheds I When was that? They commenced putting in there before tho Ist of Jime, and '• vraa all in before the Ist of August. Mr. Galt. — Did you keep account of the spirits that left the distillery '. No. How do you know that all the duty wii i paid ? I got access to it afterwards. You do not know, in fact, anything about the quantity of spirits at all? No. stop ( asC tho at Y ['iJly stir it up ' '"It \v;i8 tJie '''•(••or ,ni.,,t land i '1 tJior I'O J"«-'«-»Vi3u tll,i„ I' out. '''«'"« t.iAi.„ y ii.id l)eoi, '•ail tested '^ ''""l said f liover 'tj'.' Not • Nearly ' tin those t m the '0 H-ftter 'tK, and i hours 'ent to eds or Jst of iery / to it s at 97 Mr. Rk'HAKDs. — You know it was all nicasurod by Mr. Wilson ? Yes. Were the tuhs over tilled higher than the guage I never saw thcui filled higher. Mr. W. l\. WILKON, examined by Mr, M. C. Camekon.— Are you Inspector of Inland Revenue / I held that office ; Am now under aus- pension. During what time ? I think my term connnenced in Oct, I, 1803, and continued up to August 17, I8(t5. During the tin>o you wore Inspector, did you attend at the distillery of the defendant at Maitland ! 1 did : it was my intention to go there daily, but some days I did not go. I went there to attend to the duties of luy ollico : some days to test the lifiuor ; on other days to exercise a general supervision, which 1 wap imd to do. Many days Halladay wanted mo to tost the liquor ulni"" 1 went also to look around and discover i* anything was wroii;,'. To see, in fact, th;^ c itviru was made of all the liipior main., ic tnred ] — Yes : I alwa\ o the mashing room there to see if the entries in the mash-booK wore correct. The initials in the mash book handed mo are mine. Mr. Galt. — That is the book kept under the 34th sec. Mr. Camioron. — This book shows the quantity on which duty is paitl. It contains an account of the ((uantity and description of grain, the (|uantity of liquor made, the strength o. p., and the ((uantity of proof. (To witness) — I see it fri ,|uently noted here that the distillery was not working — that some- thing was wrong with the machinery '. -Yes. I lind a shaft was broken on November 2, when the mill seemed to have .stopped till the Dth — is that correct ! — Yes. On November 1, when you went there, I see the amount is represented as GOO gallons proof. Your initials are to it. Next day when vou visited, the shaft was broken i — Yes. Did you receive returns from Halladay every two Aveeks / — Yes. Did they correspond with this book ?— Yes. Did that return contain the quantity of spirits produced on each day, and the quantity of each kind of grain used during the half month I — Yes, Who checked the mashing, for example, when you were away / — They entered it themselves in their own stock-book. So that if you were away one day and came back the next, you could ascer- tain what had been done ? — I could satisfy my mind on the point. You seem to have attended almost every day, if the initials indicate cor- rectly /—They do. I suppose, during the time you were there, you had heard some sus- picion that something was wrong 1 — Yes. Did that make you diligent in your enquiries ? — It had a tendency to do that. •%. ^-> IMAGE EVALUATION TEST TARGET (MT-3) A 1.0 I.I M 125 US 116 1^ 12.2 I 1^ III 2.0 ■tfUb 1.8 1-25 1 1.4 1.6 < 6" 1 ■^' Photographic Sriences Corporation 23 WEST MAIN STREET WEBSTER, N.Y. 14580 (716)873-4503 98 ■'»»' WW: Mr Did you ever discoTer anything wrong ? — No. Do you recollect the air pipe being broken ? — Yea. How long was it off? — It must have been two days. On the third I had it repaired. I do not think while the taps were in proper condition the spirits would run out. Government furnished me with an instrument for sealing, by compressing which it was impossible to get the seal off without breaking it. The seal is a plain round piece of lead. Independently of that, I sealed it, I think, with my own seal. The seal was put on the tub, and liquor could not then be removed without my being aware of it. When locked a bar was put through them which would render it impossible to turn them. I put my initials besides on a piece of paper in the lock pro- duced. I would recognise if the lock had been tampered with at once. Nevfir in my life did I find the lock tampered with. Did you ever allow your keys to go out of your possession 1 — No ! no man ever got my testing keys, to my knowledge. Did you ever discover any secret pipes there at any : ime ? — No. How do you test the strength of the liquor ? — I generally took Martin O'Donohoe with me ; the man-hole was unlocked ; he would take his plunger and stir it up and then take up a small quantity to test. You tested it by what ? — Sykes' hydrometer. Were you at the place at any time with Mr. Brunei ? I was always there pretty much when he was there. Was he able to suggest any way by which the wrong could be done ? — No ; except in that pipe. Do you know whether Mr. Brunei has a practical knowledge of dis- tilling at all ? I am not aware of it. I suppose you have certain rules in the department by which you do all that is material J Yes. Did you ever examine the top of the receiver, at the man -hole, to see was it possible to get anything out of the top i They could not get it out unless they unlocked it, and they never did unlock it that I am aware of. They could not unlock it without my knowing it. Did these parties seem to intend to make correct returns ? I suppose they did. How often did you iest the strength and quantity of the spirit ? That book will show ; sometimes once a day and sometimes once in three or four days. And you say that while you were absent it was not possible to get at the liquors in any shape or way, as they were locked and you always had the keys ? Yes ; until it had been tested and measured, and then they had a right by law to take it. Was there any other cause for discharging you than the frauds charged here ? None that I know of ; and my impression is that everything con- nected witli the distilling was straightforward and honest, and it could not be otherwise without my knowing. 99 Mr. M. C. Cameron.— The quantity returned was 288,000 gals. 1863, and according to the book, 281,000,— was it possible that that distillery could have turned out 200,000, 300,000, or 400,000 gals, more than that? I do not think it possible for the distillery to do anything more than the returns showed. On the 6th and 7th July, I see the working of the distillery Avas stopped by order oi the collector. That was while some diagrams were being pre- pared before I gave the license. I find you were there on the 6th, 7th and Slst March, while they were repairing the boiler ; and also, on March 16th repairs were going on while you were there. On March 2 the water-pump was broken ; on the 3rd, ditto. You were not there on the 2nd, but on the 3rd and 1st ; then I find that from the 9th to to the 13th January, the main shaft was broken. You were there every one of these times i Every day on which my initials appear. You were able to discover nothing wrong in all your surveillance of these premises / I discovered nothing, nor was anything wrong pointed out to me. Were you present at the investigations in December, 1864 ? Yes. Do you recollect Borst or Halladay giving an account of how much spirits had been made ? I think they gave Brunei an account of it. I do not think that they said anything about 300 or 400 puncheons stored away in the stable. Were they not then accused of having brought into the distillery large quantities of grain without being able to account for it ? Mr. Brunei told me he had heard of large frauds in the distillery ; and I said I would be happy to assist in finding them out, but I had never heard anything about frauds before. Mr. Galt.