New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1870-06-12
PETE" Sch w AB'0 WHISKH
RING.
A Strange Story OF Revenue Frauds-Can
II All be TrueS
From the Nav York Tribune

CINCINNATI, May 20. "A uoy Va wv IS" @
dispatch from this city announced with tel
egraphic breyitV the arrest of three per
sons, charged with whisky and revenue
| frauds extending over two years, aud az.
gregating So 600, 600. To New Workers this
dispatch conveyed nothing of more than
passing interest; but to the knowing few it
was the sequel to a story of marvellous sue
cess 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, a cit
izen Of Hamilton, Butler county, flourish
ing manufacturing city, twenty-five miles
north of Cincinnati. Seven years ago
Schwab was a poor and industrious m =
chanic, earning daily wages, with
IN sIHs s be1o omy ba add works , a RS the
ordinary competence of an artisan. The
country was, and is still, Democratic
stronghold, anc schwab one Of tie
irmest adherents of uHterrifed faith.
In 1868 he was rewarded for his party
devotion by election to the office OF
constable, and the sun OF his prosperity
rose. He organized ring. and, by
inal costs. made his Office pay him at the
rate of $4,000 year, whereas 1t had
scarcely been worth rs many cents to his
stupid predecessors. who had served war
rants and chased horse thieves ever since
the days of Symmes's purchase, in ignorance
OF the rich mine they were neglectlng. In
short, Peter managed to save about So 900.
and his success was only checked by the
passage of law expressly framed by the
Legislature at its next session to meet the
propensities of like ingenious constables.
Schwab had by nature, plenty OF nerve;
and having acquired by art SIC 600 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 Illinois. In short time he
was back home, with no money, but the
holder of 100 600 gallons Of whisky, on
which he had paid ten cents gallon margin
with his $4,000. Just in the nick of time
for him, Congress clapped on the additional
tax of 50 per gallon, and Peter found him
self the winner of a snug 100000 on the
10000 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 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, connect |
ing the lakes at Toledo with the Ohio at Gin |
cinnati, and 202 miles in its entire length, |
Along this line are numerous distilleres. |
Schwab went to work quietly. He showed |
great discernment in the selection of his |
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 time difficult to say |
whether he was not running the revenue
department in that section himself. He |
also had the rare gift Of talking a great
deal and talking very frankly, and yet not
hat Nod f,1rr, col
his serious disadvantage. detective swore
in a trial before Judge Leavitt that Schwab
once told him that if he wished he could
''sit on pile of five.tweDties and cut the
That was all the detective had
to snow for come weeks OF hard trial to trap
Peter, and he couldn't swear what that ex-
preston really meant. 1t was the nearest
anybody ever came to getting any criminal
committal out of him.
But to return to the distilleres. One BY
one q controlling interest in those along the
inc of the canai 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 these dis
,illeries were won over. or removed and re-
placed by new men. The lock-tenders and
,ther officials, whose duty it was to scruti-
lize the manifest of passing boats, were
AIKEN from their posts and others substl-
uted, through some unseen and mysterious
The distillery watchmen
md inspectors were either personal friends
,r men who could be trusted. In one in
stance the brother Of COLLECTOR of revenue
vas appointed distillery Waterman at SIS a
lay. This brother was notoi .ously dissi
)ated-had b en- for years-and at the time
If his appointment couldn't have bought a
blot. house with steamboats, at only cent
dozen in the market. Yet he contrivcd in
tx months to save money enough out Of IS
day to buy snug property costing 5000
pretty financial problem worth studying.
During all this time of preparation our
zero had few confdants. He worked alone,
u the dark. tits doubtful if the very men
e employed knew each other to be in his
mploy. There ives no one to betray opera
ions. When all was in readiness, the dis
illery fires blaZsd night and day. The dis.
illery wstchmen, of course, saw nothing.
hey we're for purposes of justice, and JUS
ice is blind-so how could they see. The
Inspectors branded the ba, .eis at night.
he whisky was put on board the boats at
light. The boats made their trips at night. :
he lock tenders and canal officials were all
astice men, and of course, as blind 90 owls
innati at night, and from the boats had
uick transit to the spacious Vine 6
treet warehouse. In eight months i
is sales were S1,750, 0OO-the larg st
f any establishment in any line of i
usines in the city. In two years from b. r
inning operations he was worth, at the ;
,west estimate, 100000, and was known
5 the greatest whisky magnate in the W st, I
lille his influence in the politics of South :
RI Ohio IS felt aud re ;ognized. His story Z
almost romance of success. ,
In the choice of his agents, the SECRECY of r
is operations, the depth of his plans, the +
sgnitude of his schemes, the audacity and r
rudence demanded and displayed, there :
re qualities developed sometimes wanting
the Generals of armies. OF the many :
arves of the whisky ring his career has r
cen the most marvellous. 1t will hardly be :
expected that the present investigation of
is operations will amount to much. Well g
aid agents are almost as poor as dead men
telling tales.
Her Own Avenger. G