Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1867-07-19
The Whiskey Frauds.

The Whiskey Frauds.
We quoted some time since part Of an a.
icle in the New York Times, going to show
the stupendous frauds practiced IN the Wills
kew trade, whereby Government Is deprived
of nearly all the revenue due from that
source. Further developments are made IL
the same direction several instances brought
to light IN process Of legal Investigations are
quoted. showing how easily and thoroughly
the Government Is defrauded Of It's just dues
by means Of the present . bonded ware
house - system. Wholesale dealers have
bonded warehouses on the second floor OF
their buildings. so that all spirits must g
through their stores below; how little actu-
ally reaches the warehouse and pays duty
nav be imagined Every large liquor deal
er, the Times asserts. ''has been permitted
to keep bis own general bonded warehouse
and to retain the custody Of his own goods.
Not dozen warehouses IN TIE city 'are
kent by men not interested as owners OF
agents in the liquor stored" \ bonded
warehouse was opened in Brooklyn next
door to a free warehouse; q door was quietly
cut through the wall, and a sudden search
being made, men were caught rolling barrels
from the bonded to the free warehouse, and
putting on false brands. The store keeper
could not be found when he did turn up,
it was with a new set Of books, the entries
in Whitehall in due form Of c5urse-he
wonld not swear were not made after the
search.
In the desk Of the proprietor Of q large
liquor store, was found q brand-"U. 5.
Duty Paid''-and a certificate of entry and
withdrawal in UqHk from a store keeper. y
distiller put COO barrels OF spirits IN ware
house, and sold them there four hundred
have disappeared without paying duty no
one can tell when or where-a loss to the
Government Of $4,000. OF course the dis
tiller doesn't know who bought them and
the storckeeper doesn't know who took them
away.
Ii is often urged that the excessive tax On
whiskey, giving such an enormous margin
of profit to the illegal distiller,is the cause Of
all tins fraud, and that less tax would be
more thoroughly collected. II might tc
more easily collected; but that temptation to
fraud would not cease, even were the tax Ic-
duced to but twenty-five cans On the gal
len, the Tines shows by calculation Of the
profits Of manufacture Il j. not By Illegal
dlstilline that the revenue Loses 80 much as
BY direct evasion Of taxes by legal dIsiillcr
les, which can only be accomplished by col
fusion of Government officials and so long
as they can be bribed, any tax lqualIng
fair profit On the article manufactured viii
be evaded A large disuilsry should pay
$1,000 day tlxcs on lis 5000 gallons manu-
featured; lift had to Jay OILY S7j0,lt would
be very profitable operation to Zip 500
into a Convenient hand whereby 1000 gallons
should be entered and 5000 actually passed
through and branded "duty paid An
honest enforcement Of the law bY homes; and
vigilsnt officials is needed, more than any
reduction of tax.
Attention is aroused 10 the matter, to
which the able articles in the y. Y. 7unes
have contributed not little. Even in
Washington it seems suddenly to he discov-
cred that she revenue from whiskey Is small
compared with what it should be; but
whether anything Will or can be accomplish
ed towards checking the Wholesale bribery
aud corruption which the facts ELECTED too
plainly indicate, is doubtful. \ significant
sentence was that in a despatch from Wash
ington Monday, Fernando wood and
". E. Robinson have more influence with the
President than Secretary McCulloch. where
the whiskey manufacturers are concerned ."