The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1864-11-21
A FORTUNATE INFoRmER.
DETAILS OF THE MATTER.
ETC. Etc, Tton Etc, Etc.

WAsHIS0ToS, November 2l.-Iniorma. on n.s
been received at the Treasury Department o.
recent operations on the part OF Internal Revenue
Officers, which shows that they arc vide awake,
not only to the interests OF the Government. bu-
also to their ocH Interests. Three large hrewsriss
with all the personal property, such as )oil3rs,
watts, horses, wagons, barrels, beer on hand, s s
| have been seized by one OF the New York C5'le,-
tors for infractions OF the plain requirements OF
the Internal Revenue law. The property amounts
in all to more thana million OF dollars.
Il appears these brewers were in she habit Of
dstlng illictly and secretly their rrafJse or sJu-
beer, without taking license as dis;licrs, mAkins
the necessary tri-mOnthly returns rec qIir,i OF
them by law as such, or paying taxes on the
spirits distilled. The operations we're conducted
With such caution that, although the Internal
Revenue law has been in operation over two
years, they had not been discovered until nov.
Summary proceedings followed the discovery,
and although the parties claimed shIt they were
unaware of the provisions Of the law with ,cglrd
to returns Of distilled spirits-under all cir,um-
stanccs-and payment OF duty thereon, they we're
not allowed 10 reap any advantage from THIS
shallow subterfuge
The penalties incurred by these paroles are
enormous. They are required, under the law, b
take out licenses as distillcrs, ~ give bonds, 20
make regular tr-monthly returns, and perform
other important acts. A penalty o! FIVE hundred
dollars attaches toa arefusa rneglecttc do any or
either Of these actions; and the property Of par
ties who are detected ia attempting 70 defflud
the Government by such acts as we're committed
by these parties is all liable, upon proc. of the
intent, to confscl cltion.
IA no NJ na Al tn Ia In
former the fortunate man who discovered .E5se
stupendOus frauds, and brought them % The
attention of the executive officer, has in al pro-
babilty, made himself independens ior lie. II
share will amount TO nearly 100000.
We are glad to observe, in view ofthe structures
lately made upon New York officials by ono ci
our leading contemporaries, tina: this seizure was
theresult OF patient perseverance 10 following up
slight trail in the office Of one o. the City Col
lectors no outside parties having had any hand
in the affair
New York is not the only city, il appears,
whore ingenious and extensive frauds on the
Government are endeayored to be perpetfa,ed
One OF the Revenue Inspectors of S. Louis lately
had occasion to suspect leading firm OF that city
OF making false returns Of cigars manufactured
by them.
After series Of carefully conducted invos.i-
cations, the officer obtained such irresistible
proofs OF the firms guilt that theya, once owned
up, threw their books open to his inspoction-
which, however, he had right by law 20 de-
maud-aided him in ascertaining the exG,t
amount due the Government and the proper
return, paid the full tax, and then begged to be
allowed TO pay the full amount OF penalty in
cured by them, Viz. 5000, withou. having
the case go to court
The question presented a curious phase IF the
Law. By rs provisions a moiety o. the penalties
obtained by prosecution goes TO the informer, and
the iniormer is ascertained by decree OF Court.
In this case, as there was no prosecution, The IL
former could not be legally ascert1iued but as
the Department was determined that the thank,ess
but responsible and honorable Office Of the detec-
tive should not go unrewarded, it decreed that
the compromise with the parties should be based
upon the ground that they should pay ona-half
of the sum 10 the inspector who had Gled the iu-
formation resulting in the discovery Of the fraud,
and the other half 70 the Government. Thus it
will be seen tina. the Department intends to ieai
notonly Justly but generously With those 70 whose
energy and intelligence it is indebted Tor valuable
information.
The Government has thus lar been 60 lenient
! with those who have failed to comply With the
provisions Of the Stamp Act, allowing pleas Of
! Ignorance Of the law" as au excuse, until some
people have begun TO feel that the law is nearly
| dead letter, and that all payments they do make
in the way Of stamps are in the natlfe Of youn-
tary contributions,
From the following incident, which took place
| in Louisville, our readers win see that the Inter-
nal Revenue Officers have not only the power but
thet1yill 10 enforce the law.
! A person brOugh: TO the Collector an anstamped
receipt, asking whether II was considered legal
| paper; he was informed that It was not aud that
the maker had incurred penalty, probably care
! lessly, and he was advised to return with Il 10
him, with a request that it might be stamped. He
returned shortly afterwards, stating that the only
answer he had received was abuse and threats
OF violence. The Collector went Immediately to
the Office Of the District Attorney and had the
maker Of the receipt cited before the United sstes
Commissioner. When the law was read TO the
defendant, he at once drew his pocket-book paid
his $500 fine and went home, it is hoped, q
wiser if poorer man. The costs Of the prose-
cuton were 81. The remaining Sl96 were diV-
ded between the Government and the informer.
Let others beware