The New York herald., 1875-11-19
THE WHISKEY FRAUDS.
Important Developments on
the Trial Of Mcdonald.
IMPUTATIONS on PROMINENT OFFICIALS.
The Modus 0perandi as Described
BY Crooked Operator.
THE RINGS FRIENDS AT COURT.

sr. LOUIS, Mo-, Nov. IS 1878
Additional papers have como TO light here showing
the difficulty there is in securing any action by the
Washington authorities against the ring here previous
TO Secretary Bristow taking the matter in hand In
December, lS73 S b Robbins, OF this city, wrote to
the Commissioner OF Internal Revenue exposing the
frauds ofBevs, Frazer Co. one OF the largest firms
now under indictment He received the following
reply
LETTER rRoM THE COMMISSIONER.
TREASURY DEPARTMENT,
OFFICE OF COMMISSIONER OF INTERNAL REvkyUE
WASHINGTON, Jan. 9, 1874
srR-Your letter of 2lst ult in regard TO alleged
frauds committed by Bevs, Frazer & Co, ST. Louis,
has been received The District Attorney finding the
matter somewhat involved, reported TO this office his
inability 10 add TO bis other duties that Of detective
aud the matter is now in the hands OF John Mcdonald
ESQ., supervisor OF Internal Revenue St Louis tor in
Very respectfully
H @ ROGERS, Deputy Commissioner
This letter has new significance from the testimony
given by two witnesses the Mcdonald trial TO day
to the effect that they had been shown letters tee
grams from Washington, signed by Mr.. Rogers imply
ing that he was IN the Ring and OF its operations
Another witness named District Attorney Patrick as
of those who received money from distilers This
case, which Patrick declined investigate because il
somewhat involved, and he could not act as de-
tective, was turned over to Supervisor Mcdonald by
Solicitor Charles Cheeey, theh acting Commissioner BY
THE FOLLOWING LETTER.
TREASURY DEPARTMENT,
OFFICE INTERNAL REVENUE
WASHINGTON, Dec 81, 1874 ]
JonN MCDONALD Supervisor, St Louis:-
SIR-Enclosed please find copy OF communication
from District Attorney Patrick IN reference 70 alleged
frauds committed by Bevls Frazer l. Co. OF ST Louis
The District Attorney, finding the matter somewhat
involved reports that he is unable to add his other
duties that OF detective, and the responsibility OF
further following up the clews hand seems
properly 70 devolye & upon YOU Very respectfully,
CHARLES CHEELEY, Acting Commissioner.
The Grand Jury also have a copy OF the following
affidavit filed by Special Agent Yargan with Commis-
sioner Douglass in April 1874 showing that another
agent, B. P Brasher, under indictment here had
made propositions blackmail ST Louis distiers In
spite of this evidence from this trusted officer Of the de-
partment Brasher was retained in service eleven
months The influence which held him there was that
ofexsecretary Delano. his John and confederate
of the latter
THE AFFIDAVIT.
DISTRICT COLUMBIA
Cry OF WASHINGTON, So.
Homer T Yargan, being duly sworn according to law
deposes and says-That he is employed Internal
Revenue agent in the service OF the United States
Treasury Department. that in August, 1872, while on
official business at ST. Paul. Minn., he met B. p
Brasher who was there employed as Internal Revenue
agent, and that SAID Brasher did, at that tme
make a direct, distinct and unmstakable propo
sition to blackmail" distillers IN ST. LOUIS
Brasher said he knew of extensive frauds
on the revenue by dlstillers of that city and
that If he (Yargan) would commence examination of
their books he tBrasher) would say to them the ex-
animation could be stopped If they would pay certain
sum OF money Brasher said he believed 81, 900 or
$4,000 could be made in this way and that he in
tended TO make all he could in this way while in the
service. HOMER T. YARGAN
Sworn TO and subscribed before T. J. GARDNER, Jus
tice Of the Peace, 9th April, 1874
In correspondence which passed between John
Delano and Joseph W. Dwyer in regard Brasher, it
stated that Brashcr be kept in service at all
hazards because he knew too much. Two witnesses
have to-day that they had been shown letters
and kilograms from Washington
BABcocR
"Bab." and Avery, which used by Joyce to ex
money and that the dIstilers paid money which
went McDonalds hands to take to Washington for
the official parties there interested
From all that be ascertained the Grand Jury has
yet able satisfy itself that any OF the letters
kilograms actually written sent by General
Babcock, and further investigation in this branch of
the subject in progress Mr. King, OF the Washing
ton Office OF the Western Union Telegraph Company is
here in charge of all dispatches of which the
Grand Jury has heard and which have been obtained
through process OF tho Court II is under
stood that the Secretary OF the Treas
ury and the Attorney General here used
all the influence they could consistently
prevent haty action based partial testimony
in OF any charged before the Grand Jury with
completely in these frauds At the time the most
searching and thorough investigation OF every cew is
insisted upon by the officers named There is general
belief here that the Grand Jury will take some steps
looking compelling those officials of the Internal
Revenue Office in Washington who so often ad-
vsed of frauds here and who took efficient steps to
stop them, 10 answer for their neglect
THE INTENSE EXCITEMENT
McDonalds trial is the increase since It seems
tha vhnla q
sense trial OF all concerned.
EXCITEMENT OVER THE TRIAL OF MDoNA1D--
STARTLING DEVELOPMENTS YET TO COME
rHE CROOKED wHIsKEY OPERATIONS DE-
scRIBED.
ST. LouIs, NO., Nov ls 1878
The proceedings Of to-day the trial OF ex Supervisor
Mcdonald have excited extraordinary interest and
the general opinion is that the bottom OF the official
corruption and private rascalty involved in the mon
Ring has not been reached that more start
ling developments are yet to come. The testimony
ELECTED to-dly involves number OF individuals not
heretofore implicated. great sensation was
created by he testimony OF Engeke that Colonel
William Grosvenor received 81 O0O while editor of the
Democrat, io suppressng articles against Con Nc
CURE, who was then the republican nominee for
Mayor. This taken with Colonel Grosvenor's history
OF the Ring, published IN yesterdays HERALD excites
curious comment another sensation was created by
the testimonyinvolvng Stison Hutchins well known
democratic pelitican and member OF the Legislature
Hutchins is editor OF the Times paper wnIcn has
lately made open and bitter war on the Ring Public
excitement was never great and there perfect
rush for soatsin the court room, eager the
people. The most important evidence adduced to-day
was that OF hrnet IL Engelke one OF tho wcalthiest
rectinors in he West synopsis OF tho most impor
tant passagess appended. He testified -
ENGELKR's TESTIMONY
have resiled In St Louis Tor ten years; my busi-
has beer that OF since 1870 our establish
ment was coed for the 10th OF last May; know
Mcdonald, CD Megrnc and Joyce; did rootfying
business OF half million dollars per year; had
several CONVERSATIONS with Joyce in 1871 relative
to our hahlng Of Illicit spirits; | proposed
TO go out business az time some officers
were cxpcccl and my partners weakened somewhat
went TO Leavnworth and he sent me to joyce who |
assured me that no harm could come to u.s. as wo were