— Between Sept. 1, 1864, and July 1, 1866, 3,100 puncheons were proved to have been sent over the Grand Trunk. Could they have sent that (quantity over the road from Maitland ? If it were sent, I knew or suspected nothing of it. Multiply 2,726 puncheons — the number that went to Montreal — by 174 ; the number of gallons in a puncheon. I make it 474,324 gallons. If that quantity of spirits was sent from the Maitland distillery to Mon- treal, it in more than you know of. From September 1 to July 1 your returns show abeut 281,000. It must have been sent without my knowledge ; and if my returns show it has not been manufactured there, it could not be. Hon. Mr. Cameron — Could that quantity have been manufactured there, in that time, without your knowledge ? It could not ; not in excess of what I have returned. Mr. Galt — Did you ever have a discussion with Jones with respect to the quantity of com brought in i Yes ; Jones asked me one day, if I knew how much corn Halladay returned. I said no ; and he gave me the figures. I turned to my book and saw that spirits had not been manufactured to that !ti^ 100 Hi I. ' III ' I ■' m extent. I then went to Halladay, and he said he had sold and fed, and had still a large quantity of corn on hand. Was there anything that took place between Jones and yon that would justify Halladay in asking Jones if he intended to ruin him ? No ; as soon as I was told I had to go to Halladay. What did you do then to verify Halladay's statement as to what was done with the grain i I satisfied myself as far as I could. What did you do ; did you c xamine his stock-book / I do not think at that time he had any stock-book. Oh, no. You resided at Brockville, nearly live miles from Maitland i Yes ; I generally drove down to Maitland and back. Sometimes I remained there half an hour, sometimes an hour, and sometimes the balance of Ihe day. With regard to these locks, were they ever applied to the close receiver — were the close receivers ever closed with locks similar to that one shown to- day ? Not with that kind ; but another kind. The man-hole was not secured by locks of the description shown ? No. How often have the locks been changed since the distillery has been running ? do you change locks by order of the department ? The order of the department is to change every three or six months. I changed Mr. Merril's locks, of Prescott, and then gave him a new set from Brunei, and put Merril's locks on Halladay's. When did you iirat receive the locks in which you put the paper ? was it not in December, 1864 ? 1 could not say. Do you recollect on one occasion, when absent, telegraphing to Chisholm to call and get your keys ? No ; 1 never authorized him to get my keys or any man living. If he got your keys it was without your knowledge ? Yes. You keep a desk in part of Mr. Jones' office, and if Chisholm came to your ofKce with a statement that he was authorized to get the keys, he had \i) right to do so ? No. Where do you keep the distillery keys i Sometimes in my own posses- sion ; sometimes in my desk. Did you ever authorize Chisholm to call on Jones for the keys of your office ? I swear positively I never did. And if he got your keys he did so without yo\ir knowledge ? Yes. And suppose any person says I did give the keys, how could he unlock the re- ceivers without my knowledge. Hon. Mr. Cameron — Have you been in any way whatever, in collusion with Halladay or Borst & Halladay, to enable them to pass out of the dis- tillery spirits on which the duty has not been paid I — No. As far as your knowledge of your duty went, you have performed it strictly ? — I have. You state that distinctly i — Yes ; and if any quantities of whiskies went on the Grand Trunk to Montreal, they were not, to my belief, made at the 101 nd had would %B Boon Maitland Distillery. So far as tha^. is concerned, the books show all tliat I know of the quantities manufact\ired. Mr. Galt — I am prepared to prove by Mr. Jones, that the last witness did send a message to allow his keys to be taken by C'hisholui. Hon. Mr. Cameron —I have a right to object. It is collateral to the is- sue and you cannot call anybody to contradict Wilson. His LoRDaHip. — I think he may : it is charged that in some way not known, defendant obtained great quantities of liquor. Hon. Mr. Cameron.— I object, clearly. That is part of his original case. Mr. Galt. — I am willing to run the risk of tendering the evidence. His Lordship. — It is objected that this is part of your original case. Mr. Galt. — In answer, I would say that I did not in my original case, un- dertake in any way to show how these frauds were committed. I simply said they had been committed. I asked the witness just now — Did you ever part with your keys ? Did you ever authorise Mr. Chisholm, agent of Borst, Halladay i& Co., to get your keys? And he replies— I never did. If he got the keys it was without my sanction certainly. Now, I want to show that the keys were got, and it was with his sanction. His Lordship— I underatand Mr. Cameron to object that it is not open to you now to show this. Mr. Galt— It was no part of my case. It is nothing to me how they com- mitted the frauds. All I have to do is to show that frauds have been com - mittted. His Lordship— You said : I intend to show that he had stuff enough to make the whiskey sent over the Grand Trunk — that he had the opportunity of making it. Now I think an opportunity would be, having the key or duplicate of it. Mr. Galt — I said the liquor was distilled where there was every oppor- tunity of carrying on the business honestly or dishonestly, being situated on the St. Lawrence, and having a railway station within half a mile of it. These last statements came out on cross-examination. I started by saying that certain frauds had been committed ; but never undertook to prove the modus operandi ; 1 did not make that part of my original case ; and hence x claim to bo entitled to call this evidence now. Mr. Anderson — It is clearly evidence in this way. They endeavour to make out their case by putting a witness in the box to show that it was im- possible the liquor could have been got, because that witness will say my keys never went out of my possession. We say we will show they did get out of his possession. Mr. M. C. Cameron— With his consent ( Mr. Anderson — No. His Lordship. — That will do. I will make a note of the point. Hon. Mr. Cameron.— That is our case. Chisholm's application of them 102 i- -i i would not be material unless sanctioned by Halladay, and there is no pre- sumption of it. His Lordship. — I think Mr. Anderson put the matter on the right foot- ing. 1 will allow Jones to be called. If Halladay 1 book-keeper ^got them, it does connect the principal with them. Mr. JONES recalled, and examined by Mr. Oalt : — Did Mr. Wilson, the Collector of Inland Revenue, occupy part of your office at Maitland ? Yes, he could get no other. Do you recollect Mr. Chisholm ever calling at your office, and making any statement respecting Wilson to you ? Yes ; about a year ago, I think, Chisholm came in. Wilson had been away, and he said — Wilson has tele- graphed to me to get his keys. I said — Very well ; there they hang, at his desk ; and he took the bunch of keys and went out to Halladay's office. Mr. M. C. Cameron. — You think this was about a year ago 1 It might not have been so much ; it might have been more. Do you recollect the time of day ? I think it was in the afternoon. I think Wilson must have been there that morning, or the keys would not have been there. Chisholm used to come in sometimes and make entries. Was the desk in the same room as you were ? Yes ; it was a desk six or seven feet long, slanting, the lid of which opened. Was it kept locked ? Always. Were the keys in the desk ? Yes, hanging on it, a bunch of them. They could not be the keys of the distillery, for he said they were inside, if that was the bunch of keys hanging in the desk i I suppose so. Wilson spoke to me afterwards and said — W^henever I leave my keys again, I wish you would take them out. You :\re a Collector of Customs. You did not suppose these keys had anything to do with the distillery or you would not have given them ? I had nothing to do with his keys. You had to do with them when you gave them up l I do not know whe- ther they were the distillery keys or not. But I am pretty well convinced the distillery keys were in the desk. These keys hung there. Did you send any memorandum to Mr. Gait to ask this question / No ; I did not communicate witli him. Who did you tell it to t I do not think I need answer that question. To whom did yoi^ tell this circumstance i 1 think I reported it first to Mr. Brunei about June last. Then for months you allowed that circumstance to pass unnoticed, though you heard all sorts of suspicions i My object in telling Wilson was to put Halladay in check of what I considered wrong at Maitland. I con- sidered things were wrong. You were not asked for the distillery keys l I was not asked for any keys after this took place. At one time he told me I had better take the keys out and take care of them. 103 pre- your Mr. W. H. WILSON recalled and examined by Hon. Mr. Cameron : — Do you recollect the transaction «poken of i Perfectly. I had returned from Maitland at the time, and was at Brockville. Where were these keys ? In my desk at Maitland. Where were the distillery keys I In my pocket. It was my other keys I telegraphed for. My portmanteau keys and the keys of the desk were all together. A JuuYMAN — I thought you stated before that you never telegraphed about keys i About the distillery keys. I remember telling Mr. Jones also that if it occurred again he should take tlie keys out and put them in his pocket. His Loruship — Did I understand you to say that sometimes the distil- lery keys were locked in the desk i Yes ; but on this occasion they were in my pocket. Who