The Kenosha telegraph. [volume] (Kenosha, Wis.) 1860-1888, 1875-11-25
CROOKED WHISKY.
Operations of the st. Louis Ring-Startling
ExUOSure6.

The DEVELOPMENTS in the trial, at St.
Louis. of Cen John Mcdonald, ex-
Supervisor of Internal Revenue, are of a
startling nature. The evidence of Con-
duce Megrue, member OF the ring,
who turned States evidence, reveals the
boldness with which the illicit distillers
carried on their work, at the conniv-
ancelo of the Government officials. Me-
grue's story, as told on the witness
stand, is as follows:
Before coming here Joyce wrote me two let
ters, stating that he wanted to see me on bust
ness of importance to me. This was IN June,
1871. came in the latter part of 1871, and
through 1872 had conversations with McDon-
aid, who was then acting as Supervisor, with
joyce as chief clerk portion of that time and
as Special Agent part of the time. In these
conversations with Mcdonald, we spoke about
making money through illicit dlstlllng. Inc
substance was that the distilleries should be
protected in running and making illicit whisky.
on condition that they gave certain poruon OF
the taxes saved to certain parties. From about
Sept. 1. 1871, to November, 1872, collected the
money from the distillers, Bevls Frazer,
Thompson, Curran, and Ulricl, to pay to the
other parties I had talk with all the distil-
lers mentioned and assured them that they
could run in violation of law, and they would
be protected in it by the Government officers
on the conditions mentioned. / did this on
authority of Joyce and Mcdonald. The money
was collected usually on Saturday In each week.
The amounts from Ulrici varied from $4,000 to
So, 600; from Thompson, from $500 to ST. 5OO ),
from Curran, from $500 to ST. 800 from Bevis
q Frazer from SO, 500 to $4,000, the total av-
erage being about &c. 500 per week. The dis
tilIers brought it to me at my room, part OF the
time on Walnut street and part OF the time on
Fifth street. They generally brought 1t about
4 r Il. A o11Vr0 TUo1
taken out to pay Gaugers, Assistant Collectors
Assistant Assessors, and Storekeepers. The
balance was divided into five parcels
The money for subordinares was given TO
John Leavenworth, for disbursement. OF the
other five packages / kept one, Mcdonald got
the other. Joyce got the other, and the other
two were given to Leavenworth with the I'M
derstanding that Mckee got one and Ford
the other. Ulrici did not come in until 1872.
This work began in the first part of September,
1871. Macklot Thompson came In In 1917.
When came here got no further lnstruc-
tions from Mcdonald and Joyce than to tell the
distillers they would be protected In running
crooked. [ did not enter into details to tell
them how to escape discovery. Joyce was gen
orally at the Supervisors Office when l took
the money in. Mcdonald was there but sell
DOM I gave him the money only few times,
and had no doubt as to his understanding what
it was for.
AAOS ~
receive as much as the rest, and SO, on one oc-
casion I gave him (McDonald) So, 600 more
than the rest, without giving Joyce his full
one-ffth. He took it. The arrangement was
that the distillers were to retain about one
half of the pronts on crooked. We arrived
at this by the reports of the distillers, and by
reports which Leavenworth kept through the
Gaugers and Storekeepers, such reports being
required to tally. Leavenworth was an ofhcer
Gauger, etc. There was no arrangement as to
what proportion of the amount distilled should
be crooked. The tax at that time was 80 cents
per gallon, and collected on average some
3O-odd cents per gallon.
1t was the understanding at the Supervisors
office, I was informed by Joyce that Gaugers
and Storekeepers were to receive from 81 to
S.. so per barrel, but Leavenworth generally
paid them more, as much sometimes as 50 per
barrel.
NEGLECTED TO state that I always set aside a
portion of the money-part of the time 800
per week, and part of the time $500 per week
for William o. Avery, Chief Clerk of the In |
ternal Revenue Bureau at Washington. This |
increase was made at the instance of Joyce, |
who came from Washington once and said that |
Avery was complaining of not receiving |
enough money hence, we increased it to
$500 per week