National Republican. (Washington City (D.C.)) 1872-1888, 1875-05-13
FRAUDS UPON THE REVENUE

| revenue are no surprise to us or our read
ers. They are no more than we foretold
when the moieties were insanely repealed,
and We have been expecting their exposure
both in the Customs and Internal Revenue
Bureaus Of the Treasury for some months
past. When Republican Congress yielded
to the clamor of the Detective press and
passed the bill for the repeal of the moieties
at its dictation, it may be remembered that
We ceased not to warn it that the result
would be q great increase of frauds and
corresponding decrease in revenues. We
| also warned Congress that this so-called
independent press was brazen prostitute,
selling her favors alike to smuggling mer-
chants, thieviDg distillerS and monopolists
of every description. But our warnings
were UNDECIDED. We were accused of being
purchased by Butler and Sanborn, and any
and everybody except those who might be
supposed TO have sufficient of ill-gotten
| gains from which to pay US. We were
treated TO long and eloquent homilies upon
the proverbial honor of American mer-
chants, and especially that of Christian
merchants, as illustrated by Hon. W. E
Dodge.
Now, when our predictions have been
partially verified, we do not propose to put
in any claim for unusual sagacity in fore
seeing these results All we claim is that
we possess some little knowledge both of
human nature and of the practical work
ings of the Revenue Laws. The reasoning
was simple and ran like this: Informers,
as class, impart information for pay The
repeal of the moieties stripped the Treas
ury of the means Of paying for information,
and thus played directly into the hands of
the thieves. 1t practically informed the
INSCRIPTIONS distiller and importer that all
they had to do was to overbid the Govern
ment and the silence of the possible in
former was secured. Then the Treasury
Chat is, the people, the honest tax -payers,)
might be robbed with impunity.
But admitting that you are correct"
we hear some one say, land there having
"been no change in the law, how does it
happen that these frauds are unearthed
"now?" Simply because some one some
dissatisfied person who has either been re-
fused admission TO the charmed circle"
or who has reflected that robbery of the
Treasury was fraud upon himself, but
who had become incidentally or accident.
ally aware that frauds were being perpe-
trated, has had the courage to communi-
cate the fact to a Secretary of the Treasury
who had both the nerve and the ability to
act upon such information until he gagged
the game without flushing it." This is the
whole thing in a nut shell. The Secretary
found firm and consistent hacker in Presi-
dent Grant. He has not only counseled
but sustained his Secretary. And he has
done it in the only way which was left
open for it TO be done successfully.
Commissioner Douglass thought it could
be done in different manner He tried
to do it by frequent transfer of officers
from one district TO another. He proposed
this plan in his letter of Goth January,
1875. On this the order for transfer of
supervisors was issued. But the simple
PRONUNCIATION of the order developed the
strength of the combination to the view of
the President and Secretary, who perceived
that its execution would flush the game,
without securing it. At the behest of
Congressman and influential politicians
who owned them by controlling the poll
tics of their Districts the order was re-
voked. But neither the President nor the
Secretary forgot the facts or gave up the
hunt. They simply decided that they must
work outside the regular revenue channels.
They had become aware that the entire
service was tainted with an impure at
mosphere that the whisky combination
had minions everywhere; that it had
corrupted enough officers to serve it as
spies.
The ''Ring" had elected Congressman
who had secured the appointment of their
creatures as revenue officers, and the
latter were serving the Ring instead of the
Government. The revocation of the order
for the transfer Of supervisors lulled the
thieves into fancied security, and the work
went forward briskly. The market was
flooded with spirits at the old rate of sew
enty cents per gallon. The stills were run
night and day, but only the regular quanti-
ties of grain and material" and of spirits
were reported.
Meanwhile the military experience of the
President and Secretary came to their aid.
They employed the Secret Service Division
of the Treasury, ostenslbly engaged in de-
tecting and preventing counterfeits, for the
purpose of detecting crooked" spirits.
This Silent" method of silent men" was
carried to a successful issue. The informa-
ton was obtained without exciting the sus-
picons of the Ring, and when all was in
readiness and the trap was sprung, there
was no opportunity to ''cover tracks"
The men who had despoiled their fellow
taxpayers of millions were in the tolls. To
say that they were surprised would be put
ting but a very feeble expression to their
feelings. They were dumb. They could
neither move nor speak. The coup was
perfect.
But this is only the beginning of the end.
The appeal will now be made to the courts,
and experience thus far has shown that by
compromise and faulty conduct OF prosecu-
tors, lying and perjury, to say nothing of |
the interference Of members of Congress,
but little has ever been gained to the Treas
ury by means of the courts Still, we have
great hopes of better success through the
management of the present Secretary. He
is familiar with the law and the practice of
the courts. He not only has the pluck, but
he has powerful aid in the new Commits
sioner of Internal Revenue and the new
Attorney General. His Solicitor has shown
his ;sagacity and skill in the direction
of the plans carried out by the Secret
Service. These facts inspire confidence
in the future. The combination to be |
fought in the courts represents many |
millions, It will wage war of despera-
tion. 1t will command the sharpest legal |