Daily Davenport Democrat. [volume] (Davenport, Iowa) 1864-1874, 1867-11-25

Complete History Of a Gigantic
SWindle.

From the Dubuque Herald. j


ID. y. Cooley having returned from New
York aud Warrington, wbere he has been
investigating the Rhomberg liquor case,
some Addi,ionsl light IS tnrowD upon the
matter. The additional light was needed
10 disclose the infamous character OF the
swindie that has been perpetisted. There
has been swindle OF the largest proper
lions, but the boot Is not on the leg 81 iii st
repoTted.
Ia July last l.. A. Rhomberg 4 Pro- had
stored IN bond here sos barrels Of whisky,
which desiring TO sell. they shipped to Mes
York. Under the law, transportation
bond" MAS required, conditioned that the
liquors taken from bond here, should be
delivered, without fraud upon the revenue,
into bond in New York. The trsnspor,ion
bond took the place Of the warehouse bond
while the liquors were 10 transit to New
York. On this bond we're J. A. Rhomaerg
and fifteen or twenty other responsible cit
izens Of Dubuque. The transportation bond
VAS given on the 9Th Of July the liquors
wers shipped, probably aot leaving Dun
cith before the 9th. The Rhompergs al.
| esc tia, the shipment was to The care OF
ChaEry & Co. for Cuunirghsms bonded
| warehouse u tie S.h district J hc books,
warehouse aud collectors, "a sew YORK,
show that tie consignment waa To l.. A.
Rnombert 4 Bro, and to tie warehouse Il
the sth district. 1, also appeais tina, Chat
fey L Co. had nothing to do with the re-
csip. Of the liquors.. When they were rs
ee!ved, or rather were purported to have
been receiv, d, one az &. Frost, % tn, & IN
of CaaiIey d Co., as the books show, filed
with Ihos l.. Smith. collector OF the Slh
district, . statement that on certain day =
natned ho had stored 500 barrels, described
as those shipped By the Rhombergs. Frost
Was also compelled ~ the Law to file q
bond providing that the liquors should not
be removed without payment Of the tax
This bond was signed by Frost. one San
born. the president Of the kentucky Bour-
bon Co aud Allen ii. Mills, (uretty thor
oughly known hercaDouts) OF course il
was STRAW bond" All OF the bondsmen
could not have obtained 10 New York credit
Tor enough whisky " run retail shop q
lay. Aud yet the bond WAS approved by
Collector Smith. These acts oil represent
ed that the Rhombsrg liquor shipments bad
safely arrived in New York. To further
confirm this representation, an insurance
l
the 81, 900 gallons Of liquor.
Notwithstanding I'll this, the liquors had
not been received in New York. - we shall
show. Before shipping the liquors. the
Rhombergs had contracted with the agents
Of the Red Line 60. fos their transports
ton. BY some means they were switched
"A TO the Grand Trunk X. r., and taken ia
Portland, thence BY steamer to New York
The liquors have been traced, and there ID
no shadow of doubt that they went by
| this route.
Nov mark the dates. The inspector Z
books, the warehouse keepers books, in
fact oil the records in the 9Th district, indi
cate that the liquors were received in New
York, 1T Cunningham's bonded warehouse
IN five different lo,s, on the l2th, 18th
10th, 10th and lI,h OF July. Nov, who
believes that the whisky which did not leav,
Dubuque Til the e'h of July, arrived il
New York on the l2th. The fac: il. non,
4 il arrived in New y ork until the 23i o
July.
On the night of the 18th, tho Cunning
nam warehouse was burned. rhe liquor
vas certified to have been received and
sto.ed in u. and Of course must also have
/
Col cctor Smith, released the bond for III,
ecvcnuc. Aililsyts were filed, the Official
entr q shown in the books Of the Coi.ec.
tor otii e. aud the insurance company paid
'ver TO Fsost the insurance of about 500,
100 Meantime Collector Smith had sent
% Collector henderson, Of this city, a Ger.
tilicate of tho receipt Of the liquors in his
district, on the days named, thereby au-
horising him TO cancel the transportation
bond given here. The bond was accord.
ingly cancelled. Smith alleges now that
this certificate was sent upon faith in the
receipts shown 10 him BY the inspector and
warehouse keeper.
These iacts, briefly stated, serve to show
| the character OF the entire transaction
The liquors were shipped in good faith by
| Rhomberg Il Bro, were received by "E. C.
Frost, Of Ohaffcy & Co.." without any au
| thnrity, other than that Of thief, and with
the oonnivance OF officials Of the sth dis
| tiict, false returns were made Of the re
| ceipt OF the liquors., the warehouse was
burned. and IL is fully established that
they were afterwards sold, the own.
! ers being s.indle3 Of the value OF the prom
ertr, the government Of 81, 900 of revenue
/
| pretended insurance. The character Of the
| management of the Sth district may b,
VI ged from these iac,s, and the additional
'hat while claiming that 5000, 900 worth o
liquor was stored IN the Cunningham ware
house at the time Of its destruction, til.
keeper had given no bond, aud the owuol
but two. one Of $4,000 and the other 9
$4,000, neither of which will realize a.
much as would buy the paper on which it il
written. The inspector had given a lik,
bond of $4,000. All Of this 10 secure prop
erty Of over half million
These facts have been set forth to the dc
psrtment in Washington. Proceedings
civil and criminal. have been instituted
against Frost and his accomplicss in New
York. The department 10 now willing Il
cease distraint under the cancelled trans
po,tation bond, but is anxious to secure il,
officers against prosecution for their hasty
acts IN seizing property, demands Of ]. A.
Rhombere pledge that hs vii not com
| mrnce proceedings against them. OF course
he will make no such pledge. He has been
damaged in property thousands Of dollars
BY the unlawful seizure Of his property. II
Collector Henderson proceeded, under de-
finite instructions from Washington, the
government % responsible for this damage
and Il upon his own motion, then his bonds.
men are responsible. We understand thu,
bis acts have followed positive instructions
The case will como up at the next term OIL
he United States District Court, but We IN
derstsnd will 60 ever again to the next term
Tor adjudication.
In this connection Ne may state I'D inter.
es.ing fact. For the ycar ending July Let
1866, J. A. Rhombsrg paid the government
one twenty ninth Of al the revenue received
from liquor in the United SsAtes, one
seventh - much - that reserved in New
York, and one-Gfth o. much q that recsiv-
ed from Ohio. The extent Of bic business
in Dubuque may be estimated from these
figures, and yet his property 10 nov seized
because government officials have swindled
him and the government.
Fatality ~ Ov~rWOrk.
l.