Marshall County Republican. (Plymouth, Ind.) 1856-1878, 1868-03-19

chance of providing security against de-
lection and punishment.
Congress committed the first great error
when the tax was raised To So per gallon
by exempting from the operation OF tina,
law whisky then made. In anticipation OF
such legislation large quantities were
manufactured. The whisky ring then
achieved its fist great victory, and has
never since beer. defeated. That law.
without aiding the revenue, Melted to the
operators from fifty to seycnty-five million
dollars. Can We wonder, when the ncces-
sary effect of AN act of Congress was to or
ganize and enrich such men, that they
should continue to carry out what Con
gress inauguratcd? That act of Congress
was for their benefit, rather than the coun-
try, and they have made every act Of Con-
gross from that day inure to their benefit.
Congress can, therefore, well be modest in
upbraiding oihc.s. when itself created ard
furnished the capital for those who now
elude its vigilance and set at defiance its
enactnenis. From that one law the ring
in few months realized in profits more
Than the Government has in revenue in
three years.
The dealers, Of course, kept up the price
Of whiskey until the stock on hand was
sold, when il became their interest to cheat
the Government of the tax on new wills
ky: and from that time Ii has not sold in
the market for 81, ranging from 81 20 to
81 so.
During all this time tho people have
been vainly hoping, Congress has been Wig
orously lcgislating, the Department active.
ly framing rules. Yet all has been as ropes
of sand. Congress enacted that if whisky
sold for less than ~ the purchaser must
show Thai lhe tax had been paid. The
price of whisky Immediately went down
The best rcctlfying houses, alcohol distil-
lers. and druggists everywhere, honest
dealers-that is, honest as the law and its
administration would allow them TO be-
commenced its violation. What could an
honest rcctifier do in business paying 50,
when his reckless ReighSor would pay on
ly 81 30. Thus the Government actually
forced honest men into bankruptcy BY dri-
wing them from the business, or into com
bination against the law, and 10 do what
they would otherwise scorn TO do.
My q. lie best rcctifyers in the City Of
of New York frankly testified they were
compelled Ia cvade the law CIR give up the
business. Its evasion was simple; some
making out fictitious bills at the legal val
uation, Others selling ut the fixed price,
and then making tn the purchaser a pre-
sent OF whiskey sufficient 10 reduce the
cost to the market price. Officers contrib
ute to its violation. The statute prohibits
the sale of confscated whisky at less than
50; If not sold for that, il must be destroy.
ed; vet at different sales of United States
Marsbals it was bid off at 81, and the pur-
chaser charged with less than the actual
number of gallons, to reduce the cos. TO the
market price.
Congress having failed, the department
issued stringent order that receipt for
the tax shall accompany ali sales. The
ring, prompt and fruitful in resources, are
not disconnected, the price of whisky is
not advanced, tax receipts soon become
and are sold in the market as
freely as whisky.
A few weeks ago Congress supposed il
could shut the door To large class of
frauds by enacting that no whisky should
be taken from warehouses except on pay
ment ofthe tax. That like other cxpedi-
ents was Of no avail, the price of whisky
declined, and therc was no increase in the
revenues A New York operator in
Washington at the time the law was pas
sed offered an expert 81 900 to tell him
how the law could be evadcd. The expert
lo,d him, received check for 3 900, and
Ihe dealer went home wiser, soon to be
richer, if rot an honestcr man.
Thus for three years every law has been
Systematically violated and with impunity.
All legislation which defeats the purpose
FOR which designed drives honest men
rom business, forces il into the control of
Inc INSCRIPTIONS and depraved, furnishes
hem immunity by Withholding punish
nent. is an injustice to the citizen and
to the nation.
The different classes of frauds, a. detail |
ed by many witnesses, will illustrate the |
foregoing propositions.
Much is done at The distillery by secret |
pipes from the cistern underground con-
Meeting with rectifying establishments |
apart from the d;stillery. By forging !
brands this is an easy matter. for the gcnu-
inc are nothing but stencil plates, and the
forgery cannot be detected. Removal in |
barrels by connivance of assessors and |
store keepers: Congress attempted to
check this class of frauds by authorizing |
The appointment Of an Inspector for each |
iistillery, requiring him to be paid by the |
iistiller, thus making him creature Of the |
lisiiler. The frauds were so gigrntic |
under this system that the law was soon !
repealed. Plans to defraud were devised
with far more skill and executed with |
greater fidelity than those to collect the |
revenue. This was evidenced in the |
frauds connected with ed-warehcuses. |
10 the transportation of whisky permit |
would be obtained To transport, say 1000
barrels. naming the destination. Instead
Of one lot ten would probably be started, |
At different times and by different routes. |
Should either lot be seized on the route |
the permit would be offered and the wbis-
XIV released. One lot would go into ware
house and the remaining ainethrown upon
The market as free. The probabilities are
hat this one let would be finally STOLEN
away the next process would be to takc
L out on Redistribution bonds or for change
Of package, keep it day, take out one /
half. bring it back, and Pillar. S.ore-
keeper give the necessary certificates !
showing its return. If the operators were
determined to steal from the Government
TO the last dollar, an expectation bond
would then be filed, the whisky put on
The market, the barrels filled with water
and shipped. In due time, Consul's GER
lificate from the port to which it was
consigned would be produced to cancel the
bond for exploration. Here the bonds for
each transfer would be good and the
completely swipdled.
A more ingenious device was resorted
10, whereby millions were lost to the
Treasury by fraudulent bonds. A man of
straw would turn up as owner of whisky
in bond.
Just before the election in New Hamp-
shire the Republican State Committee pub