gave you the keys ? I got them at Maitland. A Juryman — Why not get them at the Custom House office ? Mr. Jones generally left early. At this stage, 20 minutes to six o'clock, the Court adjourned till the fol- lowing day. No: FIFTH DAY'S PROCEEDINGS. (before HON. JUSTICB JOHN WILSON.) The Court opened at 10 o'clock, A. M., on Friday, January 12. Hon. John Hilyarp Cameron, Q. C, addressed the Court for the de- fence. He said : — After the long time you, gentlemen, have been engaged in hearing this case, the mass of evidence and the endless details of figures and calculations laid before you, I do not know whether at this moment you are at all as familiar with its facts and figures, as it is quite clear you ought to be, in oider to arrive at such a clear and correct view of the facts as will enable you to form a just idea as to the merits of the case. It is not of so much importance that we should be prepared with a statement con- cerning all those facts and figures which the Crown has gone into, and all those calculations which we never had an opportiinitv of checking till we came into Court, because in the position we take we claim that there has not been produced on the part of the Crown any evi- dence sufficient to convict us of a violation of the law. It will probably be necessary, in the course of my observations, that I should read to you more of the statute which applies in this case, and speak more about it than ordi- nary ; for it is my desire to place before you a statement of the extraordinary powers which the Crown, under this Act of Parliament, is vested with, and the means they have of exercising those powers ; and, when we have shown you this, a:;.d when you see how carefully the Legislature has fenced round l! ■jj I 4 |i. '-Is Ik I'! I 104 all the material liable to excise, you will see how it wad almost impossible, unless in tlie event of collusion, that the frauds charged here could have been perpetrated. There is, probably, hardly anything under tlie law in which there is so much difficulty thrown in the way of a person having a dasire to do wrong, as there is in the case of the person producing articles liable to excise duty. The advantages of the Grown under the statute are very de- cided. For example, if it is a question whether or not the duties are paid, the parties who claim they are, must show it. In face whenever a question is raised between tlio Crown and the subject as to excise, there overytliing appears to be in favour of the Crown, and very little in favour of the ac- cused party. Still, however, the prominent rule of law holds in a case of information for penalties, as in every other, that the Crown must not rely on anything in the shape of weakness on the side of the defendant, otherwise in the absence of proof on the part of defendant, the Crown must prevail. In this, as in every other tise, it is incumbent that the proof on which the Crown relies must be distinctly and conclusively given ; and if it is not, that the Crown is not entitled to recover ; for the strangest possible reasons which I will adduce to you from the very words •£ the statute itself. In the hrst place there is, as has been alleged, " on every wine gallon of spirits of the strength of proof, by Sykes' hydrometer, and'so in the proportion for any greater or less strength than the strength of proof, and for any less quantity than a gallon," a duty to be levied of 30 cents. If that be not paid, the penalty which attached, and which is sought to be re- covered here beyond the f 200, amounts to three times theduty on the quantity which they say. we neglected or failed to return, and which they put in the information at 200,000 gallons. The next clause sets out what form of ap- plication every distiller must make before a license will bo granted. You will understand that the fact of the license existing is admitted, and this is what must be stated in the information. I tell it to you to show that from the first application for license down to the last moment there is placed in the power of the Government unheard of facilities for guarding their in- terests in excise. The statute says : — " Every application for a license shall state the exact locality, in the VAty, " Town, Village, Township, or local Municipality, as the case may be, where the " premises are situated, in which the business for which the license is recjuircd " IS to be curried on, and shall contain or have annexed thereto — a full anJ par- " ticular description, in' writing, with such diagrams or drawings as may Ite " needed for fully understanding the same, of all the machinery, buildings, pre- " mises and places where such business is to be carried on, or where any of the " materials or commodities used therein, or any of the products thereof, are or " are to be stored or kept, and ot the power by which the machinery so used, is " to be worked ; and a description in detail of every separate room, cellar, vault, " shed or other co.aipartment tiiereof, specifying what use is to be made of each, " and stating the designation which is to be placed over the entrance to each, in " accordance with the provisions of this Act ; and no one license shall autho- " rize a person to keep or use a Still, or make wort or v, ash, low Wines or " Spirits, or Brew Malt Liquor, or manufacture Tobocco in any other place than " the house or premises mentioned in such License. " i; Jr. 1 1 « 105 sible, hav« which ire to bio to ry de- paid, estion ■ything the ac- case of st not ndant, t, the imbent iisively For the rords •£ n every , and 'so f proof, nta. If be re- in antity it in the I of ap- 1. You ed, and low that s placed ;heir in- Now yon see liow extensive these precautions are ; everything ia mentioned in tho application for lift'ii8e--a description of the buildings, premises and machinery, with diagrams luid drawings of the dimensions of everything con- nected with tlie distillery— ail must be laid bpfort' (jovernment in the outset. Then, in addition, there must bo given— '' The dimensions and capacity of everv Still, Mash. Tub, Fermenting Tun, " Cooler, Spirit Receiver, and of every other utensil, in inches and wine gallons, " specifying in every case the purpose to which each is to be applied, and the " locality or position in the building in which it is or is to bo placed or used ; " and also containing - " A particular description of every Pipe, Conduit, Trough, Hose, Valve, " Pump, (!ock. and of every means of connection or communication between the " several vessels or utensils used in or about the Distillery or Brewery, with a " description of such connections or joints." Now, at the outset you see, there nmst bo a full description of the premises given — the very size of every room, and every particular as to machinery. All this must be specified clearly. Every minutiie of the business must be stated. Then notice ihc obligations which those who hold licenses have to come under : — " No Distiller, Brewer or Tobacco Manufacturer shall work his Distillery, " Brewery, or 'I'obacco Manufactory at any time, unless he has given at least " six days previous notice in writing to the CoUecter of Inland Revenue, of his " intention to work the same at such time, — and such notice shall not extend to " a longer period than thirty days from the delivery thereof to the Collector of " Inland Revenue." Here, Government, after granting the license, takes care that by due notice of the time the works begin, they will be able to see that no fraud is practised on them, under the application for license on which the distilling process is to be carried on. Then, they are required to produce whenever asked,, — " All books, papers and accounts kept in accordance with the requirements " of this or any other Act, in which books or accounts such Officer may enter " any memorandum, statement or account of quantities, and in such case he " shall attest the same by his initials ; " All books, accounts, statements and returns whatsoever, and all partner- " ship accounts used by any sucli person or by any copartners in carrying on any " Si<"lt licensed business, whether such books, memorandums, papers or accounts " 1' -onsidered pri rate or otherwise; and every such officer shall be permitted •' to Lcko any extracts tlierefrom or any copies thereof." Yon will see that every book, paper or document, private or otherwise, is here subject to the scrutiny of the Officer of Customs whenever he choaes to demand them. They must be produced at any time, as often as required, and not for a day can that inspection be refused. Now then we come to their method of computing the duty on spirits : — " The duty upon spirits shall be computed and charged upon the quantity of " spirits which passes from the tail of the worm into the spirit receiver, and the " quantity which so passes shall