The New Orleans bulletin. [volume] (New Orleans [La.]) 1874-1876, 1875-05-18

80 .-
grain ed nolassss distil1sriss IN that Yea
Ranged fkom lag, 5z5 10 28A. lis par month.
At ono time the excise IN was two dollar
! ~ gallon. Il Wa then scarcely possible
J collect tenth part it Fraud was the rule
} the payment Of the tax the exception. It coz
forty or fifty cents to produce q gallon Q
whisky, 30 that the premium on fraud wa
three or four hundred per cent. Afterwart
the tax was put down to fifty cents on tn
gallon. and then, because it was less profta
BILE to cheat the government the revenue wa
found to be greater when the tax was half
dollar than when it was two dollars. Then
and for years afterwards, it was seen that in
crease of excise did not increase revenue re
ceipts, but very greatly increased the profits
Of fraud.
Those who were familiar with this fac
tried very hard last winter to prevent Con-
gress from raising the tax from seventy cents
per gallon to one dollar. But the potent
Whisky Ring prevailed as usual, in spite Of
Bristow, Secretary of the Treasury, and with
the active and urgent approval and advocacy
Of Mr. Douglas, then Commissioner Of the
Internal Revenue. The usual result fol.
lowed. The larger tax produced decreased
revenue.
| At length it became apparent that vast
quantities of whisky were sold in the Eastern
cities which paid no tax in every principal
city Of the Union, New Orleans not excepted.
Satisfied that frauds of gigantic extent were
perpetrated, measures were inaugurated to
detect the swindlers
Mr.. Bristow first ordered all the SUPER
visors of internal revenue to change districts,
but owing to the influence Of the Whisky
Ring operating through MI. Douglas, the
order was revoked. Yet, not baffled, Mr.
Bristow instituted course Of Investigations,
beginning some time in the latter part Of
February, which have led to the exposure of
the gigantic frauds above noted.
We abbreviate an account Of his modus OBJ.
erandi:
A gentleman familiar with the wild whisky
business was first set at work in St. Louis,
and allowed to acquaint himself with the pro-
duction of the various distilleries. He
watched them very closely and accumulated
. great deal of evidence, which satisfied the
Solicitor that the whisky men were kept accu-
rately informed of everything that transpired
in the Internal Revenue Bureau at Wash
ington.
Mr.. Colony, the special agent thus employ
ed in st. Louis, was next directed to look
and to make reports of the weekly and
monthly shipments. Having had some con-
nection with the newspapers of that city, he
was enabled to do this without exciting any
suspicion. All this was all well enough, but
it did not develop anything Of special import.
ance. Finally, one Of the Wholesale dealers
in st. Louis who had heretofore furnished
the department with information, wrote to
the Secretary concerning Q suspicious transac-
ton Of one of the large recti6ers. He said
that few days before the date of his letter,
this rectifier came to him and purchased on
margin fifty barrels of whisky to be delivered
in thirty or sixty days. There was nothing
unusual about this, but as the purchaser was
leaving he said carelessly, II wish you would
just enter these fifty barrels on your books as
sold to me-"
Now, all wholesale dealers are required to |
keep books which are prescribed by the de- |
partment. They are blanks prepared to |
show the following particulars of every lot of |
whisky received and sold by the dealers, viz:
The date at which it was received; from |
whom received; by whom produced; where |
produced; whether consigned or sold; the |
serial numbers of the cask marks; of the |
stamps; the contents shown by Marks the
contents shown by gauger; name of spirits;
the names of gaugers, etc. When a lot of
whisky is sold similar entries have to be
made on these blanks; but the law says this
shall not be done until it is actually delivered
The wholesale dealer, above referred to-
promised to make the entries as requested by
The rectiier, and did so, but notified the Sec
rotary, telling him at the same time his sus-
oicions that there was something wrong about
t. This letter was turned over to the So
icitor, who now brought his reserves into
operation.
Other agents and detectives were Joined
With Colony. One was to watch the distil-
cries Of Chicago, count the barrels taken to
he bonded warehouse, and count the loads
md bushels of grain daily received. The
aw requires that every barrel taken out of the
istern room of the distillery shall be en-
cred, and every barrel received in the bonded
attached thereto must also be en-
cred, and of course the two books must tally.
'ut one OF the ways of defrauding the Gov
rnment is to buy up the gaugers, storekeep-
rs, and only one-halt the number Of barrels
AAeu OUT are returned. Inc OBJECT OF
'rooks's watch was to detect frauds of this
ind.
Another detective watched the shipments
whisky, where they came from and where ]
hey were sent. In cases of large quantities
Q took copies of entries in the books of ship T
ers and consignees
The information which had been conveyed
y the Wholesale dealer in St. Louis proved
} be of the utmost importance. It was the
ey which unlocked system of fraud. Col
ney was directed to examine the returns of
le rectifers, and see what notice he had
wen ct time of this purchase. All rectifers =
. required by law to fill up what is.known
Form No 1872 which is notice of intention
rectify the number of packages specified b
erein. On this Form No. 1872 the rectifer O.
required to enter serial No. of casks; serial p
Q. Of stamp; contents as shown BY marks: s