The Emporia news. [volume] (Emporia, Kan.) 1859-1881, 1870-06-24
ssPETE. SCHWAB'S WHISKY RING.
4 Strange Story Of Revenue Frauds
Can it All be True!

CINCINNATI, MAY -0.-A Qay or Two
ago dispatch from this city announced
with telegraphic breyity the arrest of
three persons, charged with whisky
and revenue frauds, extending over tw o
years, and aggregating 100000. To
New orkers this dispatch conveyed
nothing of more than passing interest
but to the knowing few it was the Sc
quel to a story of marvellous success
and ingenious triumph. Of success
having its rise in nothing, and of tri-
umph over the most persistent efforts of
revenue officials for the detection of
fraud. One of the persons named was
Pete Schwab, a citizen of Hamilton, But
Ter County, a flourishing manufacturing
city, % miles north of Cincinnati. Sew
en- years ago Schwab was poor and
industrious mechanic, earning daily
wages, with growing family and little
prospect in life beyond hard work and
the ordinary competence of an artisan.
The country was, and is still, a Demo-
! cratic stronghold. and Schwab one of
the firInest adherents of unterrified
faith. In 1868 he was rewarded for his
party devotion by election to the Office
of Constable, and the sun of his prosper
ity rose. He organized Ring, and, by
schrewd twisting of the law relative to
Criminal Costs, made his Office pay him
at the rate of SIS, 200 year, whereas it
had scarcely been worth as many cents
to his stupid predecessors, who had
served warrants and chased horse thieves
ever since the days of Symme's pur-
chase, in ignorance of the rich mine
they were neg1ecting. In short, Peter
managed to save about $4,000, and his
success was only checked by the passage
of claw expressly framed by the Leg
islature at its next session to meet the
propensities oflike ingenious constables.
Schwab had, by nature, plenty of
nerve; and having acquired by art S1O,-
GOO capital, he determined to back his
natural nerve with his artful capital. He
put his money in his pocket and went
into Northern Ohio, Indiana, and Hi
nois. In short time he was back
home, with no money, but the holder of
100000 gallons of whisky, OH which he
had paid ten cents gallon margin with
his $4,000. Just in the nick of time
for him, Congress clapped on the addi-
tlonal tax of 81 per gallon, and Peter
ound himself the winner of a snug
100000 on the 100000 gallons he held.
Ambition grows by what it feeds on,
and Schwab resolved to be the head of
the greatest Whisky Ring in the country
in fact, to be a ring of himself and
alone. The Great Miami Valley in
which he lives is famed as one of the
fairest in the West, and the county of
Butler stands in the census returns as
among the richest rural counties in the
Union. Through this valley and coun-
ty runs the Miami canal, connecting the
lakes at Toledo with the Ohio at Gin
cinnati, and 202 miles in it's entire length.
Along this line are numerous distiller-
les. SchWab went to work quietly. He
showed great discernment in the selec-
ton of agents. His men never betrayed
him, and he always stood by them in
case they got into any snarl with the
revenue officials. Indeed, it was for a
time difficult to say whether he was not
running the revenue department in that
section himself He also had the rare
gift of talking great deal, and talking
very frankly, and yet not saying any
thing that anybody could turn to his Sc
rlous disadvantage. A detective swore
in trial before Judge Leavitt that
Schwab once told him that if he wished
to he could ''sit on pile of five-twen-
ties and cut the coupons" That was
all the detective had to. show for some
weeks of hard trial to trap Peter, and
he couldn't swear what that expression
| really meant. 1t was the nearest any
body ever came to getting any criminal
committal out of him.
by one a controlling interest in those
| along the line of the canal was bought
up, until this individual ring conducted
| the operations of most of them betwe cen
Troy and Cincinnati. One by one the
old managers of those distilleries were
| won over, OF removed and replaced by
new men. The lock-tenders and other
| officials, whose duty it was to scrutinize
| the manifest of passing boats, were
| taken from their posts and others sub
! stituted, through some unseen and mys-
| FERROUS recommendation. The distillery
watchmen and inspectors were either
personal friends or men who could be
trusted. In one instance the brother OF
| a Collector of Revenue was appointed
/ distillery Waterman at SIS day. This
brother was VIGOROUSLY dissipated-
had been for years-and at the time OF
his appointment couldn't have bought q
| pilot-house with steamboats, at only a
cent dozen in the market. Yet he con-
| trived in six months to save money
enough out of IS day to buy snug
property costing SS,OOO-a pretty finan-
| cial problem worth study.
During all this time of preparation
our hero had few confidants. He work
| ed alope-in the dark. 1t is doubtful
| if the very men he employed knew each
other to be in his employ There was
| no one to betray operations. When all
was in readiness, the distillery fires
blazed night and day. The distillery
Watchmen of course saw nothing. They
were for purposes of justice; and JUS
tice is blind-so how could they see.
The inspector branded the barrels at
night. The whisky was put on the boats
at night. The boats made their trips at
night. The iock-tenders and canal Off
| Gals were all justice men, and of course
as blind as owls in daytime. The whis-
ky was run into Cincinnati at night, and
from the boats had quick transit to the
spacious Vine street warehouse. In
eight months his sales were 81, 75O,O0O-
the largest of any establishment in any
line of business in the city. In two
years from beginning operations he was
worth, at the lowest estimate, 81 600, 600,
and was known as the greatest whisky
magnate In the West, while his infiu-
ence in the politics of Southern Ohio is
felt and recognized. His story is al
most a romance of success.
In the choice of his agents, the score
cy of his plans, the magnitude of his
schemes, the audacity and prudence de-
manded and displayed, there are quail
ties developed sometimes wanting in
the Generals of armies. OF the many
marvels of the Whisky Ring, his career
has been the most marvellous. It will
hardly be expected that the present in
yestigation of his operations will
amount to much. WelLpaid agents are
almost as poor as dead men at telling
tales.