Spirit of the age. [volume] (Woodstock, Vt.) 1845-1913, 1875-05-19
The Whisl8ey Fraud3.


story is not very long one. In its
beginning it rebounds somewhat to
the honor of the press. Mr.. Fishback
owner and editor of the st. Louis
Democrat, confidentially informed Mr..
Bristow in February that, if the latter
would appoint reliable agent with
full authority to inv stigate, he him
self would give him such aid as would
expose the St. Louis whiskey ring.
Mr.. Colony, commercial editor Of the
Democrat, was thereupon thus appoint
ed, and at once began operations. All
communications were made with Bris-
tow personally, or with Solicitor Blu
ford Wilson of the treasury, it having
been discovered that whatever was
attempted through the internal reven-
ue bureau was Immediately telegraph
ed to the ring. Commissioner Doug
lass had apparently become careless
and over confident in adn. Illustration,
and frauds were going on which he
did not expect. Such ecrecy was
requisite in conducting tie investiga
tons that only a very few persons
were taken into confidence, and much
OF the correspondence was conducted
in new cipher through a citizen Of
Washington totally unconnected with
the government, In this way, legal
proofs ana matters of record were
fully obtained before an arrest was
made.
Mr.. Colony and his assistants went
to work by appointing trusty men to
watch the distillerics and rectifying
houses, and determine the amount and
character of work done after dark, all
of which is illegal. These watchmen
were many Of them assaulted and beat
en-, but enough was discovered to
piece out other revelations, which
were mainly to the amount of whisky
shipped from the city. Mr.. Colony,
to ascertain this, made an exhaustive
examination Of all the freight ship
ments by all the lines for quite a pc
riod, protessedly in his capacity as
commercial editor. These returns
show the excess of fraudulent whisky.
The fraud itself was contaminated in
various ways, all OF which require
collision on the part Of the revenue
agents.
The amount of the frauds on the
government in the non-payment of
taxes is estimated by those who have
this iniquity to have been
about Sl,2o0,0oO a year This was
the fourth year that it has been going
on, and probably $5,000,o00 will Gov
I'll the whole loss to the government.
The whisky revenue in those four
years has amounted to about $780,
900, 900, so that the frauds have been
nearly 3 per cent. This was not a
great sum to the government, but it
was a big sum to the distillers and the
rascally officials with whom they di-
vided the swag
1t is d. flicult to draw moral from
this matter, to apply to the internal
revenue service. The election Of in
ternal revenue must constitute a dis
tinct branch Of the federal civil ser.
vice, but the force apparently needs
more fexibility. There are large por-
tons Of the country in which the co..
lections are light, and where it must
remain the chief duty of collectors,
not to collect tax but to stand guard |
and see that none is evaded. There
are other sections Of the country in
which the labor both of detection and |
is large, and in those sec
tons the force and the outlay should be
1t does not follow be-
cause the secretary of the treasury has
worked up this matter personally that
the direct supervision of the service
should be transferred to him there is
too much legislation in this direction
of giving the chief finance minister
chores to do. 1t seems to us on the
contrary to prove that the secretary
ought to have just the freedom from
bureau cares which will enable him to
turn his hand first to one investigation
and then to another. to expose the
carelessness or corruption of his sub
ordinates, Or to shame and spur up
their official blindness, as Secretary
Bristow has been able to do in this
case .-Sprinadeld Republican.
BUSINESS FAILURES IN 1S75.-For
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