The New York herald., 1870-01-16
yiaulukpt Collections Of Taxes Not Due,
Amounting to $lO0,OOG.
Al About the Seizures of WhiSkey, To-
bacco and Cigars.
NE Detective system-Convict5on
Of Guilty Parties.

their crime. One day we would hear OF the seizure
of well known dlsullery, and that was all thai
wOul0 be heard about It, No further action was
aiken, and the affair would paSs out OF notice IN
most mysterious manner. Armies OF agents and
inspectors and detectives were employed, but these
onF added In most cases, to the corrup-
non that existed before; they were unable
70 resist the temptations offered BY the
whaskey ''ring." Men who wSEe poor bnt a
snort time since began TO buy Drowu stone houses,
anve fast horses In the lane, and glOAt the most
brilliant diamonds at public balls. TO belong to the
revenue at the time was 70 be on the high road to
sortune and riches. The whiskey and BRANDY and
Ogar bills Of some officials would In many insta uces
nave more than doubled their salaries. The govA IN.
ment and people stood still in silent amazemeA't,
wondering how long this thing would last. The
administration seemed poweress IN the case, for
they did not know whom to trust as suspicion had
pointed Its finger at some OF the most trusted and
prominent men In the country and the few good
oA1cers vino were In the department were unable to
compete with the power, money and cleverness OF
We ring;" and thus things went on for long time
Until the most radical changes were made In the
kw.
SPECIAL AGENTS AND INSPECTORS.
During the period referred to the chief or the
Revenue Department committed one great error
- especial agenfsS THESE were men who received
from the Commissioner SPECIAL appointment for
ntrty, sixty or ninety days, on making representa-
tion tnat they knew Of the existence OF secret dist
Leries or Of other frauds the revenue They were
paid by the day, and were wholly irresponsible
parties, ana yet they were invested with, II any
thing, more power than the regular officers OF the
depart ment. They could roam where they chose
and make seizures in any and every district. 1t
need not be told, therefore, that such q commission
was little short OF y II. ense to blackmaii,
or facility for committing more frauds
or compromising others. These parties knew
their term OF once was but very short,
ana 1t Is only reasonable suppose that they tn aught
\ prudent to make their hay while the sun shone
moeed, there were too many such officials attached
20 the department., and like the soldier who was
drilled TO DEATH or the man who was killed with
kMdness the revenue system of the United States
was ruined and rendered worse than useless by an
overdose OF Official supervision and care.
THE OFFICE OF SUPERVISOR,
Fortunately for the country the special agents
were sent about their business the later part OF
700 Ana was ~ 'nis period that tn flrsi signs
NE began to develop themselves , the actions Of the
authorities. The office OF I'M .,no, rovenue aoant-
one OF whom was sttact IA 20 zach. or tne large
saties-was also abe .,,hoa ona ,bot n, sunervi
<Aisucu duu tildb VI nupVISI
VT vi ..ea'eu " cake It's place. Mr.. butcher was
snnerv' ' -,aperu&sor In New York city. The
.r1 .ASor toeR charge OF the whole business
sst6usly mixed up IN The hands OF agents. inspec-
1Ors, detectives special agents and others. lie was
given very large power; he might 90 into any
Ofnce-c0llect0rs, assessors or Others-in ats dis
trict seize the books and examine tnem and should
there be any grounds Tor suspicion Of unfair play,
might at once suspend the oiicals 80 suspected re-
porting the full particulars without delay to the
Commissioner Of Internal Revenue. the revenue
agent did not have TINS power; his duty was chiefly
detect frauds, but the supervisor IL not alone en-
joined do the same but is also empowered TO give
the law, and Is also bound to see that every officer
in mis- district does his duty faithfully and honestly
toward the government. These and other changes
hereafter mentioned had the effect Of shutting
np the sources OF much fraud. The reduction
m putting an end to a far proportion OF
me cheating that had been played on the govern
ment before. Altogether, when General Grant be-
much healthier condition tnan It had ever been be-
lore; since then 1t has been improving day by day
until the present moment, and but few frauds CON-
paratlvey OF any consequence are now ever brought
before notice. The collection been facilitated
and become less troublesome aud to prove the truth
OF our remarks we Will take q look at the dongs in
the richest district In the United States-the Thirty
second Of New YOrk-since the nominee OF General
Grant took charge.
THE THIRrY-sEcoND DISTRICT.
Az before remarked, the Tnirty-second district OF
New York is the richest In the country ITS receipts
tion OF the city in which are situate the offices OF
the leading bankers, brokers, shipping mer-
extends hon the centre OF Liberty, on North river,
TO Broadway, up Broadway to Park row. thence TO
Chatham to Bowery, and down Catharlne to East
river. All the portion Of the city within these limits
constitutes what IL Known as the Thirty second Rev
enue District Of New YORK. 1t IL tne great district
for the storage expectation OF tobacco and has
nve large export TOBACCO warehouses where the
great bulk OF the tobacco OF the country is stored,
aud ID the great current for the tobacco trade 1t Is
computed that from 100000 to 1,500 900 pounds OF
tobacco are handled In the district every month;
and besides the i've large houses referred to there
are others which do an immense business also. 1t
was IN this district that the late Mr.. Connolly,
brother Of our present Comptroller, made fortune
At the tobacco trade, estimated at the time Of his
death at no less than five millions OF dollars. His
Sons now carry on the business. There are several
such houses In the district, and this may give the
reader far IDEA OF the trade done here IN tobacco
THE wHIsKEY TRADE
of the district has been largely reduced by the action
OF Congress- In obiging all whiskey TO be Withdrawn
from bond last June, and this makes great change
In the receipts for while In some months In 1868
the receipts from tax on whiskey were over half
million dollars, now there Is not O penny received
There Is not single dlstillery running at present
In the ThirysecOnd district It Is at once appar-
ent that the trade In that commodity conspicuous
for Its absence
GENERAL GRANTS CHANGES.
On the LIST OF May, 1869, after much hard fighting
the Fourth disrlct-led his bonds, and took charge
OF the Thrty-second district In place OF Mr. Sheridaa
Shook. who resigned. The new appolntee at
once set to work TO put matters In order, and
an this he was guided by the experience
gained in his old district BY degrees the services
OF Mr.. Shocks stan were dispensed with until there
was but one gentleman OF his old regime remaining
and another, who mad been previously employed In
the drawback Office, was appointed to O cerkshp In
the Collectors office. The stan Of the Office at
present consists or collector, assistant collector,
several deputy collectors three outsiders acting as
deputies aud seventeen clerks. The number Of
gaugers attached to the district s seven. There are
but two or three deputy collectors detailed for max
ing seizures, but when necessity requires 1t Mr..
Bailey gives temporary commissions to assistant as
a0ssOrn or TO any Outsders he may ut to employ,
and these aid the deputies and make seizures when
required.
BONDED WAREHOUSE BOOKS AsTRAY.
When Mr.. Bailey assumed the duties OF the Coll Ict
orship Of the Thrty-secOnd he round the boos A o
the oflce In good order, with the exception 81 tn
bonded accounts These were not fully post I'd, an
port to report. These accounts and rep0' rs are q
the greatest importance. az they are ir tended /
show the amount OF goods stored and withdra WI
jrvm boyd, and u " very necessary 70 keep them u