Nashville union and dispatch. [volume] (Nashville, Tenn.) 1866-1868, 1866-12-25
GIGANTIC REVENUE FRAUDS
STARTLING DISCLOSURES.

Correspondence Of the Cincinnati Gazette
WAsHINGToN, December 21.-The Oar
ling Committee, which visited New York
TO investigate the frauds upon the revenue,
has returned. It is understood that the
frauds brought to light by only partial
and superficial investigation, almost exceed
belief, and the Developments are startling
in their character. The single matter of
whisky frauds may thus be summed up.
Whisky regularly branded, but which has
never paid cent of tax, is regularly sold
on 'Change and in the street, at 81 25 to
( 81 Is per gallon. Distilleries of small ca
pacity have have been secretly started in
great numbers in all parts of the city, lii
cellars and garrets where from one to two
barrels day are made. So great is the
demand for these small stills that the cop
persmiths are Overrun with orders, and
some of them had from fifty TO one hun
dred orders ahead.
Men of high business standing are en-
gagged in buying this Illicit whisky, with
perfect impunity, the inspectors of whisky
and the inspectors of distilleries being,
many of them, directly implicated, and
many of them have made fortunes in
the few months since their appointment.
These men were all recently appointed
under the auspices of the johnson Club
here, and many of them seem to have
been selected with special reference to
raising funds for political purposes
One man, who had the disposal Of much
Of the government patronage, made five
hundred thousand dollars in two months
by dealing in Illicit whisky. Revenue
agents and collectors recently appointed
and deeply implicated, had their places
bought for them by dealers in whisky Of
the johnson Club; and speaking generally,
enormous sums have been paid on one hand
TO secure the appointment of men who
WOuld either participate directly or wink
at their frauds, and on the other to raise
money for these clubs. II is believed that
half the whisky in bond in New York has
been entered by FIRST securing permission to
withdraw il for redistilling, and then filling
the casks with water instead.
Tt is understood that the committee are
satisfied that the present laws cannot be ell
forced, and that they contemplate recon-
mending reduction of the tax TO fifty cents
q gallon, or the imposition of a license SO
great as to break up all small establishments,
or both.
In the matter of tobacco, large frauds of
this kind were discovered. A mans stock
is seized for false returns. He is advised TO
consult certain attorney in the ring The
attorney recommends a compromise and
the parties divide results.
The committee, in Investigating the fraads
in the customhouse in New York, have
discovered still more glaring cases than
those given above, and many leading John
son men, and even the White-house house
hold, are deeply implicated.
The whisky interest in New York and
throughout the country has been usingevery
effort to secure the removal of Commission
er Rollins, as he has constantly stood in
their way. A very large sum was raised to
bride the committee, but the effect has only
been to increase its vigilance.
Heavy frauds upon the revenue have been
reported at Cincinnati. The committee
will probably visit that place some time
after the HOLIDAYS