be ascertained by gauging and proving the " strength thereof in the said Spirit Receiver, or by any such apparatus or meter " as tlie Governor in Council may authorize to be used for that purpose. " The capacity of all Spirit Receivers, Fermenting Tuns, Mash Tubs, Cool- " ers and other vessels used in or about Distilleries or Breweries, shall be accu- 8 106 k :;ji if: •::ii- " rately ascertained by fraugiuc^ or by actual measuronient by standard measures " of capacity, as the officer of Kxcise may determine or direct ; and — "A correct list tiiuroof hIiuII be niado out, by tlio Distiller or Urcwcr, in " triplicate, settinj,' forth the nuiiibor, iise,dini(Mi8ionrt and caimcity ot'evory such " voiisel, and tho Huid list shall ii«t attested by the signature of the Distiller or " Jirewer, and shall bo subject to the verification ami ar*^roviil of the oilicer " of Excise under whose supervision the guugiug or meus! .inont was made, and " shall besigned by hiin in testimony of such approval, and every such list shall " be received as evidence in all ('ourts of iiaw. •' One counterpart of such list shall lie kept on record at the Distillery or " Brewery, another at the oftici' of the Coinniissioner of Customs and Excise, " and the third shall Im retained by the ('ollector of Inland Revenue within "whose district or division the Distillery or Brewery is situated. •• The tail of every worm in every distillery shall be eiicl(»sed in a locked or "sealed " safe," in which the strength of the .s])irit Howiiig from the worm may '• be approximately ascertained by the inspection of the hydrometer or other "suitable apparatus contained therein. " Every such safe shall be constructed in such manner and secured by such " means and by such mechanism as may be approved by the (commissioner of " Customs and Excise. " From the said closed safe all low wines, faints and spirits, from time to •' time running from the end ot the worm, shall be conveyed to the doubler oi' '' spirit receiver, as the case may be, through suitable metal pipes visible •' throughout the whole of their length, with stop cocks and other appliances so '' arranged that the liquid may be conveyed either to the doubler or to the re- •' ceiver ; but so that no portion of the liquid can be abstracted or diverted from '' the receiver or doubler without the knowledge and consent of the proper ' officer. " The spirit receiver shall be a closed vessel, and all pipes, cocks or valves "communicating therewith, as well as all means of access thereto shall be " securely locked or sealed, and the key or keys shall remain in the sole posaes- " sion of the Collector of Inland Revenue, or other Officer of Excise. " No vessel shall be used as a close receiver for spirits in which there has " been bored or made any perforation other than those necessary for its lawful " use ; and if at any time it shall be discovered that any perforation or hole has " been made in such receiver, or that any such exists therein, although it may " have been subsequently stopped or plugged, the existence of such perforation " or hole plugged or unplugged shall be evidence that it has been unlawfully " made, and the distiller in whose distillery such close receiver so perforated " shall be found, although the same may have been plugged or stopped, shall be " liable to the penalty of five hundred dollars,." Again,— " In distilleries where a doubler is used, or where a portiou of the products " of the still, commonly called Low Wines or taints, are passed over for redistil- " ldtion,the vessels and pipes used in that process shall be locked or sealed, and " shall receive the Low Wines from the safe which encloses the tail of the " worm, through pipes, cocks or valves properly secured by locks or seals so as " to prevent the running or removal of any liquid therefrom, except with the " knowledge and concurrence of the Collector ol Inland Revenue." Thus, again, you will see the great precautions taken against fraud. With regard to the number and capacity of the receivers, it is provided, — " In distilleries where the weekly production of spirits is not over six thou- " sand gallons and not under two thousand gallons, two spirit receivers shall be M 107 Eisures n'v, ill Bucli [lor or Jolliccr llu, utitl It uliull With " provided, eacii of wiiieli nhall Imvu sufficient cupacity to coiituiii at I«m8t one " week's |>rodiictioD of Hpirit. " III diHtillt'rie.^ wlicrt' llie weelvly production of .spirit^ exceedM .six tlioumiiid " galloiirt tiicro hIiuI! iiImo Im> two spirit receivers, cncli of wliicii Himli linvtt Huttici- " t'lit capacity to contain at l('a.st one day's production. '• 'I'lio (iiiaiititics of spirits produced simll l»e ^aiij^ed and ascertaintnl by the " Orticor ol Kxci.so at sucli intervals as may l»e directed by instructions and re- '• (Tulutions sanctinn(>d by tiie .Minister of Finance. " The spirit wiiicli passes from tlie tail ot tin- worm to the receiver shall not " in any case or under any pretence whatever lie removed fronitiie receiver, until '• the quantity and streii<>th thereof has been a.scertained by the Collector of " Inland Revenue or other oflicer of ?]xcise,and then only with the consent and " in the presence of the said collector or other proper ofticer." As to the keeping of accounts, it is provided, — '■ Kvery person carrying on any business subject to Excise shall, within five ■' days next after tlie expiration of the first and second half of each month, render " to the Collector of Inland Revenue, or other officer whoso duty it is to receive " the same, a just and true account in writing extracted from the books kept as " herein provided ; which account as to Distilleries shall exhibit ; — " 1. The quantity of spirits produced on each day during the ^receding half "month, with the strengJi thereof, and in a separate column, tiie equivalent " quantity of spirits of the streiifj'tli of proof ; " 2. 'nie (luantity of each kind of grain or other commodity or substance " used in the distillery, in tlie manufacturing of spirits during the said preceding " half month ; " 3. The quantity of grain malted ; " 4. The quantity of grain otherwise disposed of." The returns made are to he attested in this way — " Every ivceount or return rendered as herein provided shall be made and " signed by the person carrying on the business to which it relates or hia agent, " and shall also bo signed by the foreman, clerk, chief workman or other person " employed in or al)out the premises where the business is carried on ; And the "Collector of Inland Revenue may require any other person employed about '-^uch premises, who in his opinion may be l)est acquainted with the amount ot " goods produced, subject to Excise, to testify upon oath before him as to the " correctness of such account or return. " Every such account or statement shall be attested by the persons signing " the same by the following oath : "1, , do solemnly swear that the account above written, to " whicli I have also subscribed my name, is true according to its purport : So " help me (jod." Now see what the power of the Collector is,— " Every such oath shall be made before some Collector of Inland Revenue " or other Officer of Excise, and the Collector or Oflicer, before whom it is made, " may put to tlie |)erson or persons making it such questions as are necessary to " the elucidation and full understanding of the accouut, and for ascertaining " whether such person has had the means of knowing the same to be correct ; And " the Collector or officer aforesaid may also examine under oath any other per- •' son or persons employed, or who may at any time have been employed in or " about the Distillery, Brewery or Tobacco Manufactory, to which such account '' relates, or any person doing business therewith or selling material thereto <«• '' buying goods therefrom, as to the truth of all such statements and for the '' purpose of testing the truth thereof, and may reject all such written statements '' as may be shewn by such evidence to be incorrect or unreliable, and such 108 U^ f ^r?l ' rejection Hhall reiidor tli(> party nmkinj/ tlio reliirii liahlc to tlu> Haine potialty ' ufl lie would lie lialtle to it' no return wTiutover liiui been raiulo." The duty is tluw ciilculutod :— "The amount ol iluty nhull lie calculated on tho niPiiHiironiont.4, veiffhtri, ac- ' countH and returns, tukun, k<>pt or made iih herein provided, Hiii)Ject to correction ' and approval by the Collector of Inland Heveuiieor other OHicer of KxcIhc duly ' authorized thereto ; and wlien two or more methodH tor d<>terininiii^ (piantities ' arc provided for, that nictlKHl which yields the Iui^'u8t quantity or the greatest ' amount of duty shall he th»' Rtandard ; But if the (?ol|pctnr or «flicer has any ' reaHon to doul)t tlio correctness of any account or return, he hIuiII compu'e the ' weiglit8, meaflureinents or (|iiantitie,s hiniKcir, and levy the duty accor iucntion hero, — that one of the rules with regard to criminal offences is that the names of witnesses are placed on the back of the indict ment, and if the Crown does not call them, the other parly can. I contend that if it is necessary in a case of that kind, it is equally so in this ; and we have to suppose, in the absence of clear proof of collusion on the part of the Revenue officer, what the issue would have been had they chosen to put their own officer there unless they were able to oflcr proof. Have they.let me ask you, offered one particle «if proof that from these close receivers anything had been done in the way of fraudulently taking liquor, — or that there had been any destruction or opening of the locks on the vessels, — or that any other form, mode, or process had been adopted by which liquor had been drawn off, — except in the two instances where a little breakaj;e and warping had been spoken off ? ] lad one charge been brought home? On the contrary, had not (jovernment by night and day been on the watch to as- certain these things, and yet could not get their suspicions confirmed ? 