The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-05-21
The INTERNAL REVENUE.
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Z How Whiskey- Frauds are
Committed.
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Attack on Collectors Officers in
Water Street.
HEAVY FRAUDS IN CIGAR STAMPS.
&r SO r.
HEAVY FRAUDS IN CIGAR STAMPS.

AGAv TAAu0o Nv NiVAh o1A0IS.
DC. &c. 6e.
fhe success with which immense and continuous
frauds are practised the Internal Revenue Depart
nent Of this country has AZ last forced the author
lies at Washington the necessity OF taking steps in
The premises may have tho effect Of bringing the
principal offenders justice and OF checking organ
lied system Of swndlng unparalleled the financial
history Of any country and which none other than
United States could either sustain tolerate These
frauds carried with audacty rarely equallsd in
boldness hardhood and have successful beyond
the most sanguine expectations OF the "opera-
tors" and the qualifications Of the Organization have,
= % said, penetrated into the sanc,um OF the
Revenue Bureau itself; for among the officials
paid BY the country to prevent fraud and
detect swindling may be found occasionally men who
are the agents dupes of Illicit manufacturer and
who shield the commission Of the offence and partake OF
tho profits accrung therefrom. Men who hold various
positions In that department OF the government and
draw large salaries from the country; are to-
day the advocate for the prosecution and tomorrow the
ready and active counsel for the defence and who
openly perpetrate illegal acts under warrant Of those
much abused documents called commissions
Very few outside those acquainted with trade can
form an idea Of the extent to which the country suffers
oy frauds on the The weight course even
tualy falls on the taxpayer, who has to make up the
deficit created BY the operation and which estimated
oy competent authorities cost the country year no
less sum than upwards of three million OF dollars
TIE NEW YORK MARKET
Notwithstanding the fact that the alone on whs-
key is So per gallon, that article is sold openly
today in the New York market at 81 Is and 81 30that
far below the tax price, not at all calculating
Of manufacturing The whskey sold here more prop
erly speaking New England rum, and is manufactured
from moasses at cost Of about ninety the gallon
the tax is 81; the cost price, therefore, would be 81 CO.
and yet the article is to be had in the
than onehalf the money The fraud is evident on the
face Of the dealing, but plausible excuses bankruptcies
failures, &C. are plenty, and accepted with credu
lsusness really touching on the part Of purchasers
WHERE THE wHsKEY CONES FROM.
Az general rule the fault is attributed the large
sunber Of dssileres in New York and Brooklyn, but
this is very grave mistake. The amount OF whiskey
distilled in the cities would scarcely meet the de-
nand Of one ward alone, and yet II Is said the New
York distillers supply the New York market. They
have certainly great deal Of odum 70 bear but Of this
charge they are innocent. Tho whiskey sold in New
York comes from places thousands Of miles awayfrom
WhisEsy is manufactured in those places, branded,
stamped, and bearing all the Certificates OF legality is
whisssy The supply constantly arriving in this cty
~ this class Of spirits ID almost incredible the
os seive Of our collectors and the ceverest and most
espsrienced officers acting under them unable
trace the deception, 70 account for the brands and
stamps, which are perfect In every respect
SOUTHERN DIsrIILERIEs.
One Of the principal Of this trade 10 from the
South for there the authorities Inactive
powerless that distleres working in num-
bers false returns made BY manufacturers
the necessary lodges swnde the are re.
Tennessee y stated revenue officer has not been seen
since the close of the and in those places where
a and
led and played upon than had they been acquant
Cd with their districts Illicit Oscillation consequent
y II, most fourishing condition. and the authorities,
from either ignorance or fear are unable 70 stop
~ Tho. Vest II - well known. is green with
sSsrs manufactured into whisksy. ana tins trade
. carried on SO extensively that in the Western
on scooanl Of The great demand s from he soush
costs dollar and forty cents in the West while in the
cents yet the Eastern disteries cannot compete
with the West is far easier 70 ship grain than
rs very badly organized and affords ALL as before 70
MARKED the necessary facilities for defrauding the gov
oss nd S rely on utter !" ss
sQuabbing test oaths for revenue inspectors
districts have been left unprovdcd for and every
with impunty, and without the slightest danger 10
themselves, and with immense mischief TO Northern and
Eastern manaiac ssr so,x n,sru,..,r,
CHANGING al the number OF disler1es, working and
not would be a. first imagined, and the
Agurss below viii fully prove the inability Of New York
. supply the market with al sne rnsEey presented for
nttee that there fewer than 1900 Of those
establishments in this city and Brooklyn, but very
inquiry the number at present in this city is as follows
Thirty second Dstrict-About twelve distleries.
fourth Distnct-About twelve distilleries
Fifth Dssrict-About ten distilleriea
Sixth Diatrict-About twenty distioleries.
Seventh Dssrict-About thirty distillenea
Eighth Distnct-About thnty-two dissleriea
Ninth Dstrict-About my distiileriea
II viii be that the total here will only show
dstieriss In all and allowing for what fscetiously
sisd 'sa kettle" sills the number this city Of ali
kisds viii mot reach 400 Of which than rs are
continue is natter Of speculation An order was
issued sone time go By The department. in Washington
requiring work should deposit With the collector $500
- payment for the new metre which, IL 10 said will pre-
n h CIV The sumSs Of such nsS y sss sssa
q ssasshnsnss now in working order Not one Of
sSs western and southern Guns The two s9ress
m Oils cray can only nanuf.cturs each l24
makes rum which % recsasd = 70 answer al he pur
70 ss :n1 ss
szosnsiva Some Of the smaller distillsres In this
s .
sss,y 20 % prove ss sSsssS New York me great Ss
with the manufacture Of all the whksy sold in lie mar
ket little Of which has paid - the government the
legal tax On the La Of Nay there bosd
in this CITY 4e5 barrels Of whskey Of which 200
Of Eastern manufncture. II was chiefly Western
and Southern, with good proportion from Baltimore
/. ~-.<a wBRRn rBB mAnn LrRa
That gigantic frauds being daily perpetated against
ne ns has 20 stop
70 be SEEN very ecsnt s6csr has been lately sent
here from Washington 70 try possible, and collect
moro revenue Well he arrived; and, has been a.
ready announced in the columns Of the HERALD
became the order Of the day; and one morning last
week the announcement made In these columns
ciusvey that fewer than twenty-four distleries
were seized this city BY the aid ocer and his subord
nafss Very active and honorable collectors have also
done their utmose protsct the from swndle
but they have been thwared In their good intentions
the very action Of government ITSELF and By the schem
ing and machinavons of politicians. xu.xsu~s~>-..
So a . 0DuAL oyrIcHnA