Sunbury American. [volume] (Sunbury, Pa.) 1848-1879, 1868-03-28
SATURDAY MORNING, MARCH %. 1868.
The Report ON whisky Frauds.

MIR. Van Wyck, from the Committee on
ketrenchment of the House of Representa-
tives presented yesterday his report on the
whlskey frauds. 1t Is, as everybody knew
1t must be, sad exhibition of private and
official rascality. In districts blessed with
honest assessors and collectors distillation
mas almost ceased, while in the City of New
York, with its horde of Government rogucs.
the number OF Gistilleries has increased
since 1860 from ten to twelve to several
hundred. Whskey has invariably sold in
market for less than the Government tax of
81 gallon, and honest manufacturers who
wished to obey the laws have been driven
out of the business by the competition of
the thieves. Laws of Congress ard repu.
lations of the Internal Revenue Department
have alike proved poweress to stop these
frauds. Congress enacted that if whisky
was sold for less thah So gallon, the pur-
chaser might be required to show that the
tax had been paid. This law was easily
evaded. Sometimes fictitious bills were
made out, sometimes the purchaser, after
paying 50 gallon, received present" of
enough whiskey to reduce the cost of the
whole to the market price. Then the Com
missioner of Internal Revenue issued
stringent order that a receipt for the tax
should accompany all sales. In few days
as readily as whisky itself. A recent act
provides that no whiskey shall be taken
| from ware houses until the tax is paid
| This, too, has been cvaded, and the price of
the article has actually fallen still further
! below the tag. Dstilleries and rcctifying
establishments Communicate by secret pipes.
Brands are forged. Inspectors are regularly
bought up. Whisky is registered for
expectation, and then thrown on the market,
barrels of water being shipped in its stead.
| Worthless bonds are given and forfeited,
and fraudulent bond. brokers carry on a
regular and lucrative business. Meters have
been tried and failed, for the ingenuity Of
the swindlers finds means to make them
register whatever is desired. 1t is known
that the annual production Of whiskey in
the United States is about l00,000,0 900 gal
Ions, which, at So gallon, ought to yield
a revenue of 5000 100000; while the amount
actually collected does not exceed $25 5,000,-
900.
That such stupendous system of rogu-
cry should flourish for several years, with
scarcely an instance of one of the rogues
being brought to justice, is perhaps the
most shameful part of the story. Detection
of corrupt officials cannot be difficult. In
fact many of them are well known to the
Government yet they are not even removed
from office: Not single criminal" says
Mr.. Van Wyck's Report, "has been compel
led to disgorge the fruits of his crime; not
one victim to suffer the pains and penalties
of the violated law" The Commissioner
of Internal Revenue, the Secretary of the
Treasury, have repeatedly urged the dis
missal of dishonest revenue officers, but the
President protects them. Commissioner
Rollins testified before the Impeachment
Committee, some time ago, that millions
had been lost to the country through An
drew Johnson's refusal to execute the reve-
nue laws.--N Y. Tribune.