The Rutland daily globe. [volume] (Rutland, Vt.) 1873-1877, 1875-11-18
WHISKY FRAUD REVELATIONS.

How the St. Louis Ring Thrived-And Gov
their Nests.
Tie trial of ex-Internal Revenue Super
visor Gen. John d. Mcdonald was begun
in the United States district court at st.
Louis, Tuesday. The principal witness.
was G. G. McGrue. lie told a plain,
straightforward story of his connection
with the st. Louis ring and the manner in
which the frauds we're managed, the main
points Of which were as follows: | came
to st. Louis in June, 1871, and remained
until November, 1872 had repeated con-
versations v 18th Mcdonald and Joyce about
making money out of Illicit distilling, the
substance of which was that the distillers
should be protected in making crooked
whisky, on condition that they should give
certain part of the taxes saved to certain
parties. From September l, 1871, to No
vember, 1872, collected the money from
the distillers, Brois g. Frazer, Thompson,
Curran and Ulrlci, to pay to the other par
ties. ! had talk with all of the distillers
mentioned and assured them that they
could run in violation of the law and they
would be protected by the government Of
ficers on the conditions mentioned. / did
this on the authority of Joyce and Melon
aid. The money was collected usually on
Saturday of each week, the amounts COL
lected from Ulrici varying from $4,000 to
$4,000; from Thompson and from Curran
each from $500 to $500; from Brois &
Frazer from $4,000 to $4,000, the total aver
age being about $500 per week. The dis
tillers brought 1t to me at my room, gener-
ally about noon, and disbursed Il, A Ger
tain sum was taken out to pay the gaugers,
assistant collectors, assistant assessors,
and store-keepers, and the balance was
| divided in five parts. The money for the
subordinates was given to John Leaven-
worth for disbursement. Of the other five
packages kept one, Mcdonald got one,
Joyce got one, and the other two were
given to Leavenwort with the understand
ing that Mckee got one, anu Ford the
other. This work began in the first part
of September, 1871. Mcdonald complained
once that Joyce ought not to receive as
much as the rest, and so on one occasion
gave him 50, 900 more than the rest, with
out giving Joyce his full one-fifth. BY
the arrangement the distillers were to re-
tain about one-half of the profits on the
crooked whisky. Lesvenworth was q
gauger, and part of the time sas a store
keeper. The tax on whisky at the time
was so cents per gallon, and | collected
about 30 cents per gallon. 1t was under
stood at the supervisors office that the
gaugers, store-keepers and other subordi.
mates were to receive from 81 to 81 so per
barrel, but Leavenworth generally paid
them more. l took the money for the
main members of the ring to the supervi-
sor's office, aud there was no particular
disguise about my delivering it there.
always set aside 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 internal revenue
bureau at Washington. The increase was
made at the instance of Joyce, who came
from Washington once. and said tina,
Avery was complaining Of not receiving
enough money; hence we increased it tc
$500 per week.