The New York herald., 1868-03-11
Report Of the Retrcnchment Committee ON the
Whis,key Frauds.
IWashngton (March lOl CORRESPONDENCE Of the Even


ing Post.]
Much interest is manifested here in regard to the
Forthcoming report OF the Committee on Retrench-
ment. The committee decided to examine into the
nature ana extent OF the frauds committed by the
snon-pay ment OF taxes on whlskey and tobacco how
lar government officers were concerned, and what
remedy should be recommended; and this investiga-
ton was delegated to Mr.. Van Wyck, Of New York.
Mr. Van Wyck has prepared very long report which
he laid before the full committee at Its meeting to-
day II viii be presented to the House to-day or to-
morrow. After quoting the testimony taken before a
committee OF the Thirty ninth Congress as 10 the
coluslon of officers OF the government with dshon-
es persons the report says the President had abund
ant evidence, IN numerous cases. showing conclu-
sivey the unlaitfulness of many officers; yet they
are undisturbed. No attempt has been made to
prove the nagrant violations OF law in the cases OF
individuals who have amassed princely fortunes by
cunningly devised schemes Cases of this kind have
been reported, yet not a single criminal has been
compelled TO dsgorge the fruits OF his crime or to
suffer the pains and penalties Tor violating the law
The report then says that with honest payment
Of the tax on wskey, two hundred millions OF dol
lars could have been obtained, whereas only twenty
millions were received by the government. All the
revenue oicers are not dishonest and the committee
think that II the President did protect his friends
IN oifce Secretary McCuoch and Commissioner Ro-
Inns could have prevented much fraud. Dishonest
officials are chiefly found in the large cities and not
In the country districts. Many frauds committed
through the agency OF bonded warehouses; in districts
where the 'rngn store their whskey ana operate un
disturbed. The committee consider the present law
Inherently defective ana think great error was com
mllted by Congress when the tax was raised to two
dollars gallon II should have been fixed at fifty
CENTS The report gives q detailed account of the
various methods adopted by listlers TO swinde the
government II also says that some OF the worst
secure appointments as revenue inspectors and
agents that some OF these officers have lately gradu-
ated from State Prison, and others have been in the
rebel service Many cases then cited by the COM
mittee to illustrate the manner in which these men
secure 'blackmaii.n 1t is added that whenever
such cases have come to the attention OF Mr. Rollins
ne has asked for their removal, but the President
has in all cases refused compliance with these re-
quests, and has encouraged such practices when the
persons Implicated would agree to pay money into
the democratic election fund.- As to tie remedy the
committee suggest
Frst-A simplincation Of the tax system and the
adjustment OF the bonded warehouses. in order that
the great and rapaciOus army OF officials may be
rooted ont.
Seconds-That the tax should be materially re-
duced and collected at the SIN, estimating the
pacify. The tax should be fifty cents gallon and
by this reduction double the present amount OF reve-
nue. would be received.
In conclusion the committee say:-''The great tenn
perance and moral sentiment Of the country should
favor tue reduction OF the tax. With the increase Of
taxation drunkenness las increased. The disteries
have wonderfully multiplied from 1193 in 1860 10
more than 1900 in 1865. Small Stills not before IN
use, have been introduced, so that at one time the
coppersnitlis OF 81. Louis Chicago, Cincinnati and
other cities were engaged II no other work Private
eid public integrity, morality and temperance will
be promoted by return TO small taxes