New-York tribune., 1872-09-28
REVENUE FRAUDS.
now TIE SECRETARY OF THE INTERIOR
PUNIsHEs TRANsGRESSORs.
vr~r,,r ,7rr,rprs TO ENFORCE THE REVENUE
IAys-P0rrrICs AND WIuSKY-oNERLOoN-

~
TAys-PoI1rECs AND WIuSKY-oNERLooh-
ING A FELONY.
10 me razor Of The TrtbEhe.
,1p. Tho following narrative of the suspicious CON
5ue Of Commissioner Delano, in connection win an
extraordinary series OF revenue frauds az Noo,e'
offered as a text upOn which Mr.. secretary OF the
Interior Delauo may lind it convenient to offer Anew
remarks the next time ho makes stump speech ior
Grant;
n, 1+fhof July. 1868 information was commu-
cic,ted e 4 Rollins Commissioner, and to Thomas
Harllud and George ParnelL Deputy Commissioners
of Iut-rual Revenue at the Otce OF the Commls-
souer of Internal Revenue, IN the City OF Nashing-
ION in q formal manner by Z. f, Hammond, ex-
Ins,sctor Of Customs for the port of Mobile, Ala
hama % the following effect That some time IN
january or February. 1863, pretended shipment OF
1866 barrels Of whisky, and 99S packages of tobae-
co was made from the port of Mobile, Alabama, TO
Tamp.co Mexico, ~ schooner Ann ID. The Govern
men, tax on these goods amounted, In the aegre-
gate 30 81 0i2 IS. The export bonds required by
law were sicned. one by David Gibson and Peter
Schwab. covering the value of 1,045 barrels of
whisky; the second by J. c. Forbes and
l. Parkman: the third by J. Richard
son and c. P. Thornton, and the
fourth by j. Harbele and L. Walker, making in the
aggregate SS74Os2 Sc. The goods were alleged to
have been taken from the bonded warehouses Of
meat was made TO cover the following lots of goods
supposed to have been sold in violation of the pro-
visions Of law at points remote from Mobile, as
shown 10y the transportation bonds relating thereto
VIZ: 4O5 bbls whisky, by Emil Block, Cincinnati;
S37 bbls whisky by Sol. Hoifheimer, Cincinnati;
1.O4s bbs. whisky from the bonded warehouse OF
joseph W. Cheesman Cincinnati; 25 bbls. whisky
from some Kentucky distillery unknown, as no
transportation bond could be foundl theremainder'
80 bbls, came from various parties IN Mobile. 1t
Ilay be safely assumed that a fictitious own
ersbip was exhibited in all these different
lots, as a precautionary means adopted by the real
owners TO evade the responsibility of their criminal
acts for subsequent investigation has shown that
the ownership of the 04s barrels Of whisky was In
David Gibson & Co. of Cincinnati and the tobacco
is shown TO have gone through the same transforma
t0n and pretended ownership the whisky,
These are in substance the leading facts IN this
case, given 10y Mr. Hammond to the officers OF the
Internal Revenue Bureau. Commissioner Rollins
decided that as the case involved certain matters
pertaining to the Customs Bureau of the
Treasury Department, il ought 10 60 there
for consideration. On the oath of July
1868 John " Lord called upon Secretary McCul-
loch for the purpose Of laying this before him.
and gave the Secretary a plain narration Of the
facts. so far as they had been developed at that
time The Secretary manifested great interest IN
Under the direction of Mr.. Guthrie Special Agent r.
5. Sploul and Assistant Special Agent John W.
Lord we're sent TO Mobile TO examine into the case
They arrived ia Mobile on the 10th of August, and
the result Of their Investigation is embodied in the
report Of MI Sproul which placed on file in the
Treasury Department Aug. p, 1868 This report fully
sustained the statement made by Mr. Lord TO the
Secretary. and was accompanied by the proof
From that time TO the 22d Of October 1t lay undis
tuf5ed l the Treasury Department, in the hands Of
Edward JOurddu. the Chief Law Officer of that de
partment. On that day, Mr.. Hammond called upon
Mr. Jourdan TO ascertain what action had been
taken iu the case, and informed that compro-
mise was about TO be effected that would be satisfac
tory to the Government and Mr. Hammond Mr..
Lord asked to see me report of Mr. Sproul and was
told that all the papers were in the hands of Mr..
Jourdan's Assistant, Gov Parsons of Alabama, the
Collector of Mobile. a relative of Mr.. Elmore, and
uotoriously the Agent and Attorney OF the Mobile
Ring.
Mr Hammond called again on Mr.. Jourdan, the
2Cth and was informed that these unrepentaut Grim
ipals had offered $4,000 to COMPROMISE The re-
rIv made bv MI Hammond was that if this case, in
volvng a robbery of the Government of SlSI0O0,
was settled for this comparatively Insignificant
there would he trouble about it. Mr. Jourdan then
decided officially that the case should 60 to the In
ternal Revenue Bureau for investigation aud settle
meut
About the 1st Of November 1sc8 the case was sent
10 the Internal Revenue Bureau, where 1t remained
for about two months without action, although fire.
ouently urged by Nj. Hammond. BecOmlngwearied
with this unnecessary delay, Messrs. Cook & Bur
CESS attorneys at Washington were employed 20
rsure,ent Hammond. who claimed the infOTner's
muieties When Mr.. DelanO became Commissioner
of Internal Revenue. be was waited upon imme-
diately by Burgess Hammond, and Lord, and gave
them his positive assurance that this case should
receive his immediate and thorough attention and
that the Offenders should be arrested and brought
10 trial
He repeated these assurances at frequent intervals
during the next three months in reply 10 their so-
Ecita,ious for his official action. In the meantime
however Mr Delano discovered that one county in
Ohio was entirely under the control politically of
David Gibson and Peter Schwab. year passed
away without anything being done. At the end of
that time Hammond finally obtained leave TO pro-
ceed % NewYork, uader the sanction and authority
Of he Revenue Bureau, take such action relative
60 one W. T. C0wie, an ex-InspectOr Of Internal
Revenue at Mobile and a participant in these
frauds. as circumstances might justify.
Coyvie was arrested June Il, 1862 but was subse-
rucptIv released upon disclosing under OATH his
l1ow.edle of the frauds and, under the written in
srructions and authority Of Commissioner DeanO,
he was accepted as a witness for the Government
Els deposition shows that he shared III the mod
crate number of Cl violations Of the Revenue laws
while holding an official position under the Govern
r.eut for the space OF a few months.
About q middle Of August, 1869, Mr. Hammond
and MI Burgcss went 10 Cincinnati, and arrested
David Gibson on a criminal charge. and d. WAS
placed under bonds Of $500 to appal4 at tic