The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-12-21

anu oAo a. 1nc PrcscHL moiHeHt WuoHy GA
cluded from the profits and emoluments Of the
business
Whisssey Frauds and tho Internal Revenue
Department..
The report Of the Committee on Retrench-
ment gives view Of whiskey stealing to date,
dealing almost altogether with the question of
the Presidents relation to the subject and the
Buckley muddle. 1t sets out by accusing Mr..
Johnson of framing apologies for official robbery
by his declaration that the removal of the
robbers was beyond his power, and charges
him with shielding those whom he might pun
ish, and who, it is alleged, are the more reck-
his protection. The committee charges Binck-
ley with corrupt practices in Offering his assist
ance in the investigation of fraud only to fool
the members and delay and prevent their in
vestigaton until it should be too late to make
it effective, and with otherwise acting as a
shield to accused parties. Binckleys expenses
amounted to twenty-five thousand dollars.
The report regards Courtney as "a faithful
public officer" and the movement for his re-
moval as a ''base conspiracy In short, all
this portion of the report presents the doings
of Buckley and Fitch as very rascally trans
actions and seems to regard the President as
cognizant Of the rascality.
Enormous losses to the revenue are reported
as occurring through fraudulent, false gaug-
ing, q case being given in which lot Of
fox
thousand gallons short of its real quantity. 1t
is shown that the taxation ''on estimated
capacity" Of stills fails because distllers by
pushing the processes can produce a third
more than fair estimate, and thus the rogue
has, under the law, clear advantage over
the honest dealer. The provision Of law to
prevent fraud through rectifying houses is
now evaded by substituting for these COM
pounding houses. Two important points are
touched One is that under the tax of fifty
cents more revenue is collected from whiskey
than was collected under the tax of two dol
lars. Another is the effect Of the fraud on
honest officers. ''The most wonderful feature
in the examination" says the report, lis the
fear and dread with which revenue officers
discharge their duty; and while they have
willingness to expose frauds they feel they are
exposing themselves to the vengeance Of the
whiskey ring and the risk Of removal by the
power of the very men they expose. Humili-
ating as is the confession, honest officers know
that they incur the odium Of the base without
the compromising advantage of protection from
the head OF the government"
The following is printed in the report as the
opinion of Commissioner Rollins -
The chief obstacle the full collection OF the
lies in the character OF the local officers 1t Is
in the power OF the assessor and collector, with such
assistants the law allows to enforce the require
ments OF the law. These officers should have the
full confidence OF the communities in which they
serve and possess alike integrity and ability Their
sub0rdinate5 should be men OF like character.
Wherever q collection district Is poorly Ofcercd
there will frauds abound and the service he dis
graced. Taxpayers in other DISTRICTS competing
with those paying only portion OF their indebted
ness driven out OF business or to the comIiss
OF fraud. The Commissioner should have more than
seeming power. This he once mad and exercised
He should have the control OF MS subordinates and
the support Of his superior officers. IL he IL TO have
responsibility he should have powers and privileges