Stowell didn't feel he was "being taken." He defended Joseph at trial, much to the prosecution's dismay.
That's true, but the defense was merely that he believed Smith could "see" treasure, not that Smith actually found any.
That in itself would not have been enough to find him innocent, since the law, as posted by Cat Tale above, stated it covered both those who had no means of support "and all jugglers, and all persons pretending to have skill in physiognomy, palmistry, or like crafty science, or
pretending to tell fortunes,
or to discover where lost goods may be found;"
Here's the law in an 1802 New York State lawbook:
http://books.google.com/books?id=voNZAAAAYAAJ&pg=PA123&output=html
Strictly speaking, the only legal defense would hinge on "pretending," or in other words, if there was evidence that he wasn't just pretending to find lost goods, but he really could. Stowell didn't provide evidence for that; he merely affirmed he believed Smith could do it. And of course Smith himself in his official history also said that no treasure was found.
His fee was justified by a month of back-breaking labor.
According to the law strictly as written, though, if he pretended to be able to find treasure, he was breaking the law, whether he also had other means of support or not.
Of course, the full law (at the lawbook link) was apparently written in a purposely vague way, covering everything from people who hang out on street corners to men who desert their wives, to, well, you know, just
those kind of people we don't around. As such, I could see the verdict going either way. Smith was clearly guilty of the letter of it, but if he didn't seem too much like one of
those people, he might have been let off.
As I have noted, the kinds of activities in which Smith engaged were commonplace in the 19th century, and were widely accepted.
But also made illegal as early as 1783, the date of the New York law. It seems similar to society's ambivalent acceptance of psychics today, ranging from true believers to those who think it's harmless entertainment to those who think it's a swindle that should be made illegal.
You don't know the circumstances under which Smith operated; you're speculating, which doesn't help your case. You judge Smith based on a paucity of facts, some of which I suspect were derived from anti-LDS sources.
What do you consider a neutral or pro-LDS source?
You noted that FAIR cites the Purple account from the Chenango Union. If you feel that the Purple account is an acceptable source, then it makes clear that Smith said he could find treasure:
Smith had told the Deacon [Stowell] that very many years before a band of robbers had buried on his flat a box of treasure, and as it was very valuable they had by a sacrifice placed a charm over it to protect it, so that it could not be obtained except by faith, accompanied by certain talismanic influences. So, after arming themselves with fasting and prayer, they sallied forth to the spot designated by Smith.