1 say that under these circumstances Government have no right to come forward here and ask you on surmises and suspicions to give them a verdict in an information charging us with the sum of §200,000 ; ami ihis, too, in only one of the series of charges brought against us. The course of Government throughout this whole matter has been most unjust. 1 1 lias been said that u man ought to be assumed to be innocent until he is found to be guilty ; and we say, that in Ihis case, having offered ample security, Government should have allowed us to go on with our works. But what is our position? From that diiy to this, our stores of grain have been kept locked up and spoiling — the Distillery is closed — its nuiehinery lies rusting— everything in and about the place is being destroyed or carried away, because the Government have taken the property away from us, and held it from August last to the present time, Every difficulty has been thrown in our way finec then, although the people. County Councils, and all the Press in that part of the country, had petitioned the Government that we might be allowed to resume ofjeralions. From that hour to this, I say, our works have been closed .igainst us, and Government has not allowed us to do one thing. With all the power in the statute they kept us down. They determined not to assist us in the least in regard to the matter. As my learned friend (Mr. At. C. Cameron) has said, they have not only clone this, but have charged us with every crime in the calendar, with the exception, I believe, of high treason. Mr. Gai.t— And rape (laughter). lion. Mr. Cameron — Yes, you did : rape of grain and whiskey (laughter). Mr. Gai.t— Rape of the lock (laughter). Hon. Mr. Cameron — That there was no tampering with the locks there has been the best of evidence. You have heard of the peculiar make of the locks, and the precautions taken against their being opened by any but the Customs of- ficer ; and, unless in the supposition of collusion, there could not have been any tam- pering with them. You have had on the contrary the clearest testimony, not only 114 of the officer of the revenue, but of the person who managed the business, and who handed in sworn returns of the quantity manufactur&l, that never to his knowledge had there been any tampering with the locks, or spirits drawn from the close re- ceiver except such as were stated in the returns. You have seen that every one of the tubs were loclced, that there were full opportunities of examining the strength of the iipirits by the hydrometer — and you have heard how the whole of the various vessels and machinery were secured and open to view in such a way as made any tampering with it impossible. No per- foration of the vessels or removing of tiic spirits could take place without the knowledge of those constantly passing up and down ; &,nd hence, unless we can suppose the whole of the working men in the establishment to have been in collusion, the thing could not be done. We have had all these facts placed before us ; and are we to believe that while all this system of cspoinage and watchfulness was being carried on, any frauds of so enormous a character could have been perpetrated without discovery ? They say we had material to make the spirit, but what sort of proof had been advanced ? We have shown a deficiency in one cargo of grain alone of 1.500 bushels, and had accounted for the quantity of grain we htuJ received. But all this, the Crown claims, must be thrown out. Everything is to be presumed against us. It must be said on the part of defendant that he did not regularly make returns of the full quantity he had made. I say the law did not require that he should make such returns. No clause in the law, from beginning to end, requires it, unless the articles were brought within the distillery premises. I say that there were no false returns whatever. We may have sent to Montreal two hundred thousand gallons of whiskey more than the distillery produced ; but we are not bound to account for where it came from. In conclusion, I would say, that we have been treated most unjustly from beginning to end. Our property has been taken from us, and we have been hunted and hounded through the Pi evince in every way ; and we have no right to suppose that there will be the slightest leniency on the part of the Crown, but have every reason to believe that they would come down on us for other penalties to-morrow. They seek to bring us in here for heavy ruinous penalties, but 1 trust that the want of evidence on their paVt will prevent any such result. Our position is simply this ; that we have shown clearly all the details of our business which the law requires us to show, and that we have ample grounds for claiming an acquittal at your hands, without at all resting in the legal objections, on which however we place great reliance. On the facts of the case themselves, we expect to be cleired from the charge against us by the verdict «f the jury. We desire to be enabled to say that it was because we made true returns that we are entitled to be relieved, and that it was on this ground and not because of the legal exceptions that we were discharged from the prosecution which the Government brought against ua, a prosecution in which the charge laid has in i t the elements of half a dozen different offences, so that in point of fact, while we were apparently tried for not paying duty, we were being tried for assault with intent to commit murder, and I don't know what not. Gentlemen, we have been severely harrassed pf late ; and if Government has evidence to support their Mi^ 115 Id who fledge lose re- ry one pnining how un to o per- ithoiit unless lent to 10 facts .ge and could ake the ■ency in of grain irything t he did did not ?ginning remises. charge, all we can say is, that they have not brought it forward. We maintain that the Government has failed in a most material point, in not showing the capacity of the Distillery to be equal to making the quantity which they declared had been made. And therefore, I sey we ought to be discharged from the infor- mati(m laid against us, because in point of fact, and totally irrespective of points o^^ law, they failed to make out their case. There is yet one point which I must men- tion before closing, and it is that the Grown has brought this case to be tried at a distance from the place where defendant resided and was well known, and the honest conduct of the affairs of the Distillery had been testified to. On this infor- mation the Crown had extraordinary power, and could carry the cose where it pleases. Three Assizes have gone by since the information was laid, nnd though we have been ready, there has been always some pretext for further delay, which of course entailed further and heavier lo3s on their defendant. This unwarrant- able delay will, I hope, prove the laat straw to break the camel's back ; the last hardship which they will be allowed to inflict on this defendant ; and you, gen- tlemen, will help to bring about this rcFult by giving him a verdict of acquittal. Mr. Thomas Galt then addresseil the jury. He said : — One would imagine, gentlemen, from the observations of my learned friend, that the Government, in instituting this prosecution against Halladay, were actuated by personal and vindictive motives. But, gentlemen, remember who the Govern- ment are. They are ourselves. The wants of the country, as you are well aware, require a certain revenue, and to raise this revenue taxes are imposed ; and it is a most solemn duty of the Government, »» far as in them lies, when frauds are perpetrated, to call the offen Jer to account. What have we to do with Halladay's grievances or those of anybody else. All we have to do is to consider whether Halladny has or has not defrauded the revenue to the extent of 360,000. And, gentlemen, that is a point on which, I apprehend, you can have very little doubt. Some of you have probably before had the pleasure of hear- ing my learned friend who has just addressed yci ; and he certainly made a very able and eloquent speech on this occasion. But what does it all amount to? Has he, during his address, grappled with one single fact ? 