The New York herald., 1868-11-11
WHISKEY RING IN RICHMOND.
How the Revenue Erauus
Were Covered UP.
IMPORTANT CORRESPONDENCE


the following correspondence which has been OBJ
tained from Mr.. John II. Gilmer, or Virginia,
discloses new and startling phase OF the Buckley
Investigations II developo an astonishing case OF
suppression OF investigation and demonstrates
that the corruptions which prevail in the revenue
service are absolutely irremediable while McCul.
loch Is Secretary OF the Treasury and Rollins Com
missioner OF the Revenue by proving these ofcials
the jealous persistent and eectual aders and ali et
tors OF fraud. The papers show
That Mr. cllmer, during Solicitor Binckley's first
visit to New York, discovered frauds In Richmond,
and on bringing them TO the Secretary's notice. was
employed by hira to develop the proof with the aid
OF q government detective. This detective was to
mislead Gilmer and get the investigation
into a fog and run 1t into the GROUND.
Gllmer, however, detected him and ex-
posed him. The Secretary pleasantly Calls
1t a Disagreement between him and Gimer.
General Hobart was then sent, after which hoiiins
admits the evidence OF the frauds, and asks dimer
how to get at the "proof.n His reply demonstrates
that the proof already before him Is as complete as
itcan be- They then try to get rid oil Gimer oy chal-
fng about his fses, a point when nna'iy ends IN
denying that he had ever been retained as "coun-
sel.r But a seizure OF one OF the disieres becomes
insist on releasing it without adjudication. Here.
an IN not haste, a supervisor is appointed ana sent
down az once. Gilmers letter to him (4aird) and
his subsequent action show what he was appointed
Ior one Weed, formerly an Assistant District At
torney nov comes In. Gilmer, AFTER being for two
months act NJ as retained counsel for the govern
meut Is cooy informed that he cannot be employed
unless ne can get the accommodation" OF the
officers Of tie government Weed Laird, Rol-
lins, &cl and, in short is choked off, But
his solena protest against releasing the
seized premises being in the hands OF other officials
out OF This precious ring, they afraid to release
hut Cincr being now out they libel the case before
d commissioner named Cahoon (said to be OF the
riag and IL depends now upon District Attorney
Beach, who resides at Alexandria and Is reported
honest hut irresoute, whether 1t Is not to be sham
Meanwhile, another branch OF the business reaches
q crisis. Mr. Buckley deriving, In connection with
his New York operations, Information from the ar
chves OF the Richmond officials, authorizes Mr.
Gilmer to exam ne the books. &c. The Collect or
refuses under orders OF his superior" (Rolltns &C.
Gilmer reports to Buckley and Buckley reports to
McCulloch. Mr.. Gilmer has no copy OF the latter's
reply ii is known that be declined to interfere.
These documents are OF universal interest and
should be real from end to end by every taxpayer
in the country. Our readers will shortly have from
other quarters more matter OF this sort.
CoRREsYoSDLScE BETwEES JOHN II. GILMER, HON.
HUGH MCuLLoca, =. A. ROLLINS, WILLIAM RicH-
ARDS, GENERAL II. {. HOBART, IN REGULAR ORDER.
WlLLARD's HOTEL, WASHINGTON,
sept. i6 1868. ]
Hon. HUGH MCCCLLocH:-
L am prepared 10 furnish the names OF two per.
sons, VINO, II properly Authorized and protected,
20 the fullest extent develop evidence circumstances
aaapari!es OF conclusive character as TO the New
rork matters referred 90 In your communication TO
rue OF The nth inst. But they must be amply pro
tected and regularly empowered 10 act III New York.
WITH such protection and authority, duly considered
AMI JUalc.aliy recognized, | VIII guarantee tull
and sallsaco ory deveopment OF the whole system Of
Allow me 10 lnaGe suggestion in this connection.
