The Baltimore County union. [volume] (Towsontown, Md.) 1865-1909, 1870-06-25
Romance of the Whisky Ring.
A letter from Cincinnati relatea the fnllnwil

A letter from Cincinnati relates the following
strange story day or two ago despatch
from this city announced with telegraphic brevity
tne arfest OF three persons, charged with whisky
and revenue frauds extending over two years,
aN aggregating $3,000,0 900. To New-Yorkers
this despatch conveyed nothing of more than
passing interest but to the knowing few it was
the equal to the story of marvellous success and
ingenious triumph. Of success having its rise in
nothing, and of triumph over the most persistent
efforts of revenue officials for the detection of
fraud. One of the persons named was Peter
Schwab, citizen of Hamilton, Butler county, a
manufacturing city, 25 miles north of
Cincinnati. Seven 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 county was, and is still a
Democratic stronghold, and Schwab one of the
frmest adherents of unterrifed faith In 1868
he was rewarded for his party devotion by cleo
ton to the office of Constable, and the sun of
his pospt ity rose. He organized Ring, and,
by shrewd twisting of the law relative to Criminal
Costs, made his office pay him at the rate ofSl5,-
600 ayear, 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 Symmes's purchase, in
ignersDce Of the rich mine they we're neglecting.
In shor. Peter managed to save abnEt $4,000,
and his success was only checked bJ the passage
of law expressly framed by the Legislature Mt
its next session to meet the propensites of like
ingenious constables.
Schwab had, by nature, plenty of nerve and
having acquired by art $40, 900 capital, he de-
termined to back his natural nerve with his arttul
capital. He put his money in his pocket and
went into Northern Ohio, Indiana, and Illinois.
In short time he was back home, with Eo
money, but the holder of 100000 gallons of
whisky, on which he had paid 10 cents gallon
margin with his 500, 900. Just in the nick of
tune for him, Congress capped on the additional
tax of 50 per gallon, and Peter found himself
the winner of snug $4,000 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, 10 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 county runs the Miami Canal
connecting the lakes at Toledo with the Ohio at
Cincinnati and 2O2 miles in its entire length.
Along this line are numerous distilleries Schwab
went to work quietly. Heshowed great discern
ment in the selection of his agents. His men
never betray ed him, and he always stood by
them in case they go: into any snarl with the
revenue officials Indeed, it was for 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 rot saying any
thing that anybody could turn to his serious
disadvantage, A detective swore in a trial before
Judge Leavitt that Schwab once told him that
if he wished to he could ''sit on a pile of Five
Twenties 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
anybody ever came to getting any criminal COM
initial out of him.
But to return to the distilleres. One by one
controlling interest in those along the line OF
the canal was bought up, until this individual
Ring conducted the operations of most Of them
between Troy and Cincinnati. One by one the
old managers of those distilleries were won over,
or 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 substituted,
through some unseen and mysterious recolnmen-
dation. 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
watchman at $5 day This brother was
notoriously dissipated-had been for years-and
at the time OF his appointment couldn't have
bought pilot-house with steamboats, at only a
cent dozen in the market. Yet he contrived in
SIR nJtitns-to sSi money enough out of 55 a
day to buy snug property costing $S, ,000--a
pretty financial problem worth study.
During all this time of preparation our hero
had few confidants. He worked alone-in the
dark. 1t is doubtful if the very men he employ ed
knew each other to be in his employ. There was
no one to betray operations When all was ia
readiness, the distillery fires blazed night and
day. The distillery watchmen of course saw
nothing. They were for purposes of justice and
justice is blind-so how could they see. The in
spectors branded the barrels at night. The boats
made their trips at night. The lock-tenders and
canal officials all justice men, and Of course
as blind as owls in daytime. The whisky 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,
$50, OOO-the largest of any establishment in amy
line of business in the city. In two years from
beginning operations he was worth at the lowest
estimate 81 1000, 900, and was known as the
greatest whisky magnate in the West, while his
influence in the politics of Southern Ohio is felt
and recognized. His story is almost a romance
of success.
In the choice of his agents, the secrecy of his
operations, the depth of his plans, the magnitude
of his schemes the audacity and prudence de-
manded and displayed, there are qualities de-
veloped sometimes wanting in the Generals of
armies Of the many marvels of the Whisky
Ring, his career has been the most marvellous. 1t
will hardly be expected that the present investiga-
ton of his operations will amount TO much Well
paid agents are almost as poor as dead men at
telling tales.