1 say, unhesitatingly, he has not. We have had a great deal of invective as to the injustice done to Halliday ; and in hia closing remarks, ray learned friend hinted that the bringing of the trial here before you was a kind of oppression ; whereas my learned friend knew perfectly well that these revenue prosecutions are almost invariably treated in this way. But we will put aside all this for the present. What you have to do is simply this. For the purposes of this trial, His Lordship has held that the prosecution has been properly instituted ; and you have now to enquire, has the Crown made out such a case as to entitle them to a verdict at your hands, on the evidence? My learned friend says he called persons to show that the Distillery had not the capacity to turn out the work charged. But who were those per- sons ? And what was the value of their testimony ? As far as my recollection serves me, not one professional man was called. Mr. Wilson, who waa brought before you by them, knows nothing about distilling. O'Donohue, another wit- ness, has told you that he did not know what had been done in spirits at all, 116 I And on that evidence ho asks you to °dy tliat tlie frauds could not have been com- mitted. Now, I will submit to you some facts which have boon sworn to, and which will show that it ia utterly impossible but that Ilalladay must have com- mitte she came in with 13005 bushels of corn consigned to Borst, Halladay & Co., and this, at 50 lbs. to the bushel, would amonnt to 728,280 lbs. These, together with the other description of grain shown in the Stock Book, would mnke 8,9.54,970 lbs. From this we must deduct 174,000 lbs., being what wc- take to be the true balance on hand ut the time the Distillery was seized. I will try and make the calculation clearer to you. I say, taking the stock-book and adding the contents of the 41 cars, the 10,000 bushels bought from Wiser, oidy assuming the other cars at 8, and addiiig the cargo of the Tecumseh, and there will 'oe u t(tlal, including tfverything brought into the Distillery, of 8,954,970 lbs. To aliow you, gentlemen, that the (jovernment had no desire to oppress Halladay, 1 am willing to take the comparatively small amount I have given, as shown by their own statements. We have thus taken 8.780,976 lbs. as the quantity Itrought into the Distillery and consumed within it, after making allowance for the 174,000 lbs. balance on hand. The real quantity brought into the Distillery and con- sumed was much more. Now, let us see the amount of the returns of spirits made by Halladay as taken from the close receiver. Be- tween Sept. 1 and Jan. 1, the amount was 67,094 gals., which was> remember, the full quantity they say they distilled within the period. And you must bear in mind that all tliese returns are verifie*] by sworn statements. Between Jan. 1 and June 30, they distilled and took from the close receiver 173,800 galls. this is the quantity returned to Government as the total amount they manufactured between the 1st Sept., 1804, and the I't July, 1865. The two quantities made 241,494 gali<., and if we multiply this quantity by 17. — for the law now says that every Distillery is bound to account for a gallon of spirits for each 17 lbs. of material brought into and manufactured in a Distillery, — though, in fact, according to the sworn returns, it only took Halladay in bis Distil- lery, some 16)^ lbs. of grain to make a gallon of spirits ; but, allowing and ever J it wl to t| of tlmtj and) up, If estil men eacl 119 liim the benefit of the 'ar^or quantity, you will find the grain used in the miinui'i'jtnre of that spirit to have bt-en 4,105,398 lbs. ; »nd if this quan- tity is dediictod from the H,780,!>7C lbs., it leaves 4,075,578 lbs. This was the antount of corn brought into Jlulluday's Distillery — proved beyond ques- tion — which quiintity, wc say, was uniiceoiinted for. To find the quantity of l)usliels, wc divide that nuin'ocr of pounds by 50, when 83,492 bushels were ol)tuined. This represents corn alone ; and reprenenta in round numbers,- -1 do not care for loming within 10,000 or 20,000 bushels of the actual amount— a r|uantity ccpial to the product of 2,000 acres of land, at 40 bushels to the acre. And all this is totally unaccounted for, unless you accept <" e statement I give you of the (|uuntity of spirits niatle. Halladay gives no account, unless such loose statements as that a carj,'o was lost in the " St. Ijiiwrenre," and such like. But do you tWmk for a moment that any business man would lose 15,000 or 18,000 bushels of grain, and that nothing would be said about it? If that corn bad not been used, would h(! not have given evidence of it? Arnold was produced to say that he lieli(!ved a cargo had been damaged. And, again, I would say, gentlemen, that we are not in this en(|uiry taking every pound of corn into account ; we are not even requiring them to account for 1,000 lbs, but when 10,000 or 18,000 bushels of a cargo come into their distillery, they must be made to account for it in some more satisfactory way than tliis. You also had, it is true, some vague asser- tions about feeding cattle, and one witness was called as to that point. But surely no one in their senses will credit it that 80,000 bushels could have been disposed of in that way. Why, gentlemen, the witness called here, would not turn that quantity over in tho time mentioned. I will now proceed to give you an account of the spirits, carefully guarding against counting the same quantity twice. To prevent trouble about whether the spirits changed hands once or twice, I will prove the quantity sent from Maitland. We had in Court no account of spirits sent by railway to Maitland. It was insinuated, indeed that some <(uantity has been brought from Toronto ; but of that we 'lad no evidence. Now here are the returns of the quantity sent from Maitland to Montreal. The return contains the number of the car, the date of forwarding from Maitland, number of way-bill, person to whom consigned, description of goods, date received, by whom checked, date of delivery and to whom delivered and the conductoi who brought it there. These, I may say, are verified by every conductor. Every car has been traced from the time it left Maitland, till it was delivered in Montreal ; and you will remember that Mr. Doutre, in answer to th.e lust question put to him by my learned friend, said that they never heard of one of these puncheons of spirits going astray. It was shown in this way, that the quantity sent from Maitland to Montreal was 2720 puncheons of spirits and 833 barrels. It was proved to you by Arnold and all the gentlemen brought up, that these puncheons of spirits were almost invariably represented as 50 o. p. If we take what Arnold himself calculated, 30 gallons to the barrel, a low estimate, only about two-thirds of the contents, bnt, anything you please, gentle men, taking this, we find that in the 843 barrels there were 24,990 gallons. In each puncheon there were estimated to be 174 gallooB, so that the quantity Bent 120 1 II, I'li u It over tlic road in puncheons reached 474,324 gallonR ; miikinj^ a granti total Rent to Montreal ol 4!)9.314 gallons of spiritd. ITirt I.OKDHiiii' — Does that include Quebec ? Mr. (iAi.T — No ; in addition there were sent to Quebec 409 puncheons and 110 burrrelf. Multiplied by 174 wc tiud thin given 71,l(tG guls. to the 40'J puncheotis, while there were in the 110 barrels 3,300 gain,, making a total of 74,- 4C>G gals. Now abstracting the amounts IVom his lordship's notes as the amount of sales actually proven, — I did not undertake, yon will recollect, to prove the dis- position ol every gallon, — we find the amount reached 349,027 gallons. In addition to this, Middleton proved 5G,002 gallons. It was also proved that the sales at Quebec reached 04,173 gallons. But it in matter of perfect indifference to go into all the details, for I have taken care in framing the information to put the amount on which we sock to recover so far below the true amount, that you will have no difficulty in satisfying yourselves of the fraud . Now, I will state to yon the whole quantity which he made, and of which he had the dispof^al, accord- ing to his own stock-book, lie had on band 83,080 gallons on SeptembKrl. Between that date and December 31 , a? I said before, he manufactured 67,G94 gals. ; and between .fanuary 1 and July 1, he manufactured 173,800 gallons. This makes the total he had to dispose of in any way or under any circumstances, 324,.')74 gallons. On July I, 180.