New-York tribune., 1867-01-05
THE DIsTILLfRY FRAUDS.

NJ that which, under existing i9w, , ~ is nh,v given 10
tSi matter and only few days ago @ S" bC SX
gressi9liaI ir te,npdrary closed their abor afIer
nr,ss of SESSIONS held az the AstOr ltoe' II tS -
,aonv cicted hy this committee eouu oi.9 D. 'T .I t1o
Gc ii would startlc not ouly ils cohhuni'S D" INV
country. . ,i,.,. ont nj the arrest Of
nit, in Ir0c,u were, In themselves, certainty sun
fcent to awaken curiosity I'M the pubic Iu o their
tain how far the underhanded WORKERS hau til stcr
fraudulent transactions: Inc Devn. o.. 49, i,ly ease
although what the - ctiyes deaoc yc ba. sc such
was hut drop ia yea oi lI"'u Ni''N H"
Ne more interesting chapter concerning the workings
n, . sr"s.i 10 carry ON immense swindieS- -Idu'S o
the most gigantic characcreOuld possibly e IutnSh1u
thSi seeping II would furnish facts aud data enough TO
form history of fraud ne me oi ~y si Eaacter
N Is true has always been considci.u D! le
peopie IS ~ ~ IN nam, of the nations of the Old World
s Vii TroWi 10 eycry careful reader of history. In
se DersoSs denoninate excessive axaoifrauds on
the revenue Of the natoi-aIe Oi but recent gloMtm
Snon i'm ills country prior to the kebeion Tor the
simple that there was 0t ulceht scope IoI 10
not oulv i,uulr,i OF thousands, but millions Reau'is
f mo o day ionrias of this city who keep themselves
posed in tNS history Of current events are not th.me
fguoraut Of swindle practced on the revenue. aJy
Snow thai there have been many successful efforts m@ae
70 mil thC WOO" over the eyes of Government Officers
and fhis ROB the Treasury ci ITS due: no .,.to5 CON
II is our Purpose TO state, az far a5 can W sate voI
which IN this cily mas charge OF the whisky iraHas some
not Interested in WHISKY sndles an idea of the cYcp
Co which the perpetratOfs OF frauds III the revenue nave
The hn6EtT 6l licensed sers in This city is about 10
These iutu, II is claimed 10y ne whisky mspect9rS-Or az
least = large proportion Of the dstierS-nabe use al
every means every artifcc deceive the Goyernm,m
Officers and save themselves from the hSng' iG Ii &
actual tax money which under me law they are oIgo @
70 put into the Treasury. Undo. tic new law WCi was
passed by Congress in July 5 distIers are required to
bay for every gallon whisky they produce, the sun OF
H. The distinction j. mainly m it glasses ol Uio lu"!.
factuTcd rtn4 ana WHISKY D'hS PIV'r'1u lVi VII ol"'
There are two classes Of Inspectors first general in
ace zone
cis are Immediately connected with the Revenue Depart
penttheir duties being to see rs lar as teI are '"r
that the local inspectors do their duty and 10 take charge
of an frauds that may develop themselves and see 10 II
that the swndes checked and their perpetrators pun
The local inspectors ore officers Of the Government who
ere required keep watch Of all the business and doss
Of dsers TO every licensed distilery in the cy there
D. OF these local inspectors II incumbent upon MN MN
20 report the quantity Of grain that taken INTO the sun
which hc has official charge 10 sec that none oi ht
OF WHISKY that is produced by the manuacory Meiho-
sandm books specially gotten up & ioi tRe ] pICiG % Gcsd i
quarters the quu8tty ~ whisky produced
euch are the duties Of the local inspector.
