National Republican. (Washington City (D.C.)) 1872-1888, 1875-05-13
Frauds Upon the Revenue.

from tue uaLcLLSsl
Our special dispatches furnish the details
of the most extensive and successful system
of frauds upon the revenue Of which there is
any record since the imposition of the tax
upon distilled spirits. The action of the Gov
eminent eliminated in the seizure yesterday
in St. Louis, Chicago and Milwaukee of six
teen extensive distilleries and sixteen retifying
establishments, and it is probable that addi-
of the country.
For a long time it has been apparent to the
trade who paid their taxes and did an honest
business that the payment of taxes was largely
eyaded, and upon Mr.. Bristow's appointment
as Secretary of the Treasury steps were taken
to supply him with information. He at once
became satisfied that extensive frauds were
being practiCed, and he promptly set to work
to discover them. Having decided upon his
plans, he laid them before the President, who
heartily co-operated with him in the under
taking. The President, Secretary Bristow and
Solicitor Wilson, alone of the Department
officers, were in the secret, which they kept
closely, while the field of operations was
worked vigorously.
Having detected the frauds and got ready
for action, 1t was deemed advisable to procure
a new head for the Bureau of Internal Rev.
enue. This accounts for the sudden removal
of Commissioner Douglass. We are informed
that the personal integrity of Mr.. Douglass
was not suspected, but he was not efficient,
and his surroundings were bad. 1t was found
that there were no secrets in the Department
from the 'whisky ring" so-called, and that
every move against the thieves was promptly
communicated to them. Secretary Bristow,
instead of attempting to discover the leaks in
the Department, proceeded to organize outside
for the discovery of the frauds, leaving the
former to be attended to at more convenient
season. The season for this important part of
the business is now at hand, and with the ia
duction of ex-senator Pratt there will, no
doubt, be important changes in the Internal
Revenue Department, and most likely in the
Treasury Department also. The President and
Secretary Bristow are on the war path, and,
startled as they are by the disclosures which
implicate many officials, clean sweep will be
made of every man in the service who has been
mixed up in any way in this business. 1t is
likely that a good many special agents and
supervisors will also receive their walking
papers. Where there has not been positive
fraud there has been clearly neglect of duty,
and one will be likely to prove as fatal as the
other to the official head. The fact that special
agents were sent from the East to st. Louis,
Chicago and Milwaukee to execute the orders
of the Secretary in the final movement indi
Gates the strength of the Generalization among
Western officials.
Commissioner Douglass, In tavoring an in
crease in the tax on whisky, said that owing to
the perfect system ia his Department high
tax could be strictly collected, provided the
officers were honest. The laws and checks
were no doubt very well, but laws and checks
will not collect the taxes, and the facts now
exposed show that officers are not always to be
depended upon. From the details of these eX-
posures it is found that forty per cent. of the
stealings was paid to officials. Here is a ire
mendous fund with which to corrupt men, and
nothing short of the greatest vigilance on the
part of the Government will prevent repeti-
ton of the frauds now SO thoroughly and so
successfully exposed. There must, in other
words, be a far more efficient officer than Com
missioner Douglass has proved himself at the
head of the Department, and a much more
summary way Of dealing with inefficient or
suspected persons than has heretofore been
practiced.
The question will now cUme upas to punish
ment. It. will not do to merely dismiss the
corrupt officials, or to inflict a money penalty
only on the distillers and rectifers. If frauds
are TO be stopped and criminals punished, the
penitentiary must be used.
But the President and Secretary do not need
to be urged, we presume, upon this point.
Enough has been brought to their own knowl-
edge to show the necessity for severe treat
ment.
The country will rejoice to have additional
evidence Of the fact that there is now man
at the head Of the Treasury Department who
knows what he is about, and knowing 1t is not
afraid to perform. 1t is also gratifying to
know that this able, fearless and incorruptible
Secretary has the full confidence and support