^, he admits having on hand a balance of 30,592 gallons. Consequently, the tottil amount he had to dispose of waR 293,982 gallons. That was every gallon which, acconling to their stock-books, they hod on hand or could dispose ol. You will recollect, that according to their stock-book, wlien Ar- nold was checking one item by item, I showed that there was disposed of by other means than the Grand Trunk, between Sept. 1st. and dan. 1st., 10,988 gallons. These were sent either to Wiser or others. They also say in th»} stock-book that between ,lun. 1st. 18G5 and July 1st., ISC'), they disposed of by conveyance (tther than the Uiand Trunk 28,291 gallons, making a total of 45,279 gallons. 'I'liis would leave the whole amount they had to dispose of over the (Jrund Trunk — ac- cording to their own statement — 248,703 gallons. Now, you havo evidence i f what they did send. Mr. IliciiAUDs. — According to your statement, how much is sold ? • Mr. (jiAi.T.- -There were sold in Montreal 349,027 gallons. In addition tu which Middleton proved 5(5,002 gallons, and the sales at Quebec were 04,173. In addition to which must be added the following sales, which appear on the stock-book, but have not been before included • — K. Iludon. 14,785 gallons; \V. McDonald, 5,676 gallons; Lymans, Clare & Co., 2,008 gaUons ; S. Birm, 907 gallons; Cuvillier & Co., 27,920; J. W. Reid, 4,972. In all 50,268 gallons. The sales not by the Grond Trunk were 45,279 gals. Having all these things before you, gentlemen of the jury, — having proved that this spirit came from Maitland, and that the material for making it was taken to the Distillery — having proved the sales in Montreal and Quebec — can jou doubt that Halladay has defrauded the Government to the extent of 200,000 gallons of spirits? No case whatever has bsen made for the defence, except the calling of Wilson, who says that if Halladay & Co. did this lilt to 121 li(« wa-i not awuro of it. 'I'lmt is really tlio whole defence. ArnolJ liiinsoll' admit- ti'd Hflliiij( bclwet'ii aoO.OUO luiil 400,000 pulloii> in Montreal. We show in addition, r)i;,'2 oi .^tablish the charge, then it will be your duty to tiud against the (.'rowii. Il, an in any ordinary transaction be- tween man and man, you ur< Hutibfied ilmt the charge has been sustained, then your verdict will be in. favoi if the Crown. The charge is sought to be estab- lished in thin way : — Tliuy ?iiy--We show a certain quantity of grain coming into your Distillery,— wliich came under yoir control — and allowing the full amount of 17 lbs. to the bushel, that quantity of grain would have made so much whiskey. Then they proceed to show that a certain quautity of this whiskey was carried over the Grand Trunk ; and by the (irand Trunk officers they try to prove that so much spirits was carried over that road from Maitland to Quebec and Montreal, In a given tune; and they say, besides that, we show that in Montreal and oth«r places you sold .so much ; and, comparing all these circumstances, we have given satisfactory proof of our charges. Another ingredient which entered into this discussion was, the opportunity of taking the spirit. I have prepared for you, gentlemen — very much the same as Mr. Gait has done — statements showing the qnantity of grain coming to the distillery, and also the quantity of spir- its made there. From this, you will sec that the quantity of corn on hand on September 1, 18(i4, was 644,000 lbs.; rye, 112,000 lbs.; malt, 110,000 lbs. ; oats, 75,000 lbs. ; besides which there were the 41 car loads of grain; the quantities coming by vessels, by the Grand Trunk, from Wiser & Co., the cars signed for by Wilkes, which, including the quantity on hand, made a total of 9,648,761 \hs. corn. From this we must deduct the quantity an band when the Distilleiy stopped, which would leave 9,474,671 lbs. and if to this you add the rye, malt and oats, it would make 9,704,171 U)h. of grain. That would liistlil i)'>'J,2 1:6 gallons, by their own books. And, )tot taking into account the evidence tif (( r>es and 1" *,her witnesses, they had ou hand 8,780,976 lbs. which ,' ( li I give ii total of 516,528 gallons. Now, you are to ask, do these statements satisfy you that they had grain to manufacture this number of gallons. 'I'hat is the flrst step. Now here is their spirit account. They had on hand in the Dis- tillery September 1st, 1864 — duty paid— 40,728 gallons ; iu bond, 42,352 gallons ; making in all, 83,080 gallons. There is no dispute abd^^i this. Then, according to their book they took fi-om the close receiver, 241,494 g'allons. They had there- 123 „ . Tb«Unotdi.putc"^»'«=" ^, ._,..._ thev make out ina ow. Montreal. ^**'" f^'^^ec -4,466 gallons. Altogether iney ^^^^^^^^ £Hr%a^:ifs£rrs would clearly show that a wath..r ^^ ^^^ P"ncH«-« ^^fj^into account it waa B- 1. If ^ "* „,^,r ^as entered in the ^^^^^^ & Co. all the riKht enough. ^^J^y'^ ., „,t belonging to K^f;";;'^^ Put ^t'/'n d H :: go to Arnold as their agent. ^^'^%tfc:rrf., on an Lv? For what purpose, you may \'^"''"''' . -^ jt is done honestly, fact, nobody ? l «' J i ^„e you l.ke ; proviUing ^ ,„3y carry «" — ot « -^^^^^ ^" '" Sis wa P^^^^^^^^^^^^ ^^^'« I ♦ 124 w 400 put away, it would make $40,000, which quantity of liquor was at Maitland at that time, but which the Inspector never heard of. It was there, consigned to Reid, and was subsequently received in Montreal by Arnold, who sells it, keeps the proceeds ap.iit from the rest in his possession, and accounts for it to Borst, Halladuy & Co. A good deal had been said in rei'erence to the prain arrival, — the books now here were not, it is said, the books first shown to Mr. Brunei at the railway station. And I did not allow them to speak anythinpj about the railway station matter until it had been hroufrht home to Ifalladay by Milkes. You will remember he spoke of being p^onerally employed aliout the distillery. He was there at the distillery, but what he was doing he does not say definitely. While he was there he got lo cars of grain. The station master, he says, ask3d him to sign the receipt, and he did so, but left them there, and was not aware Halladay had anything to do with them. J^ut at last the fact came out that Halladay 's teams went there, and did take away the corn. No duty, you will remember, had to be paid on corn, and the use that had been made of the fact thus brought out for the Crown had been to show the quantity nsed in the distillery. Kvery cargo that came in, dutiable or not, they were bound to r(*port what it contained, so that the Government might know the quantity of grain coming into the distillery. On pain of seizure, the captain of every vessel is obliged to show the Custom House officer the manifest of his cargo. The officer consults these manifests— they are generally sworn to — and he has also the Captain's memorandum. Now hero was another fact. In some way or other, the Custom House ofHcer happciied to say to Wilson, — Do you know how much corn is coming in for Halladay,— and the amount was mentioned. Wilson says he mentioned this to Halladfiy, and next Halladay comes to Jones, and you have heard of the way ho conducted himself when he came to that officer's place. Takinjj these circumstances into account, what opinion do you form of this conduct. That is alll think it necessary to call your attention to witli reference to the case for the Crown. On the part of the defence, it is said that the Crown must prove everything. That is (piite so. It is quite right for them to say we are innocent in point of law, and if wo are not proved guilty we ought to be acquitted. The answer to all this is really in their own power. For if they had produced their sales book, when called on to do so, that would be evidence in the matter at once. They might have produced their sales book, or clerk, to show all the liquor ever sold. That would have been an answer in a moment. But they did not do that, and are not bound to do it. They adopt the course of saying to the Crown, you are bound to prove that we made at Maitland more than avo returned. They say we might have had as much liquor as we liked to bring from anywhere else, and you have no right to count that, though it was carried from Maitland. Now, are there any circumstances shown to satisfy you that the whiskey charged was made anywhere else than at Maitland i Do the circimistances detailed by the Crown satisfy you that it was made at Maitland i As to the 125 liquor consigned to Reid, Arnold, you will remember, said it had been made there. Where, you will ask, did all these great cjuantities of liquor come from i Wore they made at Maitland ( — for imless you infer that it was made there and taken from thence, the proof of the carriage over the Grand Trunk amounts to nothing. That will be a point for your consideration. Then it is alleged for the defence tliatthe distillery is-not capable of produc- ing the quantity charged. And who was called to prove the capacity i We have had the rectirtcr and the general evidence of Wilson, who says he had no experience. The rcctilier ia the man who makes the liquor lit for sale. Now, is tliLs the person whose evidence ought to satisfy you as to the capa- city of the distillery to produce only the quantity returned ? Or wo»ild not the distiller himself, who knew its powers, have been the proper person ! Ho is not called. Hon. Mr. Camekon — He is the defendant. His Loud.shii'. — Counsel knows quite well that when I speak of the dis- lillei", I mean the man superintending the distillation, and a man of very considerable skill he nnist have been. Hon. Mr. Cajiekon. — The man your lordship speaks of was the man. Ills LoROSHiP. — Not .it all. Hon. Mr. Cameron. — Your lordship cannot assume that as a matter of fact of which there is no evidence. His LoRD.siiii'.