Under the law he entitled TO salary OF 50 per ay
the amount 10 be paid him by the OF the dl>ley
under his charge. This it is claimed, by the general
Ied on The local Inspectors are uS'blH aploittggu tg
through political influence, and many Of them are tEe
nominees of the dSticrs themselves. Dependant upon
the dister for his salary, the local Inspector certainly
exposed to much temptation general officer yesterday
"Ths is the great defect Of the law The ocalinspecor
should not be dependant OF The dstilcr Ii is relation
which Government officer should bear to the payer OI
revenue. Here is case IN point local lnspectorlt
eevng S per day from dstler for the performance OF
official duties approached 10y the distlel-Who is, IN
every sense his employer-who says, LOOK here now
you VIII report me As OJufus p9 ON glos Gi WIIsAS
per day ana nothing about the other 500 that pro
dnee VIII give you s25 or 800 as the case may De p,r
day This Is certainly great temptation 10 bribery ano
tBasmuch human nature is likely to be weak IN an
Inspector IN citizen tits not to be wondered
e that he Yields once WITHIN the poM Ell OF te usHf'
he Is held as In vice MOI during 10 disclose the sWoie
carry on, the fraud goes and the Government Is YIu
ally swinded by its own officer The distller holds ma
tell the secret to his superior officers TO nave Inn pun
This certainly clear statement of case, hundreds
similar TO which have come TO te knowledge OI the De
6e made by the Committee that will be per
feey astounding 1t is held by the general officers that II
the local Inspector Will serve the Government Tor - day
he viii probably the dsteIy fer $50 per day In one
an Inspector agreed to serve dsier the Following
terms Said the nanufacturer will give you 50 day
asleep" The officer consented and the distler en-
abed 10 practice immense frauds through the purchased
eeepn, Of an Inspector
Tie licensed ds;icries in the city have capacitg
equal to the production OF about 1000 gallons of whisky
daily, There is one Congressional district alone which
produces 10000 gallons. This should yield revenue
yqry as much as the total amount Of revenue raised
yearly by the Government from all sources And yet the
amount returned for the manufacture OF Whisky m TINS
ey Tor the los fiscal year wac scarcely equal 10 one
The number of illicit dsteries in this city it is estl-
mated by officers who are engaged IN discovering the
from three hundred. About Onehaf OF that number are
known TO the Officers and will nobe long ere they are
brought up with lodg turn" These manufacturers
are cunning foxes, who careful 10 do everything IN
III y turn out their whisky in all sorts Of places; in
karrcts, cellars dark rooms, bedrooms, buildings,
stables carpenter shops etc Places the best calculated
rents Of enormous rate being paid TO just the
EsisPiciOas premises desiled
The Department is determined TO bring every 0f
these sly manufacturers and swindler 10 justice and,
thereby, put an end to the fraudulent traffic.
The punishment provided Tor by the law is 10 every
person concerned IN these swndles fine OF $1,000 and
two years imprisonment Inc persons thus PROV lde lo
licensed distlers, who make fraudulent returns,
selves tO distlers aud unite in swndng the Govern
ment
dsposedl to aid the dstlers In practicug frauds the
revenue ont, in the event event Of his "empoyer' being
orument can lie is the witness OF the Government
be allowed to impeach ts oTn witness.
Sass sh0wi9S C the % weakness Of Of the lay was recently
Inspector of Dlstlle1es at large distllery uptown
was reported by detectives in the secret
have put IN mash during three days In December suf
Gent quantity Of mOsses tOprOduce 1850 gallons Of
amount produced. When questioned about it he said:
~eli, ought 10 know. saw the mOlsscs put in, and
saw certain number Of hogsheads of inoasses rolled
into the building Which ought to know best they or
Efforts are being made 70 examine into this case In the
thorough manner and is believed that the fraud
viii clearly proven by evidence that the per-
PoTaOr Of # VIII meet with the punishment they justly
The principal object Of the Congressional Committee
which will recOnyenc at the Astor Ueuse in few days
60 procure all the evidence possible relating TO whisky
frauds and 10 discover What is the defect in the law.
report accordingly ana the law VIII probably
be - amended that local inspectors viii be abolished
They have succeeded u feITctng. out some most stu
pendOS frauds the facts in regard 20 which are for what
THE Committee deem prudential reasons, at present with
held rom tso public These facts, together with many
names OF helt manufacturers all within the knOWl-
edge o. the eneIs Inspector OF Diseries bat he also
lers who are nudeT surveillance.
IN the Congressional District alluded TO- in which some
fifteen twenty dstieries produce 2oOoO gallons OF
whisky per day the return 10 the revenne Should be
5000 per day. or THIS amount, however only f1om
IN order TO put stop 10 making false returns general
he lawn Iu1iafl ls.t