The Republican journal., 1876-01-13
Developments at Chicago.

CHICAGO, Jan Z. Inc united States
Grand Jury has devoted two days to the
whiskey cases, and in that time three dis
tillers have told the story of their tempta-
ton and fall. Unusual precautions have
been taken to preserve the secrets of the
Grand Jury room from the prying public,
but Notwithstanding all the safeguards
that the officers of the law have been able
to throw around the jury, the main facts
as testified are pretty well known.
The two distilers who gave their tes-
timony were Miller and Fredericks OF the
Lake Shore distillery. This establishment
was one of the small ones, having a ca
pacity OF about 2000 gallons per day only.
Yesterday Junker. OF the firm OF Roller
Junker Il Co., was heard. The firm own
cd large distilling house in Calumet,
about twenty miles from this city, ans! a
rectifying house of equal capacity in the
city. Their daily production was between
5000 and 5000 gallons The gist of their
story is that they were gradually forced
into the Illicit trade because there was so
much crooked whiskey put on the market
from New Orleans and other points that
it was impossible for honest men to re-
main in business and make a living Re-
peated efforts had been made by the Dis
tillers' Association to break up the Illicit
trade, but they were not seconded by the
officials in Washington, and therefore the
distilers had to choose one Of two alter
natives, either to sacrifice Il greater part
OF the money they had invested in their
distilleries and 90 out of business, or 90
into the crooked business and make mon
ey, of course taking the chances of being
caught. They We're assured that the dan
ger was but slight, because the Admins
tration at Washington was not adv erse to
the manufacture OF crooked Whiskey. pro-
vided the distillerS contributed literally
of their profits to sustain it III power.
They say that an effort was made in
1870 20 organize 4 ring here. but that it
failed because the higher internal revenue
officers in the district could not be cor
rupted. Then the politicians who We're
interested had these scrupulous men turn
ell out, and then the ring succeeded
the early part of 1872. The distilers
We're heavily assessed for the campaign
Of 1872, and again in 1874, having in the
meantime contributed literally in the con-
test OF 1873 They had not q very large
margin left after paying these political
assessments and the amounts they were
obliged to furnish for the CANCERS, store
keepers and local thieves. They were led
to believe that the Administration sane
toned the violation OF the revenue laws,
because the men who managed the polit-
ical part of the business were all power
tui at Washington, and rewarded and
appointed revenue officers here at their
pleasure.
The names of the men who shared with
the distillers were given, and the amounts
paid them. The leaders Of the local poll
ticians who collected for the campaign
fund We're A. G. llesng, Miller and j.
Rehm, and the amounts paid them at va
rious times swell to tens Of thousands of
dollars The magnitude OF the crooked
business here is shown by the transactions
of one rectifying establishment, that of
Gholsen & Eastman. They received the
crooked highwines from nearly all the
distillers, taking an average of $50 bar
rels day. The amount of tax out Of
which the Government was defrauded
through these men was, according to
those figures, over $4,000, 900 per annunl.
Gholsen IL Eastman paid the distillers for
the highwnes whatever the market price
was, less the tax and twenty cents per
gallon 1t is said that these rectifiers
were allowed a credit of thirty days by
the dstillers, and when the grand raid
was made in May last they were thirty
days behind in settlements. and thus the
distillers who dealt with them are out
that much.
The friends Of lIesing. Miller and
Rehm are quite defiant, and declare that
these gentlemen will make things lively
when they come to tell their side. They
said their connection with the Whiskey
Ring was solely political, and if they are
to be prosecuted for what they did in that
way they will see that the highest in the
land are as guilty as they. Altogether
the developments promise to be mighty
interesting before the hearing is conclud-
ed. The Grand Jury now in session in
Springfield, H., has, it is said, struck a
rich lead in investigating the doings of
the Pekn Whiskey Ring John Bloom
field, who was in 1870 and 1871 Supervi-
sor of Internal Revenue, is there looking
on, and means to have something to say
before the Grand jury concludes its in
quiries. lie will implicate high officials
in Washington, and among the number
Senator Boutwell, and Columbus Delano.