— (to the jury)— Then let it be assumed that there was no per- son there to manage the distillery and distil the liquor. Are you satisfied that the still had not the capacity to do the work charged ? If it had not, what be- came of the grain I That is the lirst diUiculty. Lastly, they say, all the machinery was as perfect as it ceuld be. Everything was right, according to the reciuirements of the law and the Inspector. That othcer was invested with great powers to enable him to watch the working of the distillery closely. He found nothing wrong about the premises ; and the inference which the defence wishes you to draw is, that if he could see nothing wrong— if the man specially appointed for the service saw or knew of no frauds connected with the distilling — that you should find there was nothing wrong. The Crown is bound to prove its case, they say. Has the Crown proved it to your satisfaction > K so, they are entitled to your verdict. If they have not made out a case, it is for you to say so. It is not a legiti- mate argument to say that because everything was right, so far as the In- spector knew, that that should satisfy the jury. Very likely he believed everything was right so far as the distillery and the manufacture was con- cerned. A man meaning to be honest — thinking every one else honest — not suspecting and unwilling to suspect that anything was wrong, does not believe that anything was wronj'. As to the circumstance of the Inspector's keys, you had Wilson say- ing that he generally carried the keys of the distillery about his person, or left them in his desk at Maitland, locked up. He occupied the same office with Jones ; and the evidence is that on one occasion, which he had 126 forgotten, in the first instance, when he denied having ever telegraphed for his keys to Chisholm — he did telegraph for his keys. And on Mr. Jones mentioning the circumstance, Mr. Wilson said that on that occasion he did leave the keys, when he went away, hanging in his desk ; but that at that time, when he telegraphed, he had the distillery keys in his pocket. He says that sometimes the keys were locked up in the desk. Chisholm says he was directed by Wilson to get the keys ; and Jones says take them, and he thinks Chisholm got them and did not return them the next day. It is further said that Wilson told Jones that if at any time he left the keys ho would be obliged to Jones to take care of them. What do you deduce from these facts ? Chisholm was the book-keeper and paymaster, and this man had the keys of Mr. Wilson's desk, and if the other (the distillery) key were there, could, of course take it. The Crown shows this opportunity had of opening the locks, and says they had evidently no difficulty in gettinst what they wanted out of the receivers, for Wilson was there sometimes only half an hour, sometimes part of a day. These, gentlemen, are the leading facts, so far as they are material, on both sides. The Crown must satisfy yon, beyond any reasonable doubt, that it Avas defrauded — that the liquor was taken out without paying duty ; for the defendaut has a strict right to say — we will give you no information — we will not open our books in any way — we will stand with folded hands, and put the Crown to the proof. Does, then, the proof satisfy you that any quantity and what quantity was taken away from Maitland without payment of duty ( Hon. Mr. Cameron — I would wish to call your Lordship's attention to one or two points on which you have not made any observations to the jury. First, that a large number of cattle, called 1,000 head, was fed at Maitland. Then, that there was a loss on one cargo of 1,500 bushels. His Lordship — That cargo was never distilled. Hon. Mr. Cameron — Yes ; it is all put in. His Lordship — I think not. Hon. Mr. Cameron — Then there is the point as to the vessels in the dis- tillery being secured with locks ; .and as to the breakages. His Lordship — The defendant calls attention to these points, and of course they are all for your consideration. It is said there were about 1,000 head of cattle fed at the distillery ; and that— especially in the first year, concerning which we have nothing to do— there were stoppages in the dis- tillery frecjuently, in consequence of breaking down ; and then it is repre- sented that, on such occasions, meal had to be given to the cattle. Of course, when the distillery broke down, and the stock of slops was exhausted, the cattle had to be fed on something else. But, according to the statement in the books, as I understand it, they were allowed to take credit for all they claimed as fed to horses and cattle ; and the quantity so claimed was excluded from what was made out against them. However, you are to consider that. You sec, too, that there are not so many gallons charged against them as their grain would have made— there is a very con- side det( e>-^H^^ 127 siderahle difference in this way. Allonrance has, of course, to be made for deterioration in the grain ; for if it wore heated, it lost so much of its spirit-making power. With reference to the locks and keys, I must tell you that from the time they got locks, in which the pieces of paper were put, it does not seem possible that they could have opened them without Wilson's knowledge, for he could have at once discovered any tampering with them by the perforation in the paper. The keys, I understand, were changed once ; and paper put in some, if not all the locks. No doubt Mr. Wilson took every precaution, though he never suspected that anything was wrong ; and we find, accordingly, that he was very much surprised at what Arnold said about those 800 or 400 puncheons which were in the cattle- sheds. You will see from this that he could not have looked very closely — I mean suspiciously — abotit. As to the points of law, they have not to be submitted to you, gentlemen. The questions of law will be disposed of in the courts above. You have, as I afready remarked, to dispose of the case as you would of one of a partnership transaction. Here is the article made, and the amount. In that quantity the Crown becomes a sharer ; and the consumer has to pay it all — ho has tc pay both the parties to the agreement' If, as is charged in their cases, the distiller does not pay the Crown its dues, he alsne Ijenefits. The people share nothing of the profits. But he is the gainer of what has been held back, and is being enabled to undersell the legitimate maker by a small per centage ; and, for that reason, you will see that it is quite likely that the suspicions as to this case arose from some person in the same trade. That trade was now in the hands, was said to be very profitable, and they were as jealous as possible of each other. It is quite natural some such person should have said : these people are selling their commodities lower than they can do honestly ; and no matter how sharply the officers are looking after the distillery, there must be something wrong. Then, I may remark, that Mr. Brunei's conduct in the matter has subjected him to a good deal of odium. Ho is General Su- perintendent of Excise. He became suspicious that all was not right in the distillery ; and he was determined to find it out if possible. Then Mr. Wilson is suspended — not being fit for the oflice — not being guarded enough, or wanting experience. Very likely this training would make him twice as efficient an officer as before ; and under the circumstance it was not unnatural that he should feel as he did, though it was improper to express it. As regards Brunei's evidence, this much must be s