New-York tribune., 1868-12-21
THE WHISKY FRAUDS.
REPORT OF MR.. VAN WICK on THE WHISKY
FRAUDS AND ADMINISTRATION OF INTERNAL
REVENUE DEPARTMENT.


WASHINGTON, Dec 20, 1868.
Mr.. Van Wyck, from the Committee on Re-
trenchment, has prepared the following Report Con-
tinung the investigation commenced more than year
ago. this Committee find many frauds yet existing in the
Revenue Department in kind heretofore, but not to
the extent by OF the reduction Of the tax
whisky and making estimated capacity OF the tests
of production When the capacity system shall be i'm
proved and modified as experience has already demon
srated to be necessary frauds will be lessened and the
Revenue proportonately increased The greatest want
is undoubtedly Of honest officials but no Improvement
be hoped for in that direction under the present Ex
ecutve fact Congress should have realized and acted
upon long ago. and then devised system which human
ingenuity and Official rapacity could not easily circum
vent.
Mr.. johnson, in his last message, again repeats the
statement made in his annual OF 1867 and apollo
gzes for official robbery and executive naction by saying
that public agents placed by Congress beyond the con-
troll Of the Executive divert from their legitimate pur
poses large of money which they collect from the
people in the name OF the Government"
The facts not correctly stated for he knew that
three revenue officers had been suspended by himself,
and by the court convicted and sent TO the penitentar
and that many others had been recommended for re-
mOva for satisfactory reasons, but he shielded them
These public under the control Of the Execu
tive and the criminal OF them more outrageous
in their vanies because they feel they have Executive
favor Neither it true that "they divert large sums OF
money which they collect from the people In the name OF
the Government" The crime is that they do not collect
the money The of the Government, but continue
TO prereHt Ae money from being collected.
HIS CRIMINAL NEGLECT.
Mr. Johnson excuses his own criminal neglect by ar-
ralgning Congress- and laying his sins at the doors
Of others Does he show even aege that the Secretary
OF the Treasury Commissioner of Internal Revenue
have refused unite with him in dsplacng those who
aral l-uou IN ha def Government
other hand the testimony shows that he has per-
sisted In retaining in Office against whom was pres
ented him charges aud the proof sustaining them
plain that reasonable could doubt He has been
imDOruned to remove who were thus proven to be
defraudng the Revenue and those whom he knew 20 be
growing rich from Official plunder He not only had the
testimony Of witnesses but he had the evidence Of his
own senses. When suddenly grow rich, reside In
paa residences and sport the style and equpages OF
millonaires, no further evidence Is needed. bank
president railroad company who should find subOrd
nate OF slender in few months ndulgng in more
expensive uxuries than his employers, would not prob
ably 20 mOusing round to fsome saw the wealthy
clerk or cashier abstract thousands and hen refuse 70
dismiss him because saw him steal the money.
Fearfuy demorazed this branch Of service has be-
come yet there many honest revenue officers, and
we find in their districts not growing rich and the
laws onforced and because the laws arc enforced oper
ators are compelled TO seek shelter in other districts
where defraudng the is not considered crime
Most OF the dstilleres to-day running in fraud OF
the revenues Does any man. with these facts before
him. require any other proof Of guilty completely and
need any other reason for removal be sought
lie REMOVED OFFICERS WHOSE ONLY oFFENsE WAS
THEY DID APPROVE "HIs POLICY"
At one time Mr. johnson removed for political reasons,
and the result Of the costly experiment Is shown from
the testimony OF Commissioner Rollins. hereto annexed
Mr. Johnsons stock in trade for the organization OF
party in 1866. the executive patronage OF the
Governments he welded II recklessly and fearful In
crease OF fraud and crime followed intensified by anag
onism between Mr.. johnson aud Mr.. Rollins, and tho
comforting assurance that officers beyond the
supervision OF the Commissioner, no matter the eH
tent OF their offending.
The character Of Johnsons appointments from then
till now are illustrated in the OF Perry Fuller who
after being rejected by the Senate almost unanimously
as Commissioner Of Internal Revenue and although rich
from Government and Indian contracts desired the oeo
OF Collector Of Customs in New Orleans where the legt
innate fees would not exceed $1,000; yet New-Orleans
reeks with fraud even worse than New-York City
MR. BISCKLEY SEw-YoRK CITY,
When the Committee commenced its labors in New-Nork
CITY they found Mr. Buckley Solicitor in the Internal
Revenue Bureau assisted by Mr. Fitch and Others pursu
ing some Investigations 10 regard TO that Department
Interviews were held with him and several members OF
the Committed lie complaining OF unfair treatment
Of himself by the Courts and that he could not get the
evidence he sought The Committee expressed desire
AS Mr. Bnckley had been some time engaged In his In
vestigatons he promised TO give the Committee the re-
suits Of labors. which would necessarily save much
time and expense. Under pretext and another he
delayed giving the promised information, and hnay de-
sired the Committee TO subpoena witness whom he must
have known at that time absent from the State one
other witness subpenaed at his suggestion but had
no personal knowledge Of the matter.
Mr. Bnckley's trlhing with the committee was toll
Grated until after the courts had decided upon
the matters whereof no had complained; then,
upon his equivocation and pretences Tor further
delay the committee concluded to make him
Witness TO ascertain what frauds be had discovered
pe had heen In NewYork for weeks. The Presdenthad
placed at his disposal $4,000 Of the peoples money and
e had enjoying elegant quarters at the AsOr House
He at first refused 10 be sworn resortng first TO one
audible and then another He declined 10 be sworn be-
cause he was agent Of the Executive lie was asked
TO be sworn merely Solicitor Of the Internal Revenue
Department The last resort that he wanted TO con-
suit counsel. AS he was competent to be counsel
FOR the Executive, 1t not compatible with the
dgnities Of his position TO defer on that ground.
At last he consented and He stated he COM
menced his Investigations without the knowledge OF the
Secretary Of the Treasury or Commissioner or Internal
Revenue but by special direction OF the President When
asked TO show the authority to know what subjects were
embraced ne declined do. He stated he had made
report proceedings the Secretary OF the Treasury
and promised to furnish copy OF said report which he
has neglected to do He also stated he had made report
directly 10 the President but peremporly declined 10
furnish copy OF that report lie also stated he had the
names Of important Witnesses which he agreed to furnish
and which he has neglected.
After an examination Of two hours, when he found it
TO furnish memoranda TO refresh his recoec
ton adjournment granted at his request. then
lhe time extended meet his wishes At that time he
had fed from NewYork Since then Buckley has been
,ubpenaed and utter contempt Of the power of Con-
refuses to attend the President well knowing the
iongs OF his agent and although he has done no service
his Office for nearly months, yet he is retained on