The New York herald., 1869-12-01
ALLEGED GIGANTIC REVENUE FRAUDS.

Tho Government Loses @150,OOO-AIl the
Wholesale Whiskey Dealers in Kingston
and Rond0ut Arraigned-Their Liquors
Seized and Places of business Closed
Government OniciaIs sImplicated-Startiing
Disclosures.
While the attention OF the people has been
attracted to the late drawback frauds in tho New
YORK Custom House, other Frauds though not on
such gigantic scale, but OF more boIdness ana
much more barefaced, have come to light Ia the
district comprising the counties OF Ulster and
Greene.
few days ago the whiskey dealers in Kingston
and Rondout were much startled and chagrined
upon the sudden appearance OF OF "United states
Marshal Harow's deputies" among them, creating
great commOtion and many 'rye" faces; but still
greater was their CONSERVATION when they found
their stocks seized, places OF business closed and
themselves arragned under the very serious charge OF
delrauding the government Section TWENTY-FIVE OF
the Internal Tax laws requires:--"Whenever anycask
or package shall be filed for shipment sale or dev-
cry in the premises OF any Wholesale dealer
FOUNDER, it shall be the duty OF the United States
gauger to gauge the same and place thereon an en-
grayed stamp, signed by the collector or the district
anu the SAID gauger, Sc.n
IL Is stated Inat OF the revenue officials, whose
into an agreement with tine rings that they should
go on. sell and compound their liquors, and he would
drOuHu OuCt q nOutn anu CANCEL SlHUpS leuVlnk
these honest compounders to anix just as many
stamps as they desired But 1t does not appear taat
any stamps were used; that Is, none were put upon
the casks. How many stamps OF q different kind
were used has not yet been dlscl0sed but the cLs
trict Is large one, aud Kingston aud Rondout velng
the depot Tor supplying the counties OF Ulster,
Greene, Sullivan and Delaware with whisky, ana US
water Is only used In these counties for washing
purposes. many stamps were necessary. One thing
Is certain that IN the last TWO years tue
must have been delrauded of ut least $3.50 00U.
That this officer should have been allowed to con-
duct his business IN SO loose manner SO long
time 0ver two years. is certainly nos credtable to
the United States Collector. In all that time never
to report q stamp sold shows something very rotten
IN Denmark when section twenty eight OF the
Internal Tax laws clearly defines both the duties Of
collector and gauger in these wOrds:-''Stamps may
be entrusted to the gauger OF the district. VINO shall
ali Sucn stamps used and for whom used, &c. 1t
does seem that the collector was to some extent
responsible these dealers also compound their
liquors, and from one barrel OF whiskey or pure
DEATH" not having paid single cent tax 70 the gov
ernment
meeting OF the s'ring'' was at once called and
secured the services or two prominent gentlemen
to intercede In their bena hoping by their influence
"wlth the powers that be" to extrlcate them from
this very dangerous and unpleasant dilemma. The
sudden departure OF these gentlemen with the
and no doubt the matter Will be hushed The ring"
have OF course grown rich out OF their business ana
to-day wledla powerful influence all over the county
among the government officials, and may, per-
0 telegram mas been received that everything Will
be ..ixed up"
The alleged delinquent oficlal has been removed;
but VINO mas been appointed In his place has not
the lesson and be careful in future Is question
OF much doubt.