III view OF the unfortunate disagreement between
ths Solicitor o. the Treasury ana the District Attor
ney ia New York. would 1t not be advisable Tor your
ueuartment, wLh the approval or the Attorney Gen
er& 10 employ assistant counsel properly author
York; such counsel would be free from all personal
bias and unnluencea by any preconceyed preJu-
dices and llus secure 10 the government that cle-
vated and onightod investigation which would at
once command the respect OF all departments, By
manilesJng the integrity and discerning power or
the Judiciary. Pardon the suggestion. ] think Il
worthy OF your consideration.
since M interview with yourself and Mr. Rollins
on Yesterday * has occurred TO Inc that under ex-
Isrlng circumstances it would be sound policy to
appoint uenry smith. who applied for the post OF
gauger, as i special detective Tor the State OF VIZ
ginia.
YOU could procure, and iea assured "a faithfully.
III thus appointed and required TO report through
ne as retained counsel for your department
and assistant counsel for the government 70
cooperate with the District Attorney in all
criminal prosecutions, l believe ] would reclaim
nd realize several hundred thousand dollars for the
government. would need no other or higher autho-
mts tnan that as above indicated sanctioned by you
aud TIC Attorney General or the President.
Tae character OF smith stands uninJured BY the
iasinuAuOns OF General Milford, as the papers on
ME abpRdantly show. Ifuny vouch for his fidelity
For iny gualinca lions as q lawyer refer Won 10
IL gnna1a- m n nj
position man re.er you to the present secretary
~ war, Hon. J. VI. schoheld.
leave Tor nome tonight. JOHN II. GILMER.
Treasury DEPARTMENT, Sept. I'd 1868.
Your fiyOrs o the 18th and 2ist inst. came duly TO
hand.
have DELAYED answering until was assured that
the commissioner would bc able TO send competent
man 90 Richmond 10 confer with you and examine
into the condition OF our revenue matters Ia that
clty.
nave now to advise you that Mr.. Richards win
proceed 70 iachmond WITHOUT delay
VI. MCCULLOUGH, Secretary.
JOHN II. Cu1ER, Esq, Richmond. Va.
RICHMOND, Sept. 80, 1sos.
Hon. llrGH McoULLocH, Secretary OF Treasury OF
wrote you Iast evening and telegraphed you TO-
day. You VIII appreciate my motives. know you
are sincere IN al you have said 10 me. feel that
you are determined to vndicate your department.
believe you true 70 the trusts reposed In you and
10 your olicial integrity.
] do not Ike Mr.. Richards mode OF investigation.
He Is not well versed In the new law. lie has not
followed my suggestions and requirements He Is
convinced Of frauds here, bat wayers In some mate
rial points Ills powers are limited and ne, fear.
wishes 70 Limit their exercise. / have o thorough
dlstaste Tor his mode or investigation
though he may be all right lie has certainly Dushed
fne game ana does not seem eager in pursuit You
will pardon ny p.ainness. Tue frauds, peculations
ana consplTace5 mere ore great in number and
greater IA amounts. furnished SIR. Richards yea
terday ample proofs and offered TO 90 with him my.
SELF lie declined - act and lost the opporfanity I
fear. will yet make good al nave stated TO you
IN court and under indictments. have the proofs
and viii then use and epply them.
desire g. say, however that II am promptly
sustained and proper Officer with selling powers,
~ appointed can place In your department very
large am0cut OF money. without the power Of con.
trolling seizures | cannot accomplish my ends In
his connection respectfully call your attention 10
The peculiar language an section fity OF new law,
witch mere Clpy.''Or 10 such other special duty
a. he may dooia nece sary.r Cannot special de.
ectiVe. with power to seze be appointed under this
provision 81 tac law lit "a deemed proper and
necessary TO Impose the "Gutyn TO seize as well "a
'delecp can It nOl b. impared The power 10 seize
certainly exists. Where does IL reside 10 be
"a n~efr ANNNa